USDA awards $737K for canned potato slices, highlighting a niche in food donation commodities

Contract Overview

Contract Amount: $737,552 ($737.6K)

Contractor: Burnette Foods, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2026-04-02

End Date: 2026-07-31

Contract Duration: 120 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011244/4400002431/4100033924/POTATOES WHT SLICES CAN-24/300

Place of Performance

Location: EAST JORDAN, CHARLEVOIX County, MICHIGAN, 49727

State: Michigan Government Spending

Plain-Language Summary

Department of Agriculture obligated $737,551.8 to BURNETTE FOODS, INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011244/4400002431/4100033924/POTATOES WHT SLICES CAN-24/300 Key points: 1. Value for money appears reasonable given the fixed-price nature and duration, though specific unit cost benchmarks are needed. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are low, with a firm fixed-price contract and a defined delivery period. 4. Performance context is within the Agricultural Marketing Service's mandate for food procurement. 5. Sector positioning is within the food processing and distribution segment of federal procurement.

Value Assessment

Rating: good

The contract value of $737,551.80 for canned potato slices over a 120-day period appears reasonable. Without specific unit cost data or comparable contract details for similar food commodities, a precise value-for-money assessment is challenging. However, the firm fixed-price structure generally provides cost certainty for the government. Benchmarking against commercial wholesale prices for canned goods could offer further insight into the pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was open, specific sources may have been excluded for defined reasons. The presence of 13 bidders suggests a healthy level of interest and competition for this food commodity. This broad participation is generally positive for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The robust competition among 13 bidders is beneficial for taxpayers, as it likely drove down prices and ensured the government secured a favorable rate for these essential food donation commodities.

Public Impact

Beneficiaries include recipients of U.S. government food donation programs, potentially including domestic food banks and international aid recipients. Services delivered involve the procurement and supply of canned white potato slices. Geographic impact is national, supporting the distribution of food aid across various regions. Workforce implications are indirect, supporting jobs within the food processing and logistics sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Quality control of canned goods requires ongoing vigilance to ensure compliance with specifications.
Fluctuations in raw material costs for potatoes could impact future contract pricing if not adequately managed.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a competitive market for this commodity.
Defined delivery period minimizes long-term commitment risks.
Award to an established vendor like Burnette Foods, Inc. may indicate reliability.

Sector Analysis

This contract falls within the broader food processing and distribution sector, a significant component of federal procurement, particularly for agencies like the USDA. The market for canned goods is mature, with established players capable of meeting large-scale government demands. Federal spending in this area supports domestic agriculture and food supply chains, ensuring availability of essential food items for various programs.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. The primary contractor, Burnette Foods, Inc., is a mid-sized company. Further analysis would be needed to determine if small businesses are involved in the supply chain or if there are opportunities for them to participate in future, similar procurements.

Oversight & Accountability

Oversight for this contract would primarily reside with the USDA's Agricultural Marketing Service, responsible for procurement and program execution. Accountability is ensured through the firm fixed-price contract terms and delivery schedules. Transparency is facilitated by public contract data, though detailed performance metrics and quality assurance reports may not be publicly accessible.

Related Government Programs

USDA Food Purchase Programs
Commodity Supplemental Food Program
National School Lunch Program
Food and Nutrition Service Contracts

Risk Flags

Potential for supply chain disruptions
Quality assurance and compliance risks
Price volatility of raw agricultural products

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $737,551.8 to BURNETTE FOODS, INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000011244/4400002431/4100033924/POTATOES WHT SLICES CAN-24/300

Who is the contractor on this award?

The obligated recipient is BURNETTE 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 $737,551.8.

What is the period of performance?

Start: 2026-04-02. End: 2026-07-31.

What is the historical spending pattern for canned potato slices by the USDA or other federal agencies?

Analyzing historical spending data for canned potato slices reveals trends in demand, pricing, and supplier engagement. While specific data for this exact commodity is not provided, the USDA frequently procures various canned goods for domestic and international food assistance programs. Past awards might show fluctuations based on agricultural yields, program needs, and budgetary allocations. Understanding these patterns helps in assessing the current award's value and identifying any significant deviations in price or volume. For instance, if historical awards for similar quantities and quality were consistently lower, it might raise questions about the current contract's cost-effectiveness. Conversely, an increase in price could be justified by inflation, changes in raw material costs, or increased program demand.

How does the unit price of these canned potato slices compare to commercial market rates or similar federal contracts?

A direct comparison of the unit price for these canned potato slices against commercial market rates or similar federal contracts is crucial for assessing value for money. The total award of $737,551.80 over a 120-day period for an unspecified quantity of 'POTATOES WHT SLICES CAN-24/300' makes precise unit calculation difficult without knowing the exact number of units or cans. However, if the '24/300' refers to a specific can size and quantity per case, this information could be used. Benchmarking against wholesale prices from major food distributors or analyzing past USDA contracts for comparable canned vegetables would provide context. If the unit price is significantly higher than market benchmarks, it could indicate potential overpricing or inefficiencies in the procurement process, warranting further investigation into the competition or specifications.

What are the specific quality standards and inspection protocols for these canned potato slices?

The quality standards and inspection protocols for these canned potato slices are critical to ensure they meet the requirements for food donation programs. While the contract details do not specify these, federal procurements typically reference established standards, such as those outlined by the Food and Drug Administration (FDA) for canned goods, or specific USDA quality grades for fruits and vegetables. Inspection likely occurs at the point of production and potentially upon delivery to verify factors like can integrity, fill levels, absence of defects, and adherence to nutritional or ingredient specifications. Robust inspection protocols are essential to prevent the distribution of substandard or unsafe food products, safeguarding both the recipients and the government's reputation.

What is the track record of Burnette Foods, Inc. in fulfilling federal contracts, particularly for food commodities?

Burnette Foods, Inc. has a history of supplying food commodities to the federal government, including the USDA. Their track record in fulfilling past contracts is a key indicator of their reliability and performance capabilities. Examining their history for on-time delivery, product quality compliance, and responsiveness to contract requirements provides valuable insight. While this specific award is for canned potato slices, their experience with other canned goods or food items can suggest their capacity to manage this contract effectively. A review of past performance evaluations or any documented issues (e.g., late deliveries, quality disputes) associated with Burnette Foods' federal contracts would inform the assessment of risk and potential performance outcomes for this current award.

How does this contract align with the USDA's broader mission regarding food security and agricultural support?

This contract directly aligns with the USDA's mission to enhance food security by procuring and distributing essential food items. By purchasing canned potato slices, the USDA supports domestic agricultural producers and the food processing industry while ensuring that nutritious food is available for various assistance programs. These programs can range from domestic food banks to international food aid, both of which contribute to alleviating hunger and malnutrition. The procurement process itself, especially when conducted through full and open competition, also supports fair market practices within the agricultural sector. Therefore, this contract serves a dual purpose: fulfilling immediate food needs and bolstering the agricultural supply chain.

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: 123J1425B0350

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 701 S US HIGHWAY 31, ELK RAPIDS, MI, 49629

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $737,552

Exercised Options: $737,552

Current Obligation: $737,552

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1425D0048

IDV Type: IDC

Timeline