USDA Awards $8.1M for Canned Fruits, Primarily Peaches and Mixed Fruit, to Pacific Coast Producers

Contract Overview

Contract Amount: $8,112,800 ($8.1M)

Contractor: Pacific Coast Producers

Awarding Agency: Department of Agriculture

Start Date: 2026-02-10

End Date: 2026-06-30

Contract Duration: 140 days

Daily Burn Rate: $57.9K/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: 2000011188/4400002435/4100033761/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,PEACHES CLING SLICES CAN-24/300

Place of Performance

Location: OROVILLE, BUTTE County, CALIFORNIA, 95965

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $8.1 million to PACIFIC COAST PRODUCERS for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011188/4400002435/4100033761/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,PEACHES CLING SLICES CAN-24/300 Key points: 1. The contract focuses on canned peaches and mixed fruit, essential commodities for U.S. food donation programs. 2. Pacific Coast Producers is the sole awardee, raising questions about the extent of competition. 3. The contract value of $8.1 million is significant for this specific commodity category. 4. The sector is Agricultural Marketing Service, supporting domestic food assistance initiatives.

Value Assessment

Rating: fair

The contract value of $8.1 million for canned fruits appears reasonable given the quantity and type of goods. However, without specific per-unit cost data or benchmarks for similar large-scale food donation procurements, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition scenario. This method may not have yielded the most competitive pricing possible, as it implies certain sources were excluded prior to the final award.

Taxpayer Impact: The pricing structure, 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT,' could lead to increased costs for taxpayers if commodity prices rise significantly during the contract period.

Public Impact

Ensures availability of essential canned fruits for federal food donation programs, supporting food security initiatives. The award to a single entity, Pacific Coast Producers, concentrates the supply chain for these specific commodities. Potential for price fluctuations due to the economic price adjustment clause could impact the overall cost to the government and taxpayers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in suboptimal pricing.
Economic price adjustment clause introduces cost uncertainty.
Concentration of award to a single vendor.

Positive Signals

Ensures supply of critical food commodities.
Supports domestic agricultural producers.

Sector Analysis

This contract falls within the agricultural sector, specifically the canning of fruits and vegetables. The U.S. government is a significant purchaser of agricultural commodities for various programs, including food assistance and disaster relief. Spending benchmarks for canned goods can vary widely based on market conditions and program requirements.

Small Business Impact

The data does not indicate whether small businesses were involved in this procurement, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service. Oversight would involve monitoring delivery schedules, product quality, and adherence to contract terms, particularly the economic price adjustment provisions.

Related Government Programs

Fruit and Vegetable Canning
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Limited competition identified.
Potential for price escalation due to economic price adjustment.
Lack of transparency on source exclusion.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $8.1 million to PACIFIC COAST PRODUCERS. COMMODITIES FOR USG FOOD DONATIONS: 2000011188/4400002435/4100033761/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,PEACHES CLING SLICES CAN-24/300

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 $8.1 million.

What is the period of performance?

Start: 2026-02-10. End: 2026-06-30.

What was the rationale for excluding certain sources prior to the full and open competition phase, and did this exclusion limit potential cost savings?

The specific reasons for excluding sources prior to the 'full and open competition after exclusion of sources' phase are not detailed in the provided data. This exclusion method suggests a pre-qualification or specific requirement that narrowed the field. Without knowing the excluded sources or the justification, it's difficult to definitively state if cost savings were forgone, but limited competition generally carries that risk.

How will the economic price adjustment clause be monitored to ensure fair pricing and protect taxpayer interests against excessive cost increases?

The Agricultural Marketing Service will likely monitor the economic price adjustment clause by referencing established commodity price indices or market reports relevant to canned fruits. Contract officers will need to ensure that any price increases are justified according to the contract's specific adjustment formula and that the increases do not exceed reasonable market fluctuations, thereby safeguarding taxpayer funds.

What is the projected impact of this contract on the availability and cost of canned fruits for other federal programs or the general market?

This $8.1 million contract represents a significant procurement of canned fruits, potentially impacting market availability and pricing, especially for specific varieties like cling peaches. While it ensures supply for federal donation programs, it could reduce the overall market supply available to other buyers, potentially leading to higher prices in the broader market if Pacific Coast Producers' capacity is significantly allocated.

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: $8,112,800

Exercised Options: $8,112,800

Current Obligation: $8,112,800

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1425D0037

IDV Type: IDC

Timeline