USDA awards $16M for CSB Super Cereal Plus, supporting food donations with fixed-price adjustments

Contract Overview

Contract Amount: $16,001,522 ($16.0M)

Contractor: Henry Broch & CO.

Awarding Agency: Department of Agriculture

Start Date: 2023-09-28

End Date: 2024-08-31

Contract Duration: 338 days

Daily Burn Rate: $47.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000009572/4400001358/4210006740/CSB SUPER CEREAL PLUS BOX-10/1.5 KG

Place of Performance

Location: WAUKEGAN, LAKE County, ILLINOIS, 60087

State: Illinois Government Spending

Plain-Language Summary

Department of Agriculture obligated $16.0 million to HENRY BROCH & CO. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009572/4400001358/4210006740/CSB SUPER CEREAL PLUS BOX-10/1.5 KG Key points: 1. Spending focuses on essential food commodities for U.S. government donations. 2. Competition was full and open, suggesting a competitive bidding process. 3. Risk is moderate due to fixed-price with economic price adjustment terms. 4. The sector is agricultural commodities, specifically flour milling.

Value Assessment

Rating: good

The award amount of $16,001,522.42 for CSB Super Cereal Plus appears reasonable given the quantity and nature of the commodity. Benchmarking against similar food commodity contracts 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, indicating multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The use of competitive bidding aims to ensure taxpayer funds are used efficiently for essential food aid programs.

Public Impact

Supports vital U.S. government food donation programs, potentially aiding vulnerable populations. Ensures availability of essential nutritional commodities for distribution. The contract duration of 338 days suggests a consistent supply chain is being established.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause introduces potential for cost overruns.
Reliance on a single commodity type could be a vulnerability if supply chains are disrupted.

Positive Signals

Full and open competition fosters competitive pricing.
Supports critical government food assistance initiatives.

Sector Analysis

This contract falls within the agricultural commodities sector, specifically flour milling, which is crucial for food processing and distribution. Spending benchmarks for similar food aid commodities would be relevant for comparison.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this contract award. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The award is a delivery order against a contract, suggesting a structured procurement process. Oversight would involve monitoring delivery, quality, and adherence to contract terms, especially the economic price adjustment.

Related Government Programs

Flour Milling
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for cost increases due to economic price adjustment.
Dependence on specific commodity could pose supply chain risks.
Need for detailed oversight to ensure quality and timely delivery.
Lack of small business participation data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $16.0 million to HENRY BROCH & CO.. COMMODITIES FOR USG FOOD DONATIONS: 2000009572/4400001358/4210006740/CSB SUPER CEREAL PLUS BOX-10/1.5 KG

Who is the contractor on this award?

The obligated recipient is HENRY BROCH & CO..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.0 million.

What is the period of performance?

Start: 2023-09-28. End: 2024-08-31.

What is the typical cost per unit for CSB Super Cereal Plus in similar government contracts?

Determining the precise per-unit cost for CSB Super Cereal Plus requires access to a broader dataset of comparable government contracts. Factors like bulk purchasing discounts, specific formulation requirements, and delivery logistics can significantly influence unit pricing. Without direct comparative data, it's challenging to establish a definitive benchmark, though the total award suggests a substantial volume.

What are the specific economic factors that could trigger price adjustments under this contract?

The economic price adjustment clause likely ties to fluctuations in the cost of raw materials (like wheat or other grains), energy prices impacting production and transportation, and potentially labor costs. The contract's specific terms would detail the index or formula used to calculate these adjustments, ensuring transparency and predictability within defined parameters.

How effectively does this procurement method ensure the quality and timely delivery of food commodities?

Full and open competition generally encourages vendors to offer competitive pricing and reliable service to win contracts. However, effectiveness in ensuring quality and timely delivery also depends on robust contract management, including clear performance standards, inspection protocols, and penalties for non-compliance. The government's oversight of this specific contract will be key.

Industry Classification

NAICS: Manufacturing › Grain and Oilseed Milling › Flour Milling

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 121NAP23Q0029

Offers Received: 3

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 3600 SUNSET AVE, WAUKEGAN, IL, 60087

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

Financial Breakdown

Contract Ceiling: $16,001,522

Exercised Options: $16,001,522

Current Obligation: $16,001,522

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 121NTP21D0006

IDV Type: IDC

Timeline