USDA awards $990K contract to Schenk Packing for frozen beef for food donations

Contract Overview

Contract Amount: $9,900,000 ($9.9M)

Contractor: Schenk Packing CO., Inc.

Awarding Agency: Department of Agriculture

Start Date: 2025-12-11

End Date: 2026-02-28

Contract Duration: 79 days

Daily Burn Rate: $125.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011089/4100033415/BEEF FINE GROUND FRZ CTN-40 LB

Place of Performance

Location: STANWOOD, SNOHOMISH County, WASHINGTON, 98292

State: Washington Government Spending

Plain-Language Summary

Department of Agriculture obligated $9.9 million to SCHENK PACKING CO., INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011089/4100033415/BEEF FINE GROUND FRZ CTN-40 LB Key points: 1. Contract awarded to Schenk Packing Co., Inc. for $990,000. 2. Product is frozen, fine ground beef in 40 lb cartons. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. Contract duration is 79 days, ending February 28, 2026. 5. This purchase falls under the Animal Slaughtering NAICS code.

Value Assessment

Rating: good

The contract value of $990,000 for 79 days of supply appears reasonable given the quantity and type of commodity. Benchmarking against similar USDA food donation contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract utilized 'Full and Open Competition After Exclusion of Sources', indicating a competitive process was intended. The specific reasons for excluding sources are not detailed but suggest a structured approach to ensure fair pricing.

Taxpayer Impact: The taxpayer impact is the $990,000 allocated for food commodities, which will support federal food donation programs aimed at alleviating hunger.

Public Impact

Ensures supply of essential food items for federal donation programs. Supports agricultural sector by purchasing processed beef products. Aids in food security initiatives by providing resources to those in need. Contract contributes to the operational needs of the Agricultural Marketing Service.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed justification for 'Exclusion of Sources' in competition.
Short contract duration may limit long-term supplier engagement.
No explicit mention of small business participation.

Positive Signals

Utilizes a competitive bidding process.
Supports a critical government function (food donations).
Clear contract end date and fixed price.

Sector Analysis

This contract falls within the broader agricultural and food processing sector. Spending benchmarks for similar commodity procurements by the USDA's Agricultural Marketing Service would be relevant for comparison.

Small Business Impact

The data indicates that small business participation was not a stated factor in this contract award (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed or if the nature of the procurement favored larger entities.

Oversight & Accountability

The Agricultural Marketing Service is responsible for this procurement. Oversight would involve ensuring contract terms are met, quality standards are upheld, and funds are disbursed appropriately.

Related Government Programs

Animal (except Poultry) Slaughtering
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential lack of transparency in source exclusion.
Short contract duration may not ensure long-term supply stability.
No explicit small business set-aside or participation noted.
Fixed price contract could pose risks if market prices fluctuate significantly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $9.9 million to SCHENK PACKING CO., INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000011089/4100033415/BEEF FINE GROUND FRZ CTN-40 LB

Who is the contractor on this award?

The obligated recipient is SCHENK PACKING CO., INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $9.9 million.

What is the period of performance?

Start: 2025-12-11. End: 2026-02-28.

What was the specific justification for excluding sources in the 'Full and Open Competition After Exclusion of Sources' process, and how did this impact price discovery?

The provided data does not detail the specific reasons for excluding sources. Typically, such exclusions are based on factors like unique capabilities, urgent needs, or prior performance. Without this information, it's difficult to definitively assess the impact on price discovery, though competitive processes generally aim to achieve fair market prices.

How does the unit cost of this frozen ground beef compare to similar USDA food donation procurements, and what are the potential risks associated with this pricing?

A direct unit cost comparison is not possible without knowing the exact yield and specific cuts within 'fine ground beef'. However, the overall contract value of $990,000 for an unspecified quantity over 79 days suggests a significant procurement. Risks could include overpayment if market prices are lower or under-supply if the fixed price is too low for sustained delivery.

What is the expected effectiveness of this contract in meeting the goals of the USG food donation program, considering the short duration and competition method?

The contract's effectiveness hinges on Schenk Packing's ability to deliver the specified quantity and quality of beef within the 79-day window. The 'Exclusion of Sources' method, if properly justified, should ensure a capable supplier is chosen. However, the short duration might necessitate follow-on contracts, potentially impacting the consistency of supply for the donation program.

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: 123J1426B0065

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8204 288TH ST NW, STANWOOD, WA, 98292

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

Financial Breakdown

Contract Ceiling: $9,900,000

Exercised Options: $9,900,000

Current Obligation: $9,900,000

Actual Outlays: $8,416,324

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline