Agriculture Department awards $4.4M for canned goods to Seneca Foods Corp, with 13 delivery orders

Contract Overview

Contract Amount: $4,429,305 ($4.4M)

Contractor: Seneca Foods Corp

Awarding Agency: Department of Agriculture

Start Date: 2026-04-02

End Date: 2026-07-31

Contract Duration: 120 days

Daily Burn Rate: $36.9K/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: 2000011244/4400002446/4100033937/BEANS GREEN CAN-24/300,CARROTS CAN-24/300,CORN WHOLE KERNEL CAN-24/300,PEAS CAN-24/300

Place of Performance

Location: RIPON, FOND DU LAC County, WISCONSIN, 54971

State: Wisconsin Government Spending

Plain-Language Summary

Department of Agriculture obligated $4.4 million to SENECA FOODS CORP for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011244/4400002446/4100033937/BEANS GREEN CAN-24/300,CARROTS CAN-24/300,CORN WHOLE KERNEL CAN-24/300,PEAS CAN-24/300 Key points: 1. Contract value appears reasonable given the quantity and nature of goods procured. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Delivery order structure may indicate flexibility in meeting fluctuating needs. 4. Contract duration of 120 days is short-term, focused on immediate supply. 5. Procurement falls within the broader category of food commodities for government use. 6. The fixed-price contract type mitigates cost overrun risks for the government.

Value Assessment

Rating: good

The contract value of $4.4 million for canned goods seems aligned with market prices for bulk food procurement. Benchmarking against similar government contracts for food donations or provisions would provide a more precise value-for-money assessment. The fixed-price nature of the contract offers cost certainty to the government, reducing the risk of unexpected price increases.

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 bids. The presence of 13 delivery orders suggests that multiple entities likely participated in the bidding process, fostering price discovery and potentially leading to more competitive pricing for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring that the government receives the best possible prices through a wide range of offers.

Public Impact

Beneficiaries include individuals and families receiving food assistance through government donation programs. Services delivered include the provision of essential canned food items such as beans, carrots, corn, and peas. Geographic impact is likely national, supporting various food distribution networks. Workforce implications are minimal, primarily related to the logistics and distribution of the food products.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions affecting delivery timelines.
Quality control of canned goods needs consistent monitoring to ensure safety and nutritional value.
Dependence on a single awardee for multiple delivery orders could pose a risk if performance issues arise.

Positive Signals

Clear contract terms and conditions are established.
Fixed-price contract limits financial risk for the government.
Awardee has a track record in food production and supply.

Sector Analysis

This contract falls within the food manufacturing and distribution sector, specifically focusing on canned goods. The market for canned food is mature, with established players like Seneca Foods. Government procurements of this nature are common, supporting domestic agriculture and food security initiatives. Comparable spending benchmarks would involve analyzing other large-scale government contracts for canned food provisions.

Small Business Impact

The contract was awarded to Seneca Foods Corp, a large business. There is no indication of small business set-asides for this specific contract. Subcontracting opportunities for small businesses are not explicitly detailed but could arise if Seneca Foods engages them for logistics or distribution services.

Oversight & Accountability

Oversight for this contract would primarily be managed by the Department of Agriculture's Agricultural Marketing Service. Accountability measures are embedded in the contract terms, including delivery schedules and product specifications. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported.

Related Government Programs

USDA Food Purchase Programs
Commodity Supplemental Food Program
Emergency Food Assistance Program

Risk Flags

Potential for supply chain delays
Quality assurance of perishable/shelf-stable goods
Dependence on single awardee for multiple orders

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $4.4 million to SENECA FOODS CORP. COMMODITIES FOR USG FOOD DONATIONS: 2000011244/4400002446/4100033937/BEANS GREEN CAN-24/300,CARROTS CAN-24/300,CORN WHOLE KERNEL CAN-24/300,PEAS CAN-24/300

Who is the contractor on this award?

The obligated recipient is SENECA FOODS CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.4 million.

What is the period of performance?

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

What is Seneca Foods Corp's track record with government contracts, particularly with the USDA?

Seneca Foods Corp has a history of receiving government contracts, including those with the USDA. Analyzing their past performance on similar food procurement contracts would reveal their reliability in terms of delivery, quality, and adherence to specifications. A review of contract databases like FPDS can provide insights into the volume and types of contracts awarded to Seneca Foods, as well as any reported performance issues or successes. This historical data is crucial for assessing their capability to fulfill the current $4.4 million award effectively.

How does the per-unit cost of these canned goods compare to market rates or similar government purchases?

Without specific unit pricing data for each canned item (beans, carrots, corn, peas), a precise per-unit cost comparison is challenging. However, the total award of $4.4 million for 12,000 cases (assuming 24 cans per case, 300 cases per item type) suggests an average cost per case. Benchmarking this against historical USDA food purchases or commercial wholesale prices for similar canned goods would be necessary. Factors like packaging, delivery location, and specific product quality standards can influence price variations. The fixed-price nature of the contract implies that the government secured these prices upfront, but a detailed analysis would require access to the bid data.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential supply chain disruptions affecting timely delivery, quality control issues with the canned goods, and the possibility of price fluctuations if the contract were not fixed-price. Mitigation strategies are in place: the contract is fixed-price, providing cost certainty. The short delivery period (ending July 31, 2026) suggests a focus on immediate needs, potentially reducing long-term supply chain risks. The Agricultural Marketing Service would oversee quality assurance and delivery compliance. The awardee, Seneca Foods, is expected to have robust internal quality control processes.

How effective is the 'full and open competition' strategy in ensuring value for taxpayer money in this specific procurement?

The 'full and open competition' strategy is generally considered the most effective method for ensuring value for taxpayer money in government procurement. It allows any responsible vendor to bid, fostering a competitive environment that drives down prices and encourages innovation. For this $4.4 million contract, the fact that it was competed openly suggests that multiple vendors had the opportunity to offer their products and pricing. The resulting award to Seneca Foods Corp implies they provided the best value among the bidders. However, a deeper analysis would involve examining the number of bids received and the price spread among them to confirm the extent of competition.

What are the historical spending patterns for similar canned food procurements by the USDA?

Historical spending patterns for similar canned food procurements by the USDA can be analyzed through the Federal Procurement Data System (FPDS). This data would reveal the frequency, volume, and total dollar amounts of contracts awarded for canned goods over various fiscal years. Understanding these patterns helps in assessing whether the current $4.4 million award is consistent with past spending levels, unusually high, or significantly lower. It also provides context for evaluating the pricing and the overall demand for such commodities by the agency, aiding in budget forecasting and resource allocation.

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

Parent Company: W.A. Baxter & Sons (holdings) Limited

Address: 350 WILLOWBROOK OFFICE PARK, FAIRPORT, NY, 14450

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

Financial Breakdown

Contract Ceiling: $4,429,305

Exercised Options: $4,429,305

Current Obligation: $4,429,305

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1425D0058

IDV Type: IDC

Timeline