USDA awards $3.5M for frozen fruit and vegetable donations, highlighting firm fixed price contracts

Contract Overview

Contract Amount: $3,487,372 ($3.5M)

Contractor: Tabatchnick Fine Foods Inc

Awarding Agency: Department of Agriculture

Start Date: 2025-12-15

End Date: 2026-02-28

Contract Duration: 75 days

Daily Burn Rate: $46.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011095/4400002429/4100033476/PEACH FREESTONE DICED FRZ CUP-96/4.4 OZ,MIXED BERRY FRZ CUP-96/4.OZ

Place of Performance

Location: SOMERSET, SOMERSET County, NEW JERSEY, 08873

State: New Jersey Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.5 million to TABATCHNICK FINE FOODS INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011095/4400002429/4100033476/PEACH FREESTONE DICED FRZ CUP-96/4.4 OZ,MIXED BERRY FRZ CUP-96/4.OZ Key points: 1. Spending focuses on frozen fruit and vegetable manufacturing for food donations. 2. Tabatchnick Fine Foods Inc. is the primary awardee. 3. The contract utilizes full and open competition, indicating a competitive market. 4. The sector is primarily food manufacturing and distribution for government programs.

Value Assessment

Rating: good

The contract is a firm fixed price delivery order, which provides cost certainty for the government. The total award amount of $3.5M for 75 days of performance appears reasonable for the specified commodities.

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, suggesting a robust bidding process. This method typically leads to competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The use of competitive bidding aims to ensure taxpayer funds are used efficiently for essential food donation programs.

Public Impact

Ensures availability of essential food items for federal donation programs. Supports agricultural producers and food manufacturers through government contracts. Provides nutritional support to vulnerable populations through food assistance initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short performance period (75 days) may limit long-term supplier engagement.
Reliance on specific frozen fruit and vegetable products could be a constraint.

Positive Signals

Firm fixed price contract provides budget predictability.
Full and open competition suggests market responsiveness.
Supports critical food donation missions.

Sector Analysis

The Agricultural Marketing Service (AMS) within the USDA procures agricultural commodities for various federal programs, including food donations. Spending in this sector is driven by program needs and commodity availability, with benchmarks varying based on product type and market conditions.

Small Business Impact

While this specific award went to Tabatchnick Fine Foods Inc., the 'full and open competition' clause suggests that small businesses had the opportunity to bid. Further analysis would be needed to determine if small businesses were awarded subcontracts or participated in the primary bid.

Oversight & Accountability

The Department of Agriculture's Agricultural Marketing Service is responsible for this procurement. Oversight would involve ensuring contract terms are met, quality standards are upheld, and funds are disbursed appropriately according to the firm fixed price agreement.

Related Government Programs

Frozen Fruit, Juice, and Vegetable Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Short contract duration
Specific commodity focus
Potential for supply chain vulnerability
Limited visibility into subcontractor participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.5 million to TABATCHNICK FINE FOODS INC. COMMODITIES FOR USG FOOD DONATIONS: 2000011095/4400002429/4100033476/PEACH FREESTONE DICED FRZ CUP-96/4.4 OZ,MIXED BERRY FRZ CUP-96/4.OZ

Who is the contractor on this award?

The obligated recipient is TABATCHNICK FINE FOODS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.5 million.

What is the period of performance?

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

What is the historical pricing trend for these specific frozen fruit and vegetable commodities to assess if the current award represents good value?

Analyzing historical pricing data for diced frozen peaches and mixed berries from previous years and similar contracts would provide a benchmark. This comparison would reveal if the current firm fixed price of $3.5M for 200,000 lbs is competitive or if it deviates significantly, potentially indicating overpayment or a favorable deal for the government.

What are the potential risks associated with the short performance period and the specific nature of the frozen commodities required?

A short performance period of 75 days could pose risks if there are supply chain disruptions or unexpected demand surges, potentially leading to shortages or price increases. Limiting the contract to specific frozen fruit and vegetable types might also restrict options and increase reliance on a few suppliers, impacting flexibility and potentially increasing vulnerability to market fluctuations.

How effectively does this procurement mechanism support the broader goals of the USG food donation programs in terms of nutritional diversity and reach?

This procurement mechanism, using firm fixed price contracts under full and open competition, ensures a predictable supply of specific commodities for donation programs. While efficient for the awarded items, its effectiveness in promoting nutritional diversity depends on the variety of commodities procured through similar contracts. Broader program success also hinges on efficient distribution and the actual reach to intended beneficiaries.

Industry Classification

NAICS: Manufacturing › Fruit and Vegetable Preserving and Specialty Food Manufacturing › Frozen Fruit, Juice, and Vegetable Manufacturing

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: 123J1425B0360

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1230 HAMILTON ST, SOMERSET, NJ, 08873

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Other Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,487,372

Exercised Options: $3,487,372

Current Obligation: $3,487,372

Actual Outlays: $226,523

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1425D0045

IDV Type: IDC

Timeline