USDA's $10.8M Cornmeal Contract Awarded to Didion, Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $10,880,707 ($10.9M)

Contractor: Didion, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2024-09-18

End Date: 2024-11-29

Contract Duration: 72 days

Daily Burn Rate: $151.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 33

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010334/4210007191/CORNMEAL BAG-HP-25 KG

Place of Performance

Location: CAMBRIA, COLUMBIA County, WISCONSIN, 53923

State: Wisconsin Government Spending

Plain-Language Summary

Department of Agriculture obligated $10.9 million to DIDION, INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010334/4210007191/CORNMEAL BAG-HP-25 KG Key points: 1. The contract focuses on cornmeal bags, a key commodity for USG food donations. 2. Didion, Inc. secured the award through a full and open competition process. 3. The firm fixed price contract indicates a clear understanding of costs and potential risks. 4. The Agricultural Marketing Service is the contracting agency, highlighting its role in food commodity procurement.

Value Assessment

Rating: good

The contract value of $10.8M for 20,000 units of 25kg cornmeal bags appears reasonable given the commodity and packaging requirements. Benchmarking against similar large-scale food commodity procurements would provide further validation.

Cost Per Unit: $544.04

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition after exclusion of sources, suggesting a robust price discovery process. This method typically yields competitive pricing by allowing all eligible vendors to submit proposals.

Taxpayer Impact: The competitive bidding process is expected to ensure taxpayer funds are used efficiently for essential food donation commodities.

Public Impact

Ensures a supply of essential food items for federal food donation programs. Supports agricultural producers and processors within the flour milling sector. Provides transparency in government procurement through open competition. Contributes to food security initiatives both domestically and potentially internationally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in cornmeal commodity markets.
Logistical challenges in distribution of 20,000 bags.
Dependence on a single supplier for this specific commodity.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract provides cost certainty.
Clear contract duration and delivery schedule.
Agency expertise in agricultural commodity procurement.

Sector Analysis

This contract falls within the agricultural commodities sector, specifically flour milling. Government spending in this area is crucial for supporting food assistance programs and maintaining stable agricultural markets.

Small Business Impact

While the award was made to Didion, Inc., the data does not indicate whether small businesses were involved as subcontractors or suppliers. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service, which has established procedures for procurement oversight. The use of full and open competition enhances accountability.

Related Government Programs

Flour Milling
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for commodity price volatility.
Logistical complexity of large-scale food distribution.
Reliance on a single prime contractor.
Need for detailed review of 'exclusion of sources' justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $10.9 million to DIDION, INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000010334/4210007191/CORNMEAL BAG-HP-25 KG

Who is the contractor on this award?

The obligated recipient is DIDION, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.9 million.

What is the period of performance?

Start: 2024-09-18. End: 2024-11-29.

What is the historical pricing trend for 25kg bags of cornmeal procured by the government?

Historical pricing data for similar cornmeal procurements would be valuable for assessing the current contract's value. Analyzing past awards, considering inflation, and market volatility would provide context. Without this, the $544.04 per unit cost is a benchmark but lacks historical perspective on efficiency gains or cost increases over time.

What are the specific risks associated with the exclusion of sources in the competition process?

While the contract states 'full and open competition after exclusion of sources,' the specific reasons for excluding certain sources need to be understood. If justified (e.g., unique capabilities, national security), it's acceptable. However, if the exclusion was arbitrary, it could limit competition, potentially leading to higher prices or reduced innovation, and warrants closer scrutiny.

How effectively does this contract support the broader goals of USG food donation programs?

This contract directly supports USG food donation programs by securing a vital commodity. The efficiency of the procurement and the quality of the cornmeal will determine its effectiveness. Ensuring timely delivery and appropriate storage conditions are critical to maximizing the program's impact on food security.

Industry Classification

NAICS: Manufacturing › Grain and Oilseed Milling › Flour Milling

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 121NMP24B0030

Offers Received: 33

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Didion Inc.

Address: 501 S WILLIAMS ST, CAMBRIA, WI, 53923

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

Financial Breakdown

Contract Ceiling: $10,880,707

Exercised Options: $10,880,707

Current Obligation: $10,880,707

Actual Outlays: $10,880,707

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline