USDA's Farm Service Agency awards $21.2M for Soft White Wheat to Kalama Export Company LLC

Contract Overview

Contract Amount: $21,247,544 ($21.2M)

Contractor: Kalama Export Company LLC

Awarding Agency: Department of Agriculture

Start Date: 2014-03-20

End Date: 2014-04-22

Contract Duration: 33 days

Daily Burn Rate: $643.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SOL AG-INAG-S-14-0026, (2000002403), WHEAT, SOFT WHITE BULK

Place of Performance

Location: KALAMA, COWLITZ County, WASHINGTON, 98625

State: Washington Government Spending

Plain-Language Summary

Department of Agriculture obligated $21.2 million to KALAMA EXPORT COMPANY LLC for work described as: SOL AG-INAG-S-14-0026, (2000002403), WHEAT, SOFT WHITE BULK Key points: 1. Contract awarded for bulk Soft White Wheat, a key agricultural commodity. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract value is significant, indicating substantial procurement volume. 4. The sector is Food Manufacturing, specifically 'All Other Miscellaneous Food Manufacturing'.

Value Assessment

Rating: good

The contract value of $21.2M for wheat procurement appears reasonable given the quantity and market prices for bulk commodities. Benchmarking against similar large-scale agricultural purchases would provide further context.

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 had the opportunity to compete. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best possible price for the wheat.

Public Impact

Ensures supply of a key food ingredient for domestic and potentially international markets. Supports agricultural producers by creating demand for Soft White Wheat. Impacts food manufacturers and consumers through availability and pricing of wheat-based products.

Waste & Efficiency Indicators

Waste Risk Score: 60 / 10

Warning Flags

Contract duration is short (33 days), potentially leading to frequent re-procurement needs.
No small business participation noted, which could be a missed opportunity for economic development.

Positive Signals

Awarded under full and open competition, maximizing potential for competitive pricing.
Clear product specification (Soft White Wheat Bulk) reduces ambiguity.

Sector Analysis

The Food Manufacturing sector, particularly for agricultural commodities like wheat, is vital for national food security and economic stability. Spending benchmarks vary widely based on commodity type and market conditions.

Small Business Impact

This contract did not involve small businesses, as indicated by the 'sb' field being false. Opportunities for small business participation in agricultural procurement should be explored where feasible.

Oversight & Accountability

The contract was awarded by the Farm Service Agency, a division of the USDA, which has established procurement processes. Oversight would focus on contract performance and adherence to terms.

Related Government Programs

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

Risk Flags

Short contract duration may indicate a need for frequent, potentially less efficient, re-solicitations.
Lack of small business participation.
Unclear benchmark data ('br' field) hinders precise value assessment.
Limited contract performance period (33 days) might not reflect long-term supply needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $21.2 million to KALAMA EXPORT COMPANY LLC. SOL AG-INAG-S-14-0026, (2000002403), WHEAT, SOFT WHITE BULK

Who is the contractor on this award?

The obligated recipient is KALAMA EXPORT COMPANY LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.2 million.

What is the period of performance?

Start: 2014-03-20. End: 2014-04-22.

What was the specific end-use of this Soft White Wheat procurement?

The specific end-use of this Soft White Wheat procurement is not detailed in the provided data. However, given the nature of the commodity and the awarding agency (Farm Service Agency), it is likely intended for strategic reserves, disaster relief programs, or to support domestic food supply chains. Further investigation into USDA program objectives during 2014 would clarify the exact purpose.

How did the awarded price compare to market benchmarks at the time of award?

The provided data does not include the specific price per unit or market benchmarks for Soft White Wheat in March 2014. To assess value for money, a comparison with contemporaneous market prices from agricultural commodity exchanges or USDA reports would be necessary. The 'br' field (643865) might represent a benchmark or budget, but its context is unclear without further documentation.

What mechanisms were in place to ensure the quality and timely delivery of the wheat?

As a definitive contract with a firm fixed price, the terms likely included specific quality standards for Soft White Wheat and delivery schedules within the 33-day duration. The Farm Service Agency would typically have inspection and acceptance procedures to verify quality upon receipt and ensure compliance with delivery timelines. Contract clauses would outline remedies for non-compliance.

Industry Classification

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

Product/Service Code: NONMETALLIC CRUDE MATERIALS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: AG-INAG-S-14-0026

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Marubeni Corporation (UEI: 690541263)

Address: 200 SW MARKET ST STE 1930, PORTLAND, OR, 97201

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,247,544

Exercised Options: $21,247,544

Current Obligation: $21,247,544

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline