USDA awards $21.3M for beef commodities, with CAVINESS BEEF PACKERS securing the contract

Contract Overview

Contract Amount: $21,280,600 ($21.3M)

Contractor: Caviness Beef Packers, Limited

Awarding Agency: Department of Agriculture

Start Date: 2025-09-15

End Date: 2025-12-31

Contract Duration: 107 days

Daily Burn Rate: $198.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010965/4100032953/BEEF SPP PTY 85/15 FRZ 2.0 MMA CTN-40 LB,BEEF 100% PTY 85/15 FRZ 2.0MMA CTN-40 LB,BEEF COARSE GROUND FRZ CTN-60 LB,BEEF FINE GROUND FRZ CTN-40 LB,BEEF FINE GROUND FRZ PKG-40/1 LB,BEEF 100% PTY

Place of Performance

Location: AMARILLO, RANDALL County, TEXAS, 79118

State: Texas Government Spending

Plain-Language Summary

Department of Agriculture obligated $21.3 million to CAVINESS BEEF PACKERS, LIMITED for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010965/4100032953/BEEF SPP PTY 85/15 FRZ 2.0 MMA CTN-40 LB,BEEF 100% PTY 85/15 FRZ 2.0MMA CTN-40 LB,BEEF COARSE GROUND FRZ CTN-60 LB,BEEF FINE GROUND FRZ CTN-40 LB,BEEF FINE GROUND FRZ PKG-40/1 LB,BEEF 100% PTY Key points: 1. The contract focuses on providing various forms of frozen beef, including 85/15 ground beef. 2. The award is a firm-fixed-price definitive contract, indicating price certainty for the government. 3. The contract duration is approximately 107 days, suggesting a short-term supply need. 4. The primary recipient is the Department of Agriculture, likely for food donation programs. 5. The geographic focus appears to be Texas, based on the state code provided. 6. The contractor, CAVINESS BEEF PACKERS, LIMITED, operates within the animal slaughtering industry.

Value Assessment

Rating: fair

The total award amount is $21,280,600. Benchmarking this against similar commodity contracts for food donations is challenging without more specific data on quantity, grade, and delivery terms. However, the firm-fixed-price structure suggests an attempt to control costs. The value proposition hinges on the government's ability to procure these specific beef products at a competitive rate through the awarded mechanism.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 9 bidders suggests a reasonably competitive environment for this specific commodity. This level of competition is generally favorable for price discovery and potentially achieving better value for the government.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

Beneficiaries include recipients of U.S. government food donation programs, potentially including food banks and other charitable organizations. The services delivered involve the supply of essential protein in the form of frozen beef products. The geographic impact is primarily focused on Texas, as indicated by the state code. Workforce implications are likely within the meat processing and logistics sectors associated with CAVINESS BEEF PACKERS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in the beef market impacting the fixed price over the contract term.
Logistical challenges in distributing perishable goods across the specified region.
Ensuring consistent quality and adherence to specifications for donated food products.

Positive Signals

Award to a single, established supplier for a critical commodity.
Firm-fixed-price contract provides budget certainty.
Full and open competition suggests a robust bidding process.

Sector Analysis

This contract falls within the broader agricultural and food processing sector, specifically focusing on meat production and supply. The market for government food procurement is significant, driven by various domestic and international assistance programs. Comparable spending benchmarks would involve analyzing other large-scale commodity purchases for food aid or domestic nutrition programs.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Analysis of subcontracting opportunities for small businesses would require further investigation into the contractor's practices and the nature of the supply chain for beef processing.

Oversight & Accountability

Oversight for this contract would likely be managed by the Department of Agriculture's Agricultural Marketing Service. Accountability measures would include adherence to delivery schedules, product specifications, and payment terms. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics may not be publicly available.

Related Government Programs

USDA Food Purchase Programs
Commodity Supplemental Food Program
National School Lunch Program
Food Bank Network Support

Risk Flags

Perishable Goods Logistics
Market Price Volatility
Short-Term Supply Chain Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $21.3 million to CAVINESS BEEF PACKERS, LIMITED. COMMODITIES FOR USG FOOD DONATIONS: 2000010965/4100032953/BEEF SPP PTY 85/15 FRZ 2.0 MMA CTN-40 LB,BEEF 100% PTY 85/15 FRZ 2.0MMA CTN-40 LB,BEEF COARSE GROUND FRZ CTN-60 LB,BEEF FINE GROUND FRZ CTN-40 LB,BEEF FINE GROUND FRZ PKG-40/1 LB,BEEF 100% PTY

Who is the contractor on this award?

The obligated recipient is CAVINESS BEEF PACKERS, LIMITED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.3 million.

What is the period of performance?

Start: 2025-09-15. End: 2025-12-31.

What is the historical spending pattern of the Agricultural Marketing Service on beef commodities?

Analyzing the historical spending patterns of the Agricultural Marketing Service (AMS) on beef commodities requires access to historical contract databases. Generally, AMS procures large quantities of food products to support various domestic and international feeding programs. Spending can fluctuate based on agricultural market prices, program needs, and congressional appropriations. For instance, during periods of agricultural surplus or increased demand for food assistance, AMS spending on commodities like beef might increase. Conversely, market volatility or shifts in program priorities could lead to decreased spending. Without specific historical data for this contract vehicle or similar beef procurements, it's difficult to provide precise figures, but AMS is a significant purchaser of agricultural goods.

How does the unit price of this beef contract compare to market rates for similar products?

Determining the precise unit price comparison for this contract is challenging without knowing the exact quantities and specific cuts of beef procured. The contract specifies various forms of frozen beef (e.g., 85/15 ground beef, coarse ground, fine ground) in different packaging and weights. To benchmark effectively, one would need to identify comparable market data for these specific items, considering factors like grade (e.g., USDA Select, Choice), fat content, packaging, and delivery terms. Generally, government contracts aim for competitive pricing, but the 'firm-fixed-price' nature means the government is locked into the agreed price. A detailed analysis would involve comparing the implied per-pound cost across the different beef types against current wholesale or retail market prices, adjusted for bulk purchasing and delivery logistics.

What are the potential risks associated with procuring perishable goods like beef through a short-term contract?

Procuring perishable goods like beef through a short-term contract (107 days) presents several risks. Firstly, there's a risk of supply chain disruptions; if the contractor faces issues with processing, transportation, or raw material availability, it could lead to delivery delays, impacting the intended beneficiaries of the food donation programs. Secondly, the short duration might limit the contractor's ability to optimize production and logistics, potentially leading to less favorable pricing than a longer-term commitment might offer. Thirdly, ensuring consistent quality and freshness throughout the delivery period is critical. Any spoilage or quality degradation would represent a loss of taxpayer funds and a failure to meet program objectives. Finally, the government might incur higher administrative costs if it needs to re-compete or manage multiple short-term contracts frequently.

What is CAVINESS BEEF PACKERS, LIMITED's track record with federal contracts?

Assessing CAVINESS BEEF PACKERS, LIMITED's track record with federal contracts requires searching federal procurement databases like SAM.gov or FPDS. A review would typically look at the number of contracts awarded, their value, the agencies involved, and performance history. Companies that have successfully completed previous government contracts, especially those involving food commodities, generally demonstrate a capacity to meet federal requirements regarding quality, delivery, and compliance. However, it's also important to check for any past performance issues, contract disputes, or terminations. Without specific data on their prior federal engagements, it's difficult to definitively assess their track record, but their selection for this significant award suggests they meet the necessary qualifications.

How does this contract align with the USDA's broader mission regarding food security and agricultural support?

This contract directly aligns with the USDA's mission to support American agriculture and ensure food security. By procuring beef commodities, the USDA is not only providing essential nutritional resources through donation programs but also supporting the domestic beef industry. Purchasing products from U.S. farmers and processors helps stabilize agricultural markets and maintain jobs within the sector. The Agricultural Marketing Service (AMS), which awarded this contract, plays a key role in facilitating the distribution of agricultural products to those in need, thereby contributing to both economic stability for producers and nutritional well-being for recipients.

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: SEALED BID

Solicitation ID: 123J1425B0492

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4206 E AMARILLO BLVD, AMARILLO, TX, 79107

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,280,600

Exercised Options: $21,280,600

Current Obligation: $21,280,600

Actual Outlays: $21,278,140

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline