USDA Awards $5.9M Contract to Supreme Rice for Long Grain Rice Amidst Firm Fixed Price Agreement

Contract Overview

Contract Amount: $5,899,956 ($5.9M)

Contractor: Supreme Rice, LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-08-13

End Date: 2026-01-15

Contract Duration: 155 days

Daily Burn Rate: $38.1K/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: 2000010905/4100032750/RICE US#2 LONG GRAIN PKG-24/1 LB,RICE BRN US#1 LONG PARBOILED BAG-25 LB,RICE US#2 LONG GRAIN PKG-30/2 LB,RICE US#1 LONG GRAIN PARBOILED BAG-25 LB,RICE BRN US#1 LONG PARBOILED PKG-24/2 LB,RICE

Place of Performance

Location: CROWLEY, ACADIA County, LOUISIANA, 70526

State: Louisiana Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.9 million to SUPREME RICE, LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010905/4100032750/RICE US#2 LONG GRAIN PKG-24/1 LB,RICE BRN US#1 LONG PARBOILED BAG-25 LB,RICE US#2 LONG GRAIN PKG-30/2 LB,RICE US#1 LONG GRAIN PARBOILED BAG-25 LB,RICE BRN US#1 LONG PARBOILED PKG-24/2 LB,RICE Key points: 1. Contract awarded to Supreme Rice, LLC for various types of long grain rice. 2. The contract utilizes a firm fixed price structure, providing cost certainty. 3. Full and open competition was employed, suggesting a competitive bidding process. 4. The contract duration is 155 days, indicating a short-term supply need.

Value Assessment

Rating: good

The contract value of $5.9M for 155 days of rice supply appears reasonable given the quantity and type of goods. Benchmarking against similar commodity contracts would provide a more precise assessment, but the firm fixed price suggests a negotiated value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically leads to better price discovery and potentially lower costs for the government. The use of a definitive contract suggests a clear scope and established terms.

Taxpayer Impact: The firm fixed price contract aims to ensure predictable costs for the government, protecting taxpayers from potential price fluctuations in the commodity market.

Public Impact

Ensures a supply of essential food commodities for USG food donation programs. Supports the agricultural sector by providing a market for rice producers and processors. The firm fixed price contract offers budget predictability for the donating agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price volatility if market prices change significantly before contract fulfillment.
Dependence on a single supplier for a critical commodity.

Positive Signals

Firm fixed price provides cost certainty.
Full and open competition likely secured a competitive price.
Clear contract end date limits long-term financial commitment.

Sector Analysis

This contract falls within the agricultural commodities sector, specifically focusing on rice milling and distribution. Spending benchmarks for similar food commodity contracts would be necessary for a detailed comparison, but the value appears consistent with bulk food procurement.

Small Business Impact

The contract was awarded to Supreme Rice, LLC. Further analysis would be needed to determine if small businesses were involved as subcontractors or if the prime contractor itself qualifies as a small business. The data does not indicate specific small business set-asides.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service. Oversight would involve ensuring timely delivery, quality of rice, and adherence to contract terms. The definitive contract structure implies a degree of established oversight.

Related Government Programs

Rice Milling
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Supplier dependency
Market price volatility
Logistical challenges
Quality control

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.9 million to SUPREME RICE, LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000010905/4100032750/RICE US#2 LONG GRAIN PKG-24/1 LB,RICE BRN US#1 LONG PARBOILED BAG-25 LB,RICE US#2 LONG GRAIN PKG-30/2 LB,RICE US#1 LONG GRAIN PARBOILED BAG-25 LB,RICE BRN US#1 LONG PARBOILED PKG-24/2 LB,RICE

Who is the contractor on this award?

The obligated recipient is SUPREME RICE, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.9 million.

What is the period of performance?

Start: 2025-08-13. End: 2026-01-15.

What is the projected per-unit cost of the rice and how does it compare to market rates?

The provided data does not detail the exact quantities of each rice type, making a precise per-unit cost calculation difficult. However, the total contract value of $5.9M over 155 days for various rice products suggests a significant volume. A detailed breakdown of the bid prices against current market commodity indices would be necessary to assess if the government secured a favorable rate.

What are the risks associated with relying on a single supplier for this food commodity?

Relying on Supreme Rice, LLC as the sole supplier introduces risks such as potential supply chain disruptions (e.g., weather, labor issues, transportation problems) that could impact delivery schedules. It also limits the government's ability to leverage competition if market conditions change favorably. Contingency planning and robust supplier performance monitoring are crucial.

How effectively does this contract meet the government's food donation objectives?

This contract appears effective in securing a supply of essential rice commodities for USG food donation programs. The firm fixed price ensures budget predictability, and the full and open competition suggests a competitive acquisition process. The short duration indicates a specific, short-term need is being met efficiently.

Industry Classification

NAICS: Manufacturing › Grain and Oilseed Milling › Rice Milling

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1425B0437

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 530 W MILL ST, CROWLEY, LA, 70526

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

Financial Breakdown

Contract Ceiling: $5,899,956

Exercised Options: $5,899,956

Current Obligation: $5,899,956

Actual Outlays: $5,868,489

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline