USDA's $3.87M contract for pears awarded to Wescott Agri Products, Inc. for 61 days

Contract Overview

Contract Amount: $3,868,864 ($3.9M)

Contractor: Wescott Agri Products, Inc

Awarding Agency: Department of Agriculture

Start Date: 2026-03-27

End Date: 2026-05-27

Contract Duration: 61 days

Daily Burn Rate: $63.4K/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: 2000011217/4100033910/PEARS DANJOU FRESH CTN-40 LB,PEARS FRESH PKG-12/3 LB,PEARS BOSC FRESH CTN-40 LB

Place of Performance

Location: ELGIN, WABASHA County, MINNESOTA, 55932

State: Minnesota Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.9 million to WESCOTT AGRI PRODUCTS, INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011217/4100033910/PEARS DANJOU FRESH CTN-40 LB,PEARS FRESH PKG-12/3 LB,PEARS BOSC FRESH CTN-40 LB Key points: 1. Contract value appears reasonable for the specified duration and commodity type. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is relatively short, indicating a need for immediate or short-term supply. 4. The award is for perishable goods, requiring efficient logistics and quality control. 5. The geographic focus is Minnesota, suggesting regional distribution needs. 6. The fixed-price contract type helps manage cost certainty for the government.

Value Assessment

Rating: good

The contract value of approximately $3.87 million for a 61-day period for perishable food items like pears seems within a reasonable range, considering market prices for such commodities and the logistical complexities involved. Benchmarking against similar government contracts for food procurement would provide a more precise value-for-money assessment, but the initial figures do not raise immediate red flags. The firm fixed-price structure also contributes to cost predictability.

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 the solicitation was broadly advertised and multiple bidders were likely considered. The presence of 9 bidders suggests a healthy level of competition for this specific requirement. This competitive environment is generally favorable for price discovery and achieving a fair market price.

Taxpayer Impact: The robust competition ensures that taxpayer dollars are likely being used efficiently, as multiple vendors vied to offer the best price and terms for supplying these essential food commodities.

Public Impact

Beneficiaries include recipients of USG food donation programs, potentially food banks and charitable organizations. Services delivered include the provision of fresh pears to support nutritional needs. Geographic impact is focused on Minnesota, ensuring local availability of donated food. Workforce implications are primarily within the agricultural supply chain and logistics sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Perishability of goods requires stringent quality control and timely delivery to avoid waste.
Short contract duration may indicate a reactive procurement rather than strategic planning.
Reliance on a single awardee for a critical commodity could pose supply chain risks if issues arise.

Positive Signals

Full and open competition suggests a wide range of potential suppliers were considered.
Multiple bidders (9) indicate significant market interest and potential for competitive pricing.
Firm fixed-price contract provides cost certainty for the government.

Sector Analysis

This contract falls within the broader food and agriculture sector, specifically focusing on the procurement and distribution of perishable commodities. The market for agricultural products is vast and subject to seasonal variations and global supply dynamics. Government procurement of food, particularly for donation programs, represents a significant but specialized segment, often requiring adherence to specific nutritional and logistical standards.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. While Wescott Agri Products, Inc. may be a small business itself, the contract was awarded through full and open competition. There is no explicit information on subcontracting plans with small businesses, which could be a missed opportunity to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract would likely fall under the Department of Agriculture's Agricultural Marketing Service, which is responsible for managing procurement and distribution programs. Accountability measures are inherent in the contract terms, including delivery schedules and quality specifications. Transparency is facilitated by the public nature of federal contract awards, though detailed operational oversight specifics are not provided.

Related Government Programs

USDA Food Donation Programs
Agricultural Commodity Procurement
Federal Food Aid Programs
Perishable Goods Logistics

Risk Flags

Perishability Risk
Short Contract Duration
Logistical Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.9 million to WESCOTT AGRI PRODUCTS, INC. COMMODITIES FOR USG FOOD DONATIONS: 2000011217/4100033910/PEARS DANJOU FRESH CTN-40 LB,PEARS FRESH PKG-12/3 LB,PEARS BOSC FRESH CTN-40 LB

Who is the contractor on this award?

The obligated recipient is WESCOTT AGRI PRODUCTS, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.9 million.

What is the period of performance?

Start: 2026-03-27. End: 2026-05-27.

What is the historical spending pattern of the Agricultural Marketing Service (AMS) on perishable food commodities like pears over the last five fiscal years?

Analyzing the historical spending of the Agricultural Marketing Service (AMS) on perishable food commodities, particularly pears, over the last five fiscal years would provide crucial context for the current $3.87 million award. This analysis would involve examining contract databases to identify the frequency, value, and duration of similar procurements. It would help determine if this contract represents a typical expenditure, an increase, or a decrease in AMS's investment in such items. Understanding past spending patterns can reveal trends in pricing, supplier engagement, and the overall demand for these commodities within federal programs, allowing for a more robust assessment of the current contract's value and necessity.

How does the per-unit cost of pears in this contract compare to the average market price for similar quality pears during the contract period?

To assess the value for money, a comparison of the per-unit cost of pears under this contract against prevailing market rates is essential. This involves calculating the cost per pound or per unit based on the contract's total value ($3,868,863.53) and the quantities specified (though not detailed here, it can be inferred from the commodity descriptions). This calculated unit price would then be benchmarked against average wholesale or retail prices for comparable pear varieties (e.g., Bartlett, Bosc) in the Minnesota region during the contract's performance period (March-May 2026). Significant deviations from market averages, whether higher or lower, would warrant further investigation into factors like quality specifications, delivery requirements, or potential market inefficiencies.

What are the specific quality control and inspection procedures mandated in the contract to ensure the freshness and safety of the delivered pears?

The contract likely includes detailed specifications regarding the quality, size, ripeness, and condition of the pears to be delivered, given their perishable nature. These specifications are critical for ensuring that the food donated meets acceptable standards for consumption and aligns with program objectives. Inspection procedures may involve government representatives or third-party inspectors at the point of origin, during transit, or upon receipt at distribution points. The contract should outline rejection criteria for substandard products and the process for handling such rejections, including potential penalties or requirements for replacement. Robust quality control is paramount to prevent waste and ensure the efficacy of food donation programs.

What is the track record of Wescott Agri Products, Inc. in fulfilling government contracts, particularly for perishable food items?

Evaluating the past performance of Wescott Agri Products, Inc. on federal contracts is crucial for assessing the risk associated with this award. A review of their contract history would reveal their reliability in terms of on-time delivery, adherence to quality standards, and overall compliance with contract terms. Specifically, examining their experience with perishable goods, such as fruits and vegetables, would indicate their capacity to manage the logistical challenges inherent in such procurements. Any history of contract terminations, disputes, or performance deficiencies would be a significant concern, while a consistent record of successful contract completion would provide confidence in their ability to meet the requirements of this USDA award.

What are the primary distribution channels and end-user beneficiaries for these donated pears within Minnesota?

Understanding the distribution network and the ultimate recipients of the donated pears is key to assessing the public impact of this contract. The USDA typically partners with state agencies, food banks, shelters, and other non-profit organizations to distribute donated commodities. For this contract, the pears procured for Minnesota would likely be channeled through established food assistance networks within the state. Identifying these specific channels and the types of beneficiaries (e.g., low-income families, seniors, children) helps quantify the reach and effectiveness of the food donation program and highlights the tangible benefits to vulnerable populations.

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: 123J1426B0178

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 28085 COUNTY ROAD 25, ELGIN, MN, 55932

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

Financial Breakdown

Contract Ceiling: $3,868,864

Exercised Options: $3,868,864

Current Obligation: $3,868,864

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline