USDA's $23.8M Wheat Purchase for Food Donations Awarded to Andersons Inc

Contract Overview

Contract Amount: $23,771,776 ($23.8M)

Contractor: Andersons Inc

Awarding Agency: Department of Agriculture

Start Date: 2025-03-06

End Date: 2025-04-25

Contract Duration: 50 days

Daily Burn Rate: $475.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010664/4210007325/WHEAT, HARD RED WINTER BULK

Place of Performance

Location: GALENA PARK, HARRIS County, TEXAS, 77547

State: Texas Government Spending

Plain-Language Summary

Department of Agriculture obligated $23.8 million to ANDERSONS INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010664/4210007325/WHEAT, HARD RED WINTER BULK Key points: 1. The contract focuses on bulk Hard Red Winter Wheat for U.S. food donations. 2. Andersons Inc. secured the award under full and open competition. 3. The contract value is significant, representing a substantial investment in food aid. 4. The Agricultural Marketing Service is the contracting agency. 5. The short performance period suggests a need for timely delivery.

Value Assessment

Rating: good

The contract's firm fixed price structure provides cost certainty. The award amount of $23.8M appears reasonable for the quantity of wheat procured, though a direct benchmark is unavailable without more specific market data.

Cost Per Unit: $1.19 per pound (estimated)

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, allowing multiple vendors to bid. This method is expected to drive competitive pricing and ensure the government receives fair market value for the wheat.

Taxpayer Impact: Taxpayers benefit from competitive pricing, ensuring funds are used efficiently for food donation programs.

Public Impact

Ensures supply of essential food commodities for domestic and international food assistance programs. Supports agricultural producers by providing a market for their wheat. Contributes to food security initiatives by distributing vital nutritional resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price volatility in the wheat market impacting future procurements.
Logistical challenges in bulk commodity transportation and storage.

Positive Signals

Supports critical food donation programs.
Utilizes competitive bidding for cost efficiency.
Procurement aligns with agricultural support goals.

Sector Analysis

This procurement falls within the agricultural commodities sector, specifically focusing on bulk food items for donation. Spending benchmarks for such large-scale commodity purchases can vary significantly based on global market conditions and specific crop yields.

Small Business Impact

While this specific contract was awarded to a large corporation, the agricultural sector often involves numerous small businesses in production and distribution. The competitive nature of this award could indirectly benefit smaller suppliers within the broader agricultural ecosystem.

Oversight & Accountability

The Department of Agriculture's Agricultural Marketing Service oversees this contract. Standard procurement regulations and oversight mechanisms are expected to ensure proper execution and accountability for the funds expended.

Related Government Programs

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

Risk Flags

Commodity price volatility.
Logistical challenges in bulk transport.
Potential for spoilage or contamination.
Dependence on global market conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $23.8 million to ANDERSONS INC. COMMODITIES FOR USG FOOD DONATIONS: 2000010664/4210007325/WHEAT, HARD RED WINTER BULK

Who is the contractor on this award?

The obligated recipient is ANDERSONS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.8 million.

What is the period of performance?

Start: 2025-03-06. End: 2025-04-25.

What is the historical pricing trend for Hard Red Winter Wheat bulk purchases by the USDA?

Analyzing historical pricing trends for Hard Red Winter Wheat bulk purchases by the USDA is crucial for assessing the current contract's value. Without specific historical data points for similar quantities and quality, it's challenging to definitively state if this $23.8 million award represents an optimal price. Market fluctuations, global supply, and demand significantly influence commodity prices, making year-over-year comparisons essential for a comprehensive value assessment.

What are the primary risks associated with the transportation and storage of 200,000,000 pounds of bulk wheat?

The primary risks associated with transporting and storing such a large quantity of bulk wheat include potential spoilage due to improper handling or storage conditions, pest infestation, and damage during transit. Weather-related disruptions can also impact delivery schedules and storage integrity. Furthermore, ensuring the quality and condition of the wheat upon arrival at its final destination requires robust logistical planning and quality control measures to mitigate these inherent risks.

How effectively does this procurement contribute to the stated goal of USG food donations?

This procurement directly contributes to the stated goal of USG food donations by securing a substantial quantity of a key commodity. The firm fixed price and full and open competition suggest an efficient use of funds to acquire the necessary wheat. The effectiveness will ultimately be measured by the timely and appropriate distribution of this wheat to intended beneficiaries through established food donation channels.

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: 121NFG25B0007

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1947, BRIARFIELD BOULEVARD, MAUMEE, OH, 43537

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

Financial Breakdown

Contract Ceiling: $23,771,776

Exercised Options: $23,771,776

Current Obligation: $23,771,776

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline