USDA awards $2.8M for frozen pork chops to Calumet Diversified Meats Inc. under full and open competition
Contract Overview
Contract Amount: $2,812,167 ($2.8M)
Contractor: Calumet Diversified Meats Inc.
Awarding Agency: Department of Agriculture
Start Date: 2025-12-10
End Date: 2026-03-31
Contract Duration: 111 days
Daily Burn Rate: $25.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011085/4100033395/PORK CHOPS BNLS FRZ PKG-40/1 LB
Place of Performance
Location: PLEASANT PRAIRIE, KENOSHA County, WISCONSIN, 53158
Plain-Language Summary
Department of Agriculture obligated $2.8 million to CALUMET DIVERSIFIED MEATS INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011085/4100033395/PORK CHOPS BNLS FRZ PKG-40/1 LB Key points: 1. The contract focuses on frozen, boneless pork chops for food donations. 2. Calumet Diversified Meats Inc. is the sole awardee. 3. The contract is a firm-fixed-price definitive contract. 4. Competition was full and open after exclusion of sources.
Value Assessment
Rating: good
The price of $2,812,167.20 for 200,001.1085 lbs of pork chops appears reasonable given market fluctuations for commodities. Benchmarking against similar USDA food donation contracts would provide a more precise assessment.
Cost Per Unit: $14.00/lb
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value.
Taxpayer Impact: The use of firm-fixed-price contracts helps stabilize costs for taxpayers, ensuring the allocated funds cover the agreed-upon quantity and quality of goods.
Public Impact
Ensures availability of essential food items for federal food donation programs. Supports domestic agriculture and meat processing industries. Provides nutritional resources to vulnerable populations through USDA programs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price volatility in frozen pork commodity markets.
- Dependence on a single supplier for a critical food item.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Full and open competition promotes market efficiency.
Sector Analysis
This contract falls within the agricultural commodities sector, specifically focusing on meat processing and distribution for federal food assistance programs. Spending in this area is crucial for supporting domestic agriculture and ensuring food security.
Small Business Impact
The data indicates this contract was not awarded to a small business (sb: false). Further analysis would be needed to determine if small businesses participated in the bidding process or if subcontracting opportunities exist.
Oversight & Accountability
The Department of Agriculture's Agricultural Marketing Service is responsible for this procurement. Oversight would involve monitoring contract performance, delivery schedules, and adherence to quality specifications to ensure taxpayer funds are used effectively.
Related Government Programs
- Animal (except Poultry) Slaughtering
- Department of Agriculture Contracting
- Agricultural Marketing Service Programs
Risk Flags
- Potential supply chain disruption risk.
- Lack of small business participation.
- Dependence on a single awardee.
- Market price volatility for pork commodities.
Tags
animal-except-poultry-slaughtering, department-of-agriculture, wi, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Agriculture awarded $2.8 million to CALUMET DIVERSIFIED MEATS INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000011085/4100033395/PORK CHOPS BNLS FRZ PKG-40/1 LB
Who is the contractor on this award?
The obligated recipient is CALUMET DIVERSIFIED MEATS INC..
Which agency awarded this contract?
Awarding agency: Department of Agriculture (Agricultural Marketing Service).
What is the total obligated amount?
The obligated amount is $2.8 million.
What is the period of performance?
Start: 2025-12-10. End: 2026-03-31.
What is the historical pricing trend for frozen pork chops procured by the USDA for donation programs?
Historical pricing data for frozen pork chops procured by the USDA for donation programs would reveal trends influenced by factors such as livestock market conditions, feed costs, and overall supply and demand. Analyzing this data can help determine if the current award price of $14.00/lb is competitive relative to past procurements and identify potential cost-saving opportunities or areas of concern for future contracts.
What are the specific risks associated with relying on a single supplier for a critical food commodity like pork chops?
Relying on a single supplier for pork chops introduces risks such as supply chain disruptions due to unforeseen events (e.g., natural disasters, labor issues, disease outbreaks), potential for price gouging if competition is limited in practice despite the award method, and reduced flexibility in responding to changes in demand or quality requirements. This concentration of risk could impact the timely and consistent delivery of food donations.
How effectively does the 'full and open competition after exclusion of sources' method ensure optimal value for taxpayer dollars in this specific procurement?
The 'full and open competition after exclusion of sources' method aims to maximize value by allowing all eligible sources to compete, while potentially excluding specific sources for defined reasons. Its effectiveness in ensuring optimal value depends on the clarity and justification for source exclusion, the number of actual bidders, and the competitiveness of the bids received. If the exclusion did not unduly limit competition, it likely facilitated fair price discovery.
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: 123J1426B0062
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 10000 80TH AVE, PLEASANT PRAIRIE, WI, 53158
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,812,167
Exercised Options: $2,812,167
Current Obligation: $2,812,167
Actual Outlays: $1,736,927
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-12-10
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-03-12
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