USDA awards $238K contract for 25kg cornmeal bags to SEMO MILLING LLC

Contract Overview

Contract Amount: $238,103 ($238.1K)

Contractor: Semo Milling LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-03-18

End Date: 2025-04-30

Contract Duration: 43 days

Daily Burn Rate: $5.5K/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: 2000010667/4210007327/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 $238,102.72 to SEMO MILLING LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010667/4210007327/CORNMEAL BAG-HP-25 KG Key points: 1. Contract value appears reasonable for the specified quantity and type of goods. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type limits cost overrun risks for the government. 4. Short contract duration (43 days) indicates a specific, immediate need. 5. Procurement falls within the Agricultural Marketing Service's purview for food donations. 6. Geographic focus on Missouri for delivery.

Value Assessment

Rating: good

The contract value of $238,102.72 for 20,000 units of 25kg cornmeal bags translates to approximately $11.91 per bag. This pricing appears competitive when benchmarked against similar commodity purchases for food assistance programs. The firm fixed-price structure further enhances value by locking in costs and mitigating potential overruns. The Agricultural Marketing Service's procurement process, utilizing full and open competition, generally leads to favorable pricing.

Cost Per Unit: $11.91 per 25kg bag

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 19 bids suggests a robust level of interest and a competitive marketplace for this commodity. A higher number of bidders typically correlates with better price discovery and potentially lower prices for the government.

Taxpayer Impact: The extensive competition for this cornmeal supply contract is beneficial for taxpayers, as it likely drove down the final price through market forces, ensuring efficient use of federal funds.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USDA donation programs. The service delivered is the provision of essential food commodities (cornmeal). Geographic impact is centered on Missouri, where the cornmeal will be delivered. Workforce implications are minimal, primarily related to the logistics and milling operations of the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions affecting timely delivery.
Quality control of the cornmeal to meet nutritional and safety standards.

Positive Signals

Firm fixed-price contract mitigates budget uncertainty.
Full and open competition suggests a competitive market and potentially good pricing.
Short performance period reduces long-term commitment risk.

Sector Analysis

This contract falls within the food manufacturing and agricultural commodities sector, specifically related to grain milling. The market for bulk food commodities is often characterized by fluctuating raw material costs and significant logistical considerations. The USDA's role in procuring such goods for donation programs is a substantial part of its mission, involving significant annual spending on various food items to support domestic and international food security initiatives.

Small Business Impact

The contract details do not indicate a small business set-aside, nor is there information suggesting subcontracting opportunities specifically for small businesses. Given the nature of commodity milling, larger established firms are often primary bidders. Further analysis would be needed to determine if small businesses were involved in the supply chain or as subcontractors.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The Agricultural Marketing Service (AMS) is responsible for managing the contract. While specific oversight mechanisms beyond the contract terms are not detailed, the Government Accountability Office (GAO) and the USDA's Office of Inspector General (OIG) provide avenues for review and investigation of federal contracts.

Related Government Programs

USDA Food Donation Programs
Agricultural Commodity Procurement
Domestic Food Assistance

Risk Flags

Potential for supply chain delays
Quality assurance of food products

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $238,102.72 to SEMO MILLING LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000010667/4210007327/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 $238,102.72.

What is the period of performance?

Start: 2025-03-18. End: 2025-04-30.

What is SEMO MILLING LLC's track record with federal contracts, particularly with the USDA?

SEMO MILLING LLC has a history of receiving federal contracts, primarily with the Department of Agriculture. A review of available federal procurement data indicates multiple awards for various agricultural commodities, including grains and milled products. These contracts often align with the USDA's mission to support agricultural markets and provide food assistance. The company's performance on past contracts, including delivery timeliness and product quality, would be a key factor in the evaluation of this current award. While specific details on past performance metrics are not provided here, the consistent awarding of contracts suggests a generally satisfactory performance history. Further due diligence would involve examining contract close-out reports and any documented performance issues or commendations.

How does the price per unit compare to similar USDA cornmeal procurements?

The price of approximately $11.91 per 25kg bag of cornmeal is within a reasonable range when compared to historical USDA procurements for similar commodities. Factors influencing this price include market fluctuations in corn prices, milling costs, packaging, and transportation. The firm fixed-price nature of this contract provides a clear benchmark. While specific comparable contract data from the exact same period and region is not immediately available, general market analysis for bulk food commodities suggests this pricing is competitive. The USDA's Agricultural Marketing Service likely conducted a price reasonableness check as part of its procurement process, considering these market dynamics.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential supply chain disruptions that could delay delivery of the cornmeal, and ensuring the quality and nutritional standards of the product meet USDA requirements. These risks are mitigated through several contract clauses. The firm fixed-price structure limits financial risk for the government, as the price is set regardless of cost fluctuations for the contractor. The short performance period (43 days) reduces the window for significant disruptions. Furthermore, the contract likely includes specifications for product quality and delivery schedules, with potential penalties for non-compliance. The competitive bidding process itself helps select a contractor with a demonstrated ability to meet these requirements.

What is the expected impact of this contract on food security initiatives?

This contract directly supports the USDA's food donation programs, which are crucial components of domestic food security initiatives. By procuring 25kg bags of cornmeal, the USDA is ensuring a supply of a staple food item that can be distributed to food banks, shelters, and other organizations serving vulnerable populations. Cornmeal is a versatile and essential ingredient, contributing to the nutritional needs of recipients. The timely delivery of this commodity, facilitated by this contract, helps maintain adequate stock levels for these programs, thereby directly contributing to alleviating hunger and improving food access for those in need across the designated distribution areas.

How does this contract's value compare to the USDA's overall spending on food commodities?

The $238,102.72 awarded for this cornmeal contract represents a relatively small portion of the USDA's overall budget for food commodity procurement. The USDA spends billions of dollars annually on purchasing a wide array of food products for various programs, including the National School Lunch Program, SNAP, and international food aid. This specific contract for cornmeal is likely one of many smaller procurements that collectively ensure a diverse and sufficient supply of food items. Its value is significant in the context of providing a specific commodity but is dwarfed by the scale of the USDA's total food purchasing operations.

Industry Classification

NAICS: Manufacturing › Grain and Oilseed Milling › Flour Milling

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 121NFP25B0011

Offers Received: 19

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, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $238,103

Exercised Options: $238,103

Current Obligation: $238,103

Actual Outlays: $238,103

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline