USDA awards $26M for pulled pork to Goodman Food Products, Inc. under firm fixed-price contract

Contract Overview

Contract Amount: $25,979,712 ($26.0M)

Contractor: Goodman Food Products, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2024-04-12

End Date: 2024-12-31

Contract Duration: 263 days

Daily Burn Rate: $98.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010002/4400002068/4100029767/PORK PULLED CKD PKG-20/2 LB

Place of Performance

Location: INGLEWOOD, LOS ANGELES County, CALIFORNIA, 90302

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $26.0 million to GOODMAN FOOD PRODUCTS, INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010002/4400002068/4100029767/PORK PULLED CKD PKG-20/2 LB Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The firm fixed-price contract type indicates that the price is set and unlikely to change, providing cost certainty. 3. The contract duration of 263 days suggests a focused, short-term need for the specified commodities. 4. The award is managed by the Agricultural Marketing Service, indicating a focus on agricultural commodity procurement. 5. The North American Industry Classification System (NAICS) code 311611 points to the animal slaughtering industry, specifically for non-poultry animals. 6. The contract is for commodities used in USG food donations, highlighting its role in federal food assistance programs.

Value Assessment

Rating: good

The contract value of $25,979,712.48 for 200,000+ pounds of pulled pork appears reasonable given the scale of a federal food donation program. Benchmarking against similar large-scale commodity procurements for food banks or disaster relief would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 8 bidders indicates a healthy level of competition for this significant food commodity contract. This competitive environment is expected to drive favorable pricing for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to obtain the best possible price for the food commodities.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USG donation programs. The service delivered is the provision of pulled pork commodities, a key component of nutritional support. The geographic impact is national, as these donated commodities are distributed across the United States. The contract supports the agricultural sector, specifically meat processing and distribution, potentially impacting jobs in these areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in raw materials impacting future contract costs if not adequately hedged.
Logistical challenges in distributing large quantities of perishable food items nationwide.
Ensuring consistent quality and safety standards across all delivered product batches.

Positive Signals

Firm fixed-price contract provides budget certainty for the government.
Full and open competition suggests a competitive market and potentially good pricing.
Award to an established food products company likely ensures reliable supply chain management.

Sector Analysis

This contract falls within the broader food manufacturing and processing sector, specifically focusing on meat products. The market for large-scale commodity procurement for government programs is significant, often involving specialized suppliers capable of meeting volume and regulatory requirements. Comparable spending benchmarks would involve analyzing other large federal food purchase contracts, such as those for school lunch programs or military rations.

Small Business Impact

The contract does not indicate any specific small business set-aside. While Goodman Food Products, Inc. is the prime contractor, there is potential for subcontracting opportunities within the food processing and logistics industries, which could indirectly benefit small businesses. However, without specific subcontracting plans, the direct impact on small businesses is unclear.

Oversight & Accountability

Oversight is likely managed by the Department of Agriculture's Agricultural Marketing Service, which is responsible for procurement and distribution of agricultural commodities. Accountability measures are inherent in the firm fixed-price contract terms and delivery schedules. Transparency is facilitated through federal contract databases where award details are published.

Related Government Programs

National School Lunch Program
Food Bank Assistance Programs
Disaster Relief Food Supplies
Department of Defense Food Procurement

Risk Flags

Potential for price volatility in pork commodities.
Logistical complexity of large-scale food distribution.
Ensuring consistent product quality and safety across large batches.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $26.0 million to GOODMAN FOOD PRODUCTS, INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000010002/4400002068/4100029767/PORK PULLED CKD PKG-20/2 LB

Who is the contractor on this award?

The obligated recipient is GOODMAN FOOD PRODUCTS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26.0 million.

What is the period of performance?

Start: 2024-04-12. End: 2024-12-31.

What is the historical spending pattern for similar food commodity contracts by the USDA's Agricultural Marketing Service?

Analyzing historical spending for similar commodity contracts by the USDA's Agricultural Marketing Service requires access to detailed procurement data over several fiscal years. Typically, the AMS procures a wide range of agricultural products, including meats, dairy, fruits, and vegetables, to support various domestic and international food assistance programs. Spending patterns can fluctuate based on agricultural market conditions, program needs, and congressional appropriations. For instance, during periods of agricultural surplus or increased demand for food aid, AMS contract awards might increase in volume and value. Conversely, budget constraints or shifts in program priorities could lead to reduced spending. Benchmarking this $26 million award against the average value and frequency of similar pulled pork or other meat commodity contracts would provide context on its scale and significance within the AMS's procurement portfolio.

How does the per-pound cost of this pulled pork compare to market rates or other government procurements?

Determining the precise per-pound cost and comparing it to market rates or other government procurements requires detailed product specifications and volume data. The contract award is for $25,979,712.48, and while the quantity is listed as '2000010002/4400002068/4100029767/PORK PULLED CKD PKG-20/2 LB', the exact total poundage is not explicitly stated in the provided data snippet. Assuming the 'PKG-20/2 LB' refers to a 20-pound package and there are multiple such packages, a rough estimate could be made. However, without the total quantity in pounds, a direct per-pound calculation is impossible. Generally, large-scale government contracts aim for competitive pricing, and the firm fixed-price nature suggests the price was deemed acceptable at the time of award. A thorough comparison would involve obtaining the exact quantity and then benchmarking against commercial wholesale prices for pulled pork and other federal contracts for similar items, considering factors like grade, origin, and processing.

What are the specific quality and safety standards required for the pulled pork under this contract?

Federal contracts for food commodities, especially those intended for donation and consumption, typically include stringent quality and safety standards. While the provided data does not detail these specifications, it is highly probable that the contract mandates compliance with USDA regulations for meat processing, handling, and inspection. This would include adherence to Good Agricultural Practices (GAP) and Good Manufacturing Practices (GMP), as well as specific requirements for the type of pork (e.g., USDA Grade), processing methods (e.g., cooked, chilled), packaging (e.g., vacuum-sealed, frozen), and shelf-life. The contractor, Goodman Food Products, Inc., would be required to provide documentation and potentially undergo inspections to verify compliance. Failure to meet these standards could result in contract non-compliance, rejection of goods, and potential penalties.

What is Goodman Food Products, Inc.'s track record with federal food procurement contracts?

Assessing Goodman Food Products, Inc.'s track record with federal food procurement contracts would involve reviewing their past performance on similar awards from agencies like the USDA, Department of Defense, or FEMA. Publicly available contract databases (like FPDS or SAM.gov) can provide insights into previous awards, contract values, and performance ratings, if available. A positive track record typically includes successful past performance, adherence to delivery schedules, compliance with quality standards, and minimal contract disputes or terminations. If Goodman Food Products has a history of successfully fulfilling large-scale commodity contracts, it suggests reliability and capability. Conversely, any history of performance issues, such as late deliveries, quality complaints, or contract disputes, would be a risk indicator for this current award.

What is the anticipated impact of this contract on the supply chain for pulled pork in the US?

A contract of this magnitude, valued at approximately $26 million for pulled pork, can have a noticeable impact on the supply chain. It represents a significant demand pull for pork products, potentially influencing procurement decisions by the supplier and their upstream partners (e.g., hog farmers, processors). For Goodman Food Products, Inc., this award likely necessitates dedicated production capacity and robust logistical planning to fulfill the order within the specified timeframe. It could also lead to increased demand for specific cuts of pork suitable for pulled pork production. While this single contract might not drastically alter the overall national supply chain dynamics, it does represent a substantial commitment that requires careful management of sourcing, processing, and distribution resources. The firm fixed-price nature also means the contractor assumes the risk of price volatility in the pork market for the duration of the contract.

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: 123J1424B0251

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 E BEACH AVE, INGLEWOOD, CA, 90302

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

Financial Breakdown

Contract Ceiling: $25,979,712

Exercised Options: $25,979,712

Current Obligation: $25,979,712

Actual Outlays: $25,978,588

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1424D0045

IDV Type: IDC

Timeline