USDA awards $1.98M for frozen turkey roasts to Jennie-O Turkey Store Inc. under full and open competition

Contract Overview

Contract Amount: $1,978,252 ($2.0M)

Contractor: Jennie-O Turkey Store Inc

Awarding Agency: Department of Agriculture

Start Date: 2023-08-08

End Date: 2023-12-15

Contract Duration: 129 days

Daily Burn Rate: $15.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000009482/4100028191/TURKEY ROASTS FRZ CTN-32-48 LB

Place of Performance

Location: WILLMAR, KANDIYOHI County, MINNESOTA, 56201

State: Minnesota Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.0 million to JENNIE-O TURKEY STORE INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009482/4100028191/TURKEY ROASTS FRZ CTN-32-48 LB Key points: 1. Significant award for a specific commodity, indicating demand for frozen turkey roasts. 2. Sole awardee suggests potential market concentration or specific product requirements. 3. Risk of price volatility for frozen commodities, though mitigated by firm fixed price. 4. Poultry processing sector is essential for food security and donation programs.

Value Assessment

Rating: good

The award of $1,982,518 for frozen turkey roasts appears reasonable given the quantity and nature of the commodity. Benchmarking against similar large-scale food procurement contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. The use of a firm fixed price contract helps to lock in costs for the government.

Taxpayer Impact: The firm fixed price contract protects taxpayers from potential cost overruns associated with fluctuating commodity prices.

Public Impact

Ensures availability of essential food items for U.S. government food donation programs. Supports domestic poultry producers and the agricultural sector in Minnesota. Provides a consistent supply of nutritious food for beneficiaries of donation programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions affecting frozen goods.
Dependence on a single supplier for a critical commodity.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract provides cost certainty.
Supports domestic agriculture and food security.

Sector Analysis

The procurement falls within the broader agricultural and food processing sector. Spending benchmarks for similar commodity procurements would indicate if this award is within expected ranges.

Small Business Impact

This contract was awarded to a large business (Jennie-O Turkey Store Inc.), with no specific set-aside for small businesses indicated in the provided data.

Oversight & Accountability

The contract was awarded by the Agricultural Marketing Service, a division of the USDA, which has established oversight mechanisms for federal procurement. Further review of performance reports would be needed.

Related Government Programs

Poultry Processing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Commodity price fluctuations
Supply chain disruptions
Potential for spoilage if not managed properly
Dependence on a single supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.0 million to JENNIE-O TURKEY STORE INC. COMMODITIES FOR USG FOOD DONATIONS: 2000009482/4100028191/TURKEY ROASTS FRZ CTN-32-48 LB

Who is the contractor on this award?

The obligated recipient is JENNIE-O TURKEY STORE INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2023-08-08. End: 2023-12-15.

What is the historical pricing trend for frozen turkey roasts procured by the government?

Analyzing historical pricing data for similar frozen turkey roast procurements would reveal if the current award price of approximately $1.98 million is competitive over time. This context is crucial for assessing long-term value and identifying any significant price deviations that might warrant further investigation into market factors or supplier efficiency.

What are the specific quality and safety standards required for these turkey roasts?

The contract likely specifies stringent USDA quality and safety standards for frozen turkey roasts, including inspection, grading, and handling protocols. Ensuring compliance with these standards is critical to guarantee the nutritional value and safety of the food distributed through donation programs, mitigating health risks for recipients.

How does the duration and quantity of this contract align with the needs of food donation programs?

The contract's duration of 129 days and the implied quantity (based on the award amount and unit cost) should be assessed against the demand patterns and logistical capabilities of the food donation programs. Ensuring the supply aligns with program needs prevents waste and ensures timely distribution to beneficiaries.

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: 123J1423B0518

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hormel Foods Corporation

Address: 2505 WILLMAR AVE SW, WILLMAR, MN, 56201

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: $1,978,252

Exercised Options: $1,978,252

Current Obligation: $1,978,252

Actual Outlays: $1,978,252

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline