USDA awards $5.4M for fresh pears, highlighting perishable food supply chain needs

Contract Overview

Contract Amount: $5,379,806 ($5.4M)

Contractor: All-American Farms Inc

Awarding Agency: Department of Agriculture

Start Date: 2025-09-11

End Date: 2025-12-17

Contract Duration: 97 days

Daily Burn Rate: $55.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010974/4100032926/PEARS BARTLETT FRESH CTN#40 LB,PEARS FRESH PKG-12/3 LB

Place of Performance

Location: BOCA RATON, PALM BEACH County, FLORIDA, 33487

State: Florida Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.4 million to ALL-AMERICAN FARMS INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010974/4100032926/PEARS BARTLETT FRESH CTN#40 LB,PEARS FRESH PKG-12/3 LB Key points: 1. Contract value represents a significant investment in essential food commodities. 2. Competition dynamics suggest a robust market for perishable food suppliers. 3. Short contract duration indicates a focus on immediate supply needs. 4. Fixed-price contract type offers cost certainty for the government. 5. Geographic focus on Florida suggests regional distribution priorities. 6. This award supports the government's role in food security and distribution.

Value Assessment

Rating: good

The contract value of $5.4 million for fresh pears appears reasonable given the quantity and perishable nature of the goods. Benchmarking against similar USDA food donation contracts would provide a more precise value-for-money assessment. The fixed-price nature of the contract helps manage cost risks for the government, ensuring predictable expenditure for this specific procurement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources may have been excluded based on specific criteria. With 11 bidders, the competition level appears healthy, suggesting that multiple firms were interested and capable of fulfilling the requirement. This level of competition is generally conducive to fair price discovery.

Taxpayer Impact: A competitive process with multiple bidders helps ensure that taxpayer funds are used efficiently by driving down prices and encouraging quality service delivery.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USDA donation programs. Services delivered involve the procurement and supply of fresh Bartlett pears. Geographic impact is primarily focused on Florida (ST: FL, SN: FLORIDA). Workforce implications include employment in agricultural production, processing, packaging, and logistics within the supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in perishable goods impacting long-term budget predictability.
Logistical challenges in maintaining the quality of fresh produce during transport and storage.

Positive Signals

Supports critical food security initiatives and vulnerable populations.
Ensures availability of nutritious food options through government programs.
Provides a stable market for agricultural producers of pears.

Sector Analysis

This contract falls within the broader food and agriculture sector, specifically focusing on the procurement of perishable commodities for federal food donation programs. The market for supplying fresh produce to government agencies is competitive, with numerous agricultural producers and distributors vying for such contracts. The value of this award is modest within the context of overall federal food procurement spending, but significant for the specific commodity and region.

Small Business Impact

The data does not indicate if this contract included specific small business set-asides or subcontracting requirements. Analysis of the awarded contractor's size and past performance with small businesses would be necessary to determine the impact on the small business ecosystem. Without explicit set-aside provisions, larger firms are typically better positioned to compete for these types of commodity contracts.

Oversight & Accountability

Oversight for this contract would likely fall under the Agricultural Marketing Service (AMS) of the USDA, which is responsible for procurement and distribution of agricultural commodities. Accountability measures are embedded in the contract terms, including delivery specifications and quality standards. Transparency is generally maintained through federal contract databases, though specific performance metrics may not be publicly detailed.

Related Government Programs

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

Risk Flags

Perishable Goods Risk
Supply Chain Disruption Potential
Market Price Volatility

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.4 million to ALL-AMERICAN FARMS INC. COMMODITIES FOR USG FOOD DONATIONS: 2000010974/4100032926/PEARS BARTLETT FRESH CTN#40 LB,PEARS FRESH PKG-12/3 LB

Who is the contractor on this award?

The obligated recipient is ALL-AMERICAN FARMS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.4 million.

What is the period of performance?

Start: 2025-09-11. End: 2025-12-17.

What is the historical spending pattern for fresh pear procurement by the USDA?

Analyzing historical spending data for fresh pear procurement by the USDA requires accessing detailed federal procurement databases over several fiscal years. Typically, such spending can fluctuate based on agricultural yields, market prices, and the specific needs of food assistance programs. Contracts for perishable goods like fresh produce are often awarded on shorter cycles, reflecting the need for timely delivery and freshness. While this specific contract is for $5.4 million, prior years might show higher or lower aggregate spending depending on program priorities and commodity availability. A comprehensive review would involve filtering procurement data for the specific commodity (pears), the procuring agency (USDA/AMS), and contract type (e.g., definitive contracts, fixed-price) to identify trends, average contract values, and the number of awards over time.

How does the price per pound for these pears compare to market rates?

To compare the price per pound for these pears to market rates, we first need to determine the total quantity procured. The contract specifies 'PEARS BARTLETT FRESH CTN#40 LB', implying 40-pound cartons. Without the total number of cartons or pounds, a direct per-unit cost comparison is challenging. However, if we assume a standard 40lb carton, the contract value of $5,379,806.07 divided by the total weight would yield a per-pound cost. This figure would then need to be benchmarked against average wholesale prices for Bartlett pears in Florida during the contract period (September-December 2025). Market data from agricultural reports or commodity price indices would be essential for this comparison. Factors like grade, size, and origin can influence market prices, so a precise comparison requires detailed specifications.

What is All-American Farms Inc.'s track record with USDA contracts?

All-American Farms Inc. has a track record of receiving USDA contracts, as evidenced by this award. To assess their overall performance and reliability, a review of their contract history with the USDA and other federal agencies is necessary. This would involve examining past awards, including their value, duration, and the nature of the goods or services provided. Key indicators of track record include on-time delivery, adherence to quality specifications, and any history of contract disputes or terminations. Information on their past performance ratings, if available in federal databases, would provide further insight into their capabilities and reliability as a government supplier, particularly for perishable commodities.

What are the primary risks associated with this contract?

The primary risks associated with this contract revolve around the perishable nature of the goods. These include the potential for spoilage during transit or storage, leading to financial losses and inability to meet program needs. Market volatility for fresh produce can also pose a risk, potentially impacting the government's ability to secure future supplies at stable prices, although the fixed-price contract mitigates this for the current award. Logistical challenges in Florida, such as weather events or transportation disruptions, could affect timely delivery. Furthermore, ensuring consistent quality and meeting the specific requirements for food donation programs adds another layer of operational risk for the contractor.

How does this contract contribute to food security goals?

This contract directly contributes to food security goals by ensuring the availability of nutritious fresh fruit for distribution through USDA programs. By procuring Bartlett pears, the USDA is providing essential dietary components to potentially vulnerable populations, including low-income families, children, and the elderly. These programs aim to alleviate hunger and improve nutritional outcomes. The reliable supply chain facilitated by contracts like this is crucial for meeting the ongoing demand for food assistance, thereby playing a vital role in the broader national strategy to combat food insecurity and promote public health.

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: SEALED BID

Solicitation ID: 123J1425B0496

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2400 HIGH RIDGE RD STE 101, BOYNTON BEACH, FL, 33426

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

Financial Breakdown

Contract Ceiling: $5,379,806

Exercised Options: $5,379,806

Current Obligation: $5,379,806

Actual Outlays: $5,366,138

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline