USDA awards $3.16M contract for canned beans to Morgan Foods, Inc. for domestic food donations

Contract Overview

Contract Amount: $3,156,229 ($3.2M)

Contractor: Morgan Foods, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2026-02-06

End Date: 2026-07-15

Contract Duration: 159 days

Daily Burn Rate: $19.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011134/4100033697/BEANS LIGHT RED KIDNEY CAN-24/300,BEANS BLACK CAN-24/300,BEANS PINTO CAN-24/300,BEANS GARBANZO CAN-24/300,BEANS BLACKEYE CAN-24/300

Place of Performance

Location: AUSTIN, SCOTT County, INDIANA, 47102

State: Indiana Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.2 million to MORGAN FOODS, INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011134/4100033697/BEANS LIGHT RED KIDNEY CAN-24/300,BEANS BLACK CAN-24/300,BEANS PINTO CAN-24/300,BEANS GARBANZO CAN-24/300,BEANS BLACKEYE CAN-24/300 Key points: 1. Contract aims to procure essential food items for USG food donation programs, supporting food security initiatives. 2. The award to Morgan Foods, Inc. indicates a focus on established suppliers for critical commodity needs. 3. Fixed-price contract structure provides cost certainty for the government, mitigating budget overruns. 4. The duration of the contract suggests a consistent supply chain requirement for these food staples. 5. This procurement aligns with broader government efforts to address domestic hunger and food insecurity.

Value Assessment

Rating: good

The contract value of $3.16 million for 20,000 cases of canned beans appears reasonable given the quantities and types of beans procured. Benchmarking against similar government food procurement contracts for staple goods suggests this pricing is competitive. The firm fixed-price nature of the award further enhances value by locking in costs and reducing the risk of price escalation.

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. The presence of 10 bids suggests a healthy level of interest and competition for this requirement. This competitive process is expected to yield fair market pricing and ensure the government receives the best value.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that drives down costs and ensures efficient use of public funds for essential food donations.

Public Impact

Beneficiaries include individuals and families served by USG food donation programs, receiving nutritious canned beans. Services delivered include the procurement and supply of various types of canned beans (kidney, black, pinto, garbanzo, blackeye). Geographic impact is national, supporting food banks and distribution networks across the United States. Workforce implications are indirect, supporting jobs in food processing, logistics, and distribution within the agricultural sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if the sole awardee faces production or logistical challenges.
Ensuring consistent quality across all delivered products is crucial for recipient satisfaction and nutritional value.

Positive Signals

Award to a single, experienced vendor can streamline delivery and quality control.
The firm fixed-price contract provides budget predictability for the Agricultural Marketing Service.
Full and open competition suggests a robust market response and potential for competitive pricing.

Sector Analysis

This contract falls within the broader food manufacturing and agricultural commodities sector. The market for canned goods is mature, with several large producers capable of fulfilling government requirements. Government procurements like this represent a stable demand source for food manufacturers, contributing to overall sector stability and employment. Comparable spending benchmarks in food procurement for federal agencies often involve large volumes of staple goods.

Small Business Impact

The contract was awarded under full and open competition and does not appear to have a specific small business set-aside. While Morgan Foods, Inc. is the prime contractor, there may be opportunities for small businesses to participate as subcontractors in areas such as transportation, warehousing, or specialized ingredient sourcing, though this is not explicitly detailed in the award information.

Oversight & Accountability

Oversight for this contract will likely be managed by the Agricultural Marketing Service (AMS) within the USDA. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods by a certain date. Transparency is facilitated by the public nature of federal contract awards, allowing for review of terms and awardee. The USDA Office of Inspector General would have jurisdiction for investigating any potential fraud, waste, or abuse related to this contract.

Related Government Programs

USDA National School Lunch Program
USDA Food for Progress Program
Commodity Supplemental Food Program
Emergency Food Assistance Program

Risk Flags

Supply Chain Risk
Contractor Performance Monitoring
Quality Assurance

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.2 million to MORGAN FOODS, INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000011134/4100033697/BEANS LIGHT RED KIDNEY CAN-24/300,BEANS BLACK CAN-24/300,BEANS PINTO CAN-24/300,BEANS GARBANZO CAN-24/300,BEANS BLACKEYE 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 $3.2 million.

What is the period of performance?

Start: 2026-02-06. End: 2026-07-15.

What is the historical spending pattern for canned bean procurement by the USDA?

Historical spending data for canned bean procurement by the USDA reveals a consistent pattern of awards aimed at supporting domestic food donation programs. While specific dollar amounts fluctuate annually based on budgetary allocations and program needs, the USDA regularly procures large quantities of staple commodities, including various types of canned beans. These procurements are typically conducted through competitive bidding processes to ensure cost-effectiveness. Analysis of past awards indicates a preference for established food manufacturers with proven track records in supplying high-volume, shelf-stable food products. The frequency and volume of these contracts underscore the ongoing commitment to food security initiatives and the reliance on such commodities to meet nutritional needs within domestic assistance programs.

How does the per-unit cost of these canned beans compare to commercial retail prices?

A direct comparison of the per-unit cost for these government-procured canned beans to commercial retail prices is complex due to differing scales, distribution channels, and quality specifications. Government contracts often involve bulk purchasing, which can lead to lower per-unit costs than individual retail purchases. However, retail prices can vary significantly based on brand, sales, and location. Without specific per-unit pricing details from the contract award, a precise comparison is difficult. Generally, government contracts aim for prices that are competitive with wholesale or bulk commercial rates, reflecting the efficiencies of large-scale procurement. The $3.16 million award for 20,000 cases suggests a target price that balances cost efficiency with the need for consistent supply and quality for donation purposes.

What are the potential risks associated with relying on a single supplier for this large quantity of canned beans?

Relying on a single supplier, even one with a strong track record like Morgan Foods, Inc., introduces several potential risks. Foremost is the risk of supply chain disruption. Any unforeseen issues affecting the contractor's production capacity, such as equipment failure, labor disputes, raw material shortages, or natural disasters, could halt or delay the delivery of essential food items. This could directly impact the effectiveness of food donation programs. Furthermore, a lack of ongoing competition during the contract period might reduce the incentive for the supplier to maintain the absolute lowest possible costs or to innovate. While the contract is fixed-price, unforeseen circumstances could still lead to requests for contract modifications or, in extreme cases, default, requiring the government to find an alternative source under potentially less favorable terms.

What is the track record of Morgan Foods, Inc. in fulfilling government contracts, particularly for food commodities?

Morgan Foods, Inc. has a history of fulfilling government contracts, particularly within the food commodity sector. As a supplier of canned goods and other food products, the company has experience navigating the requirements and specifications of federal procurement. While specific details on past performance metrics for this exact type of commodity procurement are not provided in the award abstract, their selection for this significant contract suggests a satisfactory performance history with the government or a strong competitive bid. Companies that regularly win USDA contracts typically demonstrate reliability in terms of product quality, timely delivery, and adherence to contract terms. Further due diligence might involve reviewing past performance evaluations or contract completion records if available through government databases.

How does this contract align with the USDA's broader mission regarding food security and agricultural support?

This contract directly aligns with the USDA's core mission to enhance food security and support American agriculture. By procuring canned beans, a staple and nutritious food item, the USDA ensures that vital resources are available for domestic food assistance programs. These programs, such as those distributing commodities to food banks and charitable organizations, are critical in alleviating hunger and improving access to healthy food for vulnerable populations. Furthermore, by awarding contracts to domestic food manufacturers like Morgan Foods, Inc., the USDA supports the agricultural supply chain, contributing to the economic viability of farmers and food processors. This procurement action is a tangible manifestation of the USDA's commitment to both feeding the nation and strengthening the agricultural economy.

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: 123J1426B0108

Offers Received: 10

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: $3,156,229

Exercised Options: $3,156,229

Current Obligation: $3,156,229

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline