USDA Awards $15.8M for Frozen Turkey Products to Jennie-O Turkey Store Inc

Contract Overview

Contract Amount: $15,791,268 ($15.8M)

Contractor: Jennie-O Turkey Store Inc

Awarding Agency: Department of Agriculture

Start Date: 2025-05-28

End Date: 2025-10-15

Contract Duration: 140 days

Daily Burn Rate: $112.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010780/4100032373/TURKEY BREAST DELI SLICED FRZ PKG 8/5 LB,TURKEY BREAST SMKD SLC FRZ PKG 8/5 LB,TURKEY BREAST DELI SLC FRZ PKG 20/2 LB,TURKEY TACO FILLING CTN-30 LB,TURKEY BREAST DELI FRZ CTN-40 LB,TURKEY BREA

Place of Performance

Location: WILLMAR, KANDIYOHI County, MINNESOTA, 56201

State: Minnesota Government Spending

Plain-Language Summary

Department of Agriculture obligated $15.8 million to JENNIE-O TURKEY STORE INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010780/4100032373/TURKEY BREAST DELI SLICED FRZ PKG 8/5 LB,TURKEY BREAST SMKD SLC FRZ PKG 8/5 LB,TURKEY BREAST DELI SLC FRZ PKG 20/2 LB,TURKEY TACO FILLING CTN-30 LB,TURKEY BREAST DELI FRZ CTN-40 LB,TURKEY BREA Key points: 1. Contract awarded to a single, well-known supplier. 2. Focus on frozen turkey products for food donations. 3. Firm Fixed Price contract type suggests price certainty. 4. Potential for price fluctuations in commodity markets.

Value Assessment

Rating: good

The contract value of $15.8M for turkey products appears reasonable given the quantity and type of goods. Benchmarking against similar USDA food procurement contracts for poultry 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, indicating multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The use of taxpayer funds for food donations aims to support food security programs, providing value through essential commodities.

Public Impact

Ensures supply of turkey products for federal food assistance programs. Supports agricultural sector by purchasing processed poultry. Provides nutritional resources to beneficiaries of donation programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for commodity price volatility impacting future procurements.
Reliance on a single vendor for a significant portion of the supply.

Positive Signals

Supports domestic agriculture and food supply chains.
Firm Fixed Price contract provides budget predictability.
Awarded through full and open competition.

Sector Analysis

This contract falls within the agricultural commodities sector, specifically processed poultry. The USDA frequently procures such items for its food donation programs, with typical contract values varying based on quantity and product type.

Small Business Impact

While the award went to a large supplier (Jennie-O), the procurement process under full and open competition allows for small businesses to participate as subcontractors or in future bids for similar commodities.

Oversight & Accountability

The Department of Agriculture's Agricultural Marketing Service oversees this procurement. Standard oversight mechanisms for food safety, quality, and delivery are expected to be in place.

Related Government Programs

Poultry Processing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Commodity price volatility.
Potential supply chain disruptions.
Dependence on specific agricultural outputs.
Logistical challenges in distribution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $15.8 million to JENNIE-O TURKEY STORE INC. COMMODITIES FOR USG FOOD DONATIONS: 2000010780/4100032373/TURKEY BREAST DELI SLICED FRZ PKG 8/5 LB,TURKEY BREAST SMKD SLC FRZ PKG 8/5 LB,TURKEY BREAST DELI SLC FRZ PKG 20/2 LB,TURKEY TACO FILLING CTN-30 LB,TURKEY BREAST DELI FRZ CTN-40 LB,TURKEY BREA

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 $15.8 million.

What is the period of performance?

Start: 2025-05-28. End: 2025-10-15.

What is the historical pricing trend for frozen turkey breast products procured by the USDA?

Analyzing historical USDA procurement data for similar frozen turkey products would reveal pricing trends over time. This analysis could identify seasonal variations, the impact of market fluctuations, and whether current pricing aligns with historical averages or shows significant deviation, thus informing future negotiation strategies and budget allocations for similar food donation initiatives.

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

The USDA mandates stringent quality and safety standards for all food procured for donation programs, adhering to federal regulations and inspection protocols. These typically include requirements for processing, handling, storage, and nutritional content, ensuring the products are safe for consumption and meet the nutritional needs of recipients. Compliance is verified through inspections and certifications.

How does the volume of this contract compare to typical annual USDA food donation procurements for turkey?

Comparing this contract's volume to historical annual USDA food donation procurements for turkey is crucial for assessing its scale. A significantly larger volume might indicate increased demand or a strategic shift in program focus, while a smaller volume could suggest adjustments in budget or program scope. This comparison helps contextualize the current award within the broader landscape of federal food assistance.

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: 123J1425B0330

Offers Received: 3

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: $15,791,268

Exercised Options: $15,791,268

Current Obligation: $15,791,268

Actual Outlays: $15,567,548

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline