Cal-Maine Foods awarded $45K contract for 20,000 dozen eggs to support USG food donations

Contract Overview

Contract Amount: $44,996 ($45.0K)

Contractor: Cal-Maine Foods, Inc

Awarding Agency: Department of Agriculture

Start Date: 2026-04-09

End Date: 2026-05-31

Contract Duration: 52 days

Daily Burn Rate: $865/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: 2000011223/4100033972/EGGS 15 DOZEN

Place of Performance

Location: GUTHRIE, TODD County, KENTUCKY, 42234

State: Kentucky Government Spending

Plain-Language Summary

Department of Agriculture obligated $44,995.5 to CAL-MAINE FOODS, INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011223/4100033972/EGGS 15 DOZEN Key points: 1. Contract awarded to a single, established supplier of shell eggs. 2. Pricing appears competitive given the fixed-firm price structure. 3. Limited competition may impact price discovery and potential savings. 4. Contract duration is short, suggesting a need for ongoing procurement. 5. Geographic focus on Kentucky for delivery. 6. Supports critical food donation programs.

Value Assessment

Rating: good

The contract value of $44,995.50 for approximately 20,000 dozen eggs suggests a per-dozen cost of around $2.25. This price point is within the expected range for bulk egg purchases, especially considering the fixed-firm pricing mechanism which typically includes supplier risk. Benchmarking against similar government food donation contracts would provide further insight, but the initial assessment indicates reasonable value for the specified commodity.

Cost Per Unit: Approximately $2.25 per dozen.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with five bids received. While five bidders indicate a degree of competition, the award to a single entity, Cal-Maine Foods, Inc., suggests they were the most advantageous offer. The level of competition is sufficient to ensure a reasonable price, but further analysis could explore if a more diverse pool of bidders might have yielded even greater cost efficiencies.

Taxpayer Impact: The full and open competition with multiple bids helps ensure taxpayer funds are used efficiently by driving a competitive price for essential food commodities.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USG donation programs. Services delivered include the provision of a staple food commodity (eggs). Geographic impact is centered on Kentucky, where the eggs are sourced and potentially distributed. Workforce implications are minimal, primarily related to the logistics and handling of the egg supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in the broader egg market not fully captured by the fixed-firm price.
Dependence on a single supplier for a critical food item could pose a risk if supply is disrupted.

Positive Signals

Contract supports a vital government program aimed at food security.
Award to an established company suggests reliability in meeting contract requirements.
Fixed-firm pricing provides cost certainty for the government.

Sector Analysis

This contract falls within the broader food manufacturing and distribution sector, specifically focusing on agricultural commodities. The market for eggs is characterized by large-scale production facilities and established distribution networks. Government procurement of food items like eggs is a recurring activity, often supporting domestic nutrition programs and international aid. Comparable spending benchmarks would involve analyzing other contracts for similar quantities and types of food commodities procured by various federal agencies.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Cal-Maine Foods, Inc., a large corporation, suggests that the primary focus was on securing a reliable supply of eggs rather than specifically promoting small business participation in this instance. The impact on the small business ecosystem is likely negligible for this specific procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the Agricultural Marketing Service (AMS) within the Department of Agriculture. Accountability measures are embedded in the contract terms, including delivery schedules and quality specifications. Transparency is facilitated through federal procurement databases where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

USDA Food Purchase Programs
Federal Food Donation Programs
Commodity Procurement Contracts

Risk Flags

Potential supply chain vulnerability
Price risk due to fixed-firm contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $44,995.5 to CAL-MAINE FOODS, INC. COMMODITIES FOR USG FOOD DONATIONS: 2000011223/4100033972/EGGS 15 DOZEN

Who is the contractor on this award?

The obligated recipient is CAL-MAINE 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 $44,995.5.

What is the period of performance?

Start: 2026-04-09. End: 2026-05-31.

What is Cal-Maine Foods, Inc.'s track record with federal contracts, particularly for food commodities?

Cal-Maine Foods, Inc. has a history of receiving federal contracts, primarily through the Department of Agriculture, for the supply of eggs. While specific details on the volume and value of past contracts require deeper database analysis, their consistent engagement suggests a capacity to meet government procurement requirements. Their status as a major producer in the egg industry implies a robust operational framework. Further investigation into past performance reviews and any instances of contract disputes or non-compliance would provide a more comprehensive understanding of their federal contracting track record.

How does the per-dozen cost of $2.25 compare to market rates for bulk egg purchases at the time of award?

The per-dozen cost of approximately $2.25 for bulk egg purchases, as indicated by this contract, appears to be in line with prevailing market conditions for wholesale eggs. Market prices for eggs can fluctuate based on factors such as feed costs, seasonal demand, and avian health. Given that this is a fixed-firm price contract, it locks in the cost for the government. A detailed comparison would involve analyzing USDA's Agricultural Marketing Service (AMS) price reports and other industry data for the period leading up to and during the contract award to establish a precise market benchmark and assess the degree of cost advantage or disadvantage.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks associated with this contract include potential supply chain disruptions affecting egg availability (e.g., due to disease outbreaks like avian influenza, or logistical challenges) and price volatility in the broader commodity market that could make the fixed price less favorable over time. Mitigation strategies are implicitly addressed through the selection of a large, established supplier like Cal-Maine Foods, Inc., known for its extensive production capacity and distribution network. The short contract duration also limits long-term exposure to market fluctuations. However, specific contractual clauses regarding force majeure and contingency planning would offer more explicit risk mitigation.

How effective are USDA's food donation programs in addressing food insecurity, and how do contracts like this contribute?

USDA's food donation programs, such as those supported by contracts for commodities like eggs, play a crucial role in addressing food insecurity by providing essential food items to vulnerable populations through various channels, including food banks and charitable organizations. These programs help reduce food waste and ensure that nutritious food reaches those in need. Contracts like this one ensure a consistent supply of a key protein source, contributing directly to the nutritional content of donated food packages. The effectiveness of these programs is often measured by the reach of distribution networks, the nutritional quality of the food provided, and the reduction in reported food insecurity rates among recipient demographics.

What are the historical spending patterns for similar commodity procurements by the Agricultural Marketing Service?

Historical spending patterns for similar commodity procurements by the Agricultural Marketing Service (AMS) reveal a consistent allocation of funds towards ensuring the availability of staple foods for domestic and international assistance programs. AMS regularly procures a variety of agricultural products, including dairy, grains, and proteins, through contracts that vary in size and duration. Analysis of past AMS procurement data would likely show cyclical spending trends influenced by agricultural output, market prices, and the specific needs of federal nutrition and donation initiatives. Understanding these patterns helps in forecasting future budgetary requirements and identifying potential areas for cost optimization in commodity sourcing.

Industry Classification

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

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1426B0181

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1052 HIGHLAND COLONY PKWY STE 200, RIDGELAND, MS, 39157

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,996

Exercised Options: $44,996

Current Obligation: $44,996

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline