USDA's $381K Bulgur Contract Awarded to Archer Daniels Midland Amidst Full and Open Competition

Contract Overview

Contract Amount: $381,517 ($381.5K)

Contractor: Archer-Daniels-Midland Company

Awarding Agency: Department of Agriculture

Start Date: 2025-03-04

End Date: 2025-04-15

Contract Duration: 42 days

Daily Burn Rate: $9.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 19

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010655/4210007307/BULGUR BAG-50 KG

Place of Performance

Location: ABILENE, DICKINSON County, KANSAS, 67410

State: Kansas Government Spending

Plain-Language Summary

Department of Agriculture obligated $381,517.25 to ARCHER-DANIELS-MIDLAND COMPANY for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010655/4210007307/BULGUR BAG-50 KG Key points: 1. The contract focuses on essential food commodities, specifically 50kg bags of bulgur. 2. Archer Daniels Midland Company secured the award, indicating significant market presence. 3. The procurement method was 'Full and Open Competition', suggesting a competitive bidding process. 4. The contract value is $381,517.25, for a duration of 42 days. 5. This falls under the 'Flour Milling' industry code (NAICS 311211).

Value Assessment

Rating: good

The firm fixed price contract for bulgur appears reasonable given the quantity and market for agricultural commodities. Benchmarking against similar food donation procurements 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 that multiple bidders had the opportunity to compete. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The use of taxpayer funds for food donations is intended to support vulnerable populations, with competitive bidding aiming to maximize the value of these donations.

Public Impact

Ensures availability of essential food staples for U.S. government food donation programs. Supports domestic agricultural producers and processors within the food supply chain. Aids in fulfilling humanitarian aid commitments through commodity distribution. Contributes to food security initiatives both domestically and potentially internationally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration may limit long-term planning for suppliers.
Lack of small business participation noted.

Positive Signals

Awarded under full and open competition.
Utilizes a firm fixed price contract type.
Supports critical government food donation programs.

Sector Analysis

This procurement falls within the agricultural commodities sector, specifically related to grain processing and food distribution. Spending benchmarks for similar food commodity contracts vary widely based on type and quantity, but this award appears within a typical range for bulk grain products.

Small Business Impact

The data indicates that small businesses were not awarded this contract, as the 'sb' field is false. Further analysis would be needed to determine if small businesses participated in the bidding process or if opportunities were limited.

Oversight & Accountability

The contract was awarded by the Department of Agriculture's Agricultural Marketing Service. Oversight would involve ensuring timely delivery, quality of goods, and adherence to contract terms, particularly given the short performance period.

Related Government Programs

Flour Milling
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Short contract duration (42 days).
No small business participation indicated.
Potential for supply chain disruptions given tight timeline.
Reliance on a single large supplier (Archer Daniels Midland).

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $381,517.25 to ARCHER-DANIELS-MIDLAND COMPANY. COMMODITIES FOR USG FOOD DONATIONS: 2000010655/4210007307/BULGUR BAG-50 KG

Who is the contractor on this award?

The obligated recipient is ARCHER-DANIELS-MIDLAND COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $381,517.25.

What is the period of performance?

Start: 2025-03-04. End: 2025-04-15.

What is the typical unit cost for 50kg bags of bulgur in the commercial market to assess value?

Assessing the precise commercial unit cost for 50kg bags of bulgur requires detailed market analysis, considering factors like grain quality, origin, and current market fluctuations. However, government contracts often reflect bulk purchasing power and may differ from retail prices. Comparing this contract's unit price to recent commercial wholesale transactions or other government food commodity awards would provide a clearer picture of its value proposition.

What are the potential risks associated with the short 42-day performance period for this food commodity contract?

The short 42-day performance period presents several risks. Suppliers may face challenges in sourcing and delivering the specified quantity of bulgur within this tight timeframe, potentially leading to delays or quality issues. It could also limit the number of potential bidders, particularly smaller companies with less logistical capacity, thereby reducing competition and potentially impacting price discovery. Furthermore, it may necessitate expedited processing and transportation, increasing costs.

How effectively does this contract support the broader goals of U.S. government food donation programs?

This contract appears to effectively support U.S. government food donation programs by ensuring the procurement of a key commodity, bulgur. Awarded under full and open competition, it aims to secure the best value for taxpayer dollars. The timely delivery of these goods is crucial for meeting the needs of recipient populations, thereby contributing to food security and humanitarian efforts managed by the USDA.

Industry Classification

NAICS: Manufacturing › Grain and Oilseed Milling › Flour Milling

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 121NFP25B0010

Offers Received: 19

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 77 W WACKER DR STE 4600, CHICAGO, IL, 60601

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: $381,517

Exercised Options: $381,517

Current Obligation: $381,517

Actual Outlays: $381,517

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline