Raisins for food donations contract awarded to Victor Packing, Inc. for $18.97M

Contract Overview

Contract Amount: $18,965,271 ($19.0M)

Contractor: Victor Packing, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2023-08-21

End Date: 2024-05-15

Contract Duration: 268 days

Daily Burn Rate: $70.8K/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: 2000009507/4100028328/RAISINS PKG-24/15 OZ

Place of Performance

Location: MADERA, MADERA County, CALIFORNIA, 93637

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $19.0 million to VICTOR PACKING, INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009507/4100028328/RAISINS PKG-24/15 OZ Key points: 1. The contract value represents a significant investment in supporting food donation programs. 2. Victor Packing, Inc. secured this award through a competitive process. 3. The contract duration of 268 days suggests a focused effort on timely delivery. 4. The fixed-price award fee structure incentivizes performance while managing cost. 5. This award falls within the Dried and Dehydrated Food Manufacturing sector. 6. The geographic location of the awardee in California may influence logistics.

Value Assessment

Rating: good

The contract value of $18.97 million for 200,000 cases of raisins appears reasonable given the scale of the procurement for food donation purposes. Benchmarking against similar large-scale food commodity contracts for federal nutrition programs would provide further context on value for money. The fixed-price award fee structure suggests an effort to control costs while allowing for performance-based incentives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the process was competitive, specific sources may have been excluded for defined reasons. The presence of 18 offers suggests a robust level of competition, which is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: The high number of bidders indicates that taxpayers likely benefited from competitive pricing, as multiple companies vied for the contract. This level of competition helps prevent inflated costs and ensures efficient use of taxpayer funds for essential programs.

Public Impact

Beneficiaries include individuals and families receiving food assistance through U.S. government donation programs. The contract delivers 200,000 cases of packaged raisins. The geographic impact is national, supporting food banks and distribution networks across the country. This contract supports jobs within the dried and dehydrated food manufacturing sector, particularly in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting timely delivery.
Fluctuations in commodity prices could affect long-term affordability of similar programs.
Ensuring consistent quality across all 200,000 cases is critical.

Positive Signals

Award to an established company with experience in food manufacturing.
Competitive bidding process likely secured favorable pricing.
Contract supports vital federal food donation initiatives.

Sector Analysis

The contract falls within the broader food manufacturing industry, specifically the niche of dried and dehydrated foods. This sector is characterized by agricultural inputs, processing, packaging, and distribution. The U.S. government is a significant purchaser of food commodities for various programs, including domestic food assistance and international aid. Comparable spending benchmarks would involve analyzing other large-scale commodity procurements for programs like the National School Lunch Program or international food aid.

Small Business Impact

The contract details do not indicate a specific small business set-aside. However, the robust competition with 18 bidders suggests that small businesses, if capable and competitive, could have participated. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses within Victor Packing, Inc.'s supply chain or operations.

Oversight & Accountability

Oversight for this contract would likely fall under the Agricultural Marketing Service (AMS) within the Department of Agriculture. Accountability measures are embedded in the contract's performance requirements and the fixed-price award fee structure. Transparency is generally maintained through federal contract databases, though specific performance metrics and IG oversight details would require deeper investigation.

Related Government Programs

National School Lunch Program
Food Bank Assistance Programs
Commodity Supplemental Food Program
International Food Aid Programs

Risk Flags

Potential for supply chain disruptions
Quality control of perishable goods
Price volatility of agricultural commodities

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $19.0 million to VICTOR PACKING, INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000009507/4100028328/RAISINS PKG-24/15 OZ

Who is the contractor on this award?

The obligated recipient is VICTOR PACKING, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.0 million.

What is the period of performance?

Start: 2023-08-21. End: 2024-05-15.

What is the historical spending pattern for raisins or similar dried fruits for U.S. government food donation programs?

Analyzing historical spending for raisins and comparable dried fruits within federal food donation programs requires accessing procurement data over several fiscal years. Typically, such procurements fluctuate based on program needs, agricultural output, and budgetary allocations. For instance, the USDA's Agricultural Marketing Service procures commodities for various domestic nutrition assistance programs. A review of past solicitations and awards for items like raisins, dried apricots, or prunes would reveal trends in contract values, quantities, and awardees. This contract's value of $18.97 million for 200,000 cases suggests a significant, but not unprecedented, level of investment, likely driven by specific program requirements or market conditions at the time of award. Understanding these historical patterns helps contextualize the current contract's scale and cost-effectiveness.

How does the per-unit cost of these raisins compare to market rates or similar government procurements?

To assess the per-unit cost, we divide the total contract value by the quantity: $18,965,271.47 / 200,000 cases = approximately $94.83 per case. This figure needs to be benchmarked against both commercial market rates for bulk raisins (considering packaging and quality specifications) and other government procurements of similar commodities. Factors like packaging size (15 oz), specific raisin variety, and quality standards will influence this comparison. If the government is purchasing in bulk for donation, the price per pound or per ounce should be compared to wholesale prices. Without specific market data for the exact specifications at the time of award, a definitive value-for-money assessment is challenging, but this per-case cost provides a starting point for further analysis against comparable contracts or indices.

What are the specific performance metrics and award fee criteria tied to this contract?

The contract utilizes a 'Fixed Price Award Fee' (FPIF) structure, meaning the contractor is paid a base fixed price, and an additional award fee is earned based on performance against pre-defined criteria. While the specific metrics are not detailed in the provided summary, typical performance areas for food commodity contracts include on-time delivery, quality compliance (meeting specifications for moisture content, size, absence of defects), proper packaging, and responsiveness to government requests. The award fee amount is usually a percentage of the base price or a fixed dollar amount, contingent on achieving certain performance levels. The government's contracting officer would evaluate performance against these criteria, often on a monthly or quarterly basis, to determine the amount of award fee earned. This structure incentivizes the contractor to exceed minimum requirements.

What is Victor Packing, Inc.'s track record with federal food procurement contracts?

Victor Packing, Inc. has a history of federal contracts, as indicated by this award. To assess their track record, one would need to examine past awards, contract performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or corrective actions. Their ability to secure a contract of this magnitude ($18.97 million) through full and open competition suggests a level of capability and reliability recognized by the contracting agency. Further investigation into their past performance on similar USDA or other federal agency food procurements would provide a clearer picture of their reliability, quality, and adherence to contract terms.

What are the potential risks associated with this contract, and how are they mitigated?

Potential risks include supply chain disruptions (affecting delivery timelines), quality control issues (ensuring raisins meet specifications), and price volatility of agricultural commodities. Mitigation strategies are embedded within the contract structure. The fixed-price component helps control costs, while the award fee mechanism incentivizes timely delivery and quality adherence. The competitive bidding process itself helps mitigate risks by selecting a capable contractor. Furthermore, the contract duration and delivery schedule likely include provisions for force majeure events. The government's quality assurance personnel would also conduct inspections to ensure compliance.

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: 11687 ROAD 27 1/2, MADERA, CA, 93637

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

Financial Breakdown

Contract Ceiling: $18,965,271

Exercised Options: $18,965,271

Current Obligation: $18,965,271

Actual Outlays: $18,963,498

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline