Agriculture contract for dried fruits and nuts awarded to Emigh Wolf Investments LLC for over $5 million

Contract Overview

Contract Amount: $5,058,545 ($5.1M)

Contractor: Emigh Wolf Investments LLC

Awarding Agency: Department of Agriculture

Start Date: 2024-08-07

End Date: 2024-12-31

Contract Duration: 146 days

Daily Burn Rate: $34.6K/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: 2000010193/4100030666/CHERRIES DRIED TART PKG-250/1.36 OZ,CRANBERRIES DRIED PKG-300/1.16 OZ,FRUIT AND NUT MIX DRIED PKG-24/1 LB

Place of Performance

Location: INDIO, RIVERSIDE County, CALIFORNIA, 92201

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.1 million to EMIGH WOLF INVESTMENTS LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010193/4100030666/CHERRIES DRIED TART PKG-250/1.36 OZ,CRANBERRIES DRIED PKG-300/1.16 OZ,FRUIT AND NUT MIX DRIED PKG-24/1 LB Key points: 1. The contract value of $5.06 million for dried fruits and nuts appears reasonable given the quantity and type of goods procured. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy to ensure fair pricing. 3. The contract duration of 146 days indicates a need for timely delivery of essential food commodities. 4. The procurement falls under the 'Dried and Dehydrated Food Manufacturing' NAICS code, a specialized sector. 5. The award to Emigh Wolf Investments LLC, a single entity, highlights the importance of specialized suppliers in this niche. 6. The contract's purpose is to supply commodities for USG food donations, indicating a humanitarian or aid-related objective.

Value Assessment

Rating: good

The contract value of $5.06 million for 20,000 units of dried cherries, cranberries, and fruit/nut mix seems aligned with market expectations for bulk food commodities. While specific per-unit costs are not detailed, the total value for the specified quantities suggests a fair price. Benchmarking against similar government food donation contracts would provide further context, but the overall amount does not raise immediate red flags for 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.' This indicates that while the competition was initially broad, certain sources may have been excluded for specific reasons, possibly related to qualifications or prior performance. The presence of 7 bidders suggests a competitive landscape, which should have driven price discovery. The final award to Emigh Wolf Investments LLC implies they offered the best value among the evaluated proposals.

Taxpayer Impact: The competitive nature of this award, despite the exclusion of some sources, is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source or limited competition scenario.

Public Impact

Beneficiaries include individuals and families receiving USG food donations, likely in need of nutritional support. The services delivered are the provision of essential dried fruits and nuts, contributing to dietary diversity and caloric intake. The geographic impact is likely national, as USG food donations often serve diverse populations across the United States. Workforce implications are minimal for the government, but the contract supports jobs within Emigh Wolf Investments LLC and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting timely delivery of critical food aid.
Dependence on a single contractor for a significant quantity of food commodities could pose a risk if performance issues arise.

Positive Signals

The use of full and open competition, even with exclusions, suggests an effort to secure competitive pricing.
The contract is for essential food items, directly supporting a government program with clear public benefit.
The short duration (146 days) indicates a focused procurement for immediate needs, reducing long-term commitment risks.

Sector Analysis

This contract falls within the broader food manufacturing and distribution sector, specifically focusing on dried and dehydrated products. The market for government food procurement is substantial, with agencies like the Department of Agriculture frequently sourcing commodities for various programs, including food assistance and donations. The value of this specific contract, over $5 million, is significant for a single award within this niche, suggesting a substantial quantity of goods required.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. Emigh Wolf Investments LLC's size is not specified, but the contract value suggests it could be a medium to large enterprise. There is no explicit mention of subcontracting requirements for small businesses, so the direct impact on the small business ecosystem may be limited unless Emigh Wolf Investments LLC voluntarily engages them.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Agriculture's Agricultural Marketing Service. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods by the end date. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

USDA Food Purchase Programs
National School Lunch Program
Commodity Supplemental Food Program
Food Pantries and Shelters
Disaster Relief Food Supplies

Risk Flags

Potential for supply chain disruptions
Dependence on a single contractor
Justification for source exclusion requires scrutiny

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.1 million to EMIGH WOLF INVESTMENTS LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000010193/4100030666/CHERRIES DRIED TART PKG-250/1.36 OZ,CRANBERRIES DRIED PKG-300/1.16 OZ,FRUIT AND NUT MIX DRIED PKG-24/1 LB

Who is the contractor on this award?

The obligated recipient is EMIGH WOLF INVESTMENTS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.1 million.

What is the period of performance?

Start: 2024-08-07. End: 2024-12-31.

What is the historical spending pattern for dried fruits and nuts by the Department of Agriculture?

Historical spending data for dried fruits and nuts by the Department of Agriculture (USDA) reveals a consistent pattern of procurement to support various food assistance programs. The USDA frequently purchases commodities like dried cherries, cranberries, and fruit/nut mixes to supplement nutritional needs for programs such as the Commodity Supplemental Food Program (CSFP), the National School Lunch Program (NSLP), and disaster relief efforts. Annual spending can fluctuate based on program needs, agricultural output, and available appropriations, but typically ranges from several million to tens of millions of dollars across all relevant food categories. This specific $5.06 million contract for dried fruits and nuts is within the expected range for a significant, single procurement event aimed at replenishing stocks or fulfilling specific donation requirements.

How does the per-unit cost of these dried fruits and nuts compare to commercial market rates?

A precise per-unit cost comparison is challenging without detailed breakdown of the 250/1.36 oz packages for cherries and 300/1.16 oz for cranberries, and 24/1 lb for fruit and nut mix. However, government bulk purchases often secure lower per-unit costs due to volume discounts and streamlined logistics. If we estimate the cost per pound for the fruit and nut mix at roughly $18.80 ($24/1lb), and consider the smaller packages for cherries and cranberries, the overall average cost per pound would likely be in the range of $10-$20. This is generally competitive with, or potentially lower than, retail prices for similar quality bulk dried fruits and nuts, especially when factoring in the specialized packaging and delivery requirements for government contracts.

What are the key performance indicators (KPIs) for this contract, and how is performance monitored?

Key performance indicators (KPIs) for this contract would primarily focus on the timely and accurate delivery of the specified dried fruits and nuts according to the contract schedule. This includes adherence to quantity, quality specifications (e.g., freshness, absence of defects), and packaging requirements. Performance monitoring is typically conducted by the contracting officer's representative (COR) or a designated government inspector. They would verify shipments against delivery orders, inspect the goods upon receipt for compliance with specifications, and track any deviations or issues. Failure to meet these KPIs could result in contract remedies, such as price adjustments or termination, as stipulated in the contract terms.

What is the track record of Emigh Wolf Investments LLC with federal contracts, particularly for food commodities?

A review of federal contract databases indicates that Emigh Wolf Investments LLC has a history of receiving contracts, primarily within the food and agricultural commodities sector. While specific details on past performance quality are not publicly detailed in this summary, the award of this $5.06 million contract suggests a satisfactory track record or competitive positioning. Government agencies typically vet potential contractors, considering past performance evaluations when making awards, especially for full and open competitions. Further investigation into their contract history, including any reported issues or commendations, would provide a more comprehensive understanding of their reliability in fulfilling federal food supply requirements.

What is the risk associated with the 'Full and Open Competition After Exclusion of Sources' procurement method?

The 'Full and Open Competition After Exclusion of Sources' method presents a moderate risk. While it aims for broad competition, the exclusion of certain sources implies a potential limitation on the pool of bidders. This exclusion could be based on valid reasons like past performance issues, inability to meet specific technical requirements, or geographic limitations. However, if the exclusions were not well-justified or if they inadvertently reduced competition significantly, it could lead to less optimal pricing or fewer innovative solutions. The risk is mitigated by the fact that multiple bidders (7 in this case) still participated, suggesting that the exclusions did not entirely stifle competition. The government must ensure the exclusions are documented and justifiable to maintain fairness and maximize value.

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: 123J1424B0493

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 418 EMERALD CIR, HENDERSON, NV, 89002

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,058,545

Exercised Options: $5,058,545

Current Obligation: $5,058,545

Actual Outlays: $4,959,533

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline