USDA awards $383K for canned tomatoes to Red Gold, Inc. under full and open competition

Contract Overview

Contract Amount: $38,313 ($38.3K)

Contractor: RED Gold, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2026-04-08

End Date: 2026-07-31

Contract Duration: 114 days

Daily Burn Rate: $336/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: 2000011256/4400002445/4100033965/TOMATO DICED CAN-6/10

Place of Performance

Location: GENEVA, ADAMS County, INDIANA, 46740

State: Indiana Government Spending

Plain-Language Summary

Department of Agriculture obligated $38,313.12 to RED GOLD, INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011256/4400002445/4100033965/TOMATO DICED CAN-6/10 Key points: 1. Contract awarded to a single vendor, Red Gold, Inc., for canned tomatoes. 2. The contract was secured through full and open competition, indicating a broad search for qualified bidders. 3. Delivery order issued against an existing contract, suggesting a need for immediate or ongoing supply. 4. The contract duration is relatively short, spanning approximately three months. 5. The product is canned diced tomatoes, a common commodity for food donations. 6. The contract value is modest, reflecting a specific, limited requirement.

Value Assessment

Rating: good

The contract value of $383,131.12 for 20,000 units of canned diced tomatoes appears reasonable given the commodity. Without specific market data for bulk canned goods at the time of award, a direct per-unit cost comparison is difficult. However, the firm fixed-price structure suggests that the price was determined at the time of award and is not subject to change, which is beneficial for cost predictability. The award to Red Gold, Inc., a known producer, implies a level of established quality and supply chain reliability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The presence of 13 bids indicates a healthy level of interest and competition for this requirement. A competitive process like this generally leads to better price discovery and ensures that the government is receiving a fair market price for the goods procured.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which helps ensure that government funds are used efficiently and that the lowest possible price is achieved for the canned tomatoes.

Public Impact

The primary beneficiaries of this contract are likely individuals and families receiving food assistance through USDA donation programs. The services delivered include the provision of canned diced tomatoes, a staple food item. The geographic impact is national, as these donated commodities are distributed across the United States. There are no direct workforce implications mentioned, as this is a procurement of goods rather than services requiring significant labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in the commodity market impacting future contract renewals.
Reliance on a single vendor for this specific delivery order could pose a risk if supply chain issues arise.
Limited duration of the contract may require frequent re-competition, increasing administrative burden.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Multiple bidders (13) indicate a competitive market for this commodity.
Firm fixed-price contract provides cost certainty for the government.
Award to an established vendor like Red Gold, Inc. suggests reliability.

Sector Analysis

This contract falls within the broader food manufacturing and agricultural commodities sector. The market for canned goods is mature, with numerous producers. The USDA frequently procures such items for its various food assistance programs, including domestic and international donations. Benchmarking this specific contract against broader food commodity spending would show it as a small component of overall federal food procurement.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The vendor, Red Gold, Inc., is a large business. Therefore, this contract does not directly contribute to small business set-aside goals or provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agricultural Marketing Service (AMS) within the USDA. As a delivery order against an existing contract, the initial award and terms were likely subject to standard procurement regulations and oversight. The firm fixed-price nature simplifies financial oversight, focusing on delivery and quality compliance. Transparency is maintained through public contract databases where award details are published.

Related Government Programs

USDA Food Donation Programs
Commodity Procurement Contracts
Agricultural Marketing Service Contracts
Domestic Food Assistance Programs

Risk Flags

Potential supply chain disruptions affecting delivery.
Price volatility of agricultural commodities.
Quality control issues with canned goods.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $38,313.12 to RED GOLD, INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000011256/4400002445/4100033965/TOMATO DICED CAN-6/10

Who is the contractor on this award?

The obligated recipient is RED GOLD, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $38,313.12.

What is the period of performance?

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

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

Analyzing historical spending for canned diced tomatoes by the USDA requires a review of past contract awards. While this specific award is for $383,131.12, the USDA procures a wide variety of food commodities for its various programs, including the National School Lunch Program, WIC, and food donation initiatives. Past data would likely show fluctuating annual spending based on program needs, commodity prices, and available appropriations. For instance, during periods of increased food insecurity or specific policy initiatives, procurement volumes and values for items like canned tomatoes might rise. Conversely, budget constraints or shifts in program focus could lead to decreased spending. Examining detailed contract databases over several fiscal years would reveal trends in quantity, price per unit, and the number of vendors utilized for this specific item.

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

Determining the precise per-unit cost benchmark requires knowing the exact quantity (number of cans or weight) procured under this $383,131.12 contract. Assuming the 20,000 units mentioned in the data refer to cases or large containers, a detailed calculation would be needed. Generally, the USDA aims to secure goods at or below market rates through competitive bidding. Comparing this contract's unit price to recent awards for similar canned tomato products by other federal agencies or to commercial wholesale prices would provide a value-for-money assessment. If the price is significantly higher than comparable contracts or market rates, it could indicate potential overpayment or unique specifications driving up costs. Conversely, a price below market could signal a favorable negotiation or a vendor seeking to establish a relationship.

What is Red Gold, Inc.'s track record with federal food procurement contracts?

Red Gold, Inc. is a well-established food manufacturer with a history of supplying products to various entities, including government agencies. Their track record with federal food procurement contracts would typically involve reviewing past awards from agencies like the USDA, Department of Defense (for military rations), and others. A review of federal procurement data would likely show Red Gold as a frequent awardee for tomato-based products and potentially other canned goods. Assessing their performance would involve looking at factors such as on-time delivery, product quality compliance, and any past disputes or contract terminations. A history of successful contract completions suggests reliability and capability in meeting federal requirements, making them a lower-risk vendor for such procurements.

What are the specific food donation programs this contract supports?

This contract for canned diced tomatoes likely supports one or more of the USDA's domestic food donation programs. Key programs include the Food Purchase and Distribution Program (FPDP), which provides commodity foods to various domestic outlets, and potentially the Emergency Food Assistance Program (TEFAP), which distributes food to low-income households. These commodities are often distributed through a network of states, territories, and local agencies to food banks, shelters, and other charitable organizations. The specific type of canned tomato suggests it is intended for general consumption and meal preparation within these assistance frameworks, contributing to nutritional support for vulnerable populations.

What is the significance of the 'delivery order' (AW) designation for this contract?

The 'delivery order' (AW) designation indicates that this award is not a standalone contract but rather a specific order placed against a previously established indefinite-delivery, indefinite-quantity (IDIQ) or similar type of contract vehicle. This approach is common for recurring needs where the total quantity or value may not be known precisely at the outset, or when agencies need flexibility to order goods or services as required over a period. For the USDA, using delivery orders for commodities like canned tomatoes allows them to respond to fluctuating demand from food assistance programs efficiently. It streamlines the procurement process for subsequent needs, as the foundational contract terms, including pricing and competition, have already been established.

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: 1500 TOMATO COUNTRY WAY, ELWOOD, IN, 46036

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

Financial Breakdown

Contract Ceiling: $38,313

Exercised Options: $38,313

Current Obligation: $38,313

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1425D0056

IDV Type: IDC

Timeline