USDA awards $4.1M contract for frozen potato products to Horizon Marketing, Inc

Contract Overview

Contract Amount: $4,081,317 ($4.1M)

Contractor: Horizon Marketing, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2025-05-30

End Date: 2026-06-30

Contract Duration: 396 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010804/4100032384/POTATOES WEDGE FRZ PKG-6/5 LB,POTATOES WEDGE FAT FREE FRZ PKG-6/5 LB,POTATOES DICED FRZ PKG-6/5 LB

Place of Performance

Location: RUPERT, MINIDOKA County, IDAHO, 83350

State: Idaho Government Spending

Plain-Language Summary

Department of Agriculture obligated $4.1 million to HORIZON MARKETING, INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010804/4100032384/POTATOES WEDGE FRZ PKG-6/5 LB,POTATOES WEDGE FAT FREE FRZ PKG-6/5 LB,POTATOES DICED FRZ PKG-6/5 LB Key points: 1. Contract focuses on essential frozen potato products for U.S. government food donations. 2. Awarded through full and open competition, indicating a broad market solicitation. 3. Firm-fixed-price contract type suggests predictable costs for the government. 4. Contract duration of 396 days allows for sustained supply. 5. The supplier is based in Idaho, a key potato-producing region. 6. This award is part of a larger effort to procure food commodities.

Value Assessment

Rating: good

The contract value of approximately $4.1 million for frozen potato products over a 396-day period appears reasonable given the nature of commodity procurement for government programs. Benchmarking against similar large-scale food commodity contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure helps mitigate cost escalation risks for the government, contributing to predictable spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors were invited to bid. The presence of 7 bids indicates a healthy level of interest and competition for this commodity. This broad competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Full and open competition helps ensure taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

Beneficiaries include recipients of U.S. government food donation programs, potentially including food banks and other charitable organizations. Services delivered involve the supply of frozen potato products (wedge and diced varieties). Geographic impact is national, supporting federal food assistance initiatives. Workforce implications are primarily within the food manufacturing and logistics sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions affecting delivery timelines.
Fluctuations in raw material costs could impact future contract pricing if not adequately hedged.
Ensuring consistent quality and adherence to specifications for donated food products.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Award to a company in a key agricultural region may indicate strong supply chain integration.
Multiple bids suggest a competitive market for these commodities.

Sector Analysis

This contract falls within the broader food manufacturing sector, specifically focusing on frozen fruits, juices, and vegetables. The market for government food procurement is substantial, driven by various domestic and international assistance programs. Horizon Marketing, Inc.'s award highlights the role of specialized food suppliers in meeting government needs for staple commodities.

Small Business Impact

The contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity or that small businesses were not specifically targeted for this procurement. Further analysis would be needed to determine if small businesses are involved further down the supply chain.

Oversight & Accountability

Oversight for this contract would likely fall under the Agricultural Marketing Service (AMS) within the Department of Agriculture. Standard contract management procedures, including performance monitoring and payment verification, would be in place. Transparency is generally maintained through contract award databases, though specific performance details may not be publicly disclosed.

Related Government Programs

USDA Food Purchase Programs
Commodity Supplemental Food Program
National School Lunch Program
Federal Food Assistance Programs

Risk Flags

Supply Chain Risk
Quality Assurance
Delivery Schedule Adherence

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $4.1 million to HORIZON MARKETING, INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000010804/4100032384/POTATOES WEDGE FRZ PKG-6/5 LB,POTATOES WEDGE FAT FREE FRZ PKG-6/5 LB,POTATOES DICED FRZ PKG-6/5 LB

Who is the contractor on this award?

The obligated recipient is HORIZON MARKETING, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.1 million.

What is the period of performance?

Start: 2025-05-30. End: 2026-06-30.

What is Horizon Marketing, Inc.'s track record with federal food procurement contracts?

Horizon Marketing, Inc. has a history of securing federal contracts, particularly within the Department of Agriculture. While this specific award is for frozen potato products, their portfolio may include other food commodities. Analyzing past performance data, including on-time delivery rates, quality compliance, and any past disputes or contract modifications, would provide a clearer picture of their reliability and experience in fulfilling government requirements. Their ability to consistently meet the demands of programs like the U.S. Government Food Donations underscores their capacity to handle large-scale commodity procurements.

How does the $4.1 million value compare to similar USDA food commodity contracts?

The $4.1 million award for frozen potato products is a significant but not unusual amount for large-scale commodity procurements by the USDA. The value is influenced by factors such as the quantity of goods, the duration of the contract (396 days in this case), and prevailing market prices for potatoes and processing. Comparing this to other contracts for similar frozen vegetables or staple food items awarded by the USDA or other federal agencies over comparable periods would provide a benchmark. The firm-fixed-price nature of this contract suggests that the government has locked in a price, which is a key factor in assessing value.

What are the primary risks associated with this contract for the government?

The primary risks for the government in this contract revolve around supply chain reliability and quality assurance. Potential disruptions in the agricultural supply chain, processing, or transportation could lead to delays in delivery, impacting the availability of food for donation programs. Ensuring that the frozen potato products consistently meet the required specifications (e.g., fat content, cut style, packaging) is crucial for recipient satisfaction and program effectiveness. While the firm-fixed-price contract mitigates cost overrun risks, the government still bears the risk of non-performance or substandard delivery by the contractor.

How effective are USDA food donation programs in addressing food insecurity?

USDA food donation programs, such as those supported by this contract, play a vital role in addressing food insecurity across the nation. By purchasing surplus agricultural commodities and distributing them through various channels like food banks and charitable organizations, these programs provide essential nutritional support to vulnerable populations. The effectiveness is measured by the reach of these programs, the nutritional quality of the food provided, and the reduction in food insecurity rates among recipients. Consistent procurement of staple items like potatoes ensures a reliable supply of nutritious food.

What is the historical spending pattern for frozen potato products by the USDA?

Historical spending patterns for frozen potato products by the USDA would likely show consistent procurement to support various food assistance and donation initiatives. The volume and value of these contracts can fluctuate based on agricultural output, commodity prices, and the specific needs of federal programs. Analyzing past awards would reveal trends in contract durations, competition levels, and the primary suppliers. This contract's value and duration can be viewed within the context of these historical trends, indicating a sustained need for such products.

What is the significance of the contract being a 'Firm Fixed Price' type?

A Firm Fixed Price (FFP) contract type is significant because it establishes a final price that is not subject to adjustment based on the contractor's cost experience. This provides the government with the highest degree of cost control and predictability. For the USDA, this means the $4.1 million allocated for frozen potato products is the maximum amount the contractor can invoice, regardless of their actual production costs. This structure shifts the risk of cost overruns entirely to the contractor, making it a preferred type for procuring well-defined goods like agricultural commodities where specifications are clear.

Industry Classification

NAICS: Manufacturing › Fruit and Vegetable Preserving and Specialty Food Manufacturing › Frozen Fruit, Juice, and Vegetable Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1425B0352

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 536 W VICTOR AVE, VISALIA, CA, 93277

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,081,317

Exercised Options: $4,081,317

Current Obligation: $4,081,317

Actual Outlays: $3,554,851

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline