USDA Awards $4M for Plain Elbow Macaroni to JM Grain Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $4,010,563 ($4.0M)

Contractor: JM Grain Inc

Awarding Agency: Department of Agriculture

Start Date: 2026-02-12

End Date: 2026-06-30

Contract Duration: 138 days

Daily Burn Rate: $29.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011157/4100033785/PASTA MACARONI PLAIN ELBOW BOX-20/1 LB

Place of Performance

Location: GREAT FALLS, CASCADE County, MONTANA, 59401

State: Montana Government Spending

Plain-Language Summary

Department of Agriculture obligated $4.0 million to JM GRAIN INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011157/4100033785/PASTA MACARONI PLAIN ELBOW BOX-20/1 LB Key points: 1. The contract is for a significant quantity of plain elbow macaroni, a staple commodity. 2. JM Grain Inc. secured the award, indicating a competitive bidding process. 3. The contract duration is relatively short, suggesting potential for future re-competition. 4. The sector is food commodities, essential for government food donation programs.

Value Assessment

Rating: good

The award price of $4,010,563.20 for 200,000 lbs of pasta appears reasonable given the commodity market. Benchmarking against similar large-scale food procurement contracts would provide a more precise assessment.

Cost Per Unit: $20.05 per 20lb box

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple bidders participated. This method is expected to drive competitive pricing and ensure the government receives fair market value.

Taxpayer Impact: The competitive award process is likely to result in cost savings for taxpayers compared to non-competitive methods.

Public Impact

Ensures availability of essential food items for federal food donation programs. Supports domestic agriculture and food manufacturing industries. Provides nutritional resources to vulnerable populations through government assistance programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in commodity markets impacting future procurements.
Logistical challenges in distribution of food commodities.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract provides cost certainty.
Supports domestic food supply chain.

Sector Analysis

This procurement falls within the food manufacturing and commodity sector, specifically dry pasta production. Government spending in this area supports food security initiatives and agricultural markets.

Small Business Impact

While the awardee is JM Grain Inc., the data does not specify if they are a small business. Further analysis would be needed to determine the impact on small business participation in this specific contract or the broader sector.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service, which is responsible for procurement and distribution of agricultural commodities. Oversight ensures program goals are met and funds are used appropriately.

Related Government Programs

Dry Pasta, Dough, and Flour Mixes Manufacturing from Purchased Flour
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Commodity price volatility
Supply chain disruptions
Logistical challenges
Potential for future price increases in subsequent contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $4.0 million to JM GRAIN INC. COMMODITIES FOR USG FOOD DONATIONS: 2000011157/4100033785/PASTA MACARONI PLAIN ELBOW BOX-20/1 LB

Who is the contractor on this award?

The obligated recipient is JM GRAIN INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.0 million.

What is the period of performance?

Start: 2026-02-12. End: 2026-06-30.

What is the historical pricing trend for plain elbow macaroni over the past five years?

Analyzing historical pricing trends for plain elbow macaroni is crucial for assessing the current award's value. Significant price volatility or a sustained upward trend could indicate that the current price, while competitive, might be higher than in previous years. Conversely, a downward trend would suggest a potentially favorable price point.

What are the key risks associated with the supply chain for this commodity?

Key risks include potential disruptions in grain harvests due to weather or disease, fluctuations in global commodity prices, and transportation challenges. The firm fixed price nature of the contract mitigates some risk for the government regarding price increases, but supply availability remains a concern.

How effectively does this procurement support the USDA's food donation program objectives?

This procurement directly supports the USDA's food donation program by ensuring a consistent supply of a staple food item. The competitive award process aims to maximize the quantity and quality of pasta acquired within budget, thereby enhancing the program's reach and impact on food-insecure populations.

Industry Classification

NAICS: Manufacturing › Bakeries and Tortilla Manufacturing › Dry Pasta, Dough, and Flour Mixes Manufacturing from Purchased Flour

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1426B0128

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: JM Grain, Inc.

Address: 12 N RAILROAD ST, GARRISON, ND, 58540

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,010,563

Exercised Options: $4,010,563

Current Obligation: $4,010,563

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline