Agriculture Department awards $194K contract for canned beans, highlighting firm fixed-price structure

Contract Overview

Contract Amount: $194,310 ($194.3K)

Contractor: Hanover Foods Corp

Awarding Agency: Department of Agriculture

Start Date: 2026-02-09

End Date: 2026-07-15

Contract Duration: 156 days

Daily Burn Rate: $1.2K/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: 2000011144/4100033715/BEANS VEGETARIAN CAN-24/300

Place of Performance

Location: HANOVER, YORK County, PENNSYLVANIA, 17331

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Agriculture obligated $194,310 to HANOVER FOODS CORP for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011144/4100033715/BEANS VEGETARIAN CAN-24/300 Key points: 1. Contract focuses on essential food commodities for U.S. government donations. 2. Firm fixed-price contract type suggests predictable costs for the government. 3. Competition was open and full, indicating a potentially competitive bidding process. 4. Contract duration is 156 days, suggesting a short-term supply need. 5. The award to Hanover Foods Corp. represents a specific procurement within the broader food supply chain. 6. The North American Industry Classification System (NAICS) code 311421 points to fruit and vegetable canning.

Value Assessment

Rating: good

The contract value of $194,310 for 20,000 units of canned beans appears reasonable given the commodity type and the firm fixed-price structure. Without specific market data for bulk canned beans for government donation, a direct comparison is challenging. However, the price per unit is approximately $9.72, which seems within a plausible range for specialized government procurement of canned goods, considering packaging, quality standards, and delivery logistics. The fixed-price nature limits cost overrun risks for the agency.

Cost Per Unit: Approximately $9.72 per unit (20,000 units / $194,310)

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 7 bidders indicates a healthy level of interest and competition for this specific requirement. A higher number of bidders generally suggests a more robust price discovery process and potentially better pricing outcomes for the government.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it likely drove down the price through competitive pressure, ensuring the government received good value for its investment in food commodities.

Public Impact

Beneficiaries include individuals and families receiving U.S. government-supported food donations. The service delivered is the provision of essential canned vegetarian beans. The geographic impact is national, supporting federal food assistance programs. Workforce implications are primarily within the food processing and logistics sectors involved in fulfilling the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting timely delivery of essential food items.
Quality control of canned goods is critical to ensure safety and nutritional value for recipients.

Positive Signals

Firm fixed-price contract mitigates budget uncertainty.
Open competition suggests potential for cost savings.
Contract award to an established food processor indicates capacity to meet demand.

Sector Analysis

This contract falls within the food manufacturing sector, specifically fruit and vegetable canning. The market for government food procurement is significant, encompassing various agencies like the Department of Agriculture, Defense, and others that provide food assistance or support. This specific award represents a small portion of the overall federal spending on food commodities, which can range from bulk purchases for domestic programs to specialized items for international aid.

Small Business Impact

The contract details do not indicate a specific small business set-aside. Given the nature of food processing and the award to Hanover Foods Corp., it is unlikely that small businesses were the primary target for this specific procurement, though they may participate as subcontractors. Further analysis would be needed to determine subcontracting opportunities for small businesses within the fulfillment of this contract.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm fixed-price structure simplifies financial oversight. Accountability is maintained through contract terms, delivery schedules, and quality specifications. Transparency is generally provided through contract databases like FPDS. Inspector General oversight would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

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

Risk Flags

Potential for supply chain disruptions
Ensuring consistent quality and nutritional value

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $194,310 to HANOVER FOODS CORP. COMMODITIES FOR USG FOOD DONATIONS: 2000011144/4100033715/BEANS VEGETARIAN CAN-24/300

Who is the contractor on this award?

The obligated recipient is HANOVER FOODS CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $194,310.

What is the period of performance?

Start: 2026-02-09. End: 2026-07-15.

What is the historical spending pattern for canned beans by the Department of Agriculture for donation purposes?

Analyzing historical spending for canned beans by the USDA for donation requires access to detailed procurement data over several fiscal years. Typically, such spending fluctuates based on program needs, agricultural output, and budget allocations. Contracts for commodities like canned beans are often awarded through competitive bidding processes, with prices varying year to year due to market conditions, inflation, and the specific requirements of each solicitation (e.g., type of bean, packaging, quantity). A review of past awards would reveal trends in pricing per unit, the number of bidders, and the primary contractors, providing context for the current $194,310 award. Without specific historical data, it's difficult to ascertain if this award represents an increase or decrease in spending or if the price per unit is significantly different from previous years.

How does the price per unit of these canned beans compare to commercially available bulk canned beans?

Comparing the per-unit cost of $9.72 for these government-procured canned beans to commercially available bulk beans requires careful consideration of several factors. Government contracts often include specific quality standards, packaging requirements (e.g., for long shelf life, specific can sizes), and delivery logistics that can increase costs compared to standard retail bulk purchases. Additionally, the volume and specific type of bean (e.g., vegetarian, specific variety) influence pricing. While $9.72 per unit might seem high compared to a supermarket's multi-pack price, it could be competitive when accounting for the specialized nature of government procurement, including stringent testing, compliance, and the assurance of supply for federal programs. A direct comparison would necessitate identifying identical product specifications in the commercial market.

What are the specific quality and nutritional standards required for these donated canned beans?

The specific quality and nutritional standards for canned beans procured under this USDA contract would be detailed within the solicitation documents and the resulting contract itself. Generally, federal food procurement for donation programs adheres to strict guidelines to ensure the safety, wholesomeness, and nutritional adequacy of the food. This typically includes compliance with FDA regulations for canned goods, standards for ingredient quality (e.g., type of bean, absence of defects), processing methods, and packaging integrity. Nutritional requirements might specify minimum protein content, sodium levels, and the absence of artificial preservatives or excessive additives, especially for 'vegetarian' labeled products. The contract likely references specific federal specifications or standards (e.g., USDA Grade standards) that Hanover Foods Corp. must meet.

What is Hanover Foods Corp.'s track record with federal food supply contracts?

Hanover Foods Corp. has a history of supplying food products to various government entities, including potentially the Department of Defense and other agencies involved in food programs. Their track record with federal contracts would be reflected in past performance evaluations, if available through federal procurement databases. Key aspects of their track record would include on-time delivery, adherence to quality specifications, and responsiveness to contract requirements. A review of their contract history might reveal previous awards for similar commodities, the number of bids they typically submit, and any instances of contract disputes or performance issues. This information is crucial for assessing their reliability in fulfilling the current $194,310 contract for canned beans.

How does the number of bidders (7) typically influence the final contract price for similar food commodity procurements?

A higher number of bidders, such as the 7 involved in this canned bean contract, generally exerts downward pressure on the final price. In a competitive environment, each bidder is motivated to offer their most aggressive pricing to secure the contract. When multiple companies vie for the same business, the government benefits from a wider range of price points and potentially innovative solutions. For food commodity procurements, having 7 bidders suggests that the market is sufficiently robust and that the contract requirements were clear enough to attract significant interest. This level of competition typically leads to a price that is closer to the suppliers' actual costs plus a reasonable profit margin, rather than a price inflated by lack of alternatives.

Industry Classification

NAICS: Manufacturing › Fruit and Vegetable Preserving and Specialty Food Manufacturing › Fruit and Vegetable Canning

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: 123J1426B0115

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hanover Foods Corporation

Address: 1550 YORK ST, HANOVER, PA, 17331

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

Financial Breakdown

Contract Ceiling: $194,310

Exercised Options: $194,310

Current Obligation: $194,310

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline