Agriculture Department awards $101,809 for canned carrots and potatoes to Packers Canning Co. Inc

Contract Overview

Contract Amount: $101,809 ($101.8K)

Contractor: Packers Canning CO Inc

Awarding Agency: Department of Agriculture

Start Date: 2026-04-02

End Date: 2026-07-15

Contract Duration: 104 days

Daily Burn Rate: $979/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011244/4400002468/4100033930/CARROTS CAN-24/300,POTATOES WHT SLICES CAN-24/300

Place of Performance

Location: LAWTON, VAN BUREN County, MICHIGAN, 49065

State: Michigan Government Spending

Plain-Language Summary

Department of Agriculture obligated $101,808.9 to PACKERS CANNING CO INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011244/4400002468/4100033930/CARROTS CAN-24/300,POTATOES WHT SLICES CAN-24/300 Key points: 1. Contract value appears reasonable for the specified quantities of canned vegetables. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is relatively short, indicating a focused need for these commodities. 4. The award is a delivery order against an existing contract, implying a pre-established relationship or framework. 5. The product service code (PSC) is not specified, which could obscure detailed spending analysis. 6. The contractor, Packers Canning Co. Inc., has a history of federal awards, suggesting some level of established performance.

Value Assessment

Rating: good

The contract value of $101,809 for 600 units (300 cans each of carrots and potatoes) seems aligned with market prices for canned goods. Without specific unit cost breakdowns or detailed product specifications, a precise value-for-money assessment is challenging. However, the award is a delivery order, suggesting that pricing was likely established in a prior competitive process, which generally supports fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 13 bidders suggests a healthy level of competition for this requirement. A competitive process like this typically leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down the price of the canned vegetables, ensuring government funds are used efficiently.

Public Impact

Beneficiaries include individuals or organizations receiving U.S. government-funded food donations. Services delivered include the provision of canned carrots and potatoes. The geographic impact is primarily within the United States, where the food donations are distributed. Workforce implications are minimal, likely limited to the production and packaging staff at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed product specifications could lead to variations in quality.
Reliance on a single delivery order may not reflect the full scope of potential future needs.
Limited contract duration might necessitate future competitive procurements, increasing administrative burden.

Positive Signals

Full and open competition ensures a broad base of potential suppliers.
The contractor has prior federal award experience, suggesting familiarity with government requirements.
The award is a delivery order, which can streamline the procurement process for recurring needs.

Sector Analysis

The canned vegetable market is a mature segment within the broader food processing industry. Government procurement of such commodities often supports domestic agriculture and food assistance programs. Spending in this area is typically driven by humanitarian aid, school lunch programs, and other domestic feeding initiatives. Benchmarks for similar canned goods procurements would typically fall within a similar price range per unit, depending on volume and specific product type.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. There is no information provided regarding subcontracting plans. The impact on the small business ecosystem is likely minimal unless Packers Canning Co. Inc. itself is a small business, which cannot be determined from the data provided.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Agriculture's Agricultural Marketing Service. Accountability measures are inherent in the contract terms, including delivery schedules and product specifications. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Agriculture Food Donations
Commodity Procurement Programs
Federal Food Assistance Programs

Risk Flags

Product specification ambiguity
Delivery timeline adherence
Potential for supply chain disruption

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $101,808.9 to PACKERS CANNING CO INC. COMMODITIES FOR USG FOOD DONATIONS: 2000011244/4400002468/4100033930/CARROTS CAN-24/300,POTATOES WHT SLICES CAN-24/300

Who is the contractor on this award?

The obligated recipient is PACKERS CANNING CO INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $101,808.9.

What is the period of performance?

Start: 2026-04-02. End: 2026-07-15.

What is the historical spending pattern for Packers Canning Co. Inc. with the federal government?

Packers Canning Co. Inc. has a history of receiving federal contracts, primarily from agencies like the Department of Agriculture. Analysis of past awards indicates a pattern of supplying canned goods and other food commodities. The volume and value of these historical contracts can provide insight into the company's capacity and reliability as a federal supplier. Understanding the types of products previously supplied and the competition levels for those awards can help benchmark current contract performance and assess the contractor's track record in fulfilling government requirements. For instance, if they have consistently delivered similar items under firm fixed-price contracts with positive performance reviews, it strengthens the assessment of their reliability for this current award.

How does the per-unit cost of these canned goods compare to similar federal procurements?

Without specific unit cost data for the carrots and potatoes in this award, a direct per-unit cost comparison to similar federal procurements is not feasible. The total award of $101,809 for 600 cans (300 of each item) suggests an average cost of approximately $169.68 per can. This figure seems high for a single can of vegetables, implying that 'can' might refer to a larger unit of measure (e.g., a case or a specific weight). If 'can' refers to a standard 15-ounce can, this price would be exceptionally high. However, if 'can' represents a larger bulk container or a specific weight standard for institutional use, the price might be more reasonable. Further clarification on the unit of measure is needed for an accurate benchmark against other federal food commodity contracts.

What are the primary risks associated with this contract award?

The primary risks associated with this contract award are related to product quality and delivery timeliness. While the contract specifies canned carrots and potatoes, the exact specifications regarding size, grade, and processing methods are not detailed in the provided data. This could lead to receiving products that do not meet the end-users' expectations. Another risk is the potential for delivery delays, as the contract spans a period from April 2, 2026, to July 15, 2026. Disruptions in the supply chain or production issues at the contractor's facility could impact the timely availability of these essential food items. Furthermore, the short duration of the contract means that if the need for these commodities continues, a new procurement process will be required, introducing potential gaps or price fluctuations.

How effective is the Agricultural Marketing Service in managing food commodity contracts?

The Agricultural Marketing Service (AMS) generally has a strong track record in managing food commodity contracts, particularly those related to domestic food assistance and donation programs. Their experience in procuring large volumes of agricultural products ensures a level of expertise in understanding market dynamics, quality standards, and logistical challenges. The use of established procurement vehicles, such as delivery orders against existing contracts, suggests an efficient process for meeting recurring needs. However, the effectiveness can vary based on the specific contract and the diligence of oversight. Factors like ensuring competitive pricing, verifying product quality, and monitoring delivery performance are crucial. Publicly available data on contract performance and any disputes or issues can offer further insights into AMS's effectiveness in managing these types of awards.

What is the typical volume and value of canned vegetable procurements by the federal government?

The typical volume and value of canned vegetable procurements by the federal government can vary significantly based on the agency, program, and specific commodity. Large-scale programs like the National School Lunch Program or disaster relief efforts can involve procurements worth millions of dollars annually. Individual contracts, like the one awarded to Packers Canning Co. Inc., are often for specific quantities and delivery periods, making them smaller in scale. However, when aggregated across all federal agencies and programs, the total federal spending on canned vegetables is substantial. Benchmarking this specific $101,809 award against the overall market suggests it is a moderate-sized award for a specific, short-term need, rather than a large, long-term commitment.

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

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: 72100 M 40, LAWTON, MI, 49065

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

Financial Breakdown

Contract Ceiling: $101,809

Exercised Options: $101,809

Current Obligation: $101,809

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1425D0068

IDV Type: IDC

Timeline