USDA Awards $6.19M for Fresh Fruit to Kingsburg Orchards Under Full and Open Competition

Contract Overview

Contract Amount: $6,187,011 ($6.2M)

Contractor: Kingsburg Orchards

Awarding Agency: Department of Agriculture

Start Date: 2024-06-14

End Date: 2024-09-30

Contract Duration: 108 days

Daily Burn Rate: $57.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010152/4400002167/4100030277/NECTARINES FRESH BAG PKG#12/2 LB,PEACHES FRESH BAG PKG#12/2 LB,PLUMS FRESH CTN-28 LB

Place of Performance

Location: KINGSBURG, FRESNO County, CALIFORNIA, 93631

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $6.2 million to KINGSBURG ORCHARDS for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010152/4400002167/4100030277/NECTARINES FRESH BAG PKG#12/2 LB,PEACHES FRESH BAG PKG#12/2 LB,PLUMS FRESH CTN-28 LB Key points: 1. The contract focuses on fresh nectarines and peaches, essential for food donation programs. 2. Kingsburg Orchards, a significant player in fruit production, secured this award. 3. The contract is a delivery order under a larger agreement, indicating potential for future awards. 4. The perishable nature of the goods presents logistical and quality control challenges.

Value Assessment

Rating: good

The award price of $6.19M for 108 days of supply appears reasonable given the quantity and type of perishable goods. Benchmarking against similar large-scale fresh produce contracts would provide a more precise assessment.

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, suggesting a robust price discovery process. This method aims to ensure the government receives the best value by considering all qualified bidders.

Taxpayer Impact: The use of full and open competition is taxpayer-favorable as it drives competitive pricing and ensures efficient use of funds for essential food donation commodities.

Public Impact

Ensures availability of fresh fruit for vital USG food donation programs, supporting food security initiatives. Supports agricultural producers in California by providing a consistent demand for their products. The contract's short duration (108 days) reflects the seasonal and perishable nature of the commodities.

Waste & Efficiency Indicators

Waste Risk Score: 57 / 10

Warning Flags

Perishability of goods requires careful logistical planning and quality control.
Potential for price fluctuations in fresh produce markets.
Dependence on a single awardee for a significant quantity of perishable goods.

Positive Signals

Awarded under full and open competition, promoting fair pricing.
Supports critical food donation programs.
Clear contract terms with a firm fixed price.

Sector Analysis

The Agricultural Marketing Service (AMS) procures agricultural commodities for various government programs, including food donations. Spending in this sector is crucial for supporting domestic agriculture and addressing food insecurity, with typical contract values varying widely based on commodity and quantity.

Small Business Impact

While this specific award went to a larger entity, the Agricultural Marketing Service often works with a diverse range of suppliers, including small businesses, for commodity procurement. The nature of large-scale fresh produce contracts, however, may favor established, larger operations.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service, which has established procedures for procurement and oversight. The use of a delivery order under a larger agreement suggests ongoing monitoring and performance evaluation.

Related Government Programs

Perishable Prepared Food Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Perishability of goods
Potential for market price volatility
Logistical challenges in timely delivery
Dependence on specific agricultural output

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $6.2 million to KINGSBURG ORCHARDS. COMMODITIES FOR USG FOOD DONATIONS: 2000010152/4400002167/4100030277/NECTARINES FRESH BAG PKG#12/2 LB,PEACHES FRESH BAG PKG#12/2 LB,PLUMS FRESH CTN-28 LB

Who is the contractor on this award?

The obligated recipient is KINGSBURG ORCHARDS.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.2 million.

What is the period of performance?

Start: 2024-06-14. End: 2024-09-30.

What is the historical pricing trend for these specific fruits purchased by the government?

Analyzing historical pricing data for nectarines and peaches procured by the government would provide valuable context for assessing the current award's value. Understanding past price fluctuations due to seasonality, market conditions, and competition levels can help determine if this $6.19M award represents a favorable or unfavorable price point compared to previous procurements.

What are the specific quality control and spoilage mitigation measures in place for these perishable goods?

Given the perishable nature of fresh fruit, robust quality control and spoilage mitigation strategies are critical. This includes detailed specifications for ripeness, packaging, and transport, as well as clear procedures for inspection upon delivery and handling of any rejected or spoiled items to minimize waste and ensure the donated food meets safety and nutritional standards.

How does the cost per pound of these donated fruits compare to retail prices?

Comparing the per-pound cost of these donated fruits to prevailing retail prices can offer insight into the government's purchasing efficiency. While government procurement may benefit from bulk discounts, understanding this comparison helps evaluate the overall value and taxpayer impact, ensuring funds are used effectively to maximize the quantity and quality of food provided.

Industry Classification

NAICS: Manufacturing › Other Food Manufacturing › Perishable Prepared Food Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 123J1424B0398

Offers Received: 16

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10363 DAVIS AVE, KINGSBURG, CA, 93631

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

Financial Breakdown

Contract Ceiling: $6,187,011

Exercised Options: $6,187,011

Current Obligation: $6,187,011

Actual Outlays: $6,182,473

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1424D0127

IDV Type: IDC

Timeline