Department of Agriculture Awarded a Contract to INN FOODS INC for $5,562,825.00

Summary of Award

The U.S. federal government has awarded a significant contract to Inn Foods Inc, a U.S.-owned business based in Watsonville, California. This contract, valued at $5,562,825, is a definitive contract, signed on January 13, 2025, with the performance period scheduled to end on July 31, 2025. The primary objective of this contract is to supply commodities for U.S. Government (USG) food donations, specifically packaged dehydrated potato flakes. This award, identified by the PIID "123J1425C0495," involves the Department of Agriculture, particularly through its Agricultural Marketing Service (AMS) sub-agency.

Inn Foods Inc, the recipient of this contract, is classified under several business categories including corporate entity not tax exempt, small business, and special designations, emphasizing its status as a U.S.-owned business. The company's main operational base is located in Santa Cruz County, California. Inn Foods Inc operates within the dried and dehydrated food manufacturing sector, specializing in the processing and packaging of dried fruits and vegetables. The contract aligns with their expertise, as evident from the NAICS code "311423," reflecting their focus on dried and dehydrated food products.

The product or service code "8915" corresponds to fruits and vegetables, reinforcing the nature of commodities Inn Foods Inc will supply under this agreement. The required deliverables, as per the contract description, specify packaged potato flakes intended for food donations, a program run by the Department of Agriculture to support food security initiatives. Given the nature of the product, the contract supports the U.S. Government's efforts in providing sustenance through dehydrated food commodities, which are valued for their extended shelf life and ease of storage and transportation. This contract resulted from a full and open competition under the Federal Acquisition Regulation (FAR), with the award process undergoing a sealed bid solicitation process. This ensures transparency and equality in the government procurement procedure. Four offers were received, demonstrating competitive interest, although no specific set-aside measures for small businesses were utilized, as indicated by the type set-aside description "NO SET ASIDE USED." Despite this, the small business competitive aspect was marked as false, implying either the competition wasn't targeted specifically at small businesses or Inn Foods Inc emerged as the most suitable candidate regardless of size. Transactions associated with this contract trace back to its issuance on the signing date. The first transaction on January 13, 2025, involved the full obligated amount of $5,562,825, confirming the commitment from the awarding agency to fund the proposed food donation initiative. Subsequent transactions recorded on March 25, 2025, and April 10, 2025, did not involve additional financial obligations, suggesting these transactions were administrative modifications or confirmations of initial conditions rather than new streams of funding. All transactions reference the awarding and funding agency as the Department of Agriculture, with specific operations managed by the AMS. This agency is pivotal to agricultural commerce, playing a crucial role in stabilizing and overseeing agricultural markets, which supports equitable food distribution across the country. The contract's implementation is consistent with the AMS’s mission to facilitate strategic agricultural partnerships and food distribution mechanisms. The firm fixed price nature of the contract as described ensures clarity in financial terms; both parties – the federal government and Inn Foods Inc – have a defined budget scope to adhere to, which helps in controlling costs associated with the procurement process. This pricing model is particularly favorable in the agricultural supply context due to the predictability it offers against possible market fluctuations in raw material prices. Importantly, no subawards or additional funding allocations were specified, indicating that Inn Foods Inc is directly responsible for all deliverables without third-party subcontracting influences. This direct relationship can enhance oversight and accountability, ensuring that the government receives the contracted goods in compliance with stipulated quality and quantity standards. Additionally, the contract's diligence ensures compliance with various legislative requirements, such as the Clinger-Cohen Act and labor standards, though reports indicate non-necessity or irrelevance in this specific contract, as both were marked with "NO." This highlights that the nature of the contract did not necessitate advanced technology assessments or workforce protection measures typical in other, more complex procurement practices. In summary, this contract between the U.S. federal government and Inn Foods Inc is a finely coordinated effort to deliver essential food commodities for donation purposes, which falls squarely within the Department of Agriculture's mission of supporting food availability and market stabilization. As the government continues to promote food security and community support through such initiatives, Inn Foods Inc stands as a pivotal partner in transforming these objectives into tangible outcomes, leveraging its expertise in the dried and dehydrated food manufacturing industry.