Magnolia Processing Inc. awarded $3.15M contract for catfish fillets, highlighting USDA's food donation commodity procurement

Contract Overview

Contract Amount: $3,148,010 ($3.1M)

Contractor: Magnolia Processing Inc

Awarding Agency: Department of Agriculture

Start Date: 2024-06-27

End Date: 2024-10-31

Contract Duration: 126 days

Daily Burn Rate: $25.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010136/4100030348/CATFISH FLTS UNBRD RAW PKG-20/2 LB

Place of Performance

Location: TUNICA, TUNICA County, MISSISSIPPI, 38676

State: Mississippi Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.1 million to MAGNOLIA PROCESSING INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010136/4100030348/CATFISH FLTS UNBRD RAW PKG-20/2 LB Key points: 1. Contract value of $3.15M for catfish fillets suggests a significant volume of product for donation programs. 2. The award to Magnolia Processing Inc. indicates a competitive process, though specific details on bidder numbers are limited. 3. The firm fixed-price contract type offers cost certainty for the government. 4. The contract duration of 126 days points to a focused procurement for immediate needs. 5. The geographic origin of the supplier (Mississippi) may influence regional economic impact. 6. The commodity type (catfish fillets) aligns with nutritional goals for food assistance programs.

Value Assessment

Rating: good

The contract value of $3.15 million for 20,000 units of catfish fillets appears reasonable given the nature of commodity procurement for federal food donation programs. Benchmarking against similar large-scale seafood purchases for government use would provide a more precise value-for-money assessment. The firm fixed-price structure helps manage cost fluctuations, but the final unit cost is dependent on the total quantity delivered within the contract period.

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 the competition was open, specific sources may have been excluded based on prior performance or other criteria. The presence of 7 bidders suggests a healthy level of interest and competition for this commodity contract. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: A competitive award process with multiple bidders helps ensure that taxpayer dollars are used efficiently, securing the best possible price for essential food commodities for donation programs.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USDA donation programs. The service delivered is the provision of processed catfish fillets, a protein source for nutritional support. The geographic impact is likely national, as donated commodities are distributed through various channels across the United States. Workforce implications are primarily within the seafood processing industry, supporting jobs at Magnolia Processing Inc. and its suppliers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price volatility in seafood markets impacting long-term affordability if not managed.
Dependence on a single supplier for a specific commodity could pose supply chain risks.
Ensuring consistent quality and adherence to food safety standards for donated products is critical.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Multiple bidders indicate a competitive market for this commodity.
Procurement supports federal food donation programs, addressing food insecurity.

Sector Analysis

The seafood processing industry is a significant sector within the broader food manufacturing market. This contract falls under the 'Seafood Product Preparation and Packaging' NAICS code (311710). Federal procurement of commodities for food donation programs represents a substantial, albeit specialized, segment of this market. Comparable spending benchmarks would involve analyzing other large-scale commodity contracts for protein sources or other food items procured by agencies like the USDA for similar purposes.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The primary award is to Magnolia Processing Inc., a presumably larger entity. There is no explicit information regarding subcontracting plans with small businesses within the provided data. The impact on the small business ecosystem would depend on whether Magnolia Processing Inc. utilizes small businesses for raw material sourcing or other support services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agricultural Marketing Service (AMS) of the USDA, which is responsible for procuring and distributing agricultural commodities. Accountability measures are embedded in the contract terms, including delivery schedules and product specifications. Transparency is facilitated through federal contract databases where such awards are published. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

USDA Food Donation Programs
National School Lunch Program (commodity support)
Commodity Supplemental Food Program
Emergency Food Assistance Program

Risk Flags

Potential supply chain disruption risk
Ensuring consistent product quality for donation recipients
Market price fluctuations for seafood commodities

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.1 million to MAGNOLIA PROCESSING INC. COMMODITIES FOR USG FOOD DONATIONS: 2000010136/4100030348/CATFISH FLTS UNBRD RAW PKG-20/2 LB

Who is the contractor on this award?

The obligated recipient is MAGNOLIA PROCESSING INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.1 million.

What is the period of performance?

Start: 2024-06-27. End: 2024-10-31.

What is the historical spending pattern for catfish fillet procurement by the USDA for donation programs?

Analyzing historical spending data for catfish fillet procurement by the USDA for donation programs would reveal trends in contract values, quantities, and pricing over time. This analysis could identify periods of increased or decreased spending, potentially linked to changes in program funding, food insecurity levels, or market availability of catfish. Understanding these patterns helps in forecasting future needs and budgeting effectively. For instance, a review might show if the current $3.15 million award is consistent with previous years' investments in this specific commodity or if it represents a significant deviation, warranting further investigation into the underlying causes.

How does the unit price of these catfish fillets compare to commercially available prices or other government contracts?

A direct comparison of the unit price for these catfish fillets to commercially available prices and other government contracts is crucial for assessing value for money. While the provided data does not include the exact unit price, it can be calculated by dividing the total contract value ($3,148,010) by the quantity (20,000 units). This calculated unit price should then be benchmarked against prevailing wholesale prices for similar quality catfish fillets and against prices paid under other federal contracts for the same or comparable seafood products. Significant deviations could indicate either exceptional value or potential overpricing, necessitating a deeper dive into contract specifics, quality standards, and market conditions at the time of award.

What are the specific quality and safety standards required for these donated catfish fillets?

The specific quality and safety standards for these donated catfish fillets are critical to ensure they meet nutritional requirements and are safe for consumption by vulnerable populations. These standards are typically detailed within the contract's statement of work and specifications. They often include requirements related to species, processing methods, packaging, freezing temperatures, shelf life, and adherence to USDA and FDA food safety regulations, such as HACCP (Hazard Analysis and Critical Control Points). Compliance is usually verified through inspections and certifications. Understanding these standards helps evaluate the appropriateness of the product for its intended use and the contractor's ability to meet them.

What is Magnolia Processing Inc.'s track record with federal contracts, particularly with the USDA?

Investigating Magnolia Processing Inc.'s track record with federal contracts, especially those administered by the USDA, provides insight into their reliability and performance history. This involves reviewing past contract awards, performance evaluations (if publicly available), and any history of contract disputes, terminations, or corrective actions. A positive track record suggests a lower risk of performance issues, while a history of problems might raise concerns about the contractor's capacity to fulfill this current award effectively. Information from sources like the Federal Procurement Data System (FPDS) or agency-specific contract databases can be instrumental in this assessment.

What is the expected impact of these donated catfish fillets on food insecurity in the recipient regions?

The expected impact of these donated catfish fillets on food insecurity hinges on the distribution mechanisms and the nutritional needs of the target populations. As a source of protein, catfish can contribute to improved dietary intake for individuals and families facing food insecurity. The effectiveness is amplified when these donations are integrated into broader food assistance programs that reach underserved communities. The quantity procured ($3.15 million worth) suggests a substantial contribution, potentially supporting thousands of meals. However, the ultimate impact also depends on the logistical efficiency of getting the product from Magnolia Processing Inc. to the end recipients without spoilage or undue delay.

Are there any specific sustainability or sourcing requirements included in this contract?

The provided data does not explicitly mention any specific sustainability or sourcing requirements for the catfish fillets in this contract. Federal contracts, particularly for food commodities, often focus on price, quality, and timely delivery. However, depending on the specific program objectives and evolving federal policies, there might be implicit or explicit expectations regarding sustainable fishing practices or domestic sourcing. A thorough review of the full contract document would be necessary to confirm the presence or absence of such clauses. If sustainability is a priority, its inclusion would align with broader government initiatives promoting responsible procurement.

Industry Classification

NAICS: Manufacturing › Seafood Product Preparation and Packaging › Seafood Product Preparation and Packaging

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1424B0444

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5255 HIGHWAY 4, TUNICA, MS, 38676

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

Financial Breakdown

Contract Ceiling: $3,148,010

Exercised Options: $3,148,010

Current Obligation: $3,148,010

Actual Outlays: $3,128,220

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline