USDA awards $2.2M contract for 25kg cornmeal bags to SEMO MILLING LLC

Contract Overview

Contract Amount: $2,204,753 ($2.2M)

Contractor: Semo Milling LLC

Awarding Agency: Department of Agriculture

Start Date: 2024-09-18

End Date: 2024-11-15

Contract Duration: 58 days

Daily Burn Rate: $38.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 33

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010334/4210007190/CORNMEAL BAG-HP-25 KG

Place of Performance

Location: SCOTT CITY, SCOTT County, MISSOURI, 63780

State: Missouri Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.2 million to SEMO MILLING LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010334/4210007190/CORNMEAL BAG-HP-25 KG Key points: 1. Contract value of $2.2 million for cornmeal bags. 2. SEMO MILLING LLC is the awarded contractor. 3. Contract type is Firm Fixed Price. 4. Performance period is 58 days. 5. Contract was awarded under Full and Open Competition after Exclusion of Sources. 6. The North American Industry Classification System (NAICS) code is 311211 (Flour Milling). 7. The contract is for commodities for USG food donations. 8. The contract has a base value of $2.2 million with a potential for modifications.

Value Assessment

Rating: good

The contract value of $2.2 million for 200,000 units of 25kg cornmeal bags appears reasonable given the commodity market. The firm fixed price structure helps mitigate cost overruns for the government. Benchmarking against similar food commodity contracts would provide a more precise value-for-money assessment, but the price per bag is within expected ranges for bulk agricultural products.

Cost Per Unit: $11.02 per 25kg bag

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition after Exclusion of Sources'. This indicates that while the competition was intended to be broad, specific circumstances or sources were excluded, potentially limiting the pool of bidders. The number of bids received is not specified, but the award type suggests a deliberate selection process rather than a completely unrestricted open bid.

Taxpayer Impact: The 'Exclusion of Sources' aspect warrants further scrutiny to ensure that taxpayer funds were used efficiently and that the exclusion did not unduly limit competition, potentially leading to higher prices than might have been achieved in a truly open market.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USG donation programs. The service delivered is the provision of 200,000 units of 25kg cornmeal bags. The geographic impact is likely national, supporting food distribution networks across the United States. Workforce implications are primarily within the agricultural processing and logistics sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'Exclusion of Sources' clause.
Short performance period may limit contractor flexibility and potentially increase costs.
Reliance on a single commodity could be subject to market price volatility.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Award to a specific company (SEMO MILLING LLC) suggests established capabilities.
Contract supports critical USG food donation programs.

Sector Analysis

This contract falls within the Food Manufacturing sector, specifically flour milling. The market for agricultural commodities is vast and subject to global supply and demand dynamics. Government procurement of food staples for donation programs represents a significant, albeit specialized, segment of this market. Comparable spending benchmarks would involve analyzing other government contracts for bulk food items and their pricing structures.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. There is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem from this particular contract appears minimal, though SEMO MILLING LLC itself could be a small or large business.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Agriculture's Agricultural Marketing Service. Accountability measures are embedded in the Firm Fixed Price contract terms, requiring delivery of specified goods. Transparency is facilitated by the public nature of contract awards, though detailed operational oversight specifics are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

USDA Food Purchase Programs
Commodity Supplemental Food Program
The Emergency Food Assistance Program (TEFAP)
Federal Food, Conservation, and Energy Act of 2008

Risk Flags

Limited competition due to 'Exclusion of Sources'.
Short contract duration may pose delivery challenges.
Potential for commodity price volatility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.2 million to SEMO MILLING LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000010334/4210007190/CORNMEAL BAG-HP-25 KG

Who is the contractor on this award?

The obligated recipient is SEMO MILLING LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

Start: 2024-09-18. End: 2024-11-15.

What is the track record of SEMO MILLING LLC in fulfilling government contracts, particularly for food commodities?

Information regarding SEMO MILLING LLC's specific track record with government contracts is not detailed in the provided data. However, the award of this contract by the Department of Agriculture suggests they have met the necessary qualifications and demonstrated capability to supply the specified cornmeal. A deeper analysis would involve reviewing their past performance ratings, any history of contract disputes or terminations, and the volume and type of previous government orders they have fulfilled. Understanding their experience with similar large-scale commodity procurements would be crucial for assessing reliability and performance consistency.

How does the price per unit of $11.02 for a 25kg bag of cornmeal compare to market rates and similar government procurements?

The price of $11.02 per 25kg bag of cornmeal is approximately $0.44 per kilogram. This price needs to be benchmarked against current market prices for bulk cornmeal, considering factors like grade, origin, and transportation costs. Comparing this to historical USDA food purchase contracts for similar items would reveal if this represents a favorable or unfavorable rate. Given the firm fixed price and the scale of the order (200,000 bags), this price appears competitive, but a detailed market analysis and comparison with other recent government solicitations for comparable commodities are necessary for a definitive assessment of value for money.

What are the specific reasons for the 'Exclusion of Sources' in this Full and Open Competition award, and what is the potential impact on cost?

The provided data does not specify the exact reasons for the 'Exclusion of Sources' in this contract award. This designation typically implies that while the competition was intended to be open, certain potential sources were deliberately excluded based on specific criteria, such as unique capabilities, prior performance issues with other agencies, or national security concerns. The impact on cost is potentially negative; excluding bidders can reduce the overall competitive pressure, which might lead to prices that are not as low as they could be in a completely unrestricted market. Understanding the justification for exclusion is key to determining if the government received the best possible value.

What is the expected effectiveness of this contract in supporting USG food donation programs?

This contract is expected to be highly effective in supporting USG food donation programs by ensuring a timely supply of a key commodity, cornmeal. The firm fixed price and defined delivery period suggest a reliable procurement process. The 200,000 bags of cornmeal will likely be distributed through established channels to aid vulnerable populations. The effectiveness hinges on the efficient distribution of these commodities by the recipient organizations and the quality of the product meeting nutritional and safety standards. The short performance period indicates a need for immediate supply, suggesting this contract addresses an urgent requirement.

What are the historical spending patterns for cornmeal or similar commodities by the Department of Agriculture for donation purposes?

Historical spending data for cornmeal or similar commodities by the Department of Agriculture for donation purposes is not provided in this data snippet. To analyze historical patterns, one would need to access USDA procurement databases or reports detailing past contracts for food assistance programs. This analysis would reveal trends in contract volumes, pricing fluctuations, awarded vendors, and the types of commodities most frequently procured. Understanding these patterns is crucial for forecasting future needs, identifying cost efficiencies, and assessing the consistency of USDA's procurement strategies for food donations over time.

Are there any identified risks associated with SEMO MILLING LLC's performance or the supply chain for this cornmeal contract?

Specific risks associated with SEMO MILLING LLC's performance or the cornmeal supply chain are not detailed in the provided data. However, general risks in commodity procurement include potential supply disruptions due to weather, agricultural disease, or geopolitical events affecting crop yields and transportation. For SEMO MILLING LLC, risks could involve production capacity limitations, quality control issues, or logistical challenges in meeting the delivery schedule. The 'Exclusion of Sources' might also indicate pre-existing concerns or risks associated with certain potential suppliers. A thorough risk assessment would require reviewing the contractor's past performance and analyzing the stability of the cornmeal market.

Industry Classification

NAICS: Manufacturing › Grain and Oilseed Milling › Flour Milling

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 121NMP24B0030

Offers Received: 33

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 261 RIVER RD, SCOTT CITY, MO, 63780

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,204,753

Exercised Options: $2,204,753

Current Obligation: $2,204,753

Actual Outlays: $2,204,753

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline