USDA Awards $2.4M for Fresh Mandarin Oranges for Food Donations

Contract Overview

Contract Amount: $2,431,500 ($2.4M)

Contractor: Fruta Royal, LLC

Awarding Agency: Department of Agriculture

Start Date: 2026-01-14

End Date: 2026-04-15

Contract Duration: 91 days

Daily Burn Rate: $26.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011101/4100033585/MANDARIN TANGERINE FRESH BAG PKG#6/5 LB

Place of Performance

Location: VISALIA, TULARE County, CALIFORNIA, 93291

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.4 million to FRUTA ROYAL, LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011101/4100033585/MANDARIN TANGERINE FRESH BAG PKG#6/5 LB Key points: 1. Contract awarded to FRUTA ROYAL, LLC for $2.4M. 2. Competition method: Full and Open Competition after Exclusion of Sources. 3. Risk: Perishable nature of goods requires careful logistics and quality control. 4. Sector: Food commodities for federal food donation programs.

Value Assessment

Rating: good

The contract value of $2.4M for 91 days of supply appears reasonable given the quantity and perishable nature of the goods. Benchmarking against similar commodity contracts would provide further validation.

Cost Per Unit: $4.86 per 5lb bag (approx. $0.97/lb)

Competition Analysis

Competition Level: full-and-open

The contract utilized full and open competition after exclusion of sources, suggesting a competitive bidding process. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: Taxpayer funds are used to procure food for donation programs, supporting food security initiatives.

Public Impact

Ensures availability of fresh produce for federal food donation programs. Supports agricultural producers and distributors within the US. Addresses food insecurity by providing nutritious options to vulnerable populations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Perishability of goods
Logistical challenges for fresh produce distribution

Positive Signals

Supports food donation programs
Utilizes competitive bidding

Sector Analysis

This contract falls within the broader agricultural and food commodity sector. Spending benchmarks for similar food procurement contracts would be relevant for comparison.

Small Business Impact

Analysis of small business participation is not directly available from the provided data, but the awardee is FRUTA ROYAL, LLC.

Oversight & Accountability

The Agricultural Marketing Service (AMS) within the USDA is responsible for this procurement, ensuring compliance with federal regulations and program objectives.

Related Government Programs

Perishable Prepared Food Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Perishability of the commodity
Potential for supply chain disruptions
Ensuring equitable distribution to target populations
Fluctuations in fresh produce market prices

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.4 million to FRUTA ROYAL, LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000011101/4100033585/MANDARIN TANGERINE FRESH BAG PKG#6/5 LB

Who is the contractor on this award?

The obligated recipient is FRUTA ROYAL, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.4 million.

What is the period of performance?

Start: 2026-01-14. End: 2026-04-15.

What is the historical pricing trend for similar commodity procurements by the USDA?

Historical pricing data for similar commodity procurements by the USDA would provide valuable context for assessing the value for money in this contract. Analyzing past awards for items like fresh citrus or other produce, considering volume, delivery locations, and time of year, can reveal if this $2.4M award is competitive or an outlier. This helps ensure efficient use of taxpayer funds.

What are the specific quality control measures in place for these perishable goods?

Given the perishable nature of fresh mandarin oranges, robust quality control measures are crucial to prevent waste and ensure the donated food meets safety and nutritional standards. This includes protocols for inspection upon receipt, proper storage and handling during transit, and clear guidelines for the recipient organizations. The contract should detail these requirements and the process for addressing any quality deficiencies.

How effectively are these donated commodities reaching the intended vulnerable populations?

The ultimate effectiveness of this contract hinges on how efficiently and equitably the procured mandarin oranges reach the intended vulnerable populations through federal food donation programs. Tracking the distribution chain, monitoring recipient feedback, and assessing the impact on food security metrics are essential to gauge the program's success beyond the initial procurement.

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: 123J1426B0077

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 724 N ELKO ST, VISALIA, CA, 93291

Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,431,500

Exercised Options: $2,431,500

Current Obligation: $2,431,500

Actual Outlays: $647,144

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline