USDA Awards $10.6M for Frozen Chicken to Tyson Foods Under Full and Open Competition

Contract Overview

Contract Amount: $10,654,495 ($10.7M)

Contractor: Tyson Foods Inc.

Awarding Agency: Department of Agriculture

Start Date: 2025-08-20

End Date: 2026-02-26

Contract Duration: 190 days

Daily Burn Rate: $56.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010923/4100032783/CHICKEN OVEN ROASTED FRZ 8 PC CTN-30 LB,CHICKEN WHOLE BAGGED FRZ CTN-36-43 LB

Place of Performance

Location: NEW HOLLAND, LANCASTER County, PENNSYLVANIA, 17557

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Agriculture obligated $10.7 million to TYSON FOODS INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010923/4100032783/CHICKEN OVEN ROASTED FRZ 8 PC CTN-30 LB,CHICKEN WHOLE BAGGED FRZ CTN-36-43 LB Key points: 1. Contract awarded to a single, large business (Tyson Foods). 2. Firm Fixed Price contract for frozen chicken products. 3. Potential risk of limited future competition if Tyson is the primary supplier. 4. Spending falls within the broader agricultural commodities sector.

Value Assessment

Rating: fair

The contract value of $10.6M for frozen chicken is substantial. Benchmarking against similar large-scale commodity procurements is necessary to assess if the price is competitive, especially given the firm fixed price structure.

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. However, the award to a single entity, Tyson Foods, warrants further investigation into the number of bids received and the pricing discovered.

Taxpayer Impact: Taxpayer funds are being used for food donations, a program with social benefits. The efficiency of the procurement process and the final price will determine the optimal use of these funds.

Public Impact

Ensures supply of essential food items for federal donation programs. Supports agricultural sector and food processing industries. Potential impact on food banks and recipients of donated commodities. Price fluctuations in poultry markets could affect long-term value.

Waste & Efficiency Indicators

Waste Risk Score: 56 / 10

Warning Flags

Sole awardee to a large business
Limited visibility into bid competition details

Positive Signals

Awarded under full and open competition
Firm Fixed Price contract provides cost certainty

Sector Analysis

This contract falls under the agricultural commodities sector, specifically poultry processing. Spending benchmarks for similar large-volume food procurements by government agencies would provide context for this $10.6M award.

Small Business Impact

The contract was awarded to Tyson Foods, a large business. There is no indication of small business participation in this specific award, which is common for large-scale commodity procurements.

Oversight & Accountability

The Agricultural Marketing Service (AMS) is responsible for this procurement. Oversight should focus on ensuring the quality and timely delivery of the chicken products and verifying the competitive nature of the award.

Related Government Programs

Poultry Processing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for limited future competition
Dependence on a single large supplier
Lack of detailed bid comparison data
Price competitiveness requires further benchmarking

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $10.7 million to TYSON FOODS INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000010923/4100032783/CHICKEN OVEN ROASTED FRZ 8 PC CTN-30 LB,CHICKEN WHOLE BAGGED FRZ CTN-36-43 LB

Who is the contractor on this award?

The obligated recipient is TYSON FOODS INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.7 million.

What is the period of performance?

Start: 2025-08-20. End: 2026-02-26.

What was the total number of bids received for this solicitation, and how did the winning bid compare to others?

The provided data indicates 'full and open competition' but does not specify the number of bids received. A thorough review would require accessing the solicitation details to ascertain the level of competition and the pricing dynamics among bidders. This information is crucial for validating the fairness of the price and the effectiveness of the competition.

Are there any identified risks associated with relying on a single large supplier like Tyson Foods for a significant portion of federal food donations?

Relying on a single large supplier can pose risks such as supply chain disruptions, potential price increases in future contracts, and reduced leverage for the government. While Tyson Foods is a major player, diversifying suppliers or ensuring robust contingency plans could mitigate these risks and ensure consistent availability of donated food.

How does the unit cost of this frozen chicken compare to market rates for similar products procured by other government agencies or large institutions?

Without specific per-unit cost data or access to market rate benchmarks for comparable government procurements, it's difficult to definitively assess value. A detailed analysis comparing the price per pound or per case against industry standards and similar government contracts would be necessary to determine if this $10.6M award represents a cost-effective use of taxpayer funds.

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: 123J1425B0454

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2200, WEST DON TYSON PARKWAY, SPRINGDALE, AR, 72762

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: $10,654,495

Exercised Options: $10,654,495

Current Obligation: $10,654,495

Actual Outlays: $10,609,911

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline