USDA awards $18.9M contract to Tyson Foods for frozen roasted chicken, impacting food donation programs

Contract Overview

Contract Amount: $18,860,826 ($18.9M)

Contractor: Tyson Foods Inc.

Awarding Agency: Department of Agriculture

Start Date: 2023-07-07

End Date: 2024-04-15

Contract Duration: 283 days

Daily Burn Rate: $66.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000009403/4100027921/CHICKEN OVEN ROASTED FRZ 8 PC CTN-30 LB

Place of Performance

Location: NEW HOLLAND, LANCASTER County, PENNSYLVANIA, 17557

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Agriculture obligated $18.9 million to TYSON FOODS INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009403/4100027921/CHICKEN OVEN ROASTED FRZ 8 PC CTN-30 LB Key points: 1. Tyson Foods secured a significant contract for frozen roasted chicken, highlighting their role in government food supply chains. 2. The contract's value of $18.9 million suggests substantial demand for this commodity within federal food donation initiatives. 3. Competition was full and open, indicating a potentially competitive bidding process that could influence pricing. 4. The sector is essential for supporting food assistance programs, with poultry processing being a key component.

Value Assessment

Rating: good

The contract price of $18.9 million for 283 days of supply appears reasonable given the quantity and commodity. 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, suggesting multiple bidders participated. This method generally promotes price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The firm fixed price contract ensures cost certainty for taxpayers, while the competitive process aims to secure the best value for federal food donation programs.

Public Impact

Ensures a steady supply of a key protein source for federal food donation programs, aiding vulnerable populations. Supports agricultural sector jobs and Tyson Foods' operations through a large government contract. The procurement contributes to the Department of Agriculture's mission of addressing food insecurity.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Positive Signals

Full and open competition utilized.
Firm fixed price contract provides cost certainty.
Significant award supporting federal food programs.

Sector Analysis

This contract falls within the food commodities sector, specifically poultry processing. Government food procurement is a substantial market, often involving large contracts to meet the needs of various federal programs and agencies.

Small Business Impact

The awardee, Tyson Foods Inc., is a large corporation, not a small business. There is no indication in the data that small businesses were subcontracted for this specific award.

Oversight & Accountability

The contract was awarded by the Department of Agriculture's Agricultural Marketing Service. Standard oversight for such contracts would involve monitoring delivery, quality, and adherence to terms to ensure taxpayer funds are used effectively.

Related Government Programs

Poultry Processing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for price volatility in commodity markets affecting long-term value.
Dependence on a single large supplier could pose a risk if supply chain issues arise.
Ensuring consistent quality and safety across large-scale food donations requires robust monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $18.9 million to TYSON FOODS INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000009403/4100027921/CHICKEN OVEN ROASTED FRZ 8 PC CTN-30 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 $18.9 million.

What is the period of performance?

Start: 2023-07-07. End: 2024-04-15.

What is the historical pricing trend for frozen roasted chicken purchased by the USDA?

Analyzing historical pricing data for similar USDA food donation contracts over the past several years would reveal any significant price fluctuations or trends. This context is crucial for determining if the current $18.9 million award represents a fair market price or an outlier, potentially influenced by market conditions, inflation, or specific contract requirements.

What are the specific quality and nutritional standards required for the chicken in this contract?

The contract likely specifies detailed quality and nutritional standards, including processing methods, packaging, shelf-life, and potentially specific cuts or fat content. Adherence to these standards is critical for ensuring the donated food is safe, palatable, and meets the nutritional needs of recipients, reflecting effective oversight of the procurement.

How does this contract's unit price compare to commercial market prices for similar products?

Comparing the per-unit cost derived from this contract to prevailing commercial market prices for frozen roasted chicken would offer insight into the value proposition. Factors like bulk purchasing power and government-specific requirements can influence this comparison, but a significant deviation could signal potential overpayment or exceptional value.

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: 123J1423B0458

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2200, WEST DON TYSON PARKWAY, 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: $18,860,826

Exercised Options: $18,860,826

Current Obligation: $18,860,826

Actual Outlays: $18,860,826

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline