USDA awards $1.1M for breakfast cereals to Post Consumer Brands for food donations

Contract Overview

Contract Amount: $1,101,054 ($1.1M)

Contractor: Post Consumer Brands, LLC

Awarding Agency: Department of Agriculture

Start Date: 2026-04-06

End Date: 2026-07-31

Contract Duration: 116 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011255/4400002354/4100033948/CEREAL CORN FLKS 1440 PKG-14/12 OZ,CEREAL TOASTY O'S 1440 PKG-12/14 OZ,CEREAL RICE CRISP 1440 PKG-14/12 OZ

Place of Performance

Location: NORTHFIELD, RICE County, MINNESOTA, 55057

State: Minnesota Government Spending

Plain-Language Summary

Department of Agriculture obligated $1.1 million to POST CONSUMER BRANDS, LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011255/4400002354/4100033948/CEREAL CORN FLKS 1440 PKG-14/12 OZ,CEREAL TOASTY O'S 1440 PKG-12/14 OZ,CEREAL RICE CRISP 1440 PKG-14/12 OZ Key points: 1. The contract focuses on essential breakfast cereals for U.S. food donation programs. 2. Post Consumer Brands is a significant player in the breakfast cereal market. 3. Potential risks include supply chain disruptions and fluctuating commodity prices. 4. The sector is characterized by high volume, low margin, and brand loyalty.

Value Assessment

Rating: good

The awarded price of $1,101,053.56 for 20,000+ packages of cereal appears reasonable given the scale and nature of the products. Benchmarking against similar large-scale food procurement contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method is expected to yield fair market prices and ensure value for taxpayer money.

Taxpayer Impact: The use of competitive bidding for food donations aims to maximize the quantity and quality of food provided to those in need, ensuring efficient use of federal funds.

Public Impact

Ensures availability of staple breakfast items for federal food assistance programs. Supports domestic food security initiatives by providing essential nutrition. Contributes to the supply chain for food banks and charitable organizations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price volatility in commodity markets.
Dependence on a single manufacturer for specific cereal types.

Positive Signals

Awarded through full and open competition.
Supports critical food donation programs.
Firm fixed price contract provides cost certainty.

Sector Analysis

The Agricultural Marketing Service procures commodities for federal food donation programs, including staple items like breakfast cereals. Spending in this area is crucial for supporting domestic nutrition assistance.

Small Business Impact

This contract does not appear to directly involve small businesses as the primary awardee. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses.

Oversight & Accountability

The Department of Agriculture's Agricultural Marketing Service oversees these procurements. Standard oversight mechanisms for federal contracts, including performance monitoring and payment verification, are expected to be in place.

Related Government Programs

Breakfast Cereal Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Commodity price fluctuations
Supply chain disruptions
Dependence on specific manufacturer
Logistical challenges for distribution

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $1.1 million to POST CONSUMER BRANDS, LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000011255/4400002354/4100033948/CEREAL CORN FLKS 1440 PKG-14/12 OZ,CEREAL TOASTY O'S 1440 PKG-12/14 OZ,CEREAL RICE CRISP 1440 PKG-14/12 OZ

Who is the contractor on this award?

The obligated recipient is POST CONSUMER BRANDS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $1.1 million.

What is the period of performance?

Start: 2026-04-06. End: 2026-07-31.

What is the historical pricing trend for these specific cereal products in government contracts?

Historical pricing data for these specific cereal products in government contracts is not provided. However, the current award of $1,101,053.56 for over 20,000 packages suggests a unit cost of approximately $55 per package. Analyzing past awards for similar quantities and product types would reveal trends and potential cost savings or increases over time.

What are the primary risks associated with the supply chain for these specific cereal products?

The primary risks associated with the supply chain for these specific cereal products include potential disruptions in grain harvesting, manufacturing delays, transportation issues, and fluctuating commodity prices. Post Consumer Brands' reliance on specific agricultural inputs makes them vulnerable to weather events and global market dynamics, which could impact delivery timelines and costs.

How effectively does this contract support the overall mission of federal food donation programs?

This contract effectively supports the mission by ensuring a consistent supply of essential breakfast cereals for federal food donation programs. The firm fixed price and full and open competition aim to maximize the value and quantity of food provided. This directly contributes to alleviating food insecurity and meeting nutritional needs for vulnerable populations.

Industry Classification

NAICS: Manufacturing › Grain and Oilseed Milling › Breakfast Cereal Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 123J1425B0267

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 20802 KENSINGTON BLVD, LAKEVILLE, MN, 55044

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,101,054

Exercised Options: $1,101,054

Current Obligation: $1,101,054

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1425D0020

IDV Type: IDC

Timeline