USDA's $5.5M Contract for Canned Beans Awarded to Morgan Foods Under Full and Open Competition

Contract Overview

Contract Amount: $5,520,165 ($5.5M)

Contractor: Morgan Foods, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2025-09-25

End Date: 2026-10-31

Contract Duration: 401 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010986/4100033026/BEANS BLACK CAN-24/300,BEANS PINTO CAN-24/300

Place of Performance

Location: AUSTIN, SCOTT County, INDIANA, 47102

State: Indiana Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.5 million to MORGAN FOODS, INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010986/4100033026/BEANS BLACK CAN-24/300,BEANS PINTO CAN-24/300 Key points: 1. Contract value of $5.5M for canned beans. 2. Morgan Foods, Inc. is the sole awardee. 3. Competition method is 'Full and Open', suggesting broad market engagement. 4. The sector is Food and Agriculture, specifically canned vegetables.

Value Assessment

Rating: good

The contract value of $5.5M for canned beans appears reasonable given the quantity and duration. Benchmarking against similar large-scale food commodity contracts 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 vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The use of full and open competition is expected to yield a cost-effective outcome for taxpayers by leveraging market forces.

Public Impact

Ensures availability of essential food commodities for USG food donation programs. Supports domestic agricultural producers and food processing industries. Provides a stable supply chain for critical food items.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in commodity markets.
Dependence on a single supplier for this specific contract.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type provides cost certainty.

Sector Analysis

This contract falls within the Food and Agriculture sector, specifically the canning of fruits and vegetables. Spending benchmarks for similar commodity procurements would indicate if this value is typical for the quantity and type of goods.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as the awardee is Morgan Foods, Inc. Further analysis would be needed to determine if small businesses participated as subcontractors.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service. Oversight would involve monitoring delivery schedules, product quality, and adherence to contract terms to ensure accountability.

Related Government Programs

Fruit and Vegetable Canning
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential supply chain disruption risk.
Price volatility of agricultural commodities.
Dependence on a single awardee.
Limited visibility into subcontractor participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.5 million to MORGAN FOODS, INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000010986/4100033026/BEANS BLACK CAN-24/300,BEANS PINTO CAN-24/300

Who is the contractor on this award?

The obligated recipient is MORGAN FOODS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.5 million.

What is the period of performance?

Start: 2025-09-25. End: 2026-10-31.

What is the historical pricing trend for black and pinto beans from this supplier or similar suppliers?

Analyzing historical pricing data for canned black and pinto beans from Morgan Foods, Inc. and comparable suppliers is crucial. This would help determine if the current $5.5M award reflects competitive market rates or if there's potential for cost savings through future negotiations or alternative sourcing strategies.

What are the risks associated with relying on a single supplier for such a large quantity of food commodities?

Reliance on a single supplier, even under full and open competition, carries risks such as supply chain disruptions due to unforeseen events (e.g., natural disasters, labor issues) or the supplier's inability to meet demand. Mitigation strategies might include contingency planning or exploring options for diversifying suppliers in future solicitations.

How effectively does this contract support the USG's food donation program objectives?

The contract's effectiveness hinges on the timely delivery of quality canned beans to meet the needs of USG food donation programs. Monitoring recipient feedback, distribution efficiency, and the nutritional impact of these donations would provide insights into how well the contract fulfills its intended purpose.

Industry Classification

NAICS: Manufacturing › Fruit and Vegetable Preserving and Specialty Food Manufacturing › Fruit and Vegetable Canning

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1425B0506

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 90 W MORGAN ST, AUSTIN, IN, 47102

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: $5,520,165

Exercised Options: $5,520,165

Current Obligation: $5,520,165

Actual Outlays: $2,093,695

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline