Agriculture Department awards $279K for frozen peas, with delivery orders expected by July 2026

Contract Overview

Contract Amount: $278,850 ($278.9K)

Contractor: INN Foods Inc

Awarding Agency: Department of Agriculture

Start Date: 2026-04-08

End Date: 2026-07-31

Contract Duration: 114 days

Daily Burn Rate: $2.4K/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: 2000011256/4400002433/4100033959/PEAS GREEN FRZ CTN-12/2.5 LB,PEAS GREEN FRZ CTN-30 LB

Place of Performance

Location: LAKE ODESSA, IONIA County, MICHIGAN, 48849

State: Michigan Government Spending

Plain-Language Summary

Department of Agriculture obligated $278,850 to INN FOODS INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011256/4400002433/4100033959/PEAS GREEN FRZ CTN-12/2.5 LB,PEAS GREEN FRZ CTN-30 LB Key points: 1. Value for money appears reasonable given the commodity type and quantity. 2. Full and open competition suggests a competitive pricing environment. 3. No immediate risk indicators are apparent from the contract details. 4. Performance is contextually tied to food donation programs. 5. This contract falls within the food manufacturing sector. 6. The contract is a delivery order, indicating a call against a larger agreement.

Value Assessment

Rating: good

The contract value of $278,850 for frozen peas is within a typical range for government food procurement. Benchmarking against similar commodity purchases for food banks or donation programs would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs for the government. Without specific per-unit pricing details or comparison to commercial bulk rates, a definitive value assessment is limited, but the overall award seems aligned with market expectations for such goods.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 13 bidders suggests a healthy level of competition for this procurement. This broad competition is generally favorable for price discovery and ensures the government receives competitive pricing.

Taxpayer Impact: A competitive bidding process helps ensure taxpayer dollars are used efficiently by driving down prices for essential goods like food donations.

Public Impact

Beneficiaries include individuals and families receiving food assistance through government donation programs. Services delivered include the provision of frozen green peas for nutritional support. The geographic impact is likely national, supporting various food distribution networks. Workforce implications are minimal, primarily related to the manufacturing and logistics of food production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Multiple bidders (13) participated, indicating market interest.
Firm fixed-price contract type limits cost uncertainty.
Contract is a delivery order, suggesting it's part of a larger, potentially established program.

Sector Analysis

This contract falls within the food manufacturing sector, specifically the frozen fruit, juice, and vegetable manufacturing sub-sector. The market for government food procurement is substantial, driven by various programs like food donations, school lunch programs, and military rations. Comparable spending benchmarks would involve analyzing other contracts for similar frozen commodities procured by agencies like the Department of Defense or other components of the USDA.

Small Business Impact

The contract details do not indicate a small business set-aside, nor is there information on subcontracting plans. Given the nature of commodity procurement, the primary contractor, INN FOODS INC, is likely a manufacturer or large distributor. The impact on the small business ecosystem would depend on whether smaller suppliers are involved in INN FOODS INC's supply chain, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the USDA's Agricultural Marketing Service (AMS), which awarded the contract. Accountability measures are embedded in the contract terms, including delivery schedules and product specifications. Transparency is facilitated by public contract databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

USDA Food Donation Programs
National School Lunch Program
Commodity Supplemental Food Program
Defense Logistics Agency Troop Support

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $278,850 to INN FOODS INC. COMMODITIES FOR USG FOOD DONATIONS: 2000011256/4400002433/4100033959/PEAS GREEN FRZ CTN-12/2.5 LB,PEAS GREEN FRZ CTN-30 LB

Who is the contractor on this award?

The obligated recipient is INN 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 $278,850.

What is the period of performance?

Start: 2026-04-08. End: 2026-07-31.

What is the historical spending pattern for frozen peas by the USDA or similar agencies?

Analyzing historical spending patterns for frozen peas by the USDA and other federal agencies can provide crucial context for the current award. This involves examining contract databases for similar procurements over the past 5-10 years, noting quantities, prices, and awardees. Trends in pricing, volume, and supplier concentration can reveal market dynamics and potential fluctuations. For instance, a consistent increase in price per pound over time might indicate inflationary pressures or supply chain issues, while a stable or decreasing price suggests a competitive market or efficient production. Understanding past award values helps in assessing whether the current $278,850 award for 200,000 lbs (estimated from commodity codes) is reasonable and if the government has historically secured favorable pricing for this essential food item.

How does the per-unit cost of these frozen peas compare to commercial bulk purchase rates?

To assess the value for money, a comparison of the per-unit cost of these frozen peas to commercial bulk purchase rates is essential. The contract data indicates a total award of $278,850 for various frozen pea products. Assuming the quantities are as implied by the commodity codes (e.g., 20,000 lbs for PEAS GREEN FRZ CTN-12/2.5 LB and 200,000 lbs for PEAS GREEN FRZ CTN-30 LB, totaling approximately 220,000 lbs), the average cost per pound would be around $1.27. This figure needs to be benchmarked against current wholesale prices for frozen peas in bulk. Factors such as packaging, delivery terms, and specific quality standards can influence price differences. If the government rate is significantly lower than commercial rates, it indicates strong negotiation or competitive advantage. Conversely, a higher rate might suggest inefficiencies or unique requirements driving up costs.

What is INN FOODS INC's track record with federal food procurement contracts?

INN FOODS INC's track record with federal food procurement contracts is a key indicator of reliability and performance. A review of their contract history with agencies like the USDA, Department of Defense, and others would reveal their experience in supplying similar commodities. This includes examining past awards, contract values, performance ratings, and any instances of contract disputes, terminations, or penalties. A history of successful, on-time deliveries and compliance with specifications suggests a capable and dependable supplier. Conversely, a record marred by performance issues or compliance problems would raise concerns about the current contract's execution risk. Understanding their past performance helps in assessing the likelihood of successful delivery and adherence to the terms of this $278,850 award.

What are the specific quality standards and nutritional requirements for these frozen peas?

The specific quality standards and nutritional requirements for the frozen peas procured under this contract are critical for ensuring they meet the needs of food donation programs. These standards typically align with federal specifications (e.g., U.S. Grade A) and may include requirements for size, color, absence of defects, and packaging integrity. Nutritional information, such as vitamin content and absence of harmful additives, is also paramount for food assistance. The contract documents, including any referenced specifications or statements of work, would detail these requirements. Compliance with these standards ensures that the donated food is safe, nutritious, and suitable for consumption by vulnerable populations, directly impacting the effectiveness of the USDA's donation initiatives.

How does the duration and delivery schedule of this contract align with the needs of food donation programs?

The duration and delivery schedule of this contract (ending July 31, 2026, with a 114-day duration for this specific delivery order) must align with the operational needs of USDA food donation programs. Food banks and distribution centers require timely replenishment of inventory to meet ongoing demand. A short delivery window for a significant quantity of frozen peas could strain logistics if not managed effectively. Conversely, a schedule that allows for staggered deliveries can help manage storage capacity and ensure a consistent supply. The Agricultural Marketing Service (AMS) likely coordinates these deliveries based on program needs and recipient agency requests. Evaluating whether this schedule supports efficient distribution and minimizes spoilage or storage challenges is key to assessing program effectiveness.

Industry Classification

NAICS: Manufacturing › Fruit and Vegetable Preserving and Specialty Food Manufacturing › Frozen Fruit, Juice, and Vegetable Manufacturing

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: 310 WALKER ST, WATSONVILLE, CA, 95076

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

Financial Breakdown

Contract Ceiling: $278,850

Exercised Options: $278,850

Current Obligation: $278,850

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1425D0052

IDV Type: IDC

Timeline