USDA awards $23.8M for dried fruit to Royal Ridge Fruit & Cold Storage, LLC
Contract Overview
Contract Amount: $23,842,471 ($23.8M)
Contractor: Royal Ridge Fruit & Cold Storage, LLC
Awarding Agency: Department of Agriculture
Start Date: 2015-03-26
End Date: 2015-11-30
Contract Duration: 249 days
Daily Burn Rate: $95.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: AGFDRFS150066 DRIED FRUIT
Place of Performance
Location: ROYAL CITY, GRANT County, WASHINGTON, 99357, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Agriculture obligated $23.8 million to ROYAL RIDGE FRUIT & COLD STORAGE, LLC for work described as: AGFDRFS150066 DRIED FRUIT Key points: 1. Contract awarded for dried and dehydrated food manufacturing. 2. Competition was full and open, indicating market engagement. 3. The contract value is substantial for this niche sector. 4. Fixed-price contract type aims to control costs. 5. No small business participation noted.
Value Assessment
Rating: good
The contract value of $23.8M for dried fruit manufacturing appears reasonable given the scope and duration. Benchmarking against similar contracts for food processing and preservation would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it encourages a competitive bidding process that should lead to optimal pricing.
Public Impact
Ensures supply of essential dried fruit products for government programs. Supports the agricultural sector by providing a market for dried fruit. Transparency in procurement through full and open competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Contract duration of 249 days may limit long-term planning.
- Fixed price contract may not account for unforeseen cost escalations.
Positive Signals
- Full and open competition utilized.
- Clear contract type (firm fixed price) for cost control.
- Awarded by a major agency (USDA).
Sector Analysis
The dried and dehydrated food manufacturing sector is a specialized area within food processing. Spending benchmarks for this specific niche are not readily available, but the contract value suggests a significant procurement for the Agricultural Marketing Service.
Small Business Impact
The contract data indicates that small businesses were not involved in this procurement, as the 'sb' field is false. Further analysis would be needed to determine if opportunities were missed or if the requirements were not suitable for small business participation.
Oversight & Accountability
The contract was awarded by the Department of Agriculture's Agricultural Marketing Service, suggesting established oversight mechanisms. The firm fixed price contract type also implies a focus on cost accountability.
Related Government Programs
- Dried and Dehydrated Food Manufacturing
- Department of Agriculture Contracting
- Agricultural Marketing Service Programs
Risk Flags
- No small business participation.
- Potential for cost overruns if market prices increase significantly.
- Limited duration may not reflect long-term needs.
- Lack of detailed per-unit cost data for benchmarking.
Tags
dried-and-dehydrated-food-manufacturing, department-of-agriculture, wa, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Agriculture awarded $23.8 million to ROYAL RIDGE FRUIT & COLD STORAGE, LLC. AGFDRFS150066 DRIED FRUIT
Who is the contractor on this award?
The obligated recipient is ROYAL RIDGE FRUIT & COLD STORAGE, LLC.
Which agency awarded this contract?
Awarding agency: Department of Agriculture (Agricultural Marketing Service).
What is the total obligated amount?
The obligated amount is $23.8 million.
What is the period of performance?
Start: 2015-03-26. End: 2015-11-30.
What is the typical cost per pound for dried fruit procured by the government?
Determining a precise per-pound cost for dried fruit requires detailed specifications of the type of fruit, quality standards, and packaging. Without this granular data, a benchmark is difficult to establish. However, the total contract value of $23.8M over approximately 8 months suggests a significant volume, and a detailed cost breakdown would be necessary for a true per-unit cost assessment.
What are the risks associated with a firm fixed-price contract for dried fruit?
A firm fixed-price contract for dried fruit carries the risk of the contractor absorbing unexpected cost increases due to market fluctuations in raw materials, labor, or transportation. Conversely, if costs decrease significantly, the government might overpay. For the government, the primary risk is ensuring the quality and timely delivery of the product at the agreed-upon price.
How effective is full and open competition in ensuring value for dried fruit procurement?
Full and open competition is generally effective in ensuring value by fostering a competitive environment where multiple vendors vie for the contract. This process encourages competitive pricing and innovation. For dried fruit, it means the USDA likely received multiple bids, allowing them to select the offer that best balances price, quality, and delivery timelines, thereby maximizing taxpayer value.
Industry Classification
NAICS: Manufacturing › Fruit and Vegetable Preserving and Specialty Food Manufacturing › Dried and Dehydrated Food Manufacturing
Product/Service Code: SUBSISTENCE
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Solicitation ID: AGFDRFS150066/8400
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 13215 RD F SW, ROYAL CITY, WA, 99357
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,842,471
Exercised Options: $23,842,471
Current Obligation: $23,842,471
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2015-03-26
Current End Date: 2015-11-30
Potential End Date: 2015-11-30 00:00:00
Last Modified: 2015-03-27
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