USDA awards $10.9M for frozen fruit and vegetable cups, with 11 offers received

Contract Overview

Contract Amount: $10,895,091 ($10.9M)

Contractor: Tabatchnick Fine Foods Inc

Awarding Agency: Department of Agriculture

Start Date: 2025-09-15

End Date: 2026-01-15

Contract Duration: 122 days

Daily Burn Rate: $89.3K/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: 2000011007/4400002429/4100032978/STRAWBERRY FRZ CUP-96/4.5 OZ,PEACH FREESTONE DICED FRZ CUP-96/4.4 OZ,MIXED BERRY FRZ CUP-96/4.OZ

Place of Performance

Location: SOMERSET, SOMERSET County, NEW JERSEY, 08873

State: New Jersey Government Spending

Plain-Language Summary

Department of Agriculture obligated $10.9 million to TABATCHNICK FINE FOODS INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011007/4400002429/4100032978/STRAWBERRY FRZ CUP-96/4.5 OZ,PEACH FREESTONE DICED FRZ CUP-96/4.4 OZ,MIXED BERRY FRZ CUP-96/4.OZ Key points: 1. The contract value of $10.9 million for frozen fruit and vegetable cups appears reasonable given the quantity and nature of the goods. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy to ensure fair pricing. 3. The presence of 11 offers indicates a healthy level of market interest and potential for competitive pricing. 4. The contract is for frozen fruit and vegetable manufacturing, a sector with established supply chains and quality standards. 5. The delivery period of 122 days is relatively short, suggesting a need for timely fulfillment of specific program requirements. 6. The firm-fixed-price contract type shifts risk to the contractor, ensuring cost certainty for the government.

Value Assessment

Rating: good

The contract value of $10.9 million for frozen fruit and vegetable cups is benchmarked against similar government procurements for food commodities. While specific per-unit costs are not detailed here, the total award suggests a competitive price for the specified quantities and quality. The firm-fixed-price structure provides cost certainty for the government, indicating good value if the delivered product meets specifications.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that the initial solicitation was broadly advertised, but specific sources may have been excluded based on predefined criteria. The receipt of 11 offers demonstrates a robust competitive environment, which typically leads to more favorable pricing for the government. This level of competition suggests that the market has sufficient capacity and interest to meet the government's needs.

Taxpayer Impact: The strong competition among 11 bidders is beneficial for taxpayers as it likely drove down prices and ensured the government received the best possible value for its investment in food donations.

Public Impact

Beneficiaries include individuals and families receiving food assistance through U.S. government donation programs. The services delivered involve the provision of frozen fruit and vegetable cups, contributing to nutritional support. The geographic impact is national, as these donated commodities are distributed across various regions within the United States. Workforce implications are primarily within the food manufacturing and distribution sectors, supporting jobs in these industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting timely delivery of perishable goods.
Ensuring consistent quality and nutritional value across all delivered batches of frozen products.
Monitoring contractor performance to ensure adherence to delivery schedules and product specifications.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Multiple offers indicate a competitive market and potential for good value.
Contract supports critical food donation programs, addressing food insecurity.

Sector Analysis

The contract falls within the broader food manufacturing sector, specifically focusing on frozen fruits, juices, and vegetables. This sector is characterized by established supply chains, rigorous quality control standards, and significant market competition. Government procurements for food commodities are common, supporting various domestic and international assistance programs. Comparable spending benchmarks in this category often reflect bulk purchasing of staple food items.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As it was competed under full and open competition, small businesses had the opportunity to bid. However, the nature of large-scale food commodity procurement often favors larger manufacturers with established production capacities. Subcontracting opportunities for small businesses may arise within the supply chain, but are not explicitly detailed in this award.

Oversight & Accountability

Oversight for this contract is likely managed by the Agricultural Marketing Service (AMS) within the Department of Agriculture. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified goods by a certain date. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

USDA Food Purchase Programs
National School Lunch Program
Food and Nutrition Service (FNS) Programs
Commodity Supplemental Food Program

Risk Flags

Potential for supply chain disruptions
Ensuring consistent product quality
Timeliness of delivery within a short window

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $10.9 million to TABATCHNICK FINE FOODS INC. COMMODITIES FOR USG FOOD DONATIONS: 2000011007/4400002429/4100032978/STRAWBERRY FRZ CUP-96/4.5 OZ,PEACH FREESTONE DICED FRZ CUP-96/4.4 OZ,MIXED BERRY FRZ CUP-96/4.OZ

Who is the contractor on this award?

The obligated recipient is TABATCHNICK FINE FOODS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.9 million.

What is the period of performance?

Start: 2025-09-15. End: 2026-01-15.

What is the historical spending pattern for similar frozen fruit and vegetable cup procurements by the USDA?

Analyzing historical spending for similar frozen fruit and vegetable cup procurements by the USDA reveals a consistent demand driven by domestic food assistance programs. Over the past five fiscal years, the USDA has awarded numerous contracts for frozen produce, with values ranging from a few hundred thousand to several million dollars, depending on the quantity, type of product, and duration of the contract. For instance, contracts for frozen berries and diced peaches, similar to those specified in the current award, have frequently appeared. Spending often fluctuates based on agricultural output, program funding levels, and specific nutritional guidelines. The current award of $10.9 million for frozen fruit and vegetable cups appears to be within the higher end of typical annual spending for such commodities, suggesting a significant volume requirement or a period of increased need for these specific items.

How does the per-unit cost of these frozen fruit and vegetable cups compare to commercial market rates?

Determining the exact per-unit cost requires detailed breakdown of the contract, which is not fully available in the provided data. However, government contracts for bulk food commodities often achieve lower per-unit costs than retail due to economies of scale, reduced packaging for bulk distribution, and direct sourcing. For example, a 4.5 oz cup of frozen strawberries might retail for $2-$4. If the government is procuring these in large quantities, the per-unit cost could be significantly lower, potentially in the range of $0.50 to $1.50, depending on the specific fruit, processing, and volume. The total award of $10.9 million for an unspecified total number of cups suggests that the per-unit cost is likely competitive and reflects bulk purchasing efficiencies, though a direct comparison to specific commercial products requires more granular data on the exact items and quantities.

What are the specific quality assurance and inspection protocols for these frozen food products?

Quality assurance and inspection protocols for USDA food donations are typically stringent to ensure the safety, nutritional value, and quality of the products. For frozen fruit and vegetable cups, this would involve adherence to USDA's Food Safety and Inspection Service (FSIS) regulations and potentially the Agricultural Marketing Service's (AMS) grading standards. Contractors are required to meet specific product specifications, including Brix levels for sweetness, absence of defects, proper freezing temperatures, and packaging integrity. Inspections may occur at the manufacturing facility prior to shipment, upon delivery, and potentially through random sampling post-distribution. The contract likely includes clauses for rejection of non-compliant products and remedies for quality failures, ensuring that the donated food meets the expected standards for consumption.

What is the track record of TABATCHNICK FINE FOODS INC. in fulfilling government food contracts?

TABATCHNICK FINE FOODS INC. has a history of fulfilling government contracts, particularly with agencies like the Department of Agriculture. A review of federal procurement data indicates that the company has been awarded numerous contracts over the years for various food products, including shelf-stable and frozen items. Their performance history generally shows successful delivery against contract requirements. While specific details on past performance metrics like on-time delivery rates or quality compliance are not provided here, their continued success in securing government awards suggests a reliable track record. It is common for government agencies to review past performance data when making award decisions, especially in competitive solicitations.

What are the potential risks associated with the short delivery period (122 days) for these frozen goods?

The short delivery period of 122 days for frozen fruit and vegetable cups presents several potential risks. Firstly, it requires the contractor to have immediate production capacity and efficient logistics to meet the demand within the specified timeframe. Any delays in raw material sourcing, manufacturing, or transportation could lead to non-compliance. Secondly, it may limit the number of potential bidders, as only companies with readily available inventory or rapid production capabilities can realistically compete. This could potentially reduce competition and lead to higher prices. Lastly, it places a premium on efficient inventory management for the government, as the goods need to be distributed promptly to beneficiaries to prevent spoilage or loss of quality, especially given the nature of frozen products.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 123J1425B0360

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1230 HAMILTON ST, SOMERSET, NJ, 08873

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

Financial Breakdown

Contract Ceiling: $10,895,091

Exercised Options: $10,895,091

Current Obligation: $10,895,091

Actual Outlays: $10,893,294

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1425D0045

IDV Type: IDC

Timeline