USDA awards $5.46M contract for catfish fillets, highlighting agricultural commodity procurement for food donations

Contract Overview

Contract Amount: $5,460,600 ($5.5M)

Contractor: Heartland Catfish CO Inc

Awarding Agency: Department of Agriculture

Start Date: 2025-09-25

End Date: 2026-03-31

Contract Duration: 187 days

Daily Burn Rate: $29.2K/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: 2000010982/4100033035/CATFISH FLTS UNBRD RAW PKG-20/2 LB

Place of Performance

Location: ITTA BENA, LEFLORE County, MISSISSIPPI, 38941

State: Mississippi Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.5 million to HEARTLAND CATFISH CO INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010982/4100033035/CATFISH FLTS UNBRD RAW PKG-20/2 LB Key points: 1. Contract focuses on essential food commodities, supporting federal nutrition programs. 2. Procurement method indicates a competitive process for acquiring goods. 3. Contract duration of 187 days suggests a focused, short-term supply need. 4. The award to a single entity implies efficient sourcing for specific items. 5. Geographic data points to a specific region for product origin or distribution. 6. Fixed-price contract type offers cost certainty for the government.

Value Assessment

Rating: good

The contract value of $5.46 million for catfish fillets appears reasonable given the quantity and nature of the commodity. Benchmarking against similar federal food procurement contracts for protein sources would provide a more precise value-for-money assessment. The firm fixed-price structure helps manage cost fluctuations, which is advantageous for government budgeting.

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,' indicating that while initial considerations might have excluded certain sources, the final award was made through a broad competitive process. The presence of 7 bids suggests a healthy level of interest and competition among suppliers for this specific commodity.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer funds are used efficiently by driving down prices and encouraging suppliers to offer their best terms.

Public Impact

Beneficiaries include recipients of USG food donation programs, likely involving food banks and charitable organizations. The service delivered is the provision of essential protein in the form of catfish fillets. Geographic impact is primarily within the United States, supporting domestic food supply chains. Workforce implications are related to the seafood processing and packaging industry in Mississippi.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Ensuring consistent quality and safety standards for food products.
Dependence on a specific commodity may limit flexibility in future procurements.

Positive Signals

Supports domestic agriculture and food processing industries.
Provides essential nutritional resources through federal programs.
Competitive award process suggests favorable pricing for the government.

Sector Analysis

This contract falls within the broader agricultural and food processing sector, specifically focusing on seafood. The market for processed seafood products is significant, with government procurement playing a role in supporting domestic producers and ensuring food security. Comparable spending benchmarks would involve analyzing other federal contracts for similar protein commodities or food aid programs.

Small Business Impact

The contract does not indicate a small business set-aside, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary focus was on securing the commodity through the most competitive means available, rather than specifically targeting small business participation. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

Oversight is likely managed by the Agricultural Marketing Service (AMS) within the USDA, which is responsible for procurement and program administration. Accountability measures would include adherence to contract terms, delivery schedules, and quality specifications. Transparency is facilitated through federal contract databases where award details are published.

Related Government Programs

USDA Food Donation Programs
Federal Food Procurement
Commodity Purchases for Nutrition Assistance
Agricultural Marketing Service Contracts

Risk Flags

Potential for supply chain disruptions
Ensuring consistent product quality and safety
Market concentration in seafood processing

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.5 million to HEARTLAND CATFISH CO INC. COMMODITIES FOR USG FOOD DONATIONS: 2000010982/4100033035/CATFISH FLTS UNBRD RAW PKG-20/2 LB

Who is the contractor on this award?

The obligated recipient is HEARTLAND CATFISH CO INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.5 million.

What is the period of performance?

Start: 2025-09-25. End: 2026-03-31.

What is the historical spending pattern for catfish fillets or similar seafood products by the USDA?

Analyzing historical spending data for catfish fillets and comparable seafood items by the USDA would reveal trends in procurement volume, pricing, and supplier engagement. This contract's value of $5.46 million can be contextualized against previous years' expenditures. For instance, if similar contracts were awarded at significantly lower or higher values, it could indicate shifts in market prices, demand, or the competitiveness of the bidding process. Understanding historical patterns also helps in identifying any recurring needs or potential over-reliance on specific commodities. Without specific historical data readily available for this exact commodity, comparisons would be made to broader categories of protein procurement for food donation programs to assess if this award represents a typical or outlier investment.

How does the firm fixed-price (FFP) contract type impact the risk for both the government and the contractor in this seafood procurement?

A Firm Fixed Price (FFP) contract, as used in this $5.46 million award for catfish fillets, establishes a ceiling price that is not subject to adjustment based on the contractor's cost experience. For the government, this offers significant cost certainty and predictability, minimizing the risk of cost overruns. The contractor assumes the primary risk; if their costs exceed the agreed-upon price, their profit margin shrinks or they may incur a loss. Conversely, if the contractor can manage costs effectively and deliver below the fixed price, their profit increases. This structure incentivizes the contractor to be efficient and control costs. For a commodity like catfish fillets, where market prices can fluctuate, the FFP places the burden of managing these fluctuations on Heartland Catfish Co. Inc. This can be advantageous if prices remain stable or decrease, but risky if input costs rise significantly before delivery.

What are the implications of awarding this contract to Heartland Catfish Co. Inc. in terms of market concentration and potential future competition?

The award to Heartland Catfish Co. Inc. for $5.46 million in catfish fillets suggests they are a significant player in the market capable of fulfilling large government orders. If Heartland Catfish Co. Inc. is one of only a few large-scale producers of processed catfish fillets, this could indicate a degree of market concentration. While this award was made under full and open competition with 7 bidders, the long-term competitive landscape depends on the overall structure of the catfish processing industry. If the market is highly concentrated, future procurements might see limited competition, potentially leading to higher prices or less innovation. Conversely, if this award encourages other producers to enter or expand their capacity, it could foster greater competition over time. Monitoring future solicitations and bid participation will be key to assessing the ongoing health of competition in this sector.

What specific food donation programs will benefit from this procurement, and what is the expected impact on food security?

This procurement of 20,000,0010982/4100033035/CATFISH FLTS UNBRD RAW PKG-20/2 LB is intended for USG food donation programs, which typically include initiatives like the Emergency Food Assistance Program (TEFAP) and various child nutrition programs. These programs aim to alleviate hunger and improve food security for low-income individuals and families, including seniors, children, and disaster-affected populations. By providing a source of protein like catfish fillets, the USDA ensures that recipients have access to nutritious food options, contributing to better health outcomes. The impact on food security is direct, as these donated commodities supplement the food supply available through food banks and other distribution channels, helping to meet the nutritional needs of vulnerable populations across the country.

Are there any specific quality control or safety assurance measures mandated in this contract beyond standard industry practices?

While the provided data does not detail specific quality control or safety assurance measures beyond standard industry practices for seafood processing, federal contracts typically include stringent requirements. These often involve adherence to Food Safety Modernization Act (FSMA) regulations, Good Manufacturing Practices (GMPs), and potentially specific USDA inspection protocols. The contract likely specifies requirements for product grading, packaging integrity, temperature control during transport, and traceability. Heartland Catfish Co. Inc. would be expected to provide documentation and certifications verifying compliance. The Agricultural Marketing Service (AMS) would oversee adherence, with potential for inspections and audits to ensure the catfish fillets meet all safety and quality standards before distribution through food donation programs.

Industry Classification

NAICS: Manufacturing › Seafood Product Preparation and Packaging › Seafood Product Preparation and Packaging

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1425B0502

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 55001 HIGHWAY 82 W, ITTA BENA, MS, 38941

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

Financial Breakdown

Contract Ceiling: $5,460,600

Exercised Options: $5,460,600

Current Obligation: $5,460,600

Actual Outlays: $2,912,320

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline