USDA awards $223,853 contract for 25kg cornmeal bags to SEMO MILLING LLC

Contract Overview

Contract Amount: $223,853 ($223.9K)

Contractor: Semo Milling LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-03-19

End Date: 2025-05-15

Contract Duration: 57 days

Daily Burn Rate: $3.9K/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: 2000010667/4210007333/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 $223,853.31 to SEMO MILLING LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010667/4210007333/CORNMEAL BAG-HP-25 KG Key points: 1. Contract value appears reasonable for the quantity of goods procured. 2. Full and open competition suggests a competitive bidding process. 3. Short contract duration may indicate a need for immediate supply. 4. Firm fixed price contract limits cost escalation risks. 5. Procurement falls within the flour milling industry sector. 6. Geographic focus on Missouri for delivery. 7. No small business set-aside was utilized for this award.

Value Assessment

Rating: good

The contract value of $223,853 for 20,000 units of 25kg cornmeal bags translates to approximately $11.19 per bag. This price point seems competitive when considering the costs associated with milling, packaging, and distribution of food commodities. Benchmarking against similar government food donation procurements would provide further insight, but the initial assessment suggests fair pricing for the specified goods.

Cost Per Unit: $11.19 per 25kg bag

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. The presence of 19 bids suggests a robust level of interest and competition for this requirement. This broad participation is generally favorable for price discovery and ensures the government receives offers from a wide range of potential suppliers.

Taxpayer Impact: A competitive bidding process with multiple offers helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging cost-effective solutions.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USDA donation programs. Services delivered include the provision of essential food commodities (cornmeal). Geographic impact is centered on Missouri, the state of performance. Workforce implications are related to the milling and logistics sectors involved in fulfilling the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting timely delivery.
Quality control of cornmeal to meet nutritional and safety standards.
Logistical challenges in transporting and distributing the commodity.

Positive Signals

SEMO MILLING LLC's established presence in the milling industry.
Firm fixed price contract provides budget certainty.
Short performance period allows for rapid deployment of resources.

Sector Analysis

This contract falls within the Food Manufacturing sector, specifically Flour Milling (NAICS 311211). The market for food commodities procured by government agencies is substantial, driven by domestic nutrition assistance programs and international food aid. Comparable spending benchmarks would involve analyzing other USDA procurements for staple food items, which often involve large volumes and competitive bidding processes to secure cost-effective supplies.

Small Business Impact

This contract did not include a small business set-aside. Given the nature of commodity milling and distribution, larger firms may have a competitive advantage. There is no explicit indication of subcontracting requirements for small businesses within the provided data, suggesting that the primary focus is on the prime contractor's capabilities.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service. Oversight mechanisms would typically involve contract performance monitoring, quality inspections, and financial reviews. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

USDA Food Donation Programs
Commodity Procurement
Agricultural Marketing Service Contracts
Food Aid Programs

Risk Flags

Short contract duration may indicate urgency, requiring close monitoring of delivery timelines.
Reliance on a single commodity (cornmeal) for donation programs could be a point of vulnerability if supply is disrupted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $223,853.31 to SEMO MILLING LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000010667/4210007333/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 $223,853.31.

What is the period of performance?

Start: 2025-03-19. End: 2025-05-15.

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

SEMO MILLING LLC has a history of receiving government contracts, primarily from the Department of Agriculture. Analysis of past awards indicates a focus on commodity procurement, including grains and related food products. While specific details on past performance quality or disputes are not provided in this summary, the recurring nature of awards suggests a level of established capability and reliability in meeting government requirements. Further investigation into contract performance reports and any past performance evaluations would offer a more comprehensive understanding of their track record.

How does the per-unit cost of $11.19 per 25kg bag compare to similar USDA food donation procurements?

The per-unit cost of approximately $11.19 for a 25kg bag of cornmeal appears to be within a reasonable range for government food commodity procurements. To provide a definitive benchmark, a detailed comparison with recent USDA contracts for similar items (e.g., other grains, flour, or cornmeal) awarded under comparable market conditions and delivery terms would be necessary. Factors such as market volatility for agricultural commodities, transportation costs, and specific quality requirements can influence per-unit pricing. However, based on general market knowledge, this price point does not immediately raise significant concerns regarding value for money.

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 affect timely delivery, quality control issues to ensure the cornmeal meets nutritional and safety standards, and logistical challenges in transportation and distribution. Mitigation strategies are inherent in the contract structure and agency oversight. The firm fixed price nature of the contract shifts some financial risk to the contractor. The short performance period (57 days) suggests an urgent need, implying that delivery timelines are critical. The USDA's Agricultural Marketing Service would typically have quality assurance protocols and performance monitoring in place to address quality and delivery risks.

What is the historical spending pattern for cornmeal procurement by the USDA?

Historical spending on cornmeal procurement by the USDA can vary significantly year over year, influenced by factors such as agricultural output, market prices, and the specific needs of domestic and international food assistance programs. The USDA procures large quantities of commodities to support programs like the National School Lunch Program and international food aid. While this specific contract is for $223,853, broader historical data would show aggregate spending that could range from millions to tens of millions of dollars annually for various grain products, including cornmeal. Analyzing trends over several fiscal years would reveal patterns in volume, pricing, and contractor distribution.

How does the 'full and open competition' with 19 bidders impact the value for taxpayers?

The 'full and open competition' with 19 bidders is a strong positive indicator for taxpayer value. A larger number of bidders generally leads to more competitive pricing as companies vie for the contract. This increased competition can drive down the final award price, ensuring that the government obtains the goods or services at the most favorable terms possible. Furthermore, a wide range of bidders suggests that the government has access to a broader market, potentially leading to better quality or more innovative solutions. The presence of 19 bids indicates that the market was receptive and that the government likely secured a fair price through this process.

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: $223,853

Exercised Options: $223,853

Current Obligation: $223,853

Actual Outlays: $223,853

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline