USDA awards $66,825 contract for eggs to Prairie Star Farms LLC, with a 52-week duration

Contract Overview

Contract Amount: $66,825 ($66.8K)

Contractor: Prairie Star Farms LLC

Awarding Agency: Department of Agriculture

Start Date: 2026-04-09

End Date: 2026-05-31

Contract Duration: 52 days

Daily Burn Rate: $1.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011223/4100033974/EGGS 15 DOZEN

Place of Performance

Location: BRYANT, JAY County, INDIANA, 47326

State: Indiana Government Spending

Plain-Language Summary

Department of Agriculture obligated $66,825 to PRAIRIE STAR FARMS LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011223/4100033974/EGGS 15 DOZEN Key points: 1. Contract value appears reasonable for the specified quantity of eggs, pending detailed market analysis. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 52 weeks provides a stable supply chain for the specified period. 4. Performance is expected to be within the 'All Other Miscellaneous Food Manufacturing' NAICS code. 5. The contract is a definitive contract with a firm fixed price, indicating cost certainty. 6. The award was made to a single contractor, Prairie Star Farms LLC.

Value Assessment

Rating: good

The contract value of $66,825 for 20,000 dozen eggs (approximately $3.34 per dozen) seems competitive when benchmarked against typical wholesale egg prices. While specific market conditions and delivery requirements can influence pricing, this figure does not immediately suggest overpayment. Further analysis would involve comparing this price to recent USDA procurement data for similar commodities and quantities, as well as considering any specialized handling or packaging requirements.

Cost Per Unit: $3.34 per dozen

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was made available to all responsible sources, but specific exclusions were applied. The presence of 5 bids suggests a healthy level of competition, which typically drives down prices and encourages better terms for the government. The exclusion of certain sources, if justified and documented, would need further review to ensure it did not unduly limit competition.

Taxpayer Impact: The competitive bidding process for this contract is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source or limited competition award. The multiple bids received indicate that the government explored various options to secure the best value.

Public Impact

This contract supports the USG's food donation programs, ensuring essential food items are available for distribution. The primary service delivered is the provision of eggs, a key source of protein. The geographic impact is focused on Indiana, where the contractor is located, and potentially wider distribution points for the donated food. Workforce implications include support for jobs at Prairie Star Farms LLC and potentially in the agricultural supply chain for egg production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in the egg market impacting long-term value if not managed.
Dependence on a single contractor for a specific food commodity.

Positive Signals

Firm fixed price contract provides cost predictability.
Competitive bidding process likely secured a fair market price.
Defined contract duration ensures supply continuity for the program.

Sector Analysis

The agricultural commodities sector, particularly food manufacturing and distribution, is a critical component of federal procurement, especially for programs like food donations. This contract for eggs falls within the broader food manufacturing industry, which is characterized by significant market volume and diverse players. Benchmarking this contract against other USDA procurements for similar food items would provide further context on pricing and competition dynamics within this sector.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (sb: false). There is no explicit information on subcontracting plans for small businesses. The award to Prairie Star Farms LLC, without specific small business set-aside provisions, means that opportunities for small businesses would primarily arise if they are part of the supply chain or if Prairie Star Farms LLC voluntarily engages them.

Oversight & Accountability

Oversight for this contract would typically be managed by 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 generally maintained through federal procurement databases where contract awards are published. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

USDA Food Purchase Programs
Federal Food Donation Programs
Agricultural Commodity Procurement

Risk Flags

Potential for price volatility in the egg market over the contract duration.
Reliance on a single supplier for a critical food commodity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $66,825 to PRAIRIE STAR FARMS LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000011223/4100033974/EGGS 15 DOZEN

Who is the contractor on this award?

The obligated recipient is PRAIRIE STAR FARMS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $66,825.

What is the period of performance?

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

What is the historical spending pattern of the Agricultural Marketing Service (AMS) on egg procurement?

Analyzing historical spending by the AMS on egg procurement would involve reviewing past contract awards for similar commodities and quantities. This would help establish a baseline for typical pricing, identify trends in contract values over time, and assess whether the current award of $66,825 for 20,000 dozen eggs aligns with historical norms. Factors such as inflation, market volatility, and changes in program requirements could explain deviations from past spending. A detailed review would require access to historical procurement data, allowing for a comparison of unit prices, contract durations, and the number of bidders on similar solicitations.

How does the unit price of $3.34 per dozen compare to the broader market rate for eggs during the contract period?

The unit price of $3.34 per dozen for eggs needs to be benchmarked against prevailing market rates during the contract's performance period (April-May 2026). This comparison should consider wholesale prices, regional variations, and the specific type of eggs procured (e.g., conventional, cage-free, organic). Data from the Bureau of Labor Statistics (BLS) for consumer or producer price indexes for eggs, or reports from agricultural market analysis firms, can provide valuable context. If this price is significantly higher or lower than the market average, it warrants further investigation into the reasons, such as specialized quality requirements, delivery logistics, or competitive dynamics of the bidding process.

What are the specific 'exclusions of sources' in this 'Full and Open Competition After Exclusion of Sources' award, and what is their justification?

The term 'Full and Open Competition After Exclusion of Sources' implies that while the solicitation was broadly advertised, certain potential sources were intentionally excluded from bidding. The justification for these exclusions must be documented and typically relates to specific capabilities, past performance issues, or regulatory requirements that only a subset of potential contractors can meet. Without access to the detailed solicitation documents and award justification, it is impossible to specify the exact exclusions or their rationale. Understanding these exclusions is crucial to assessing whether the competition was truly as open as possible and if the government secured the best possible value by limiting the pool of bidders.

What is the track record of Prairie Star Farms LLC in fulfilling federal contracts, particularly for agricultural commodities?

Evaluating the track record of Prairie Star Farms LLC is essential for assessing the risk associated with this contract. This involves reviewing their past performance on federal contracts, specifically looking for any instances of late deliveries, quality issues, or contract disputes. Databases like the Federal Procurement Data System (FPDS) can provide information on previous awards, contract modifications, and any reported performance issues. A history of successful contract completion suggests a lower risk of performance failure, while a pattern of problems would raise concerns about the contractor's reliability and the potential impact on the food donation program.

What are the potential risks associated with a 52-week contract for perishable goods like eggs?

A 52-week contract for perishable goods like eggs carries inherent risks related to price volatility, supply chain disruptions, and quality degradation. Egg prices can fluctuate significantly due to factors like feed costs, avian flu outbreaks, and seasonal demand. Ensuring consistent quality over a full year requires robust quality control measures from the contractor and diligent oversight from the agency. Supply chain disruptions, whether due to weather, transportation issues, or unforeseen events, could impact timely delivery. The firm fixed price nature of this contract means the government is protected from price increases, but the contractor bears the risk of cost overruns if market prices rise substantially.

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 mission by supporting food security through its food donation programs, ensuring that essential food items like eggs reach individuals and families in need. By procuring these commodities, the USDA also provides support to the agricultural sector, including egg producers and distributors like Prairie Star Farms LLC. This dual function—addressing nutritional needs and bolstering the agricultural economy—is a core objective of many USDA initiatives. The efficiency and effectiveness of such contracts contribute to the overall success of the department's efforts to combat hunger and strengthen the food supply chain.

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: 123J1426B0181

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 401 STACHLER DR, SAINT HENRY, OH, 45883

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

Financial Breakdown

Contract Ceiling: $66,825

Exercised Options: $66,825

Current Obligation: $66,825

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline