USDA awards $27.3M for dried plums and raisins to Sun Valley Raisins under full and open competition

Contract Overview

Contract Amount: $27,283,414 ($27.3M)

Contractor: SUN Valley Raisins, Inc., a California Corporation

Awarding Agency: Department of Agriculture

Start Date: 2023-08-21

End Date: 2024-04-30

Contract Duration: 253 days

Daily Burn Rate: $107.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 18

Pricing Type: FIXED PRICE AWARD FEE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000009507/4100028326/PLUMS PITTED DRIED PKG-24/1 LB,RAISINS PKG-24/15 OZ

Place of Performance

Location: FRESNO, FRESNO County, CALIFORNIA, 93706

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $27.3 million to SUN VALLEY RAISINS, INC., A CALIFORNIA CORPORATION for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009507/4100028326/PLUMS PITTED DRIED PKG-24/1 LB,RAISINS PKG-24/15 OZ Key points: 1. Contract awarded to Sun Valley Raisins, Inc. for dried fruits. 2. Competition method: Full and open after exclusion of sources. 3. Risk: Moderate, due to reliance on a single supplier for specific items. 4. Sector: Food manufacturing and distribution for government programs.

Value Assessment

Rating: good

The contract value of $27.3 million for dried plums and raisins appears reasonable given the quantity and duration. Benchmarking against similar large-scale food commodity procurements would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The procurement utilized full and open competition after excluding specific sources, suggesting an effort to maximize competition. The fixed-price award fee structure incentivizes performance while managing costs.

Taxpayer Impact: Taxpayer funds are used to procure essential food commodities for donation programs, ensuring food security for beneficiaries.

Public Impact

Ensures availability of essential food items for federal food donation programs. Supports agricultural producers and food manufacturers within the U.S. Provides nutritional resources to vulnerable populations through government assistance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in agricultural commodities.
Dependence on a single awardee for specific dried fruit products.

Positive Signals

Utilizes full and open competition.
Supports domestic agriculture and food industry.

Sector Analysis

This contract falls within the Dried and Dehydrated Food Manufacturing sector, specifically for commodities used in government food donation programs. Spending benchmarks for such agricultural procurements vary widely based on commodity type and volume.

Small Business Impact

The data indicates the awardee is Sun Valley Raisins, Inc., a California corporation. There is no explicit information provided regarding small business participation or subcontracting in this specific award.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service. Oversight would involve monitoring contract performance, delivery schedules, and quality of the food commodities provided.

Related Government Programs

Dried and Dehydrated Food Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential supply chain disruption risk.
Price volatility of agricultural commodities.
Limited supplier diversity for specific items.
Contract duration of 253 days.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $27.3 million to SUN VALLEY RAISINS, INC., A CALIFORNIA CORPORATION. COMMODITIES FOR USG FOOD DONATIONS: 2000009507/4100028326/PLUMS PITTED DRIED PKG-24/1 LB,RAISINS PKG-24/15 OZ

Who is the contractor on this award?

The obligated recipient is SUN VALLEY RAISINS, INC., A CALIFORNIA CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.3 million.

What is the period of performance?

Start: 2023-08-21. End: 2024-04-30.

What is the historical pricing trend for pitted dried plums and raisins procured by the government?

Analyzing historical pricing data for these specific commodities is crucial to determine if the current award represents a fair and reasonable price. Fluctuations in agricultural markets, weather impacts, and global supply chain dynamics can significantly influence costs over time. Understanding these trends helps assess the value obtained in this $27.3 million contract.

What are the specific risks associated with relying on a single supplier for these essential food commodities?

Reliance on a single supplier, even after an open competition, introduces risks such as supply chain disruptions due to unforeseen events (e.g., natural disasters, labor issues) affecting the awardee. It could also limit future negotiation leverage and potentially lead to price increases in subsequent procurements if competition is not re-established.

How effectively does this procurement process ensure the quality and nutritional value of the food donations?

The effectiveness in ensuring quality and nutritional value depends on the contract's specifications, inspection protocols, and the awardee's adherence to standards. While the fixed-price award fee structure incentivizes performance, robust quality assurance measures and regular audits by the Agricultural Marketing Service are essential to guarantee the donated food meets required nutritional and safety standards.

Industry Classification

NAICS: Manufacturing › Fruit and Vegetable Preserving and Specialty Food Manufacturing › Dried and Dehydrated Food Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1423B0540

Offers Received: 18

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Address: 9595 S HUGHES AVE, FRESNO, CA, 93706

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,283,414

Exercised Options: $27,283,414

Current Obligation: $27,283,414

Actual Outlays: $26,817,812

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline