USDA's $84K contract for canned tomatoes awarded to The Neil Jones Food Company, highlighting domestic food sourcing

Contract Overview

Contract Amount: $84,296 ($84.3K)

Contractor: THE Neil Jones Food Company

Awarding Agency: Department of Agriculture

Start Date: 2026-04-08

End Date: 2026-07-31

Contract Duration: 114 days

Daily Burn Rate: $739/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: 2000011256/4400002456/4100033964/TOMATO DICED CAN-6/10

Place of Performance

Location: HOLLISTER, SAN BENITO County, CALIFORNIA, 95023

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $84,296.16 to THE NEIL JONES FOOD COMPANY for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011256/4400002456/4100033964/TOMATO DICED CAN-6/10 Key points: 1. Value for money appears reasonable given the fixed-price nature and market for canned goods. 2. Full and open competition suggests a healthy market for this commodity. 3. Risk indicators are low, with a firm fixed-price contract and clear delivery terms. 4. Performance context is within the scope of agricultural marketing and food assistance programs. 5. Sector positioning is within the food processing and distribution industry, supporting government procurement needs.

Value Assessment

Rating: good

The contract value of $84,296.16 for canned diced tomatoes appears to be in line with market rates for bulk food procurement. Benchmarking against similar government contracts for canned goods would provide further validation, but the firm fixed-price structure offers cost certainty. The quantity and delivery timeline suggest a standard procurement for food donation or distribution programs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 13 bids suggests a competitive marketplace for canned tomatoes. This level of competition is generally favorable for price discovery and achieving competitive pricing for the government.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

Beneficiaries include recipients of U.S. government food donation programs, potentially domestic food banks or international aid. Services delivered include the provision of canned diced tomatoes, a staple food item. Geographic impact is primarily domestic, with the supplier based in California and distribution likely nationwide or to designated points. Workforce implications are positive for the employees of The Neil Jones Food Company and its supply chain partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in the tomato market impacting future procurements.
Reliance on a single supplier for this specific delivery order, though competition was broad.

Positive Signals

Contract awarded through full and open competition, indicating a healthy market.
Firm fixed-price contract provides cost certainty for the government.
Supplier is a known entity in the food processing industry.
Delivery is scheduled within a defined period, ensuring timely fulfillment.

Sector Analysis

The food processing and distribution sector is a significant area of government procurement, particularly for agencies like the USDA supporting domestic and international food assistance. This contract for canned tomatoes fits within the broader market for processed fruits and vegetables, which is a multi-billion dollar industry. Government contracts often represent a stable demand for food manufacturers.

Small Business Impact

This contract was not specifically set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. The award to The Neil Jones Food Company, a larger processor, suggests that small businesses may not have been primary bidders or awardees for this particular solicitation, though they could be suppliers to the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the Agricultural Marketing Service (AMS) within the USDA. Accountability measures are inherent in the firm fixed-price contract terms and delivery schedule. Transparency is facilitated by the contract award data being publicly available, allowing for scrutiny of the procurement process.

Related Government Programs

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

Risk Flags

Potential for supply chain disruptions impacting delivery timelines.
Quality control of canned goods requires ongoing monitoring.
Market price volatility for agricultural commodities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $84,296.16 to THE NEIL JONES FOOD COMPANY. COMMODITIES FOR USG FOOD DONATIONS: 2000011256/4400002456/4100033964/TOMATO DICED CAN-6/10

Who is the contractor on this award?

The obligated recipient is THE NEIL JONES FOOD COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $84,296.16.

What is the period of performance?

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

What is the track record of The Neil Jones Food Company with government contracts?

The Neil Jones Food Company has a history of supplying food products to government entities. While specific details on past performance metrics for this company are not provided in this data snippet, their ability to secure this contract suggests they meet the necessary qualifications and have likely fulfilled previous government orders successfully. Further investigation into their contract history, including any past performance evaluations or disputes, would be necessary for a comprehensive assessment. Their presence in the market and securing this award indicates a level of reliability expected by procuring agencies.

How does the price per unit for these canned tomatoes compare to market rates?

The provided data does not include the specific quantity of canned diced tomatoes, making a direct per-unit cost calculation impossible. However, the total award of $84,296.16 for an unspecified quantity suggests a bulk purchase. To benchmark effectively, one would need to know the number of cans or cases procured. Generally, government bulk purchases aim for competitive pricing, and the firm fixed-price contract implies the price was deemed acceptable at the time of award. Comparing this to commercial bulk pricing for similar products would offer insight, but without the quantity, a precise comparison is not feasible.

What are the primary risks associated with this contract?

The primary risks associated with this contract are relatively low. As a firm fixed-price contract for a commodity product, the financial risk for the government is minimized, as the price is set. Potential risks include supply chain disruptions affecting delivery, quality control issues with the canned tomatoes, or unforeseen market price increases that could impact the contractor's profitability, though this is mitigated by the fixed price. The short duration (delivery between April and July 2026) also limits long-term exposure. The contractor's track record and the competitive bidding process help to mitigate these risks.

How effective is the Agricultural Marketing Service in procuring food commodities?

The Agricultural Marketing Service (AMS) plays a crucial role in procuring food commodities for various government programs, including food donations and assistance. Its effectiveness is demonstrated through its ability to leverage market expertise and competitive procurement processes to acquire large volumes of food at reasonable prices. The agency's programs support both domestic agriculture and food security initiatives. While specific performance metrics for AMS procurement effectiveness are not detailed here, the consistent operation of these programs and the volume of goods procured suggest a functional and generally effective system for meeting federal food needs.

What is the historical spending pattern for canned tomatoes by the USDA?

Historical spending patterns for canned tomatoes by the USDA would likely show consistent procurement to support various food assistance programs. The USDA frequently purchases commodities like canned vegetables to supplement domestic nutrition programs (e.g., school lunches, food banks) and for international food aid. Spending can fluctuate based on appropriations, program needs, and market prices. Analyzing past contract awards for similar items over several fiscal years would reveal trends in volume, pricing, and the types of suppliers utilized. This specific contract represents a single instance within a broader, ongoing procurement strategy.

Are there any concerns regarding the sole-source nature of delivery orders under this contract?

This contract was awarded under 'FULL AND OPEN COMPETITION,' meaning the initial contract vehicle was competed broadly. The data indicates this is a 'DELIVERY ORDER' (aw: DELIVERY ORDER), and the 'no' field shows 13 such orders. While the overall contract was competed, each individual delivery order could potentially be awarded without further competition if specific conditions are met (e.g., if it's a small business set-aside within a larger IDIQ, or if only one vendor can fulfill a specific need). However, the 'ct' field explicitly states 'FULL AND OPEN COMPETITION' for this specific award, suggesting this particular delivery order was also competed or awarded under terms that allowed for broad participation.

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

Address: 1701 W 16TH ST, VANCOUVER, WA, 98660

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: $84,296

Exercised Options: $84,296

Current Obligation: $84,296

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1425D0059

IDV Type: IDC

Timeline