USDA awards $13.5M for frozen pork chops to JBS USA, supporting food donation programs

Contract Overview

Contract Amount: $13,549,004 ($13.5M)

Contractor: JBS USA Food Company

Awarding Agency: Department of Agriculture

Start Date: 2023-08-08

End Date: 2024-06-30

Contract Duration: 327 days

Daily Burn Rate: $41.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000009495/4400001812/4100028219/PORK CHOPS BNLS FRZ PKG-40/1 LB

Place of Performance

Location: PIPESTONE, PIPESTONE County, MINNESOTA, 56164

State: Minnesota Government Spending

Plain-Language Summary

Department of Agriculture obligated $13.5 million to JBS USA FOOD COMPANY for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009495/4400001812/4100028219/PORK CHOPS BNLS FRZ PKG-40/1 LB Key points: 1. JBS USA, a major meat processor, secured the contract. 2. The contract supports the Agricultural Marketing Service's food donation initiatives. 3. Risk is moderate due to commodity price fluctuations and delivery logistics. 4. The sector is Food & Agriculture, specifically meat processing and distribution.

Value Assessment

Rating: good

The awarded price of $13.5M for frozen pork chops appears reasonable given the quantity and market prices for commodities. 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 competitive bidding process that likely led to a fair market price. The use of a firm fixed price contract protects the government from cost overruns.

Taxpayer Impact: Taxpayer funds are used to procure essential food commodities for donation programs, addressing food insecurity.

Public Impact

Ensures availability of nutritious food for vulnerable populations through federal donation programs. Supports domestic agriculture by purchasing products from U.S. suppliers. Contributes to the stability of food supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for commodity price volatility impacting final cost.
Logistical challenges in delivering frozen goods across potentially wide areas.

Positive Signals

Supports critical food assistance missions.
Utilizes a competitive procurement process.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls within the Food & Agriculture sector, specifically commodity procurement for federal food assistance programs. Spending benchmarks for similar large-scale food purchases by the USDA are typically in the millions, aligning with this award.

Small Business Impact

While the prime contractor, JBS USA, is a large corporation, the contract may indirectly benefit small businesses within the agricultural supply chain through subcontracts or raw material sourcing. However, direct small business participation in this specific award is not indicated.

Oversight & Accountability

The Department of Agriculture's Agricultural Marketing Service is responsible for overseeing this contract. Standard procurement oversight processes should ensure compliance with terms and conditions, including delivery and quality standards.

Related Government Programs

Animal (except Poultry) Slaughtering
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Commodity price volatility
Cold chain logistics and spoilage risk
Potential for delivery delays
Dependence on a single large supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $13.5 million to JBS USA FOOD COMPANY. COMMODITIES FOR USG FOOD DONATIONS: 2000009495/4400001812/4100028219/PORK CHOPS BNLS FRZ PKG-40/1 LB

Who is the contractor on this award?

The obligated recipient is JBS USA FOOD COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.5 million.

What is the period of performance?

Start: 2023-08-08. End: 2024-06-30.

What is the historical price trend for frozen pork chops and how does this contract's pricing compare?

Analyzing historical price data for frozen pork chops over the contract period and comparing it to the awarded price can reveal if the government secured a favorable rate. Fluctuations in commodity markets, feed costs, and global demand significantly influence pork prices, making a direct comparison crucial for assessing value for money.

What are the specific risks associated with the cold chain management for this large frozen pork chop order?

Maintaining the integrity of the cold chain from processing to final delivery is critical to prevent spoilage and ensure food safety. Risks include equipment failure during transport or storage, delays leading to temperature excursions, and inadequate handling protocols. Robust monitoring and contingency plans are essential to mitigate these risks.

How effectively does this procurement contribute to the USDA's food donation program goals and food security objectives?

The effectiveness hinges on the timely delivery and quality of the pork chops reaching intended recipients. Successful execution directly supports food security by providing essential protein. Measuring impact requires tracking distribution data and recipient feedback to ensure the program's objectives are met efficiently and equitably.

Industry Classification

NAICS: Manufacturing › Animal Slaughtering and Processing › Animal (except Poultry) Slaughtering

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 123J1423B0529

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: JBS S/A

Address: 1770 PROMONTORY CIRLE, GREELEY, CO, 80634

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: $13,549,004

Exercised Options: $13,549,004

Current Obligation: $13,549,004

Actual Outlays: $13,549,004

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1423D0106

IDV Type: IDC

Timeline