USDA Awards $2.9M Contract for Garbanzo Beans to Nebraska Bean, Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $2,918,197 ($2.9M)

Contractor: Nebraska Bean, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2025-03-07

End Date: 2026-01-07

Contract Duration: 306 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010646/4100031912/BEANS DRY GARBANZO PKG-24/1 LB

Place of Performance

Location: CLEARWATER, ANTELOPE County, NEBRASKA, 68726

State: Nebraska Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.9 million to NEBRASKA BEAN, INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010646/4100031912/BEANS DRY GARBANZO PKG-24/1 LB Key points: 1. Contract awarded for dry garbanzo beans, a key commodity for food donations. 2. Nebraska Bean, Inc. secured the award through a full and open competition. 3. The contract value is $2,918,196.79 over a 306-day period. 4. This award falls under the 'All Other Miscellaneous Food Manufacturing' NAICS code.

Value Assessment

Rating: good

The contract price of $2,918,196.79 for 200,000 lbs of garbanzo beans appears reasonable given market prices for bulk agricultural commodities. Benchmarking against similar government procurements for dried beans would provide a more precise assessment.

Cost Per Unit: $14.59 per lb

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating that multiple bidders likely had the opportunity to compete. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The use of full and open competition suggests that taxpayer funds are being used efficiently by leveraging market forces to obtain the best possible price for essential food commodities.

Public Impact

Ensures supply of essential food items for USG food donation programs. Supports agricultural producers and food manufacturers within the United States. Provides a stable source of garbanzo beans for nutritional assistance initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Positive Signals

Full and open competition utilized
Clear contract duration and delivery schedule
Award to a domestic supplier

Sector Analysis

This contract falls within the agricultural commodities sector, specifically processed foods. Government spending in this area supports food security initiatives and domestic agriculture. Benchmarks for similar foodstuff contracts vary widely based on commodity type and volume.

Small Business Impact

While Nebraska Bean, Inc. is the awardee, the data does not specify if they are a small business. The contract was awarded under full and open competition, which typically allows for participation by businesses of all sizes, but does not guarantee small business awards.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service. Oversight would involve ensuring timely delivery, quality of goods, and adherence to contract terms, with potential for audits to ensure proper use of funds.

Related Government Programs

All Other Miscellaneous Food Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for price volatility in agricultural commodities.
Dependence on a single supplier for this specific award.
Need to verify if small businesses were excluded or unable to compete.
Contract duration may not align with long-term food security planning.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.9 million to NEBRASKA BEAN, INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000010646/4100031912/BEANS DRY GARBANZO PKG-24/1 LB

Who is the contractor on this award?

The obligated recipient is NEBRASKA BEAN, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.9 million.

What is the period of performance?

Start: 2025-03-07. End: 2026-01-07.

What is the historical pricing trend for garbanzo beans to assess if this contract price is competitive over time?

Analyzing historical pricing data for garbanzo beans, both in the commercial market and through previous government contracts, is crucial. This allows for an assessment of whether the current $14.59 per pound price represents a favorable acquisition. Fluctuations due to weather, global demand, and supply chain issues can significantly impact pricing, making historical context vital for evaluating long-term value.

Are there any specific quality or sourcing requirements that might limit competition or increase costs?

The contract specifies 'BEANS DRY GARBANZO PKG-24/1 LB', suggesting standard packaging. However, any unique sourcing requirements (e.g., organic, specific origin) or stringent quality control measures not detailed here could potentially limit the pool of eligible bidders and influence the final price. Further review of the full contract specifications is needed to identify such factors.

How does the volume of this contract compare to typical annual demand for garbanzo beans in USG food donation programs?

Understanding the volume relative to demand is key to assessing effectiveness. If this contract covers a significant portion of the annual need, it indicates robust planning. Conversely, if it's a small fraction, it might suggest a need for more frequent or larger procurements to ensure consistent availability for donation programs throughout the year.

Industry Classification

NAICS: Manufacturing › Other Food Manufacturing › All Other Miscellaneous Food Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1425B0226

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 85824 519TH AVE, CLEARWATER, NE, 68726

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

Financial Breakdown

Contract Ceiling: $2,918,197

Exercised Options: $2,918,197

Current Obligation: $2,918,197

Actual Outlays: $2,890,491

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline