USDA awards $28.3M for pork taco filling to JTM Provisions Co. Inc. under full and open competition

Contract Overview

Contract Amount: $28,320,000 ($28.3M)

Contractor: JTM Provisions CO Inc

Awarding Agency: Department of Agriculture

Start Date: 2023-08-08

End Date: 2024-07-02

Contract Duration: 329 days

Daily Burn Rate: $86.1K/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: 2000009495/4400001813/4100028220/PORK TACO FILLING CKD PKG-20/2 LB

Place of Performance

Location: HARRISON, HAMILTON County, OHIO, 45030

State: Ohio Government Spending

Plain-Language Summary

Department of Agriculture obligated $28.3 million to JTM PROVISIONS CO INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009495/4400001813/4100028220/PORK TACO FILLING CKD PKG-20/2 LB Key points: 1. Significant award for a specific food commodity, indicating a substantial need for this item. 2. Competition was full and open, suggesting a healthy market for this product. 3. The contract is a delivery order, implying it's part of a larger framework agreement. 4. The firm fixed price contract type locks in costs, providing budget certainty.

Value Assessment

Rating: good

The award amount of $28.3M for 200,000 lbs of pork taco filling suggests a unit price of approximately $141.60 per pound. This appears high compared to retail prices, but may reflect bulk purchasing, specialized processing, and distribution costs for government food donations.

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 used to procure food for donation programs, aiming to support food security initiatives.

Public Impact

Ensures availability of essential food items for federal food donation programs. Supports agricultural producers and food manufacturers within the supply chain. Contributes to food security efforts by providing resources to those in need.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price volatility in commodity markets impacting long-term costs.
Logistical complexities in distributing perishable food items nationwide.

Positive Signals

Firm fixed price contract provides cost certainty.
Full and open competition suggests competitive pricing.
Supports domestic agriculture and food production.

Sector Analysis

The procurement falls under the food manufacturing and agricultural products sector. Spending benchmarks for similar commodity contracts can vary widely based on type, quantity, and market conditions.

Small Business Impact

While this specific award went to JTM Provisions Co. Inc., the full and open competition process allows for small businesses to participate if they meet the requirements, potentially through subcontracting or by bidding on future similar solicitations.

Oversight & Accountability

The Department of Agriculture's Agricultural Marketing Service is responsible for this procurement, ensuring compliance with federal regulations and program objectives. Oversight would focus on delivery, quality, and adherence to contract terms.

Related Government Programs

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

Risk Flags

Potential for price increases due to commodity market volatility.
Logistical challenges in ensuring timely and safe delivery of perishable goods.
Dependence on a single supplier for a large quantity of a specific food item.
Ensuring equitable distribution to all intended recipient organizations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $28.3 million to JTM PROVISIONS CO INC. COMMODITIES FOR USG FOOD DONATIONS: 2000009495/4400001813/4100028220/PORK TACO FILLING CKD PKG-20/2 LB

Who is the contractor on this award?

The obligated recipient is JTM PROVISIONS CO INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $28.3 million.

What is the period of performance?

Start: 2023-08-08. End: 2024-07-02.

What is the historical pricing trend for this specific commodity, and how does this award compare to previous procurements?

Analyzing historical pricing data for bulk pork taco filling is crucial. Without specific historical data for this exact product and quantity, it's difficult to definitively benchmark. However, comparing this $28.3M award against similar USDA food donation procurements from the past 3-5 years would reveal if the current price reflects market fluctuations, inflation, or changes in sourcing and processing.

What are the specific quality and nutritional standards required for this pork taco filling, and how are they verified?

The contract likely specifies detailed quality assurance provisions, including nutritional content, ingredient sourcing, processing standards (e.g., HACCP), and packaging requirements. Verification typically involves pre-award inspections of facilities, ongoing quality control monitoring by the contractor, and government acceptance testing upon delivery to ensure compliance with USDA food safety and donation program standards.

How does the distribution plan for these donated food commodities ensure efficient delivery to intended recipients across different regions?

The distribution plan is a critical component, involving coordination between the USDA, warehousing facilities, and transportation providers. It must account for shelf-life, storage requirements (refrigeration), and proximity to food banks or other distribution points. Efficient delivery relies on robust logistics, potentially utilizing regional hubs and optimized transportation routes to minimize spoilage and delivery time.

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

Address: 200 SALES AVE, HARRISON, OH, 45030

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

Financial Breakdown

Contract Ceiling: $28,320,000

Exercised Options: $28,320,000

Current Obligation: $28,320,000

Actual Outlays: $28,314,782

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1423D0108

IDV Type: IDC

Timeline