USDA's $24.6M Soybean Meal Contract Awarded to AG PROCESSING INC. in 2014

Contract Overview

Contract Amount: $24,606,040 ($24.6M)

Contractor: AG Processing Inc., a Cooperative

Awarding Agency: Department of Agriculture

Start Date: 2014-02-12

End Date: 2014-03-18

Contract Duration: 34 days

Daily Burn Rate: $723.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SOL AG-INFG-S-14-0019-P0001, (2000002331),SOYBEAN MEAL BULK

Place of Performance

Location: OMAHA, DOUGLAS County, NEBRASKA, 68103

State: Nebraska Government Spending

Plain-Language Summary

Department of Agriculture obligated $24.6 million to AG PROCESSING INC., A COOPERATIVE for work described as: SOL AG-INFG-S-14-0019-P0001, (2000002331),SOYBEAN MEAL BULK Key points: 1. Contract value of $24.6 million for soybean meal procurement. 2. Awarded via full and open competition, suggesting market-based pricing. 3. Potential risk associated with commodity price fluctuations. 4. Spending falls within the 'All Other Miscellaneous Food Manufacturing' NAICS code.

Value Assessment

Rating: good

The contract value of $24.6 million for soybean meal appears reasonable given the quantity and market for agricultural commodities. Benchmarking against similar bulk agricultural procurements would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

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

Taxpayer Impact: The use of competitive bidding aims to secure the best possible price for taxpayers, minimizing unnecessary expenditure on essential agricultural commodities.

Public Impact

Ensures availability of essential agricultural products for government programs. Supports the agricultural sector by providing a market for soybean meal. Potential impact on food prices depending on market conditions at the time of procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Commodity price volatility
Contract duration is relatively short

Positive Signals

Full and open competition
Firm fixed price contract

Sector Analysis

This contract falls under the food manufacturing sector, specifically related to agricultural processing. Spending benchmarks for similar commodity procurements by the Department of Agriculture would be relevant for comparison.

Small Business Impact

The contract was not awarded to a small business, as indicated by 'sb': false. Further analysis would be needed to determine if small businesses had the opportunity to participate in the bidding process.

Oversight & Accountability

The contract was awarded by the Farm Service Agency, a sub-agency of the Department of Agriculture, which is responsible for agricultural commodity programs. Standard procurement oversight processes would apply.

Related Government Programs

All Other Miscellaneous Food Manufacturing
Department of Agriculture Contracting
Farm Service Agency Programs

Risk Flags

Commodity price risk
Limited contract duration may not cover long-term needs
Lack of specific quantity data
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $24.6 million to AG PROCESSING INC., A COOPERATIVE. SOL AG-INFG-S-14-0019-P0001, (2000002331),SOYBEAN MEAL BULK

Who is the contractor on this award?

The obligated recipient is AG PROCESSING INC., A COOPERATIVE.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Farm Service Agency).

What is the total obligated amount?

The obligated amount is $24.6 million.

What is the period of performance?

Start: 2014-02-12. End: 2014-03-18.

What was the specific quantity of soybean meal procured under this contract?

The provided data does not specify the exact quantity of soybean meal. The contract value of $24.6 million and the duration of 34 days suggest a significant volume was procured to meet the needs of the Farm Service Agency's programs.

Were there any significant fluctuations in soybean meal prices during the contract period?

The data does not include historical price data for soybean meal during the contract period (February 12, 2014 - March 18, 2014). Analyzing market trends for that specific timeframe would be necessary to assess price volatility and its impact.

How did the final price compare to the government's estimate or other bids?

While the contract was awarded under full and open competition, the specific details of other bids or the government's estimate are not provided. The 'good' rating for value suggests the price was considered competitive at the time of award.

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: AG-INFG-S-14-0019

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12700 W DODGE RD, OMAHA, NE, 68154

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

Financial Breakdown

Contract Ceiling: $24,606,040

Exercised Options: $24,606,040

Current Obligation: $24,606,040

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline