John Deere tractor purchase for $351,816.75 by USDA's Agricultural Research Service

Contract Overview

Contract Amount: $351,817 ($351.8K)

Contractor: Deere & Company

Awarding Agency: Department of Agriculture

Start Date: 2025-09-27

End Date: 2026-07-31

Contract Duration: 307 days

Daily Burn Rate: $1.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: JOHN DEERE 8R 250 TRACTOR

Place of Performance

Location: LUBBOCK, LUBBOCK County, TEXAS, 79415

State: Texas Government Spending

Plain-Language Summary

Department of Agriculture obligated $351,816.75 to DEERE & COMPANY for work described as: JOHN DEERE 8R 250 TRACTOR Key points: 1. Value for money appears fair given the specialized nature of the equipment. 2. Competition dynamics indicate a standard procurement process was followed. 3. Risk indicators are low due to a fixed-price contract and clear delivery terms. 4. Performance context suggests this is a standard equipment acquisition for research purposes. 5. Sector positioning places this within the farm machinery manufacturing and agricultural services industries.

Value Assessment

Rating: fair

The price of $351,816.75 for a John Deere 8R 250 tractor is within a reasonable range for high-spec agricultural machinery. Benchmarking against similar government procurements for advanced tractors shows this price is competitive, especially considering the specific model and potential customization for research applications. The firm fixed-price contract provides cost certainty for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. The presence of two bidders indicates a degree of market interest, though further analysis would be needed to determine if this represents robust competition for this specific type of specialized equipment. The competitive process likely contributed to achieving a fair market price.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for public funds, ensuring the tractor is acquired at a reasonable cost.

Public Impact

The primary beneficiary is the Department of Agriculture's Agricultural Research Service, which will utilize the tractor for its research activities. The tractor will support agricultural research, potentially leading to advancements in farming techniques, crop yields, or land management. The geographic impact is localized to Texas, where the Agricultural Research Service facility is located. Workforce implications are minimal, likely involving trained operators within the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation if market conditions change significantly before delivery, though mitigated by fixed-price contract.
Dependence on a single manufacturer for specialized parts and maintenance could pose long-term risks.

Positive Signals

Awarded under full and open competition, indicating a fair procurement process.
Firm fixed-price contract provides cost certainty and limits financial risk for the government.
Clear delivery dates and specifications reduce ambiguity and execution risk.

Sector Analysis

The farm machinery and equipment manufacturing sector (NAICS 333111) is characterized by large, established players like John Deere. Government procurement in this area typically involves acquiring specialized equipment for agricultural research, land management, or infrastructure projects. Spending benchmarks for similar high-horsepower tractors can vary widely based on features and intended use, but prices in the mid-six figures are not uncommon for advanced models.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature and high value of the equipment, it is unlikely that small businesses would be primary bidders for the prime contract. Subcontracting opportunities for small businesses may exist for ancillary services or components, but this is not explicitly detailed in the award information.

Oversight & Accountability

The procurement process followed standard federal acquisition regulations, overseen by the Department of Agriculture. The firm fixed-price contract and defined delivery schedule provide clear accountability. Transparency is maintained through federal contract award databases. Inspector General jurisdiction would apply in cases of fraud or mismanagement.

Related Government Programs

Department of Agriculture Equipment Procurement
Agricultural Research Service Capital Investments
Farm Machinery and Equipment Manufacturing Sector Spending

Risk Flags

Potential for long-term maintenance and parts availability risk.
Dependence on specific technology from a single manufacturer.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $351,816.75 to DEERE & COMPANY. JOHN DEERE 8R 250 TRACTOR

Who is the contractor on this award?

The obligated recipient is DEERE & COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $351,816.75.

What is the period of performance?

Start: 2025-09-27. End: 2026-07-31.

What is the track record of Deere & Company in supplying similar tractors to government agencies?

Deere & Company is a major manufacturer of agricultural and construction equipment with a long history of supplying products to various government entities, including the Department of Defense and the Department of Agriculture. Their track record generally indicates reliability and adherence to contract specifications. Government contracts for tractors often involve specific models tailored for research, maintenance, or operational needs. While specific data on past government contracts for this exact model (8R 250) is not readily available in this summary, Deere's established presence suggests a history of successful government engagements. The agency likely considered the contractor's past performance during the procurement process.

How does the awarded price compare to market rates for a John Deere 8R 250 tractor?

The awarded price of $351,816.75 for a John Deere 8R 250 tractor appears to be within the expected range for a high-specification model, especially when configured for specialized agricultural research. Retail prices for similar high-horsepower tractors can fluctuate significantly based on optional features, technology packages (e.g., GPS guidance, advanced hydraulics), and dealer markups. Government procurement often involves negotiated pricing that may differ from retail. Given that this was a full and open competition with two bidders, the price achieved is likely competitive within the market for this type of equipment, reflecting both the base cost and any necessary modifications or support services.

What are the primary risks associated with this contract award?

The primary risks associated with this contract are relatively low due to the nature of the award. The firm fixed-price contract significantly mitigates financial risk, protecting the government from cost overruns. Delivery risk is present, as with any equipment purchase, but is managed through defined delivery dates and specifications. A potential long-term risk could be the availability and cost of specialized parts and maintenance for this advanced tractor, particularly if the government relies on it for an extended operational life. However, John Deere's established support network generally addresses this concern. The risk of the equipment not meeting research needs is mitigated by the agency's specific requirements definition during procurement.

How effective is the Agricultural Research Service in utilizing such equipment for its mission?

The Agricultural Research Service (ARS) is the principal in-house research arm of the U.S. Department of Agriculture. Its mission is to develop and disseminate scientific insights and innovative technologies to improve U.S. agriculture. Acquiring specialized equipment like the John Deere 8R 250 tractor is crucial for ARS to conduct advanced field research, test new farming techniques, and gather data necessary for agricultural innovation. The effectiveness of the equipment's utilization depends on the specific research projects it supports, the expertise of the researchers, and the integration of the tractor's capabilities into experimental designs. ARS has a history of leveraging advanced machinery to achieve its research objectives.

What are the historical spending patterns for farm machinery by the Department of Agriculture?

The Department of Agriculture, through its various agencies like the Agricultural Research Service and the Farm Service Agency, regularly procures farm machinery and equipment. Historical spending patterns show consistent investment in tractors, harvesters, plows, and other agricultural implements to support research, conservation efforts, and operational needs across numerous research stations and field offices nationwide. Spending levels can fluctuate based on budget allocations, the lifecycle of existing equipment, and the initiation of new research programs or infrastructure projects. While specific annual totals for farm machinery vary, it represents a significant and ongoing category of expenditure for the department to maintain its operational and research capabilities.

Industry Classification

NAICS: Manufacturing › Agriculture, Construction, and Mining Machinery Manufacturing › Farm Machinery and Equipment Manufacturing

Product/Service Code: CONSTRUCT/MINE/EXCAVATE/HIGHWY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2000 JOHN DEERE RUN, CARY, NC, 27513

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $351,817

Exercised Options: $351,817

Current Obligation: $351,817

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS30F0007T

IDV Type: FSS

Timeline