Lakeside Foods Inc. awarded $1.27M for canned goods, with 10 bids received under full and open competition

Contract Overview

Contract Amount: $1,269,242 ($1.3M)

Contractor: Lakeside Foods Inc

Awarding Agency: Department of Agriculture

Start Date: 2026-04-02

End Date: 2026-07-31

Contract Duration: 120 days

Daily Burn Rate: $10.6K/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: 2000011244/4400002443/4100033941/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 $1.3 million to LAKESIDE FOODS INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011244/4400002443/4100033941/CORN WHOLE KERNEL CAN-24/300,VEG MIX CAN-24/300 Key points: 1. The contract value of $1.27 million appears reasonable given the quantity and type of goods procured. 2. Strong competition with 10 bidders suggests a competitive pricing environment. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Delivery within a 4-month window indicates a focused and achievable performance period. 5. This procurement supports the critical function of U.S. government food donations. 6. The contract is a delivery order against an existing contract vehicle.

Value Assessment

Rating: good

The contract value of $1.27 million for 20,000 units of canned corn and vegetables seems aligned with market expectations for bulk food procurement. While specific per-unit costs are not provided, the competitive bidding process suggests that the pricing achieved is likely favorable. Comparing this to similar large-scale food donation contracts, the price appears to be within a reasonable range, reflecting economies of scale for both the supplier and the government.

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 receipt of 10 bids demonstrates a healthy level of interest and engagement from the market. This robust competition is a positive sign for price discovery, as it likely drove down the offered prices and ensured the government received competitive proposals.

Taxpayer Impact: The high number of bidders in this full and open competition suggests that taxpayers benefited from a more efficient allocation of funds, as the government was able to secure the required food commodities at a potentially lower cost due to market pressures.

Public Impact

Beneficiaries of U.S. government food donation programs, potentially including domestic and international aid recipients. Provides essential food commodities: whole kernel corn and mixed vegetables in cans. The geographic impact is national, supporting the distribution network for food aid. Supports the agricultural and food processing sectors through procurement of canned goods.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions affecting delivery timelines.
Ensuring consistent quality and nutritional value of canned goods over the contract period.

Positive Signals

Clear contract terms and fixed-price structure reduce financial risk.
Defined delivery period (120 days) allows for focused execution.
Strong competition indicates market availability and supplier capacity.

Sector Analysis

This contract falls within the broader food manufacturing and processing sector, specifically focusing on canned goods. The market for government food procurement is substantial, driven by various agencies for domestic programs, disaster relief, and international aid. Comparable spending benchmarks would involve analyzing other large-volume food purchases by agencies like USDA, WFP, or FEMA. The procurement of basic commodities like corn and vegetables is a recurring need within the federal food supply chain.

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. Therefore, the direct impact on the small business ecosystem appears minimal unless the prime contractor, Lakeside Foods Inc., voluntarily engages small businesses in its supply chain or subcontracting efforts. Further analysis would be needed to determine any indirect benefits or opportunities for small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agricultural Marketing Service (AMS) within the Department of Agriculture. As a delivery order against an existing contract vehicle, the initial award and oversight processes are likely established. Transparency is facilitated by public contract databases. Accountability measures are embedded in the firm fixed-price terms and delivery schedule, with potential penalties for non-performance. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

USDA Food Purchase Programs
Federal Food Aid Programs
Commodity Supplemental Food Program
National School Lunch Program (commodity support)
Emergency Food Assistance Program (TEFAP)

Risk Flags

Potential for supply chain disruptions
Quality assurance of canned goods

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $1.3 million to LAKESIDE FOODS INC. COMMODITIES FOR USG FOOD DONATIONS: 2000011244/4400002443/4100033941/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 $1.3 million.

What is the period of performance?

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

What is the historical spending pattern of the Agricultural Marketing Service (AMS) on canned commodities for food donations?

Analyzing historical spending by the AMS on canned commodities for food donations reveals a consistent pattern of procurement to support various federal food assistance programs. While specific figures fluctuate annually based on appropriations and program needs, the agency regularly allocates significant funds towards acquiring shelf-stable food items. These procurements often involve large volumes of basic commodities like canned fruits, vegetables, and proteins. The data suggests that the AMS aims to secure these items through competitive bidding processes to maximize the value for taxpayer dollars. Past spending trends can indicate typical contract values, the number of bidders expected, and the types of suppliers that are successful in securing these awards. Understanding these patterns helps in assessing whether the current $1.27 million award for canned corn and vegetables is in line with historical norms or represents a significant deviation.

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

Determining the precise per-unit cost requires breaking down the total award value by the quantity of each item. For instance, if the 20,000 units represent a specific weight or volume, we could calculate a cost per pound or per can. Without this granular data, a direct per-unit comparison is challenging. However, government contracts for bulk commodities often achieve lower per-unit costs due to economies of scale and negotiated pricing compared to retail or smaller commercial purchases. If this contract's implied per-unit cost is significantly higher than comparable large-volume food contracts or commercial wholesale prices, it could indicate a potential value concern. Conversely, if it aligns with or is lower than benchmarks, it suggests good value for money.

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, as evidenced by this award. To assess their track record, one would typically examine past contracts awarded to the company by agencies like the USDA or other government entities. Key factors to review include on-time delivery performance, quality compliance, contract modifications, and any instances of disputes or penalties. A history of successful contract fulfillment suggests reliability and capability. Conversely, a pattern of performance issues or contract terminations could raise concerns about their ability to meet the current contract's requirements. Publicly available contract databases and performance rating systems (like the Contractor Performance Assessment Reporting System - CPARS) can provide insights into their past performance.

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

The primary risks associated with this contract include potential supply chain disruptions that could impact the delivery of canned goods within the specified 120-day window. Quality control is another risk; ensuring that the canned corn and vegetables meet all nutritional and safety standards throughout the production and delivery process is crucial. Mitigation strategies are in place: the firm fixed-price contract structure limits financial risk for the government, as the price is set regardless of minor cost fluctuations. The defined delivery period provides a clear performance target. Furthermore, the competitive bidding process likely vetted suppliers for their capacity and reliability. The government's quality assurance protocols during inspection and acceptance of the goods serve as a key mitigation for quality risks.

How does the competition level (10 bidders) influence the overall value and efficiency of this procurement for taxpayers?

A competition level of 10 bidders is generally considered robust and significantly influences the value and efficiency of this procurement for taxpayers. High competition typically drives down prices as multiple suppliers vie for the contract, forcing them to offer their most competitive rates. This process enhances price discovery, ensuring the government is likely paying a fair market price, or potentially less. It also encourages suppliers to be more efficient in their operations to maintain profitability at lower bid prices. For taxpayers, this translates to better value for their money, as more of the appropriated funds are used to acquire the actual goods rather than being spent on inflated prices. The extensive competition reduces the risk of a sole-source or limited-source situation where pricing power is concentrated with the vendor.

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: $1,269,242

Exercised Options: $1,269,242

Current Obligation: $1,269,242

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1425D0053

IDV Type: IDC

Timeline