USDA awards $440K for frozen strawberries, highlighting potential for value in commodity donations

Contract Overview

Contract Amount: $442,071 ($442.1K)

Contractor: INN Foods Inc

Awarding Agency: Department of Agriculture

Start Date: 2026-04-10

End Date: 2026-07-15

Contract Duration: 96 days

Daily Burn Rate: $4.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011247/4400002427/4100033979/STRAWBERRY WHOLE UNSWT IQF CTN-12/1 LB

Place of Performance

Location: SANTA MARIA, SANTA BARBARA County, CALIFORNIA, 93454

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $442,070.66 to INN FOODS INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011247/4400002427/4100033979/STRAWBERRY WHOLE UNSWT IQF CTN-12/1 LB Key points: 1. The contract value of $440,706.66 for frozen strawberries appears reasonable given the quantity and market for food donations. 2. Full and open competition was utilized, suggesting a competitive bidding process that should drive favorable pricing. 3. The contract duration of 96 days is relatively short, indicating a focused need for immediate supply. 4. The award to INN FOODS INC suggests a capable supplier within the frozen fruit manufacturing sector. 5. This procurement aligns with broader USDA efforts to support food assistance programs through commodity purchases. 6. The fixed-price contract type mitigates cost overrun risks for the government.

Value Assessment

Rating: good

The contract value of $440,706.66 for 20,000 units of frozen strawberries seems aligned with market rates for bulk food commodities. Benchmarking against similar USDA food donation procurements would provide a more precise value-for-money assessment, but the price appears competitive given the fixed-price structure and competitive award. The specific unit cost, while not explicitly provided, can be inferred to be within a reasonable range for institutional food supply.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that multiple bidders were solicited and considered. With 11 bids received, the level of competition was robust, which typically leads to better price discovery and more favorable terms for the government. This approach ensures that the government explores a wide range of potential suppliers.

Taxpayer Impact: A high level of competition generally translates to taxpayer savings by ensuring that the government secures goods and services at the most competitive prices available in the market.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USDA donation programs. The service delivered is the provision of essential frozen fruit commodities for nutritional support. The geographic impact is likely national, supporting food banks and distribution centers across the United States. This contract supports the food manufacturing and logistics workforce involved in processing and delivering the strawberries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions affecting delivery timelines.
Quality control of frozen goods requires consistent monitoring.
Market price fluctuations for agricultural commodities could impact future procurements.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Fixed-price contract type limits cost uncertainty for the government.
Supplier has secured a contract, suggesting operational capacity.
Procurement aligns with stated government objectives for food security.

Sector Analysis

This contract falls within the Food Manufacturing sector, specifically Frozen Fruit, Juice, and Vegetable Manufacturing (NAICS 311411). The market for food commodities, particularly for government programs, is substantial. This procurement represents a small but vital component of the USDA's broader strategy to manage and distribute agricultural products, ensuring both market stability for producers and nutritional support for recipients. Comparable spending benchmarks would involve analyzing other large-scale food commodity purchases by federal agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false. However, the prime contractor, INN FOODS INC, may utilize small businesses for subcontracting opportunities in areas such as logistics, transportation, or packaging. The impact on the small business ecosystem would depend on the extent of any subcontracting efforts and the specific roles small businesses might play in fulfilling this order.

Oversight & Accountability

Oversight for this contract is likely managed by the Agricultural Marketing Service (AMS) within the USDA, which is responsible for procuring agricultural commodities. Accountability measures are embedded in the fixed-price contract terms, requiring delivery of specified goods by a certain date. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

USDA Food Purchase Programs
National School Lunch Program
Commodity Supplemental Food Program
Food and Nutrition Service (FNS) procurements

Risk Flags

Supply Chain Reliability
Product Quality Assurance
Market Price Volatility

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $442,070.66 to INN FOODS INC. COMMODITIES FOR USG FOOD DONATIONS: 2000011247/4400002427/4100033979/STRAWBERRY WHOLE UNSWT IQF CTN-12/1 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 $442,070.66.

What is the period of performance?

Start: 2026-04-10. End: 2026-07-15.

What is the historical spending pattern for frozen strawberries by the USDA?

Analyzing historical spending patterns for frozen strawberries by the USDA requires access to detailed procurement data over several fiscal years. While this specific contract is for $440,706.66, understanding the typical volume, frequency, and average price per unit for similar procurements would provide crucial context. Factors such as seasonal availability, crop yields, and changes in program needs can influence these patterns. Without historical data, it's difficult to ascertain if this award represents an increase, decrease, or stable level of spending for this commodity. However, the USDA consistently procures large volumes of various food commodities to support domestic nutrition assistance programs, and frozen fruits are a common item within these portfolios.

How does the unit price of these frozen strawberries compare to commercial market rates?

Determining the precise unit price requires dividing the total contract value ($440,706.66) by the total quantity (20,000 units). This calculation yields an approximate unit price. To compare this to commercial market rates, one would need to research current wholesale prices for IQF (Individually Quick Frozen) whole strawberries in bulk packaging (e.g., 12/1 lb cases) from major food distributors or manufacturers. Factors such as grade, origin, and specific processing methods can influence commercial pricing. Given this is a government procurement, the price is expected to be competitive but may differ from retail or smaller wholesale lots due to volume and contract terms. A preliminary estimate suggests the unit price is likely in a range competitive for bulk institutional purchasing.

What are the specific quality control measures required for this frozen strawberry contract?

While the provided data does not detail specific quality control measures, government contracts for food commodities typically include stringent requirements. These often involve adherence to USDA Agricultural Marketing Service (AMS) grading standards, which specify characteristics like size, color, maturity, and absence of defects. The contract likely mandates that the strawberries meet specific microbiological safety standards and be packaged in a manner that preserves quality during transport and storage. Inspection upon delivery is standard, with provisions for rejection of non-compliant goods. The contractor, INN FOODS INC, would be responsible for implementing internal quality assurance processes to ensure the product meets all contractual specifications before shipment.

What is the track record of INN FOODS INC in fulfilling USDA food procurement contracts?

Assessing the track record of INN FOODS INC requires reviewing their past performance on similar federal contracts, particularly those with the USDA or other agencies involved in food distribution. Key indicators include on-time delivery rates, product quality compliance, and any history of contract disputes or terminations. A positive performance history suggests reliability and capability. Conversely, past issues could indicate potential risks. Without specific performance data for INN FOODS INC, it's assumed they met the qualifications necessary to be awarded this contract through the competitive bidding process. Further investigation into their contract history database (e.g., SAM.gov) would provide a more definitive assessment.

What is the potential impact of this contract on food insecurity in the targeted regions?

This contract directly supports USDA food donation programs, which are critical in alleviating food insecurity. By procuring 20,000 units of frozen strawberries, the USDA is ensuring a supply of nutritious food that can be distributed through various channels, such as food banks, pantries, and community organizations. Frozen strawberries offer a versatile and long-lasting source of vitamins and fiber. The impact on food insecurity depends on the effectiveness of the distribution network in getting these commodities to vulnerable populations. This procurement contributes to the overall goal of providing adequate and healthy food options to those in need across the nation.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 123J1425B0360

Offers Received: 11

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, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $442,071

Exercised Options: $442,071

Current Obligation: $442,071

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1425D0041

IDV Type: IDC

Timeline