USDA awards Tyson Foods $28.5M for bulk chilled chicken for food donations

Contract Overview

Contract Amount: $28,515,600 ($28.5M)

Contractor: Tyson Foods Inc.

Awarding Agency: Department of Agriculture

Start Date: 2025-09-15

End Date: 2025-12-31

Contract Duration: 107 days

Daily Burn Rate: $266.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010990/4100032985/CHICKEN LARGE CHILLED -BULK

Place of Performance

Location: NEW HOLLAND, LANCASTER County, PENNSYLVANIA, 17557

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Agriculture obligated $28.5 million to TYSON FOODS INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010990/4100032985/CHICKEN LARGE CHILLED -BULK Key points: 1. Significant award to a single large business. 2. Focus on food security and donation programs. 3. Potential for price volatility in commodity markets. 4. Poultry processing sector is mature with established players.

Value Assessment

Rating: good

The award price of $28.5M for chicken is within a reasonable range for bulk commodity purchases. Benchmarking against similar large-scale food procurement contracts would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.

Taxpayer Impact: The contract supports vital food donation programs, ensuring taxpayer-funded resources reach those in need efficiently.

Public Impact

Supports national food assistance programs. Ensures availability of essential protein for vulnerable populations. Leverages private sector capacity for public good.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single large supplier.
Potential for commodity price fluctuations impacting final cost.
Logistical challenges in distribution.

Positive Signals

Supports critical food donation initiatives.
Utilizes established supply chains for efficiency.
Competitive bidding process likely secured favorable pricing.

Sector Analysis

The poultry processing sector is a significant part of the agricultural economy. Spending on food commodities for federal programs is substantial, with prices influenced by market conditions and scale.

Small Business Impact

This contract was awarded to a large business (Tyson Foods Inc.) and does not appear to include specific provisions or set-asides for small businesses.

Oversight & Accountability

The Agricultural Marketing Service (AMS) oversees this contract, ensuring compliance with terms and conditions. Regular reporting and oversight are expected to manage performance and accountability.

Related Government Programs

Poultry Processing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Single large business award
Commodity price volatility
Potential supply chain disruptions
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $28.5 million to TYSON FOODS INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000010990/4100032985/CHICKEN LARGE CHILLED -BULK

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 $28.5 million.

What is the period of performance?

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

What is the historical price trend for bulk chilled chicken, and how does this contract's pricing compare?

Analyzing historical price trends for bulk chilled chicken over the past several years would provide crucial context. Comparing this contract's pricing against those trends and against benchmark prices from other government agencies or large private sector buyers would reveal if the $28.5M award represents a favorable or unfavorable price point, considering market fluctuations and volume.

What are the specific risks associated with relying on Tyson Foods for such a large volume of chicken, and are there contingency plans?

Risks include potential supply chain disruptions, quality control issues, or unforeseen market shifts impacting Tyson's ability to fulfill the contract. Contingency plans might involve identifying alternative suppliers, having backup logistics providers, or establishing clear performance metrics and penalties within the contract to ensure timely delivery and quality standards are met.

How effectively does this contract contribute to the USDA's food donation program goals, and what is the measurable impact on food insecurity?

The effectiveness can be measured by the quantity and quality of chicken distributed to food banks and other donation recipients, and the subsequent reduction in reported food insecurity in targeted areas. Tracking the logistical efficiency of delivery and the satisfaction of recipient organizations would also indicate the contract's success in meeting program objectives.

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: 123J1425B0510

Offers Received: 7

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: $28,515,600

Exercised Options: $28,515,600

Current Obligation: $28,515,600

Actual Outlays: $28,515,600

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline