Department of Agriculture awards $16.7M contract for frozen beef products to Cherry Meat Packers, Inc

Contract Overview

Contract Amount: $16,759,100 ($16.8M)

Contractor: Cherry Meat Packers, Inc

Awarding Agency: Department of Agriculture

Start Date: 2025-09-15

End Date: 2025-12-31

Contract Duration: 107 days

Daily Burn Rate: $156.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010965/4100032956/BEEF SPP PTY 85/15 FRZ 2.0 MMA 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 PATTY LEAN FRZ CTN-40 LB

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60632

State: Illinois Government Spending

Plain-Language Summary

Department of Agriculture obligated $16.8 million to CHERRY MEAT PACKERS, INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010965/4100032956/BEEF SPP PTY 85/15 FRZ 2.0 MMA 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 PATTY LEAN FRZ CTN-40 LB Key points: 1. Contract awarded through full and open competition, indicating a competitive bidding process. 2. The contract duration is 107 days, suggesting a short-term need for these commodities. 3. The fixed-price contract type aims to control costs for the government. 4. The awardee, Cherry Meat Packers, Inc., is based in Illinois. 5. The contract is for various frozen beef products, including patties and ground beef. 6. The North American Industry Classification System (NAICS) code 311611 points to animal slaughtering and processing.

Value Assessment

Rating: good

The contract value of $16.7 million for 107 days of frozen beef supply appears reasonable given the quantities and types of products specified. Benchmarking against similar government food donation contracts would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overruns for the government, assuming the initial pricing was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which implies that while the competition was broad, there might have been specific reasons for excluding certain sources initially. The presence of 9 bidders suggests a healthy level of competition, which typically leads to better pricing for the government.

Taxpayer Impact: The competitive bidding process for this contract is beneficial for taxpayers as it likely resulted in a more favorable price compared to a sole-source award.

Public Impact

Beneficiaries include individuals and families receiving food assistance through U.S. government donation programs. Services delivered include the provision of essential protein sources (frozen beef products). Geographic impact is primarily within Illinois, where the contractor is located, but the food products will be distributed nationally. Workforce implications include employment at Cherry Meat Packers, Inc. and potentially in the logistics and distribution sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting timely delivery of essential food items.
Quality control concerns for perishable food items requiring strict adherence to safety standards.
Price volatility of beef commodities could impact the long-term cost-effectiveness if this becomes a recurring contract.

Positive Signals

Award to an established company with a specific industry classification (animal slaughtering).
Use of a firm fixed-price contract to ensure cost certainty for the government.
Competitive bidding process likely secured a fair market price for the beef products.

Sector Analysis

This contract falls within the broader food manufacturing and processing sector, specifically focusing on meat products. The market for government food procurement is substantial, with agencies like the Department of Agriculture regularly purchasing commodities for various programs, including domestic food assistance and international aid. The value of this specific award is moderate within the context of large federal food contracts.

Small Business Impact

The contract was awarded to Cherry Meat Packers, Inc., and there is no explicit indication of a small business set-aside. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the supply chain or distribution of these beef products.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The Agricultural Marketing Service (AMS) within the Department of Agriculture is responsible for managing this contract. Transparency is maintained through public contract databases. Any significant issues would likely fall under the purview of the USDA's Office of Inspector General.

Related Government Programs

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

Risk Flags

Potential supply chain vulnerabilities
Food safety and quality control risks
Price volatility of beef commodities

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $16.8 million to CHERRY MEAT PACKERS, INC. COMMODITIES FOR USG FOOD DONATIONS: 2000010965/4100032956/BEEF SPP PTY 85/15 FRZ 2.0 MMA 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 PATTY LEAN FRZ CTN-40 LB

Who is the contractor on this award?

The obligated recipient is CHERRY MEAT PACKERS, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.8 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 (AMS) on frozen beef products?

Analyzing historical spending by the AMS on similar frozen beef products would provide crucial context for this $16.7 million award. This includes examining contract values, awardees, and durations over the past several fiscal years. Understanding trends in pricing, volume, and competition can help determine if this current contract represents a fair market price and efficient use of taxpayer funds. For instance, if AMS has consistently awarded similar contracts in the $15-20 million range over 3-4 month periods, this award would align with historical patterns. Conversely, a significant deviation could warrant further investigation into the specific market conditions or product specifications driving the cost.

How does the pricing of this contract compare to market rates for frozen beef products?

A detailed price comparison requires access to specific commodity market data for the types and cuts of beef included in the contract (e.g., 85/15 lean ground beef, lean patties). Benchmarking against indices like the USDA's Livestock and Meat International Trade data, or private sector commodity price trackers, would be necessary. The contract's firm fixed-price nature suggests the government has locked in a price, but assessing its competitiveness relies on comparing the per-pound or per-unit cost against prevailing market rates at the time of award. Factors like bulk purchasing discounts, specific packaging requirements, and delivery timelines can influence these comparisons.

What are the specific quality assurance and food safety protocols required for this contract?

Given the nature of the commodity (frozen beef), stringent quality assurance and food safety protocols are paramount. The contract likely mandates compliance with USDA regulations, including inspection by the Food Safety and Inspection Service (FSIS), adherence to HACCP (Hazard Analysis and Critical Control Points) plans, and specific temperature control requirements during storage and transport. Documentation of compliance, such as inspection certificates and lot traceability, would be essential. The effectiveness of these protocols directly impacts public health and the integrity of the food donation program.

What is the track record of Cherry Meat Packers, Inc. in fulfilling government contracts?

Investigating Cherry Meat Packers, Inc.'s past performance on federal contracts is crucial for assessing risk. This involves reviewing their contract history, including any awards, terminations, or performance evaluations from agencies like the Department of Defense (DOD) or other USDA branches. A history of timely delivery, adherence to specifications, and positive past performance reviews would indicate a lower risk profile. Conversely, any documented instances of contract deficiencies, quality issues, or disputes could signal potential challenges in fulfilling this current award.

What is the intended distribution channel and end-use for these donated beef products?

Understanding the distribution channels and end-use of these beef products is key to evaluating the program's impact. These commodities are likely destined for domestic food assistance programs, such as food banks, pantries, or direct distribution to low-income households through programs administered by the USDA or partner organizations. The specific packaging (e.g., 40 lb cartons) suggests bulk distribution. Clarity on the logistics ensures the products reach intended beneficiaries efficiently and safely, maximizing the value of the government's investment.

Industry Classification

NAICS: Manufacturing › Animal Slaughtering and Processing › Animal (except Poultry) Slaughtering

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1425B0492

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4750 S CALIFORNIA AVE, CHICAGO, IL, 60632

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

Financial Breakdown

Contract Ceiling: $16,759,100

Exercised Options: $16,759,100

Current Obligation: $16,759,100

Actual Outlays: $16,756,779

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline