USDA awards $2.2M contract for rice donations, highlighting domestic agricultural support

Contract Overview

Contract Amount: $2,193,443 ($2.2M)

Contractor: Gulf Pacific Rice CO., LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-12-05

End Date: 2026-03-31

Contract Duration: 116 days

Daily Burn Rate: $18.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011053/4100033247/RICE US#2 LONG GRAIN PKG-24/1 LB,RICE US#2 LONG GRAIN PKG-30/2 LB,RICE US#2 LONG GRAIN PKG-24/2 LB

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77041

State: Texas Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.2 million to GULF PACIFIC RICE CO., LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011053/4100033247/RICE US#2 LONG GRAIN PKG-24/1 LB,RICE US#2 LONG GRAIN PKG-30/2 LB,RICE US#2 LONG GRAIN PKG-24/2 LB Key points: 1. Contract focuses on essential food commodities for donation programs. 2. Competition was robust, indicating potential for fair pricing. 3. Performance period is relatively short, suggesting a focused need. 4. The awardee has a history of supplying agricultural commodities. 5. This contract supports domestic food security initiatives. 6. Fixed-price structure offers cost certainty for the government.

Value Assessment

Rating: good

The contract value of $2.2 million for rice milling and packaging appears reasonable given the scope and duration. Benchmarking against similar commodity contracts for food aid programs suggests this pricing is competitive. The firm fixed-price structure further enhances value by mitigating cost overrun risks for the government. The awardee's established presence in the rice market likely contributes to efficient operations and pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with five bids received. This level of competition is a positive indicator for price discovery and ensures a broad range of potential suppliers were considered. The presence of multiple bidders suggests a healthy market for these commodities and services, likely driving more competitive pricing than a sole-source or limited competition scenario.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation among suppliers.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USDA donation programs. Services delivered include milling and packaging of US #2 Long Grain Rice. Geographic impact is national, supporting food distribution networks across the US. Workforce implications include support for jobs in the agricultural processing and logistics sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in the rice market impacting future contract costs if not managed.
Logistical challenges in distribution of donated commodities could affect timely delivery.
Dependence on a single awardee for a specific commodity could pose supply chain risks.

Positive Signals

Supports domestic agriculture by procuring US-grown rice.
Ensures availability of essential food items for vulnerable populations.
Awardee has experience in commodity procurement and distribution.
Firm fixed-price contract provides budget certainty.

Sector Analysis

This contract falls within the broader agricultural commodities sector, specifically focusing on rice milling and packaging for government donation programs. The market for agricultural commodities is vast and subject to global supply and demand, weather patterns, and trade policies. USDA's role in procuring and distributing these commodities is crucial for food security and supporting domestic agricultural producers. Comparable spending benchmarks would involve analyzing other large-scale commodity procurements for food assistance programs, such as those managed by the World Food Programme or other domestic aid initiatives.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. While the primary awardee is Gulf Pacific Rice Co., LLC, there is no explicit information regarding subcontracting plans with small businesses. The impact on the small business ecosystem would depend on whether smaller entities are involved in the supply chain or logistics managed by the prime contractor.

Oversight & Accountability

Oversight for this contract is managed by the Department of Agriculture's Agricultural Marketing Service. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified commodities. Transparency is facilitated through public contract databases where award details are available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

USDA Food Purchase Programs
Commodity Supplemental Food Program
The Emergency Food Assistance Program (TEFAP)
National School Lunch Program (Procurement)
Agricultural Marketing Service (AMS) Programs

Risk Flags

Potential for supply chain disruption
Market price volatility for agricultural commodities
Logistical challenges in distribution

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.2 million to GULF PACIFIC RICE CO., LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000011053/4100033247/RICE US#2 LONG GRAIN PKG-24/1 LB,RICE US#2 LONG GRAIN PKG-30/2 LB,RICE US#2 LONG GRAIN PKG-24/2 LB

Who is the contractor on this award?

The obligated recipient is GULF PACIFIC RICE CO., LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

Start: 2025-12-05. End: 2026-03-31.

What is Gulf Pacific Rice Co., LLC's track record with federal contracts, particularly with the USDA?

Gulf Pacific Rice Co., LLC has a history of receiving federal contracts, primarily with the Department of Agriculture, for the supply of rice and other agricultural commodities. Data indicates multiple awards for similar products, suggesting established experience in meeting government procurement requirements. Their performance history, including on-time delivery and product quality, would be a key factor in the USDA's decision-making process for this award. Analyzing past contract values and durations can provide context for the scale and nature of their previous engagements with federal agencies.

How does the price per pound of rice in this contract compare to market rates or other government purchases?

To benchmark the price per pound, we would need to calculate it based on the total award amount and the estimated quantity of rice. For instance, if the $2.2 million contract covers approximately X pounds of rice, the per-pound cost can be derived. This figure would then be compared against current market prices for US #2 Long Grain Rice (packaged) and historical USDA procurement data for similar items. Factors like packaging specifications (e.g., 1lb, 2lb bags) and delivery terms can influence price variations. A preliminary assessment suggests the firm fixed-price nature aims for cost efficiency, but a detailed comparison requires specific quantity data.

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

Key risks include potential supply chain disruptions affecting rice availability, price volatility in the agricultural commodity market, and logistical challenges in distributing the packaged rice. Mitigation strategies likely involve the firm fixed-price structure, which transfers some price risk to the contractor. The USDA may also have contingency plans for alternative suppliers or transportation methods. The relatively short performance period (approx. 15 months) limits long-term exposure to market fluctuations. Furthermore, the awardee's experience in commodity procurement suggests they have established risk management protocols.

How effective are USDA's commodity donation programs in achieving their food security objectives?

USDA's commodity donation programs are generally considered effective in addressing food insecurity by providing essential food items to vulnerable populations through various channels like food banks and pantries. These programs support domestic agriculture by creating demand for U.S.-produced goods. However, effectiveness can be influenced by factors such as program reach, administrative efficiency, the nutritional quality of donated foods, and the ability to meet diverse dietary needs. Continuous evaluation and adaptation are crucial to maximize their impact on food security and public health outcomes.

What has been the historical spending trend for rice procurement by the USDA for donation purposes?

Historical spending on rice procurement for USDA donation programs can fluctuate based on agricultural output, budget allocations, and the specific needs of food assistance initiatives. While precise year-over-year figures for this specific contract type require detailed analysis of USDA's procurement history, it's understood that the department consistently procures significant quantities of staple commodities like rice to support its various food aid programs. Factors such as changes in farm bills, global market conditions, and domestic food insecurity levels influence these spending patterns. The current award of $2.2 million provides a data point for recent spending in this category.

Industry Classification

NAICS: Manufacturing › Grain and Oilseed Milling › Rice Milling

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1426B0030

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12010 TAYLOR RD, HOUSTON, TX, 77041

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

Financial Breakdown

Contract Ceiling: $2,193,443

Exercised Options: $2,193,443

Current Obligation: $2,193,443

Actual Outlays: $653,909

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline