USDA awards $519K for canned carrots, highlighting a competitive procurement process

Contract Overview

Contract Amount: $519,032 ($519.0K)

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: $5.0K/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: 2000011244/4400002454/4100033931/CARROTS CAN-24/300

Place of Performance

Location: LAWTON, VAN BUREN County, MICHIGAN, 49065

State: Michigan Government Spending

Plain-Language Summary

Department of Agriculture obligated $519,031.8 to PACKERS CANNING CO INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011244/4400002454/4100033931/CARROTS CAN-24/300 Key points: 1. The contract value of $519,031.80 for canned carrots appears reasonable given the scope. 2. Full and open competition after exclusion of sources suggests a deliberate effort to maximize bidder participation. 3. The fixed-price contract structure mitigates cost overrun risks for the government. 4. Delivery orders indicate flexibility in meeting fluctuating demand for food donations. 5. The contract duration of 104 days is appropriate for the specified delivery timeline. 6. The award to PACKERS CANNING CO INC warrants review of their past performance in similar contracts.

Value Assessment

Rating: good

The contract value of $519,031.80 for 20,000 units of canned carrots is benchmarked against similar government procurements for food commodities. While specific per-unit costs are not provided, the total award seems aligned with market rates for bulk food purchases. The firm fixed-price nature of the contract provides cost certainty for the government, indicating good value unless quality issues arise.

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,' indicating that while the initial solicitation might have had restrictions, the final award was made after a broad competitive process. With 13 bidders, this level of competition is robust and suggests that the government received a competitive price. The exclusion of sources clause may have been used to ensure specific technical requirements were met before a wider competition.

Taxpayer Impact: A high number of bidders generally leads to better price discovery and ensures taxpayer funds are used efficiently by securing the most cost-effective offer.

Public Impact

Beneficiaries include individuals and families receiving food assistance through U.S. government donation programs. The contract delivers essential canned carrot products, contributing to nutritional support. The geographic impact is national, supporting food banks and distribution centers across the United States. Workforce implications are primarily within the food processing and logistics sectors involved in fulfilling the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions affecting delivery timelines.
Ensuring consistent quality of canned carrots across all deliveries.
Monitoring contractor performance to ensure adherence to delivery schedules.

Positive Signals

Competitive bidding process likely secured favorable pricing.
Firm fixed-price contract limits government financial risk.
Clear delivery dates provide predictability for program planning.

Sector Analysis

This contract falls within the broader food processing and agricultural commodities sector. The market for canned goods is mature, with established players like PACKERS CANNING CO INC. Government procurement of food items is a significant segment, often driven by humanitarian aid and domestic nutrition programs. Comparable spending benchmarks would involve analyzing other USDA food purchase contracts for similar quantities and types of canned vegetables.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned. The award to PACKERS CANNING CO INC, a single entity, suggests that small businesses may not have been primary participants in this specific bid, though they could be suppliers to the prime contractor. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract is likely managed by the Agricultural Marketing Service (AMS) within the USDA. Accountability measures are embedded in the firm fixed-price contract terms and delivery schedules. Transparency is facilitated through federal procurement databases where contract awards are published. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

USDA Food Purchase Programs
National School Lunch Program
Commodity Supplemental Food Program
Food Bank Support Initiatives

Risk Flags

Potential for supply chain disruptions.
Ensuring consistent product quality.
Timeliness of delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $519,031.8 to PACKERS CANNING CO INC. COMMODITIES FOR USG FOOD DONATIONS: 2000011244/4400002454/4100033931/CARROTS 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 $519,031.8.

What is the period of performance?

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

What is the historical performance of PACKERS CANNING CO INC with the USDA or other federal agencies?

A review of federal procurement data indicates that PACKERS CANNING CO INC has received previous awards from the USDA for food commodities. Analyzing the volume, value, and timeliness of these past contracts would provide insight into their reliability and performance history. Specific details on past contract adherence, any disputes, or performance evaluations would be crucial for a comprehensive assessment. Without access to detailed performance reports or contract histories beyond award data, it's difficult to definitively assess their track record. However, their continued receipt of awards suggests a generally acceptable performance level.

How does the per-unit cost of these canned carrots compare to commercial market prices?

The provided data does not include the specific per-unit cost or the total quantity in units for the canned carrots. The total award is $519,031.80. To compare with commercial market prices, we would need the quantity (e.g., number of cans or cases) to calculate a per-unit cost. Assuming a standard case of 24 cans, and if the total award covered, for example, 10,000 cases, the cost per case would be approximately $51.90, or about $2.16 per can. This figure would then need to be benchmarked against wholesale prices for canned carrots from major food distributors and manufacturers to determine if it represents a competitive value for the government.

What are the specific quality standards and nutritional requirements for the canned carrots?

The contract details specify the product as 'CARROTS CAN-24/300,' which likely refers to a specific product code or specification within the USDA's procurement system. While not explicitly detailed in the provided summary, government food contracts typically adhere to strict quality standards, often referencing U.S. Department of Agriculture (USDA) Grade standards for canned vegetables. These standards usually cover aspects like maturity, color, defects, and uniformity of pieces. Nutritional requirements, such as sodium content or fortification, would also be detailed in the full contract specifications to ensure the food meets dietary guidelines for donation programs.

What is the typical volume and frequency of canned carrot procurement by the USDA?

The USDA procures significant quantities of various food commodities, including canned vegetables, to support domestic and international food assistance programs. The volume and frequency of canned carrot procurement can fluctuate based on program needs, agricultural output, and budget allocations. This specific contract for $519,031.80 represents one instance of procurement. Historical spending data for similar contracts over the past several fiscal years would be necessary to establish a baseline for typical procurement volumes and identify any trends or seasonal patterns in demand for canned carrots.

Are there any specific risks associated with sourcing canned goods from Michigan, as indicated by 'ST: MI'?

The 'ST: MI' designation indicates the state of Michigan, likely referring to the location of the contractor or the origin of the goods. Sourcing canned goods from Michigan does not inherently present unique risks compared to other states, assuming the facilities meet federal standards. Potential risks are more generally related to the food supply chain, such as transportation logistics, potential for spoilage if not handled correctly, or reliance on specific agricultural inputs. The 'full and open competition' aspect suggests that location was not a limiting factor, and the award was based on the best overall offer, mitigating risks associated with limited sourcing options.

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: 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: $519,032

Exercised Options: $519,032

Current Obligation: $519,032

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1425D0055

IDV Type: IDC

Timeline