USDA awards $1.89M for canned pears to The Neil Jones Food Company, highlighting fixed-price contracts with economic adjustments

Contract Overview

Contract Amount: $1,888,474 ($1.9M)

Contractor: THE Neil Jones Food Company

Awarding Agency: Department of Agriculture

Start Date: 2026-04-10

End Date: 2026-07-31

Contract Duration: 112 days

Daily Burn Rate: $16.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011248/4400002426/4100033990/PEARS CAN-24/300,PEARS SLICES EX LT CAN-6/10

Place of Performance

Location: VANCOUVER, CLARK County, WASHINGTON, 98660

State: Washington Government Spending

Plain-Language Summary

Department of Agriculture obligated $1.9 million to THE NEIL JONES FOOD COMPANY for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011248/4400002426/4100033990/PEARS CAN-24/300,PEARS SLICES EX LT CAN-6/10 Key points: 1. Contract value of $1.89M for canned pears represents a significant investment in food commodities for USG donations. 2. The fixed-price contract with economic price adjustment offers some cost certainty while allowing for market fluctuations. 3. Competition was full and open, suggesting a potentially competitive bidding process that could benefit taxpayers. 4. The contract duration of 112 days indicates a focused, short-term need for these specific food items. 5. The award to a single contractor, The Neil Jones Food Company, warrants a review of market concentration for this commodity. 6. The Agricultural Marketing Service's role suggests a focus on supporting agricultural markets alongside donation programs.

Value Assessment

Rating: good

The contract value of $1.89M for canned pears appears reasonable given the quantity and nature of the goods. As a fixed-price contract with economic price adjustment, it provides a baseline cost while allowing for some flexibility due to market conditions. Benchmarking against similar government procurements for canned goods would offer further insight into value for money, but the competitive nature of the award suggests a fair market price was likely achieved.

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 presence of 6 bidders suggests a healthy level of interest and competition for this procurement. This broad competition is generally favorable for price discovery and can lead to more competitive pricing for the government.

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

Public Impact

Beneficiaries include individuals and families receiving food assistance through USG donation programs. The services delivered are the provision of canned pear commodities, a shelf-stable food item. The geographic impact is national, supporting the distribution of food aid across the United States. Workforce implications are primarily within the food processing and logistics sectors involved in fulfilling the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases due to economic price adjustment clause if market prices for pears or processing rise significantly.
Reliance on a single contractor for a specific commodity could pose supply chain risks if unforeseen issues arise with the awardee.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Fixed-price component provides a degree of cost control for the government.
Contract duration is clearly defined, allowing for focused execution and timely delivery.

Sector Analysis

This contract falls within the broader food and agriculture sector, specifically focusing on the processing and procurement of canned fruits. The market for canned goods is mature, with established players like The Neil Jones Food Company. Government procurements for food commodities are a consistent part of federal spending, often supporting domestic agriculture and food assistance programs. Comparable spending benchmarks would involve analyzing other contracts for canned fruits and vegetables awarded by agencies like USDA or DOD.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. There is no explicit mention of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears limited unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agricultural Marketing Service (AMS) within the USDA. As a delivery order under a larger contract vehicle, the terms and conditions are established. Accountability measures would include adherence to delivery schedules, product quality standards, and pricing as stipulated in the contract. Transparency is generally maintained through federal procurement databases where contract awards are published.

Related Government Programs

USDA Food Donation Programs
Commodity Procurement Contracts
Agricultural Marketing Service Programs
Federal Food Aid Programs

Risk Flags

Economic Price Adjustment Clause
Single Awardee for Specific Commodity

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $1.9 million to THE NEIL JONES FOOD COMPANY. COMMODITIES FOR USG FOOD DONATIONS: 2000011248/4400002426/4100033990/PEARS CAN-24/300,PEARS SLICES EX LT 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 $1.9 million.

What is the period of performance?

Start: 2026-04-10. End: 2026-07-31.

What is the historical spending pattern for canned pear procurement by the USDA?

Analyzing historical spending patterns for canned pear procurement by the USDA requires access to detailed federal procurement data over several fiscal years. Typically, such data would reveal the volume of purchases, the average price per unit, the number of contractors awarded contracts, and the types of competition utilized (e.g., full and open, sole source). Fluctuations in spending could be attributed to changes in appropriation levels, shifts in demand for food assistance programs, or changes in agricultural output and market prices for pears. Understanding these patterns helps in assessing whether the current award of $1.89M is consistent with historical investments or represents a significant deviation, potentially indicating a change in program scope or market conditions.

How does the economic price adjustment (EPA) clause typically function in USDA food contracts?

The Economic Price Adjustment (EPA) clause in USDA food contracts is designed to allow for modifications to the contract price based on fluctuations in specified economic factors, such as labor costs, material costs, or market indices. For canned pears, this might be tied to the price of raw fruit, processing labor, or energy costs. The clause typically outlines the specific indices or formulas that will be used to calculate price changes and the frequency at which these adjustments can occur (e.g., quarterly, annually). The goal is to protect both the contractor from unforeseen cost increases that could lead to non-performance and the government from paying excessively inflated prices if costs decrease. The specific terms of the EPA clause in this contract would detail the exact mechanism for adjustment.

What is The Neil Jones Food Company's track record with federal food procurement contracts?

To assess The Neil Jones Food Company's track record with federal food procurement contracts, a review of their past performance data within federal databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would be necessary. This would reveal the number and value of previous contracts awarded to the company, the agencies they have contracted with, and their performance ratings. Key indicators include on-time delivery, product quality compliance, and adherence to contract terms. A history of successful contract fulfillment suggests reliability, while past performance issues, such as late deliveries or quality disputes, could indicate potential risks for future contracts.

What are the potential risks associated with a fixed-price contract with economic price adjustment for canned goods?

A fixed-price contract with economic price adjustment (EPA) for canned goods presents a balance of risks. For the government, the primary risk is that the EPA clause could lead to price increases if the specified economic factors rise, potentially exceeding the initial fixed price and impacting budget predictability. Conversely, the contractor bears the risk if the EPA does not fully compensate for cost increases or if market prices fall below the adjusted price. There's also administrative overhead in tracking and verifying the economic factors for adjustments. For canned goods, seasonality of raw product availability and global commodity market volatility can significantly influence the effectiveness and fairness of the EPA clause.

How does the Agricultural Marketing Service (AMS) typically utilize commodity procurement contracts?

The Agricultural Marketing Service (AMS) utilizes commodity procurement contracts primarily to support federal food assistance programs, such as those administered by the Food and Nutrition Service (FNS) and the Farm Service Agency (FSA). These contracts enable AMS to purchase a variety of agricultural products, including canned goods, fruits, vegetables, and meats, which are then distributed to schools, food banks, and other eligible entities. AMS often leverages its expertise in agricultural markets to procure these commodities efficiently, aiming for quality and value. The procurement process typically involves competitive bidding to ensure fair pricing and support domestic agricultural producers by providing a stable market for their products.

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: 123J1425B0359

Offers Received: 6

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

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: $1,888,474

Exercised Options: $1,888,474

Current Obligation: $1,888,474

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1425D0038

IDV Type: IDC

Timeline