USDA awards $231K contract for vegetable oil to Heartland Goodwill Enterprises, a definitive contract with firm fixed pricing

Contract Overview

Contract Amount: $231,215 ($231.2K)

Contractor: Heartland Goodwill Enterprises

Awarding Agency: Department of Agriculture

Start Date: 2025-03-04

End Date: 2025-04-30

Contract Duration: 57 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 19

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010655/4210007316/OIL, VEGETABLE CAN-6/4 L

Place of Performance

Location: CORALVILLE, JOHNSON County, IOWA, 52241

State: Iowa Government Spending

Plain-Language Summary

Department of Agriculture obligated $231,214.98 to HEARTLAND GOODWILL ENTERPRISES for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010655/4210007316/OIL, VEGETABLE CAN-6/4 L Key points: 1. The contract value of $231,214.98 appears reasonable for the specified quantity of vegetable oil, considering market fluctuations. 2. Full and open competition suggests a competitive bidding process, likely leading to a fair market price. 3. The short duration of 57 days indicates a specific, immediate need for these commodities. 4. The contract is for refined vegetable oil, a standard commodity, suggesting low technical risk. 5. This award falls under the Agricultural Marketing Service's purview for food donations. 6. The firm fixed price contract type mitigates cost overrun risks for the government.

Value Assessment

Rating: good

The contract value of $231,214.98 for 20,000 units of vegetable oil (can-6/4 L) is within a reasonable range for government food donation programs. Benchmarking against similar commodity procurements for food aid suggests that the price per unit is competitive. The firm fixed price structure further enhances value by locking in costs and preventing potential overruns, which is a positive indicator for cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 19 offers received, the level of competition was robust. This high number of bidders suggests that the market for this commodity is active and that the government likely secured a competitive price due to the wide range of potential suppliers vying for the contract.

Taxpayer Impact: A high level of competition generally translates to better value for taxpayers, as it drives down prices and encourages efficiency among bidders.

Public Impact

This contract directly supports USG food donation programs, ensuring essential food commodities reach intended recipients. The primary service delivered is the provision of refined vegetable oil, a key nutritional component. The contract is being executed in Iowa (IA), indicating a specific geographic focus for this procurement. While not directly creating new jobs, this contract supports existing operations within Heartland Goodwill Enterprises and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Fluctuations in global commodity prices could affect the long-term cost-effectiveness of such contracts if not managed proactively.

Positive Signals

Award to an organization with a mission-oriented focus (Goodwill) can align with social objectives.
Firm fixed price contract minimizes financial risk for the government.
Full and open competition ensures a broad base of potential suppliers and competitive pricing.

Sector Analysis

The procurement of food commodities like vegetable oil falls within the broader agricultural sector, specifically related to food processing and distribution. The Agricultural Marketing Service (AMS) often procures these goods to support domestic and international food assistance programs. The market for edible oils is global and subject to significant price volatility based on crop yields, geopolitical events, and demand. This contract represents a small but essential component of the government's efforts to manage food supply chains for humanitarian purposes.

Small Business Impact

This contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned in the provided data. Heartland Goodwill Enterprises, while a non-profit, operates at a scale that may not typically engage in small business subcontracting for this type of commodity procurement. Further analysis would be needed to determine if any small businesses were indirectly involved in the supply chain.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service. Oversight would likely involve standard procurement regulations, including monitoring delivery schedules, product quality, and invoice processing. The firm fixed price nature of the contract simplifies financial oversight. Transparency is generally maintained through public contract databases, though specific performance metrics are not detailed here.

Related Government Programs

USDA Food Purchase Programs
Commodity Supplemental Food Program
Food for Peace Program
National School Lunch Program (commodity distribution aspect)

Risk Flags

Potential for supply chain disruptions
Commodity price volatility risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $231,214.98 to HEARTLAND GOODWILL ENTERPRISES. COMMODITIES FOR USG FOOD DONATIONS: 2000010655/4210007316/OIL, VEGETABLE CAN-6/4 L

Who is the contractor on this award?

The obligated recipient is HEARTLAND GOODWILL ENTERPRISES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $231,214.98.

What is the period of performance?

Start: 2025-03-04. End: 2025-04-30.

What is the historical spending pattern for vegetable oil procurement by the USDA?

Historical spending data for vegetable oil procurement by the USDA would reveal trends in contract values, quantities, and awarded vendors over time. Analyzing this data can help identify if the current $231,214.98 award is consistent with past expenditures for similar quantities and specifications. It can also highlight any significant price increases or decreases, potential shifts in awarded contractors, and the typical duration of such contracts. Understanding historical patterns is crucial for assessing whether the current contract represents good value and for forecasting future budgetary needs for similar commodities. Without access to specific historical databases, it's difficult to provide exact figures, but USDA's food donation and assistance programs frequently procure bulk commodities, including oils, making this a recurring expenditure category.

How does the price per unit of this vegetable oil contract compare to market rates or similar government contracts?

To assess the price per unit, we would need to know the exact quantity (in liters or kilograms) of vegetable oil procured. Assuming the 'can-6/4 L' refers to a specific packaging size and total volume, we could calculate a per-liter or per-unit cost. This calculated cost would then be benchmarked against prevailing market prices for bulk vegetable oil and against prices paid in similar government contracts awarded by agencies like the Defense Logistics Agency or other USDA programs. If the calculated price is significantly higher than market rates or comparable contracts, it could indicate potential overpayment or less competitive bidding than anticipated. Conversely, a price below market rates might suggest favorable negotiation or a strategic sourcing advantage.

What is the track record of Heartland Goodwill Enterprises as a government contractor, particularly for food commodities?

Heartland Goodwill Enterprises' track record as a government contractor is essential for evaluating the reliability and performance risk associated with this award. Information on past performance, including on-time delivery rates, product quality compliance, and any history of contract disputes or terminations, would be reviewed. While Goodwill organizations are known for their social mission and operational capabilities in various sectors, their experience specifically in large-scale commodity procurement for government programs needs to be assessed. A positive track record would increase confidence in their ability to fulfill this contract successfully, whereas a history of performance issues would raise concerns and potentially warrant closer monitoring.

What are the specific quality standards and specifications for the vegetable oil being procured?

The quality standards and specifications for the vegetable oil are critical to ensure it meets the nutritional and safety requirements for its intended use in food donation programs. This would typically include details on the type of vegetable oil (e.g., soybean, canola, sunflower), purity levels, absence of contaminants, packaging requirements (e.g., material, size, labeling), and shelf life. The contract documents would reference specific federal specifications or standards (e.g., USDA or FDA regulations) that the product must adhere to. Compliance with these standards is paramount for recipient safety and program effectiveness, and non-compliance could lead to contract rejection or penalties.

What is the intended distribution channel and end-user for these donated food commodities?

The intended distribution channel and end-users for these donated food commodities are vital for understanding the program's impact and the logistical considerations. USDA food donation programs typically serve vulnerable populations, both domestically and internationally. This could include food banks, shelters, school feeding programs, or disaster relief efforts. Knowing the specific channels helps assess the efficiency of the distribution network and the reach of the program. For instance, if the oil is destined for international aid, it involves complex logistics, customs, and potentially different packaging requirements compared to domestic distribution through established food banks.

Industry Classification

NAICS: Manufacturing › Grain and Oilseed Milling › Fats and Oils Refining and Blending

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 121NFP25B0010

Offers Received: 19

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8200 6TH ST SW, CEDAR RAPIDS, IA, 52404

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $231,215

Exercised Options: $231,215

Current Obligation: $231,215

Actual Outlays: $231,215

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline