USDA's $3.8M Soybean Oil Contract Awarded to Bunge North America Amidst Full and Open Competition

Contract Overview

Contract Amount: $3,894,466 ($3.9M)

Contractor: Bunge North America, Inc

Awarding Agency: Department of Agriculture

Start Date: 2020-08-11

End Date: 2020-10-12

Contract Duration: 62 days

Daily Burn Rate: $62.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2000007214/4210005010/OIL, SOYBEAN, CRUDE, DEGUMMED BULK

Place of Performance

Location: SAINT ROSE, SAINT CHARLES County, LOUISIANA, 70087

State: Louisiana Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.9 million to BUNGE NORTH AMERICA, INC for work described as: 2000007214/4210005010/OIL, SOYBEAN, CRUDE, DEGUMMED BULK Key points: 1. Contract awarded to a single vendor, Bunge North America, Inc. 2. The contract falls under the Soybean and Other Oilseed Processing NAICS code. 3. A firm fixed price contract type was used, indicating price certainty. 4. The contract duration was 62 days, suggesting a short-term need.

Value Assessment

Rating: fair

The contract value of $3.8M for crude degummed soybean oil is difficult to assess without specific volume and quality benchmarks. However, the firm fixed price suggests the government accepted the vendor's pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. The use of a firm fixed price contract further solidifies the price.

Taxpayer Impact: The use of full and open competition is expected to yield a fair market price for the soybean oil, minimizing unnecessary taxpayer expense.

Public Impact

Ensures supply of a key agricultural commodity for potential government use or distribution. Supports the agricultural sector by providing a market for soybean oil producers. The contract's short duration may indicate a specific, time-sensitive requirement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed specifications on oil quality and volume makes price benchmarking difficult.
Short contract duration might indicate a reactive procurement rather than strategic planning.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm fixed price contract provides cost certainty for the government.

Sector Analysis

This contract falls within the agricultural processing sector, specifically for soybean oil. Spending benchmarks for this commodity can fluctuate based on market conditions, global supply, and demand.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine if opportunities were missed.

Oversight & Accountability

The contract was awarded by the Agricultural Marketing Service, part of the Department of Agriculture. Standard procurement oversight processes would apply to ensure compliance and performance.

Related Government Programs

Soybean and Other Oilseed Processing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Lack of detailed specifications.
Short contract duration.
No indication of small business participation.
Limited transparency on specific commodity details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.9 million to BUNGE NORTH AMERICA, INC. 2000007214/4210005010/OIL, SOYBEAN, CRUDE, DEGUMMED BULK

Who is the contractor on this award?

The obligated recipient is BUNGE NORTH AMERICA, 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: 2020-08-11. End: 2020-10-12.

What was the specific quantity and quality of soybean oil procured under this contract?

The provided data does not specify the exact quantity or quality standards for the crude degummed soybean oil. This information is crucial for a thorough value assessment and for comparing the price paid against market rates for similar products.

Were there any performance issues or disputes during the contract's 62-day duration?

The data does not contain information regarding contract performance or any disputes that may have arisen. Post-award performance reviews and contract close-out documentation would be necessary to assess any issues encountered during the execution of this agreement.

How does the awarded price compare to the average market price for crude degummed soybean oil during the contract period?

Without the specific quantity and precise quality metrics, a direct comparison to market prices is challenging. However, the firm fixed price suggests Bunge North America, Inc. committed to a price based on their assessment of market conditions at the time of bidding.

Industry Classification

NAICS: Manufacturing › Grain and Oilseed Milling › Soybean and Other Oilseed Processing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 121NF020B0041

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bunge North America Inc.

Address: 1391 TIMBERLAKE MANOR PKWY, CHESTERFIELD, MO, 63017

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

Financial Breakdown

Contract Ceiling: $3,894,466

Exercised Options: $3,894,466

Current Obligation: $3,894,466

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline