USDA Awards $145K for Listeria/Salmonella Detection Kits to Neogen Corp

Contract Overview

Contract Amount: $144,782 ($144.8K)

Contractor: Neogen Corp

Awarding Agency: Department of Agriculture

Start Date: 2026-04-13

End Date: 2026-08-31

Contract Duration: 140 days

Daily Burn Rate: $1.0K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DO FOR LISTERIA AND SALMONELLA DETECTION KITS FOR EL, MWL, WL, AND NARMS UNDER CONTRACT 123A9424D0005; DELIVERY DATES MAY - AUGUST

Place of Performance

Location: ATHENS, CLARKE County, GEORGIA, 30605

State: Georgia Government Spending

Plain-Language Summary

Department of Agriculture obligated $144,781.56 to NEOGEN CORP for work described as: DO FOR LISTERIA AND SALMONELLA DETECTION KITS FOR EL, MWL, WL, AND NARMS UNDER CONTRACT 123A9424D0005; DELIVERY DATES MAY - AUGUST Key points: 1. Contract awarded to Neogen Corp for critical food safety testing kits. 2. Spending is relatively low, suggesting a focused procurement. 3. Risk appears moderate given the essential nature of the supplies. 4. Sector focus is on Food Safety within the broader Analytical Instruments market.

Value Assessment

Rating: good

The award amount of $144,781.56 appears reasonable for specialized detection kits. Benchmarking against similar contracts for laboratory consumables would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), indicating a limited competition approach likely due to the relatively small dollar value. This method may limit price discovery compared to full and open competition.

Taxpayer Impact: Taxpayer funds are being used for essential food safety testing, contributing to public health protection.

Public Impact

Ensures continued food safety monitoring by the FSIS. Supports the detection of harmful bacteria in food products. Contributes to public health by preventing foodborne illnesses.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition impacting price.
Reliance on a single vendor for critical supplies.

Positive Signals

Supports a vital public health function.
Procurement under SAP suggests efficiency for smaller buys.

Sector Analysis

This procurement falls within the analytical laboratory instrument manufacturing sector, specifically for diagnostic kits. Spending benchmarks for such specialized consumables are typically project-dependent but are crucial for maintaining regulatory compliance and public safety.

Small Business Impact

The data does not indicate any specific set-aside for small businesses. Further analysis would be needed to determine if small businesses were excluded or had an opportunity to compete.

Oversight & Accountability

Oversight is provided by the Department of Agriculture's Food Safety and Inspection Service. The use of SAP suggests streamlined oversight processes for this contract value.

Related Government Programs

Analytical Laboratory Instrument Manufacturing
Department of Agriculture Contracting
Food Safety and Inspection Service Programs

Risk Flags

Limited competition may lead to suboptimal pricing.
Dependence on a single supplier for critical testing materials.
Potential for supply chain disruptions affecting delivery.
Lack of detailed cost breakdown hinders granular value analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $144,781.56 to NEOGEN CORP. DO FOR LISTERIA AND SALMONELLA DETECTION KITS FOR EL, MWL, WL, AND NARMS UNDER CONTRACT 123A9424D0005; DELIVERY DATES MAY - AUGUST

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 $144,781.56.

What is the period of performance?

Start: 2026-04-13. End: 2026-08-31.

What is the specific breakdown of kit types and quantities within this award?

The provided data specifies 'DO FOR LISTERIA AND SALMONELLA DETECTION KITS FOR EL, MWL, WL, AND NARMS'. However, a detailed breakdown of the exact quantities for each kit type (e.g., EL, MWL, WL, NARMS) and their respective unit costs is not available in this summary. This information would be crucial for a granular value assessment.

How does Neogen Corp's pricing compare to other suppliers of similar detection kits?

Without access to competitive bids or market research data used during the SAP process, a direct price comparison is difficult. The 'limited' competition aspect suggests that while multiple quotes might have been solicited, the pool of eligible vendors could be restricted, potentially impacting the final negotiated price against a broader market.

What is the potential impact on food safety if these specific kits become unavailable or are delayed?

These kits are critical for detecting Listeria and Salmonella, two major foodborne pathogens. Unavailability or delays could significantly hinder the FSIS's ability to monitor food supplies, potentially increasing the risk of outbreaks and impacting consumer confidence in the food chain. The contract duration and delivery window are important factors here.

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: $144,782

Exercised Options: $144,782

Current Obligation: $144,782

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123A9424D0005

IDV Type: IDC

Timeline