USDA awards $7.7M for canned fruits, with Pacific Coast Producers securing the contract

Contract Overview

Contract Amount: $7,675,512 ($7.7M)

Contractor: Pacific Coast Producers

Awarding Agency: Department of Agriculture

Start Date: 2025-12-15

End Date: 2026-02-28

Contract Duration: 75 days

Daily Burn Rate: $102.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011094/4400002435/4100033470/PEACHES CLING SLICES EX LT CAN-6/10,PEACHES CLING DICED EX LT CAN-6/10,MIXED FRUIT CAN-24/300,MIXED FRUIT EX LT CAN-6/10

Place of Performance

Location: OROVILLE, BUTTE County, CALIFORNIA, 95965

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $7.7 million to PACIFIC COAST PRODUCERS for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011094/4400002435/4100033470/PEACHES CLING SLICES EX LT CAN-6/10,PEACHES CLING DICED EX LT CAN-6/10,MIXED FRUIT CAN-24/300,MIXED FRUIT EX LT CAN-6/10 Key points: 1. Contract focuses on essential canned fruit commodities for U.S. government food donation programs. 2. Awarded via full and open competition after exclusion of sources, indicating a structured procurement process. 3. Fixed-price contract with economic price adjustment suggests potential for cost fluctuations based on market conditions. 4. Delivery order structure implies flexibility in fulfilling specific program needs over the contract period. 5. Contract duration of 75 days points to a focused, short-term requirement for these specific commodities. 6. The contract value is modest within the broader context of federal food procurement.

Value Assessment

Rating: good

The contract value of approximately $7.7 million for canned fruits appears reasonable given the quantity and type of goods specified. Benchmarking against similar federal food donation contracts would provide a more precise value-for-money assessment. The fixed-price with economic price adjustment structure allows for some market volatility, which is a common practice in commodity procurement to ensure supply.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was open, certain sources may have been excluded prior to the solicitation, possibly due to specific requirements or prior performance issues. The number of bidders is not specified, but the 'full and open' nature suggests a competitive process aimed at achieving fair market prices.

Taxpayer Impact: This competitive approach is generally favorable for taxpayers as it aims to secure the best possible pricing and terms by allowing multiple qualified vendors to bid.

Public Impact

Beneficiaries include recipients of U.S. government food donation programs, likely including food banks and charitable organizations. Services delivered involve the provision of canned peaches and mixed fruit, essential for nutritional support. Geographic impact is national, supporting federal food assistance initiatives across the United States. Workforce implications are primarily within the agricultural processing and logistics sectors involved in producing and distributing the canned goods.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases due to economic price adjustment clause.
Dependence on a single awardee for a specific set of commodities.
Logistical challenges in ensuring timely delivery of perishable goods.

Positive Signals

Contract supports vital federal food donation programs.
Awarded through a competitive process, suggesting a focus on value.
Clear specifications for commodity types and packaging.

Sector Analysis

This contract falls within the broader food manufacturing and processing sector, specifically canned goods. The market for canned fruits is mature, with several established producers. Federal procurement of food commodities, particularly for donation programs, represents a significant but specialized segment of this market. Comparable spending benchmarks would involve analyzing other USDA procurements for similar food items or contracts with other federal agencies for food supplies.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Pacific Coast Producers is a large agricultural cooperative. There is no explicit information on subcontracting opportunities for small businesses within this award, though standard industry practices may involve them in the supply chain.

Oversight & Accountability

Oversight for this contract would primarily reside with the USDA's Agricultural Marketing Service (AMS), which is responsible for procuring agricultural commodities. Accountability measures are embedded in the contract terms, including delivery schedules and quality specifications. Transparency is facilitated through federal procurement databases where such awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

USDA National School Lunch Program
USDA Food for Progress Program
Commodity Supplemental Food Program
Federal Food Assistance Programs

Risk Flags

Potential for price volatility due to Economic Price Adjustment clause.
Limited duration may require frequent re-procurement.
Competition level requires further analysis regarding excluded sources.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $7.7 million to PACIFIC COAST PRODUCERS. COMMODITIES FOR USG FOOD DONATIONS: 2000011094/4400002435/4100033470/PEACHES CLING SLICES EX LT CAN-6/10,PEACHES CLING DICED EX LT CAN-6/10,MIXED FRUIT CAN-24/300,MIXED FRUIT EX LT CAN-6/10

Who is the contractor on this award?

The obligated recipient is PACIFIC COAST PRODUCERS.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Marketing Service).

What is the total obligated amount?

The obligated amount is $7.7 million.

What is the period of performance?

Start: 2025-12-15. End: 2026-02-28.

What is the historical spending pattern for canned fruit commodities by the USDA?

Historical spending data for canned fruit commodities by the USDA can vary significantly year over year, influenced by factors such as agricultural output, program needs, and budget allocations. Analyzing past solicitations and awards for similar items like canned peaches and mixed fruit would reveal trends in contract values, quantities procured, and the number of participating vendors. For instance, fluctuations in commodity prices, changes in donation program requirements, or shifts in available appropriations can lead to considerable variations in annual spending. A detailed review of USDA's Agricultural Marketing Service (AMS) procurement history would be necessary to identify specific spending patterns, average contract values, and the typical duration and scope of such procurements over the last 5-10 fiscal years.

How does the pricing of this contract compare to market rates for canned fruits?

Directly comparing the pricing of this contract to general market rates for canned fruits requires access to specific commodity pricing data at the time of award and for the exact product specifications (e.g., type of fruit, can size, grade). The contract uses a 'Fixed Price with Economic Price Adjustment' (FP/EPA) clause, which means the final price can fluctuate based on an agreed-upon index or formula tied to input costs. This makes a simple comparison difficult without knowing the base price and the adjustment mechanism. However, federal contracts often aim for competitive pricing, and the 'Full and Open Competition After Exclusion of Sources' suggests an effort to solicit bids from multiple vendors. Benchmarking against recent sales data from major distributors or wholesale market reports for similar canned fruit products would be necessary for a robust comparison.

What are the specific risks associated with the 'Full and Open Competition After Exclusion of Sources' procurement method?

The 'Full and Open Competition After Exclusion of Sources' (F&O CAES) method, while still competitive, introduces specific risks. The 'exclusion of sources' element means that certain potential bidders were deemed ineligible before the solicitation was released. This could be due to pre-qualification requirements, past performance issues, or specific technical capabilities. The risk here is that by excluding certain sources, the pool of potential bidders might be narrowed, potentially leading to less robust competition than truly 'full and open' competition. This could, in turn, result in higher prices or less favorable terms for the government. Additionally, if the exclusion criteria are perceived as overly restrictive or improperly applied, it could lead to protests or challenges from excluded vendors, causing delays and increasing administrative burden.

What is the track record of Pacific Coast Producers in fulfilling federal food contracts?

Pacific Coast Producers (PCP) is a significant player in the fruit processing industry, known for its large-scale operations in California. As a cooperative, it represents numerous growers. Their track record in fulfilling federal food contracts, particularly with agencies like the USDA for donation programs, would need to be assessed through contract performance databases (e.g., FPDS-NG) and any available past performance reviews. Generally, companies awarded substantial federal contracts have demonstrated capabilities in production, quality control, and logistics. However, specific details regarding their performance on similar USDA commodity contracts, including on-time delivery rates, quality compliance, and any past disputes or issues, would require a deeper dive into federal procurement records and agency evaluations.

How does the duration of this contract (75 days) impact the overall value and risk?

The short duration of this contract (75 days, approximately 2.5 months) suggests a specific, time-bound need for these canned fruit commodities, likely tied to immediate program requirements or seasonal availability. For the government, a shorter contract duration can reduce long-term price risk, especially in volatile commodity markets, as it locks in prices for a limited period. It also allows for more frequent re-evaluation of needs and market conditions. However, it necessitates more frequent procurement cycles, potentially increasing administrative overhead. For the contractor, a short duration might require rapid production and delivery, potentially impacting their planning and resource allocation. The risk is mitigated by the fixed-price nature for the specified period, but the economic price adjustment could still affect the contractor's profitability if input costs rise sharply within that short window.

Industry Classification

NAICS: Manufacturing › Fruit and Vegetable Preserving and Specialty Food Manufacturing › Fruit and Vegetable Canning

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 123J1425B0359

Offers Received: 6

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 631 N CLUFF AVE, LODI, CA, 95240

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Agricultural Cooperative, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,675,512

Exercised Options: $7,675,512

Current Obligation: $7,675,512

Actual Outlays: $3,388,653

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1425D0037

IDV Type: IDC

Timeline