USDA awards $27M contract to Bunge North America for soybean processing services

Contract Overview

Contract Amount: $27,023,282 ($27.0M)

Contractor: Bunge North America, Inc

Awarding Agency: Department of Agriculture

Start Date: 2010-12-29

End Date: 2011-01-22

Contract Duration: 24 days

Daily Burn Rate: $1.1M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BOT1-157

Place of Performance

Location: SAINT LOUIS, ST. LOUIS County, MISSOURI, 63146

State: Missouri Government Spending

Plain-Language Summary

Department of Agriculture obligated $27.0 million to BUNGE NORTH AMERICA, INC for work described as: BOT1-157 Key points: 1. Contract value of $27,023,282 for soybean processing. 2. Awarded under full and open competition. 3. Potential risk associated with commodity price fluctuations. 4. Sector: Agriculture/Food Processing.

Value Assessment

Rating: fair

The contract value of $27,023,282 for soybean processing is a significant amount. Benchmarking against similar contracts for large-scale agricultural processing services would be necessary to fully assess its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors can bid.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best possible price for the required services.

Public Impact

Ensures supply chain stability for soybean products. Supports agricultural economy through processing services. Potential impact on soybean commodity prices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Commodity price volatility
Contract duration and potential for cost overruns

Positive Signals

Competitive award process
Clear service requirement

Sector Analysis

This contract falls within the agricultural processing sector, specifically focusing on soybean processing. Spending in this area is crucial for food production and agricultural commodity markets.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to assess small business participation.

Oversight & Accountability

The contract was awarded by the Department of Agriculture's Farm Service Agency. Standard government oversight mechanisms would apply to ensure performance and compliance.

Related Government Programs

Soybean Processing
Department of Agriculture Contracting
Farm Service Agency Programs

Risk Flags

Commodity price volatility
Contract duration
Potential for supply chain disruptions
Market concentration in soybean processing

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $27.0 million to BUNGE NORTH AMERICA, INC. BOT1-157

Who is the contractor on this award?

The obligated recipient is BUNGE NORTH AMERICA, INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Farm Service Agency).

What is the total obligated amount?

The obligated amount is $27.0 million.

What is the period of performance?

Start: 2010-12-29. End: 2011-01-22.

What is the benchmark pricing for similar soybean processing contracts of this scale?

Determining a precise benchmark requires access to a database of comparable government contracts. However, given the $27 million value, it suggests a large-scale operation. Factors like processing volume, specific soybean varieties, and delivery locations would influence pricing. A comparative analysis with historical contracts or industry rates for similar services is essential for a thorough value assessment.

What are the primary risks associated with commodity price fluctuations for this contract?

The primary risk is that fluctuations in soybean market prices could impact the profitability of Bunge North America, potentially leading to requests for contract modifications or affecting the quality of service if not managed effectively. The firm fixed price nature of the contract shifts this risk to the contractor, but significant market volatility could still pose challenges.

How does this contract contribute to the overall effectiveness of the Farm Service Agency's mission?

This contract directly supports the Farm Service Agency's mission by ensuring the efficient processing of soybeans, a key agricultural commodity. This contributes to maintaining stable agricultural markets, supporting farmers, and potentially ensuring the availability of soybean-derived products for various uses, thereby fulfilling a critical function within the agricultural supply chain.

Industry Classification

NAICS: Manufacturing › Grain and Oilseed Milling › Soybean Processing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: BOT1-157

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bunge North America Inc. (UEI: 875657194)

Address: 11720 BORMAN DR, SAINT LOUIS, MO, 90

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

Financial Breakdown

Contract Ceiling: $27,023,282

Exercised Options: $27,023,282

Current Obligation: $27,023,282

Contract Characteristics

Cost or Pricing Data: NO

Timeline