USDA awards $2.5M contract for dry beans to PW Montgomery LLC under full and open competition

Contract Overview

Contract Amount: $2,489,892 ($2.5M)

Contractor: PW Montgomery LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-09-25

End Date: 2026-04-30

Contract Duration: 217 days

Daily Burn Rate: $11.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 20

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010981/4100033057/BEANS GREAT NORTHERN DRY PKG-12/2 LB,BEANS PINTO DRY PKG-12/2 LB,BEANS BLACK TURTLE DRY PKG-12/2 LB

Place of Performance

Location: DEVILS LAKE, RAMSEY County, NORTH DAKOTA, 58301

State: North Dakota Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.5 million to PW MONTGOMERY LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010981/4100033057/BEANS GREAT NORTHERN DRY PKG-12/2 LB,BEANS PINTO DRY PKG-12/2 LB,BEANS BLACK TURTLE DRY PKG-12/2 LB Key points: 1. Contract focuses on essential dry bean commodities for food donations. 2. PW Montgomery LLC secured the award, indicating competitive pricing. 3. Risk appears moderate given the commodity nature and fixed-price contract. 4. Spending falls within the 'All Other Miscellaneous Food Manufacturing' sector.

Value Assessment

Rating: good

The contract value of $2.5M for dry beans seems reasonable given the quantity and fixed-price nature. Benchmarking against similar commodity procurements would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a competitive process that aimed to maximize price discovery. This method generally leads to better pricing for the government.

Taxpayer Impact: The competitive award process is expected to yield fair market prices, ensuring taxpayer funds are used efficiently for food donation programs.

Public Impact

Ensures availability of essential food items for federal donation programs. Supports agricultural producers and food manufacturers through government procurement. Contributes to food security initiatives by providing staple commodities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in commodity markets impacting long-term value.
Reliance on a single awardee for a specific set of commodities.

Positive Signals

Clear contract type (Firm Fixed Price) limits cost overrun risk.
Awarded under full and open competition, suggesting competitive pricing.
Contract duration aligns with anticipated needs for donation programs.

Sector Analysis

This procurement falls under miscellaneous food manufacturing, a sector that supports various government programs including food assistance. Spending benchmarks for similar commodity contracts would be relevant for comparison.

Small Business Impact

The data indicates this contract was not awarded to a small business (sb: false). Further analysis would be needed to determine if small businesses participated in the competition.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service. Oversight would involve monitoring delivery, quality, and adherence to contract terms to ensure accountability.

Related Government Programs

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

Risk Flags

Commodity price volatility
Supply chain disruption risk
Contractor performance risk
Potential for sole-source justification if competition is limited in future

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.5 million to PW MONTGOMERY LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000010981/4100033057/BEANS GREAT NORTHERN DRY PKG-12/2 LB,BEANS PINTO DRY PKG-12/2 LB,BEANS BLACK TURTLE DRY PKG-12/2 LB

Who is the contractor on this award?

The obligated recipient is PW MONTGOMERY LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.5 million.

What is the period of performance?

Start: 2025-09-25. End: 2026-04-30.

What is the historical pricing trend for these specific dry bean commodities to assess long-term value?

Analyzing historical pricing data for Great Northern, Pinto, and Black Turtle dry beans over the past 3-5 years would reveal market volatility and trends. This context is crucial for determining if the current $2.5M award represents a favorable price point or if potential future price increases could impact the overall value proposition for the government's donation programs.

What are the specific risks associated with relying on PW Montgomery LLC for these essential commodities?

Key risks include potential supply chain disruptions affecting PW Montgomery LLC's ability to fulfill the contract, quality control issues with the delivered beans, or unforeseen market shifts that could make their pricing less competitive over the contract's duration. Ensuring robust performance monitoring and contingency planning is vital.

How effectively does this contract support the Department of Agriculture's food donation program goals?

The contract's effectiveness hinges on the timely and quality delivery of the specified dry beans to support food donation programs. Success metrics should include recipient satisfaction, the volume of food distributed, and the nutritional impact of these staple commodities. Consistent performance by the contractor is paramount.

Industry Classification

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

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1425B0501

Offers Received: 20

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 276 63RD AVE, EVANS, CO, 80634

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

Financial Breakdown

Contract Ceiling: $2,489,892

Exercised Options: $2,489,892

Current Obligation: $2,489,892

Actual Outlays: $604,710

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline