USDA's $5.3M Contract for Frozen Chicken to Tyson Foods Amidst 46,542 Units Procured

Contract Overview

Contract Amount: $5,352,299 ($5.4M)

Contractor: Tyson Foods Inc.

Awarding Agency: Department of Agriculture

Start Date: 2022-12-06

End Date: 2023-03-31

Contract Duration: 115 days

Daily Burn Rate: $46.5K/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: 2000008943/4100026674/CHICKEN WHOLE BAGGED FRZ CTN-36-43 LB

Place of Performance

Location: NEW HOLLAND, LANCASTER County, PENNSYLVANIA, 17557

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.4 million to TYSON FOODS INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000008943/4100026674/CHICKEN WHOLE BAGGED FRZ CTN-36-43 LB Key points: 1. The contract awarded to Tyson Foods Inc. for frozen chicken represents a significant procurement for food donation programs. 2. Competition was full and open, suggesting a competitive bidding process for this commodity. 3. The contract's value and volume indicate a substantial commitment to food security initiatives. 4. The firm fixed price structure provides cost certainty for the government.

Value Assessment

Rating: good

The contract price for frozen chicken appears reasonable given the large volume procured and the current market conditions for poultry.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: Taxpayer funds are being used efficiently to procure essential food commodities for donation programs, supporting both agricultural producers and those in need.

Public Impact

Ensures availability of nutritious food for federal donation programs. Supports the agricultural sector by providing a consistent buyer for poultry products. Contributes to food security for vulnerable populations. Demonstrates government commitment to utilizing commodity purchases for social good.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in the commodity market impacting future procurements.
Logistical challenges in distributing large quantities of frozen goods.

Positive Signals

Clear contract terms with a firm fixed price.
Awarded through full and open competition.
Supports a vital government program.

Sector Analysis

This procurement falls within the agricultural commodities sector, specifically focusing on poultry processing. Government spending in this area is crucial for supporting domestic agriculture and ensuring food supply chains are robust.

Small Business Impact

While this specific contract was awarded to a large corporation, Tyson Foods Inc., the broader agricultural sector involves numerous small businesses in production and distribution. Government procurement policies often aim to support small businesses through set-asides in other contract vehicles.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service, which is responsible for overseeing commodity purchases and distribution. Oversight ensures compliance with contract terms and program objectives.

Related Government Programs

Poultry Processing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for commodity price volatility.
Dependence on a single large supplier for this specific item.
Logistical complexities of frozen food distribution.
Ensuring consistent quality across large batches.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.4 million to TYSON FOODS INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000008943/4100026674/CHICKEN WHOLE BAGGED FRZ CTN-36-43 LB

Who is the contractor on this award?

The obligated recipient is TYSON 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 $5.4 million.

What is the period of performance?

Start: 2022-12-06. End: 2023-03-31.

What is the historical pricing trend for this specific type of frozen chicken commodity to assess long-term value?

Analyzing historical pricing data for frozen chicken bags (36-43 lbs) would provide a more robust assessment of value. Without this, the current price is benchmarked against general market conditions. Understanding past price trends can reveal if this contract represents a favorable or unfavorable deal over time, considering inflation and market volatility.

What are the specific performance metrics and quality control measures in place to ensure the donated chicken meets safety and nutritional standards?

The contract likely includes standard quality specifications and inspection clauses, typical for food procurements. However, detailed information on specific performance metrics and rigorous quality control measures beyond basic compliance would be beneficial to confirm the safety and nutritional integrity of the chicken throughout the supply chain and upon delivery for donation.

How does the cost per unit of this contract compare to similar government food donation procurements or commercial bulk purchases?

A direct comparison of the per-unit cost against similar government food donation contracts or large-scale commercial bulk purchases would offer a clearer picture of cost-effectiveness. While the contract value is substantial, understanding the unit price relative to benchmarks is crucial for evaluating the efficiency of taxpayer dollar utilization in this procurement.

Industry Classification

NAICS: Manufacturing › Animal Slaughtering and Processing › Poultry Processing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1423B0094

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2200 W DON TYSON PKWY, SPRINGDALE, AR, 72762

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

Financial Breakdown

Contract Ceiling: $5,352,299

Exercised Options: $5,352,299

Current Obligation: $5,352,299

Actual Outlays: $5,352,299

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline