USDA's $14M Raisin Contract Awarded to Sun Valley Raisins Under Full and Open Competition

Contract Overview

Contract Amount: $14,080,902 ($14.1M)

Contractor: SUN Valley Raisins, Inc., a California Corporation

Awarding Agency: Department of Agriculture

Start Date: 2025-03-05

End Date: 2025-12-31

Contract Duration: 301 days

Daily Burn Rate: $46.8K/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: 2000010620/4100031848/RAISINS BOX-144/1.33 OZ,RAISINS PKG-24/15 OZ

Place of Performance

Location: FRESNO, FRESNO County, CALIFORNIA, 93706

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $14.1 million to SUN VALLEY RAISINS, INC., A CALIFORNIA CORPORATION for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010620/4100031848/RAISINS BOX-144/1.33 OZ,RAISINS PKG-24/15 OZ Key points: 1. The contract focuses on providing raisins for U.S. government food donations. 2. Sun Valley Raisins, Inc. secured the award, indicating potential market concentration. 3. The contract's fixed-price nature aims to control costs for the government. 4. Competition was full and open after exclusion of sources, suggesting a deliberate procurement strategy.

Value Assessment

Rating: good

The contract's firm fixed price structure provides cost certainty. Benchmarking against similar government food commodity contracts would be necessary for a precise value assessment, but the award under full competition suggests a reasonable price was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The procurement utilized 'full and open competition after exclusion of sources,' indicating that while the market was broadly open, specific sources were initially excluded before a wider competition was opened. This method aims to ensure fair pricing through competitive bidding.

Taxpayer Impact: The competitive award process is designed to secure goods at the best possible price, maximizing the value of taxpayer funds allocated for food donations.

Public Impact

Ensures a supply of essential food items for federal nutrition assistance programs. Supports agricultural producers and processors within the U.S., specifically in California. Provides transparency in government procurement through competitive bidding processes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited supplier diversity if 'exclusion of sources' was overly restrictive.
Reliance on a single awardee for a specific commodity.

Positive Signals

Awarded under full and open competition, promoting market fairness.
Firm fixed price contract provides budget predictability.
Supports domestic agriculture and food security initiatives.

Sector Analysis

The procurement falls within the Dried and Dehydrated Food Manufacturing sector, a segment of the broader food processing industry. Government spending in this area typically supports domestic agricultural supply chains and ensures availability of staple goods for various programs.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service. Oversight would involve monitoring contract performance, delivery schedules, and product quality to ensure compliance with terms and conditions.

Related Government Programs

Dried and Dehydrated Food Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for limited competition if 'exclusion of sources' was not fully justified.
Dependence on a single supplier for a specific commodity.
Vulnerability to market price volatility for raisins.
Logistical challenges in distributing donated food items.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $14.1 million to SUN VALLEY RAISINS, INC., A CALIFORNIA CORPORATION. COMMODITIES FOR USG FOOD DONATIONS: 2000010620/4100031848/RAISINS BOX-144/1.33 OZ,RAISINS PKG-24/15 OZ

Who is the contractor on this award?

The obligated recipient is SUN VALLEY RAISINS, INC., A CALIFORNIA CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.1 million.

What is the period of performance?

Start: 2025-03-05. End: 2025-12-31.

What is the historical pricing trend for raisins procured by the government, and how does this contract's price compare?

Analyzing historical pricing data for similar raisin procurements by the government is crucial for a comprehensive value assessment. Without this context, it's difficult to definitively state if $14 million represents a favorable price. Factors like market fluctuations, quality specifications, and volume significantly influence pricing. A comparative analysis against past contracts and current market rates would reveal if this award is cost-effective for taxpayers.

What were the specific reasons for excluding certain sources prior to the full and open competition?

Understanding the rationale behind the initial exclusion of sources is important for assessing procurement integrity and potential risks. Reasons could range from specific technical requirements, past performance issues, or even consolidation efforts. If the exclusions were not well-justified or overly restrictive, it could limit competition and potentially lead to higher prices or reduced supplier innovation, impacting overall value for money.

How effectively does this contract support the U.S. government's food donation and nutrition assistance goals?

The effectiveness of this contract hinges on the timely delivery of quality raisins to intended recipients within federal food donation programs. Success metrics would include recipient satisfaction, nutritional impact, and efficient distribution. Ensuring the raisins meet all quality and safety standards, and reach their destination without significant loss or delay, are key indicators of the contract's effectiveness in achieving its humanitarian objectives.

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: 123J1425B0208

Offers Received: 16

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9595 S HUGHES AVE, FRESNO, CA, 93706

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

Financial Breakdown

Contract Ceiling: $14,080,902

Exercised Options: $14,080,902

Current Obligation: $14,080,902

Actual Outlays: $14,035,520

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline