USDA Awards $3.88M for Dry Beans to PW Montgomery LLC Under Full and Open Competition

Contract Overview

Contract Amount: $3,878,482 ($3.9M)

Contractor: PW Montgomery LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-09-25

End Date: 2026-10-31

Contract Duration: 401 days

Daily Burn Rate: $9.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 18

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010988/4100033080/BEANS GREAT NORTHERN DRY PKG-12/2 LB,BEANS PINTO DRY PKG-12/2 LB,BEANS BLACK TURTLE DRY PKG-12/2 LB

Place of Performance

Location: DEVILS LAKE, RAMSEY County, NORTH DAKOTA, 58301

State: North Dakota Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.9 million to PW MONTGOMERY LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010988/4100033080/BEANS GREAT NORTHERN DRY PKG-12/2 LB,BEANS PINTO DRY PKG-12/2 LB,BEANS BLACK TURTLE DRY PKG-12/2 LB Key points: 1. Contract focuses on essential dry bean commodities for food donations. 2. PW Montgomery LLC secured the award, indicating competitive pricing. 3. The contract duration is over a year, ensuring supply continuity. 4. This award falls under 'All Other Miscellaneous Food Manufacturing' sector.

Value Assessment

Rating: good

The award amount of $3.88M for 18 contract line items appears reasonable given the quantity and type of goods. Benchmarking against similar commodity contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition after exclusion of sources, suggesting a robust price discovery process. This method typically leads to competitive pricing.

Taxpayer Impact: Taxpayer funds are being used efficiently to procure essential food commodities for donation programs.

Public Impact

Ensures availability of staple food items for federal nutrition assistance programs. Supports agricultural producers and food manufacturers through government procurement. Contributes to food security initiatives by providing necessary commodities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific unit pricing makes detailed cost analysis difficult.
Potential for price fluctuations in commodity markets over the contract period.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract provides cost certainty.
Long-term contract ensures supply chain stability.

Sector Analysis

This contract falls within the miscellaneous food manufacturing sector, specifically for dry beans. Spending benchmarks for similar commodity procurements by the USDA would be relevant for comparison.

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.

Oversight & Accountability

The contract was awarded by the Department of Agriculture's Agricultural Marketing Service. Oversight would involve monitoring delivery, quality, and adherence to contract terms.

Related Government Programs

All Other Miscellaneous Food Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for commodity price volatility impacting contractor profitability.
Limited visibility into specific unit costs without detailed quantity data.
No indication of small business participation in the award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.9 million to PW MONTGOMERY LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000010988/4100033080/BEANS GREAT NORTHERN DRY PKG-12/2 LB,BEANS PINTO DRY PKG-12/2 LB,BEANS BLACK TURTLE DRY PKG-12/2 LB

Who is the contractor on this award?

The obligated recipient is PW MONTGOMERY LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.9 million.

What is the period of performance?

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

What is the estimated cost per pound for each type of bean purchased under this contract?

Without detailed quantity breakdowns per bean type and specific pricing per line item, calculating the exact cost per pound is not possible from the provided data. The total award is $3.88M for 18 line items, which include various dry bean packages. A precise per-pound cost would require access to the detailed contract schedule and quantities.

What are the primary risks associated with the firm fixed price contract for these commodities?

The primary risk with a firm fixed price contract for commodities like beans is market volatility. If the market price of beans significantly increases during the contract period, the contractor might face reduced profit margins or potential delivery issues if they cannot source the beans at the contracted price. Conversely, if prices drop significantly, the government might be overpaying.

How effectively does this contract support the USDA's food donation mission?

This contract appears to effectively support the USDA's food donation mission by securing a substantial quantity of essential dry bean commodities. The firm fixed price and full and open competition suggest a cost-effective procurement. The contract duration ensures a consistent supply, which is crucial for maintaining donation program operations and meeting food security goals.

Industry Classification

NAICS: Manufacturing › Other Food Manufacturing › All Other Miscellaneous Food Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1425B0508

Offers Received: 18

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 276 63RD AVE, EVANS, CO, 80634

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Agricultural Cooperative, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,878,482

Exercised Options: $3,878,482

Current Obligation: $3,878,482

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline