Agriculture contract for roasted hazelnuts awarded to San Joaquin Figs Inc. for $2.71 million

Contract Overview

Contract Amount: $2,713,133 ($2.7M)

Contractor: SAN Joaquin Figs Inc

Awarding Agency: Department of Agriculture

Start Date: 2024-02-21

End Date: 2024-08-31

Contract Duration: 192 days

Daily Burn Rate: $14.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000009837/4100029411/HAZELNUTS PKG-24/1 LB

Place of Performance

Location: FRESNO, FRESNO County, CALIFORNIA, 93722

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.7 million to SAN JOAQUIN FIGS INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009837/4100029411/HAZELNUTS PKG-24/1 LB Key points: 1. Value for money appears fair given the fixed-price contract type and the specific commodity. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are low with a firm fixed-price contract and a defined delivery period. 4. Performance context is a single definitive contract for a specific food commodity. 5. Sector positioning is within the food manufacturing and distribution segment of the agricultural industry.

Value Assessment

Rating: fair

The contract value of $2.71 million for 200,000 lbs of hazelnuts is benchmarked against market prices for bulk roasted hazelnuts. While specific government procurement data for this exact commodity is limited, the price per pound falls within a reasonable range for bulk purchases, considering processing and packaging costs. The firm fixed-price structure limits the government's exposure to cost overruns.

Cost Per Unit: $13.57 per pound

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the initial approach might have considered other options, the final award was made through a broad solicitation. The presence of 3 bidders suggests a degree of competition, which is generally positive for price discovery. However, the 'exclusion of sources' clause warrants further investigation to understand if it limited the competitive pool.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging multiple vendors to offer their best pricing. This process helps ensure that the government is not overpaying for goods.

Public Impact

The primary beneficiaries are likely recipients of U.S. government food donation programs, potentially including domestic food banks or international aid organizations. The service delivered is the provision of roasted hazelnuts, a nutritious food item. The geographic impact is primarily California, where the contractor is located, and potentially the distribution points for the donated food. Workforce implications are related to the agricultural processing and logistics sectors involved in fulfilling the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type could potentially limit the number of qualified bidders and impact overall price competitiveness.
Lack of detailed performance metrics or quality assurance information in the provided data makes it difficult to fully assess the contractor's track record on this specific award.

Positive Signals

The contract is firm fixed-price, which provides cost certainty for the government.
The award was made under full and open competition, indicating an effort to solicit from a wide range of potential suppliers.
The contractor is located in California, a major agricultural state, suggesting proximity to potential supply chains.

Sector Analysis

This contract falls within the broader agricultural sector, specifically focusing on processed food commodities. The market for bulk food ingredients and donations is significant, driven by government programs like the Food Purchase Program for donation. Comparable spending benchmarks would involve analyzing other government contracts for similar food items or bulk agricultural products procured by agencies like USDA.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false) and there is no explicit mention of small business subcontracting goals (sb: false). Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Agriculture's Agricultural Marketing Service (AMS). The firm fixed-price nature of the contract simplifies oversight by focusing on delivery and specifications rather than cost justification. Transparency is facilitated by the public nature of federal contract awards, though detailed performance monitoring data may not be publicly available.

Related Government Programs

USDA Food Purchase Program
Commodity Procurement for Donations
Agricultural Product Procurement
Food Aid Programs

Risk Flags

Potential limitation of competition due to 'exclusion of sources' clause.
Lack of detailed performance metrics in summary data.
Unclear if specific quality standards were met or exceeded for the price paid.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.7 million to SAN JOAQUIN FIGS INC. COMMODITIES FOR USG FOOD DONATIONS: 2000009837/4100029411/HAZELNUTS PKG-24/1 LB

Who is the contractor on this award?

The obligated recipient is SAN JOAQUIN FIGS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.7 million.

What is the period of performance?

Start: 2024-02-21. End: 2024-08-31.

What is the historical spending pattern for roasted nuts and peanut butter manufacturing (NAICS 311911) by the Department of Agriculture?

Analyzing historical spending for NAICS 311911 by the Department of Agriculture reveals a consistent pattern of procurement for various nut and peanut butter products, often tied to domestic and international food assistance programs. While specific dollar amounts fluctuate annually based on program needs and appropriations, the USDA regularly invests in these commodities. For instance, in recent fiscal years, spending has ranged from several million to tens of millions of dollars annually for this sector, supporting both emergency food aid and child nutrition programs. This particular contract for hazelnuts represents a segment of that broader, ongoing investment in nutritious food supplies.

How does the price per pound for these hazelnuts compare to commercially available bulk roasted hazelnuts?

The price per pound for these hazelnuts is approximately $13.57. This figure needs to be compared against current market rates for bulk, wholesale roasted hazelnuts. Factors influencing this comparison include the specific type and quality of hazelnuts, the volume purchased, packaging requirements, and the timing of the purchase relative to harvest seasons and market fluctuations. Generally, government contracts for bulk commodities can achieve competitive pricing due to volume, but specialized processing or specific quality standards can increase costs. A detailed market analysis would involve checking wholesale food distributors and commodity trading platforms for comparable bulk pricing at the time of the award.

What are the specific quality standards or specifications required for the hazelnuts in this contract?

The provided data does not detail the specific quality standards or nutritional specifications for the 200,000 lbs of hazelnuts. Typically, government contracts for food commodities include detailed requirements regarding grade, size, moisture content, absence of defects, and packaging. For food donations, standards often align with U.S. Grade standards or equivalent international norms. Without these specifications, it's challenging to fully assess if the price paid reflects premium quality or standard commodity grade. Further review of the contract document itself would be necessary to ascertain these details.

What is the track record of San Joaquin Figs Inc. in fulfilling government contracts, particularly for food commodities?

Information on San Joaquin Figs Inc.'s specific track record with government contracts, especially for food commodities beyond figs, is not detailed in the provided data. A comprehensive assessment would require searching federal procurement databases (like SAM.gov or FPDS) for past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. Given their name, their primary expertise might lie in figs, making this hazelnut contract potentially a diversification or a response to a specific solicitation where they met the requirements.

What is the intended use and distribution channel for these donated hazelnuts?

The intended use for these hazelnuts is for U.S. government food donation programs. While the specific program isn't detailed, such commodities are typically distributed through domestic food banks, school lunch programs, or international humanitarian aid initiatives managed by agencies like the World Food Programme or USAID. The Agricultural Marketing Service (AMS) of the USDA often procures these items to support various domestic nutrition assistance efforts and to provide relief during emergencies or to support agricultural markets.

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: 123J1424B0192

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3564 N HAZEL AVE, FRESNO, CA, 93722

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

Financial Breakdown

Contract Ceiling: $2,713,133

Exercised Options: $2,713,133

Current Obligation: $2,713,133

Actual Outlays: $2,692,826

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline