USDA awards $7.5M for canned pork and chicken to Crider, Inc. under firm-fixed-price contract

Contract Overview

Contract Amount: $7,464,297 ($7.5M)

Contractor: Crider, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2025-12-11

End Date: 2026-03-31

Contract Duration: 110 days

Daily Burn Rate: $67.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011081/4100033401/PORK CAN-24/24 OZ,CHICKEN BONED CAN-24/12.5 OZ,CHICKEN BONED POUCH-36/10 OZ

Place of Performance

Location: STILLMORE, EMANUEL County, GEORGIA, 30464

State: Georgia Government Spending

Plain-Language Summary

Department of Agriculture obligated $7.5 million to CRIDER, INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011081/4100033401/PORK CAN-24/24 OZ,CHICKEN BONED CAN-24/12.5 OZ,CHICKEN BONED POUCH-36/10 OZ Key points: 1. Contract value appears reasonable given the quantity and type of food commodities procured. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. The contract duration of 110 days indicates a short-term need for these food items. 4. Firm fixed-price contract type shifts cost risk to the contractor, potentially stabilizing prices. 5. Procurement is managed by the Agricultural Marketing Service, focusing on food distribution. 6. The North American Industry Classification System (NAICS) code 311611 points to the meat processing sector.

Value Assessment

Rating: good

The contract value of approximately $7.5 million for 20,000 units of canned pork and chicken seems aligned with market prices for bulk food commodities. Benchmarking against similar government food procurements for humanitarian aid or domestic feeding programs would provide further context, but the scale of the award suggests a significant quantity of goods. The firm fixed-price structure is a standard approach for predictable cost management in such procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources may have been excluded for reasons outlined in the Federal Acquisition Regulation. The number of bidders is not specified, but the 'exclusion of sources' phrasing suggests a potentially narrower field than a standard full and open competition. This could impact price discovery if fewer qualified vendors were able to participate.

Taxpayer Impact: Taxpayers benefit from a competitive process, even with exclusions, as it aims to secure the best value. However, the specific reasons for source exclusion warrant scrutiny to ensure no artificial limitations were placed on competition, which could lead to higher costs.

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 (canned pork and chicken). Geographic impact is likely national, supporting various food banks and distribution networks. Workforce implications are primarily within the food processing and logistics sectors involved in fulfilling the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'exclusion of sources' could impact price efficiency.
Dependence on a single contractor (Crider, Inc.) for a specific set of commodities carries supply chain risk.
The short contract duration might necessitate rapid production and delivery, potentially increasing logistical costs.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Procurement through the Department of Agriculture aligns with its mission to support food security.
The contract specifies clear commodity types, ensuring the intended goods are delivered.

Sector Analysis

This contract falls within the broader food manufacturing and processing sector, specifically focusing on canned meats. The Agricultural Marketing Service (AMS) often procures commodities for various federal programs, including food assistance and international aid. The market for canned meats is mature, with several established players capable of fulfilling large government orders. Benchmarks for similar commodity procurements by government agencies can indicate competitive pricing, but specific contract details like quantity, packaging, and delivery timelines are crucial for accurate comparison.

Small Business Impact

The contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). Crider, Inc. is likely a large business. There is no explicit mention of subcontracting goals for small businesses within this award notice. The impact on the small business ecosystem would be minimal unless Crider, Inc. voluntarily engages small businesses for support services or raw material sourcing.

Oversight & Accountability

Oversight is likely managed by the Department of Agriculture's Agricultural Marketing Service, which is responsible for contract administration and ensuring compliance with terms and conditions. Accountability measures are embedded in the firm fixed-price contract, requiring delivery of specified goods. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

USDA Food Purchase Programs
National School Lunch Program
Commodity Supplemental Food Program
Food for Peace Program

Risk Flags

Potential for limited competition due to source exclusion.
Short contract duration may impact delivery efficiency and cost.
Dependence on a single awardee for specific commodities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $7.5 million to CRIDER, INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000011081/4100033401/PORK CAN-24/24 OZ,CHICKEN BONED CAN-24/12.5 OZ,CHICKEN BONED POUCH-36/10 OZ

Who is the contractor on this award?

The obligated recipient is CRIDER, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7.5 million.

What is the period of performance?

Start: 2025-12-11. End: 2026-03-31.

What is the historical spending pattern of the Agricultural Marketing Service (AMS) on similar canned meat commodities?

Analyzing historical spending by the AMS on canned pork and chicken provides crucial context for the current $7.5 million award. Data from previous years would reveal trends in contract values, quantities procured, and the number of contractors involved. For instance, if AMS typically spends $5-10 million annually on similar items, this award falls within that range. Conversely, a significant deviation might signal changes in program needs, market prices, or procurement strategies. Examining past contract durations and competition levels (e.g., sole-source vs. full and open) can also highlight shifts in how AMS approaches these procurements. Understanding these patterns helps assess whether the current award represents a routine purchase or a notable change in federal food commodity acquisition.

How does the unit price of the commodities in this contract compare to commercial market rates for bulk canned meats?

To assess value for money, the unit price of the canned pork and chicken procured under this contract needs comparison with commercial market rates. The contract specifies 24 oz cans of pork and 12.5 oz/10 oz pouches/cans of chicken. Calculating the price per ounce for each item and then comparing it to bulk wholesale prices for similar products from major food distributors or manufacturers is essential. Government contracts often benefit from economies of scale, potentially leading to lower unit costs than retail. However, factors like specific quality standards, packaging requirements, and delivery logistics can influence the final price. If the government's unit price is significantly higher than comparable commercial bulk rates, it may indicate potential inefficiencies or a lack of sufficient competition. Conversely, a lower unit price would suggest effective procurement.

What are the specific reasons for the 'exclusion of sources' in this 'Full and Open Competition After Exclusion of Sources' award?

The designation 'Full and Open Competition After Exclusion of Sources' implies that while the competition was intended to be broad, certain potential sources were deliberately excluded based on specific criteria outlined in the Federal Acquisition Regulation (FAR). Common reasons for such exclusions include national security concerns, requirements for specific security clearances, unique capabilities possessed by only a few firms, or prior performance issues with certain contractors. Without further details from the contracting agency (USDA's Agricultural Marketing Service), the exact rationale remains unclear. Understanding these reasons is critical for taxpayers, as it impacts the breadth of competition and potentially the final price. If exclusions were based on non-essential or arbitrary criteria, it could limit price discovery and lead to suboptimal value.

What is Crider, Inc.'s track record with federal food commodity contracts, particularly with the Department of Agriculture?

Evaluating Crider, Inc.'s past performance on federal contracts, especially those involving the Department of Agriculture (USDA) and similar food commodities, is vital for assessing risk and reliability. A review of their contract history would reveal their experience in fulfilling government requirements, adherence to delivery schedules, product quality, and overall compliance. Positive past performance suggests a lower risk for this current contract, indicating a higher likelihood of successful execution. Conversely, a history of contract disputes, late deliveries, or quality issues would raise concerns and warrant closer monitoring. Information on their capacity to handle large-volume food procurements and their financial stability would also contribute to a comprehensive assessment of their suitability as a contractor for this $7.5 million award.

How does the 110-day contract duration impact the logistics and potential cost of delivering these food commodities?

The relatively short duration of 110 days (approximately 3.5 months) for this contract has several implications for logistics and cost. It suggests a need for rapid fulfillment, potentially requiring Crider, Inc. to expedite production and distribution. This can sometimes lead to higher operational costs for the contractor, which may be reflected in the contract price, although the firm fixed-price structure aims to cap this risk for the government. From a logistical standpoint, it necessitates efficient supply chain management to ensure timely delivery of the specified quantities of canned pork and chicken. For the government, a shorter duration might be suitable for addressing immediate needs or specific program timelines, but it also means that subsequent procurement actions will be required sooner if this is a recurring need, adding to administrative overhead.

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: 123J1426B0058

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 PLANT AVE, STILLMORE, GA, 30464

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

Financial Breakdown

Contract Ceiling: $7,464,297

Exercised Options: $7,464,297

Current Obligation: $7,464,297

Actual Outlays: $1,324,395

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline