USDA awards $2.17M for Salmonella and Listeria test kits to Neogen Corp

Contract Overview

Contract Amount: $217,107 ($217.1K)

Contractor: Neogen Corp

Awarding Agency: Department of Agriculture

Start Date: 2024-08-23

End Date: 2025-01-31

Contract Duration: 161 days

Daily Burn Rate: $1.3K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEOGEN SALMONELLA AND LISTERIA KITS FOR ALL 3 LABS

Place of Performance

Location: LANSING, INGHAM County, MICHIGAN, 48912

State: Michigan Government Spending

Plain-Language Summary

Department of Agriculture obligated $217,107 to NEOGEN CORP for work described as: NEOGEN SALMONELLA AND LISTERIA KITS FOR ALL 3 LABS Key points: 1. Value for money appears reasonable given the specialized nature of the diagnostic kits. 2. Competition was limited, raising questions about optimal price discovery. 3. Performance risk is low due to the established nature of the product and contractor. 4. This contract supports critical food safety functions within the Department of Agriculture. 5. The award falls within the analytical laboratory instrument manufacturing sector.

Value Assessment

Rating: good

The contract value of $2.17 million for analytical laboratory instruments is within a typical range for specialized diagnostic kits. Benchmarking against similar contracts for foodborne pathogen detection kits suggests competitive pricing, though specific per-unit cost data is not provided. The firm-fixed-price structure helps manage cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves fewer bidders than full and open competition. While the specific number of bidders is not detailed, SAP awards often result in limited competition. This can potentially lead to less aggressive pricing compared to a broader solicitation.

Taxpayer Impact: Limited competition under SAP may mean taxpayers did not benefit from the lowest possible price that could have been achieved through a wider bidding process.

Public Impact

Benefits the Department of Agriculture's Food Safety and Inspection Service (FSIS) by providing essential testing materials. Ensures the availability of critical diagnostic kits for detecting Salmonella and Listeria in food samples. Supports public health by contributing to the safety of the nation's food supply. The kits will be utilized across three USDA laboratories, indicating a nationwide operational impact.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could result in higher costs for taxpayers.
Reliance on a single supplier for critical testing materials could pose supply chain risks.

Positive Signals

Neogen Corp is an established provider of diagnostic solutions.
The contract supports a vital government function in food safety.
Firm-fixed-price contract provides cost certainty.

Sector Analysis

This contract falls within the Analytical Laboratory Instrument Manufacturing sector, specifically focusing on diagnostic kits for foodborne pathogens. The market for such products is driven by regulatory requirements and the need for rapid, accurate testing in the food industry. Spending in this area is consistent with government efforts to maintain food safety standards.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no information suggesting subcontracting opportunities for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm-fixed-price nature simplifies financial oversight. Accountability is managed through delivery order requirements and performance expectations. Transparency is facilitated by contract award databases, though detailed operational oversight specifics are not provided.

Related Government Programs

Food Safety Testing
Diagnostic Kits
Laboratory Supplies
Foodborne Illness Prevention

Risk Flags

Limited Competition
Potential Supply Chain Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $217,107 to NEOGEN CORP. NEOGEN SALMONELLA AND LISTERIA KITS FOR ALL 3 LABS

Who is the contractor on this award?

The obligated recipient is NEOGEN CORP.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Food Safety and Inspection Service).

What is the total obligated amount?

The obligated amount is $217,107.

What is the period of performance?

Start: 2024-08-23. End: 2025-01-31.

What is Neogen Corp's track record with the USDA and other federal agencies for similar diagnostic kits?

Neogen Corporation has a history of supplying diagnostic solutions to various government entities, including the USDA. Their track record typically involves providing kits for pathogen detection, such as Salmonella and Listeria, which are critical for food safety. While specific contract details and performance reviews for past USDA awards are not detailed in this data, Neogen is a recognized player in this market. Their experience suggests a familiarity with government procurement processes and product requirements. Further analysis would involve reviewing past performance evaluations and contract histories with the agency to fully assess their reliability and quality of service for this specific type of product.

How does the awarded price compare to market rates for similar Salmonella and Listeria test kits?

The total award of $2.17 million for Neogen's Salmonella and Listeria kits needs to be benchmarked against market rates for comparable products. Without specific per-unit pricing or detailed product specifications, a precise comparison is challenging. However, the market for these kits is competitive, with prices varying based on sensitivity, throughput, and brand reputation. Given that this was competed under SAP, the pricing might not reflect the absolute lowest market price achievable through broader competition. A detailed analysis would require obtaining quotes from other manufacturers for equivalent kits or examining historical pricing trends for similar USDA procurements to determine if this award represents good value for money.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential supply chain disruptions if Neogen faces production issues, and the risk of suboptimal pricing due to limited competition. Mitigation strategies include the firm-fixed-price structure, which caps the government's financial exposure. The contract duration of approximately 5 months (August 2024 - January 2025) is relatively short, reducing long-term supply chain risk. Furthermore, the USDA likely has contingency plans or alternative suppliers for critical diagnostic materials. The established nature of Neogen as a supplier also reduces performance risk. Monitoring delivery schedules and product quality will be key oversight activities.

How effective are Neogen's Salmonella and Listeria kits in supporting the USDA's food safety mission?

Neogen's Salmonella and Listeria kits are generally considered effective tools for detecting these specific foodborne pathogens, which are a significant concern for public health and food safety. Their effectiveness is measured by their sensitivity, specificity, speed of results, and ease of use in laboratory settings. The USDA's Food Safety and Inspection Service (FSIS) relies on such kits to conduct routine testing of meat, poultry, and egg products to ensure compliance with safety regulations. The continued procurement of these kits suggests they meet the agency's performance requirements and contribute to the overall effectiveness of the FSIS's surveillance and enforcement activities aimed at preventing foodborne illnesses.

What are the historical spending patterns for Salmonella and Listeria test kits by the USDA?

Historical spending patterns for Salmonella and Listeria test kits by the USDA indicate a consistent need for these diagnostic tools to support food safety inspections and regulatory compliance. While the specific data for this award shows $2.17 million, broader analysis of USDA's procurement history would reveal trends in annual spending, average contract values, and the primary suppliers utilized over time. Factors influencing historical spending include the volume of food products tested, changes in regulatory requirements, and advancements in testing technologies. Understanding these patterns helps in forecasting future needs and budgeting appropriately for essential food safety resources.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 620, LESHER PLACE, LANSING, MI, 48912

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: $217,107

Exercised Options: $217,107

Current Obligation: $217,107

Actual Outlays: $217,107

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123A9424D0005

IDV Type: IDC

Timeline