Agriculture Dept. Awards $2.57M for Irrigation System, Full Competition Used

Contract Overview

Contract Amount: $2,572,801 ($2.6M)

Contractor: Agri Industries Inc

Awarding Agency: Department of Agriculture

Start Date: 2024-04-02

End Date: 2026-05-31

Contract Duration: 789 days

Daily Burn Rate: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CENTER PIVOT IRRIGATION SYSTEM INSTALLATION

Place of Performance

Location: MILES CITY, CUSTER County, MONTANA, 59301

State: Montana Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.6 million to AGRI INDUSTRIES INC for work described as: CENTER PIVOT IRRIGATION SYSTEM INSTALLATION Key points: 1. The contract value of $2.57 million is for a pivot irrigation system installation. 2. Full and open competition was utilized, indicating a competitive bidding process. 3. The contract is a firm-fixed-price definitive contract, providing cost certainty. 4. The project is located in Montana and managed by the Agricultural Research Service.

Value Assessment

Rating: good

The contract value appears reasonable for a large-scale irrigation system installation. Benchmarking against similar projects 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 robust price discovery mechanism and potentially competitive pricing.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it promotes competitive pricing and efficient use of funds.

Public Impact

Enhances agricultural research capabilities through modern irrigation infrastructure. Supports water management and efficiency in agricultural practices. Potential for improved crop yields and research outcomes in Montana.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise.
Dependence on a single contractor for installation and potential warranty issues.

Positive Signals

Firm-fixed-price contract limits cost uncertainty for the government.
Full and open competition suggests a competitive award.

Sector Analysis

This contract falls within the construction sector, specifically related to water and sewer line construction. Spending benchmarks for similar agricultural infrastructure projects can vary significantly based on scale and location.

Small Business Impact

The data indicates that small business participation was not a stated requirement or outcome for this contract. Further analysis would be needed to determine if small businesses had an opportunity to compete.

Oversight & Accountability

The definitive contract structure allows for clear terms and conditions. Oversight will be crucial to ensure timely completion and adherence to specifications by Agri Industries Inc.

Related Government Programs

Water and Sewer Line and Related Structures Construction
Department of Agriculture Contracting
Agricultural Research Service Programs

Risk Flags

Contract duration is substantial (789 days).
Potential for unforeseen site conditions.
Dependence on a single contractor for installation.
No explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.6 million to AGRI INDUSTRIES INC. CENTER PIVOT IRRIGATION SYSTEM INSTALLATION

Who is the contractor on this award?

The obligated recipient is AGRI INDUSTRIES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2024-04-02. End: 2026-05-31.

What is the expected impact of this irrigation system on research efficiency and water conservation?

The new pivot irrigation system is expected to significantly improve the efficiency of water application for agricultural research, potentially leading to more precise experimental conditions and reduced water waste. This aligns with broader goals of sustainable agriculture and resource management within the Department of Agriculture's mission.

Are there any identified risks associated with the installation timeline or potential environmental impacts?

The primary risks involve potential delays due to weather or unforeseen site conditions during the 789-day installation period. Environmental impacts are generally minimized with modern pivot systems, but proper site preparation and adherence to environmental regulations during installation will be critical to mitigate any localized effects.

How does the firm-fixed-price contract structure benefit the government in this specific project?

The firm-fixed-price (FFP) contract structure benefits the government by providing cost certainty for the $2.57 million award. This means Agri Industries Inc. bears the risk of cost overruns, protecting the Department of Agriculture from unexpected expenses related to labor, materials, or other direct costs of installation.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 12805B24R0009

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3105 2ND ST W, WILLISTON, ND, 58801

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

Financial Breakdown

Contract Ceiling: $2,572,801

Exercised Options: $2,572,801

Current Obligation: $2,572,801

Actual Outlays: $2,246,397

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline