USDA's $20.3M contract for roasted almonds awarded to SUNTREE SNACK FOODS LLC, highlighting agricultural commodity procurement

Contract Overview

Contract Amount: $20,339,176 ($20.3M)

Contractor: Suntree Snack Foods LLC

Awarding Agency: Department of Agriculture

Start Date: 2022-09-08

End Date: 2023-04-15

Contract Duration: 219 days

Daily Burn Rate: $92.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000008672/4100026238/ALMONDS ROASTED WHOLE SHELL PKG-12/2 LB,ALMOND NATURAL WHOLE SHELL CTN-12/2 LB

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85031

State: Arizona Government Spending

Plain-Language Summary

Department of Agriculture obligated $20.3 million to SUNTREE SNACK FOODS LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000008672/4100026238/ALMONDS ROASTED WHOLE SHELL PKG-12/2 LB,ALMOND NATURAL WHOLE SHELL CTN-12/2 LB Key points: 1. Value for money assessed through firm fixed price contract, aiming for predictable costs. 2. Competition dynamics indicate a full and open competition after exclusion of sources, suggesting a robust bidding process. 3. Risk indicators include contract duration and specific commodity focus, requiring careful supply chain management. 4. Performance context relies on timely delivery of specified almond products for donation programs. 5. Sector positioning within agricultural marketing and food manufacturing, supporting domestic food supply chains.

Value Assessment

Rating: good

The contract value of $20.3 million for roasted almonds appears reasonable given the quantity and nature of the commodity. Benchmarking against similar large-scale agricultural procurements for food donations would provide further context. The firm fixed price structure helps manage cost uncertainty for the government. However, a detailed cost breakdown from the contractor would allow for a more granular assessment of value.

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 while initial sources might have been considered, the final award was made after a broad competitive process. Six bids were received, suggesting a healthy level of interest and competition for this agricultural commodity contract. This level of competition is generally favorable for price discovery and achieving competitive pricing.

Taxpayer Impact: A competitive bidding process for essential food commodities like almonds helps ensure taxpayer dollars are used efficiently, leading to better prices and potentially higher quality products for federal programs.

Public Impact

Beneficiaries include recipients of USG food donation programs, ensuring access to nutritious food items. Services delivered involve the procurement and supply of roasted whole shell almonds. Geographic impact is primarily within Arizona where the contractor is located, but the food donations have a national reach. Workforce implications are tied to the agricultural and food manufacturing sectors, supporting jobs in these areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions affecting delivery timelines.
Price volatility of almonds in the global market could impact future contract costs if not adequately hedged.
Ensuring consistent quality and adherence to specifications for food donation programs.

Positive Signals

Award to an established entity in the snack food manufacturing sector.
Firm fixed price contract provides cost certainty for the government.
Competitive bidding process likely secured favorable pricing.

Sector Analysis

This contract falls within the broader agricultural products and food manufacturing sector. The market for processed nuts, particularly almonds, is significant, driven by both consumer demand and government procurement for various programs. Comparable spending benchmarks would involve looking at other large-scale procurements of agricultural commodities for domestic or international food assistance programs, as well as general market prices for bulk almonds.

Small Business Impact

The contract was not set aside for small businesses, and the contractor, SUNTREE SNACK FOODS LLC, is not explicitly identified as a small business in the provided data. There is no information on subcontracting plans. The focus on a large-scale commodity procurement suggests it may be less conducive to small business participation unless they are direct suppliers to the prime contractor.

Oversight & Accountability

Oversight is likely managed by the Agricultural Marketing Service (AMS) within the USDA. Accountability measures would include adherence to contract terms, delivery schedules, and product specifications. Transparency is facilitated through contract award data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

USDA Food Donation Programs
Agricultural Commodity Procurement
National School Lunch Program (potential indirect link)
Food for Peace Program (potential indirect link)

Risk Flags

Supply Chain Vulnerability
Commodity Price Fluctuation
Quality Assurance for Food Donations

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $20.3 million to SUNTREE SNACK FOODS LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000008672/4100026238/ALMONDS ROASTED WHOLE SHELL PKG-12/2 LB,ALMOND NATURAL WHOLE SHELL CTN-12/2 LB

Who is the contractor on this award?

The obligated recipient is SUNTREE SNACK FOODS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.3 million.

What is the period of performance?

Start: 2022-09-08. End: 2023-04-15.

What is the historical spending pattern for roasted almonds by the USDA or similar agencies?

Historical spending on roasted almonds by the USDA and other federal agencies can vary significantly year over year, influenced by program needs, commodity availability, and budget allocations. For instance, the USDA's Commodity Credit Corporation (CCC) often procures agricultural products to support farm prices and ensure supply for domestic and international food assistance. Specific data on roasted almonds would require detailed analysis of past solicitations and awards. Trends might show increased procurement during periods of high food insecurity or specific dietary initiatives. Without access to a comprehensive historical database for this specific commodity, it's difficult to provide exact figures, but such procurements are typically part of larger agricultural support and food aid strategies.

How does the unit price of almonds in this contract compare to market rates at the time of award?

Determining the precise unit price comparison requires knowing the exact quantity of almonds procured under the $20.3 million contract and comparing it to prevailing market rates for bulk, roasted, whole shell almonds in 12/2 lb packages during the contract period (September 2022 - April 2023). Market rates fluctuate based on harvest yields, global demand, and storage costs. Given this was a competitive bid, it's likely the price secured was favorable relative to the open market at that specific time. However, without the exact per-pound or per-unit cost derived from the total award and quantity, a direct benchmark is challenging. Federal procurement data often aims to achieve prices at or below market, especially for commodities.

What are the primary risks associated with procuring agricultural commodities like almonds for donation programs?

Procuring agricultural commodities like almonds for donation programs carries several inherent risks. Supply chain disruptions, due to weather events affecting harvests, transportation issues, or geopolitical factors, can impact availability and delivery timelines. Price volatility is another significant risk; almond prices can fluctuate based on global market conditions, potentially leading to costs exceeding initial estimates if not managed through fixed-price contracts or hedging strategies. Quality control is crucial to ensure the donated food meets nutritional and safety standards. Furthermore, ensuring efficient distribution to intended beneficiaries and minimizing spoilage or waste are logistical challenges. Finally, compliance with regulations regarding food safety and procurement processes adds another layer of complexity.

What is the track record of SUNTREE SNACK FOODS LLC in fulfilling government contracts?

Information regarding SUNTREE SNACK FOODS LLC's specific track record in fulfilling government contracts is not detailed in the provided data snippet. To assess their reliability, one would typically examine past performance evaluations on federal contracts, including on-time delivery, quality of goods, and adherence to contract terms. A review of the Federal Procurement Data System (FPDS) or similar databases would be necessary to identify previous awards, their values, and any reported performance issues or successes. Without this historical performance data, it's difficult to definitively gauge their experience and reliability as a government contractor.

How does this contract contribute to the USDA's mission regarding food security and agricultural support?

This contract directly supports the USDA's mission by procuring agricultural products, in this case, almonds, for donation programs. These programs aim to alleviate hunger and improve food security for vulnerable populations within the United States. By purchasing commodities from domestic producers, the USDA also indirectly supports American agriculture, helping to stabilize farm prices and maintain a robust agricultural sector. The procurement of specific items like almonds can also align with dietary guidelines and nutritional objectives for food assistance, ensuring recipients receive healthy and valuable food items. This contract exemplifies the dual role of USDA procurement: addressing social needs while bolstering the agricultural economy.

Industry Classification

NAICS: Manufacturing › Other Food Manufacturing › Roasted Nuts and Peanut Butter Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1422B0461

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4502 W MONTEROSA ST, PHOENIX, AZ, 85031

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,339,176

Exercised Options: $20,339,176

Current Obligation: $20,339,176

Actual Outlays: $20,227,342

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline