USDA awards $610K for canned vegetables and corn to Lakeside Foods Inc. for donation programs

Contract Overview

Contract Amount: $610,232 ($610.2K)

Contractor: Lakeside Foods Inc

Awarding Agency: Department of Agriculture

Start Date: 2026-04-02

End Date: 2026-07-15

Contract Duration: 104 days

Daily Burn Rate: $5.9K/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: 2000011244/4400002477/4100033940/CORN WHOLE KERNEL CAN-24/300,VEG MIX CAN-24/300

Place of Performance

Location: OWATONNA, STEELE County, MINNESOTA, 55060

State: Minnesota Government Spending

Plain-Language Summary

Department of Agriculture obligated $610,232.4 to LAKESIDE FOODS INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011244/4400002477/4100033940/CORN WHOLE KERNEL CAN-24/300,VEG MIX CAN-24/300 Key points: 1. Contract value appears reasonable for the specified quantities of canned goods. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is relatively short, indicating a need for timely delivery. 4. Performance is tied to specific delivery dates, aligning with donation program timelines. 5. The contract falls within the broader category of food commodities for government use.

Value Assessment

Rating: good

The contract value of $610,232.40 for 20,000 units of canned corn and vegetable mix seems aligned with market prices for similar bulk food items. The firm fixed-price structure helps manage cost certainty for the government. Benchmarking against other government food procurement contracts for similar items would provide further validation, but initial assessment suggests fair pricing for the quantity and type of goods.

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 10 offers suggests a healthy level of competition, which typically drives down prices and improves the quality of proposals. This approach ensures the government receives the best value by considering a wide range of potential suppliers.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source or limited competition award.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USDA donation programs. Services delivered include the provision of canned corn and mixed vegetables. Geographic impact is primarily within Minnesota, where the vendor is located, and distribution points for the food donations. Workforce implications are minimal, primarily related to the production and logistics at Lakeside Foods Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions affecting timely delivery of critical food items.
Quality control of canned goods to ensure they meet safety and nutritional standards for donation.

Positive Signals

Lakeside Foods Inc. is an established supplier, suggesting reliability.
Firm fixed-price contract provides cost certainty.
Clear delivery dates are specified, ensuring timely fulfillment.

Sector Analysis

This contract falls within the broader food manufacturing and processing sector, specifically focusing on canned goods. The market for supplying food commodities to government programs, such as food banks and disaster relief, is a significant segment. Comparable spending benchmarks would involve analyzing other USDA procurements for similar canned produce, which often fluctuate based on agricultural yields and program needs.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have specific small business set-aside provisions. There is no indication of mandatory subcontracting goals for small businesses within the provided data. The impact on the small business ecosystem is likely indirect, as Lakeside Foods Inc. may engage small businesses for its supply chain needs.

Oversight & Accountability

Oversight for this contract would primarily be managed by the USDA's Agricultural Marketing Service (AMS), which awarded the contract. 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 publicly reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

USDA Food Donation Programs
National School Lunch Program
Commodity Supplemental Food Program
Emergency Food Assistance Program

Risk Flags

Potential for supply chain disruptions impacting delivery timelines.
Ensuring consistent quality and safety standards for donated food items.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $610,232.4 to LAKESIDE FOODS INC. COMMODITIES FOR USG FOOD DONATIONS: 2000011244/4400002477/4100033940/CORN WHOLE KERNEL CAN-24/300,VEG MIX CAN-24/300

Who is the contractor on this award?

The obligated recipient is LAKESIDE 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 $610,232.4.

What is the period of performance?

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

What is the historical spending pattern for canned goods by the Agricultural Marketing Service?

Analyzing historical spending patterns for canned goods by the Agricultural Marketing Service (AMS) requires accessing detailed procurement data over several fiscal years. Typically, AMS procures a variety of canned goods to support domestic food assistance programs. Spending can fluctuate based on congressional appropriations, agricultural output, and the specific needs of programs like the Food Purchase and Distribution Program. For instance, a review of past contracts might reveal trends in the types of canned goods most frequently procured (e.g., fruits, vegetables, proteins), the average price per unit over time, and the primary contractors. It's also important to note any significant deviations from the norm, which could be attributed to changes in policy, market conditions, or emergency requirements. Without specific historical data for this exact commodity, a precise comparison is difficult, but general trends indicate consistent procurement to meet program demands.

How does the unit price of these canned goods compare to commercially available products?

Directly comparing the unit price of government-procured canned goods to commercially available products can be complex due to differences in volume, packaging, quality specifications, and distribution channels. This contract, valued at $610,232.40 for 20,000 units, suggests a price point of approximately $30.51 per unit (or $2.54 per can if each unit contains 12 cans, assuming a standard case). While this may seem higher or lower than retail prices depending on sales and brands, government contracts often involve bulk purchasing, which can lead to lower per-unit costs than individual retail purchases. However, commercial products may benefit from economies of scale in manufacturing and distribution that surpass government procurement. A thorough comparison would involve identifying the exact specifications of the canned goods (e.g., size, ingredients, grade) and comparing them to wholesale or bulk commercial pricing, considering factors like delivery and handling.

What is Lakeside Foods Inc.'s track record with federal food procurement contracts?

Lakeside Foods Inc. has a history of engaging in federal food procurement contracts, particularly with agencies like the Department of Agriculture. Examining their past performance requires reviewing contract databases for awards and delivery orders issued to the company. Key indicators of their track record include the number of contracts awarded, their value, the types of commodities supplied, and any reported instances of contract performance issues, such as late deliveries or quality disputes. Companies that consistently win competitive bids and fulfill contracts successfully generally demonstrate reliability and adherence to government standards. A review of Lakeside Foods Inc.'s contract history would reveal their experience level, their ability to meet stringent government requirements, and their overall standing as a federal supplier in the food commodities sector.

What are the primary risks associated with procuring canned goods for donation programs?

Procuring canned goods for donation programs involves several key risks. One primary risk is ensuring the quality and safety of the food items; spoilage, contamination, or damage during transit can render the products unusable and pose health risks. Another significant risk is timely delivery, as donation programs often operate on tight schedules to meet immediate needs, and delays can disrupt food distribution. Supply chain disruptions, whether due to weather, agricultural issues, or logistical challenges, can also impact availability and price. Furthermore, ensuring that the procured goods meet the specific nutritional and dietary requirements of the intended recipients is crucial. Finally, cost overruns due to fluctuating commodity prices or unexpected logistical expenses represent a financial risk for the procuring agency.

How does the duration of this contract (104 days) impact program effectiveness?

The relatively short duration of this contract, approximately 104 days (from April 2 to July 15, 2026), suggests it is intended for a specific, time-bound need within the USDA's food donation programs. This short timeframe implies that the procured canned goods are likely needed for immediate distribution, possibly tied to seasonal demands or specific outreach events during that period. While a short duration ensures the food is fresh and meets immediate needs, it also necessitates efficient logistics and rapid deployment. For program effectiveness, this means the USDA must have robust distribution plans in place to utilize the delivered goods promptly. It also implies that follow-on contracts or alternative sourcing strategies will be required if the need for these commodities extends beyond July 2026, potentially leading to administrative overhead for re-competition or contract modifications.

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: Lakeside Foods, Inc.

Address: 2400 S 44TH ST, MANITOWOC, WI, 54220

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: $610,232

Exercised Options: $610,232

Current Obligation: $610,232

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1425D0067

IDV Type: IDC

Timeline