USDA Awards $1.86M for Frozen Beef Products to Caviness Beef Packers Under Full and Open Competition

Contract Overview

Contract Amount: $18,650,060 ($18.7M)

Contractor: Caviness Beef Packers, Limited

Awarding Agency: Department of Agriculture

Start Date: 2025-12-11

End Date: 2026-03-06

Contract Duration: 85 days

Daily Burn Rate: $219.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011089/4100033418/BEEF SPP PTY 85/15 FRZ 2.0 MMA CTN-40 LB,BEEF 100% PTY 85/15 FRZ 2.0MMA 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

Place of Performance

Location: AMARILLO, RANDALL County, TEXAS, 79118

State: Texas Government Spending

Plain-Language Summary

Department of Agriculture obligated $18.7 million to CAVINESS BEEF PACKERS, LIMITED for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011089/4100033418/BEEF SPP PTY 85/15 FRZ 2.0 MMA CTN-40 LB,BEEF 100% PTY 85/15 FRZ 2.0MMA 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 Key points: 1. Contract awarded to Caviness Beef Packers for $1.86 million for various frozen beef products. 2. The contract falls under the 'Animal (except Poultry) Slaughtering' NAICS code. 3. Competition was full and open, suggesting a competitive bidding process. 4. The contract is a definitive contract with a firm fixed price. 5. The contract duration is 85 days, with an estimated completion date in March 2026.

Value Assessment

Rating: good

The contract value of $1.86 million for 85 days of supply appears reasonable given the quantity and type of beef products. Benchmarking against similar government food donation contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The competitive nature of this award is expected to result in fair pricing, maximizing the value of taxpayer funds allocated for food donations.

Public Impact

Ensures supply of essential food commodities for U.S. government food donation programs. Supports domestic agriculture and food processing industries. Provides nutritional resources to beneficiaries of food assistance programs. The contract's fixed price nature protects against cost overruns. Awarding to a single vendor streamlines logistics for this specific commodity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in beef commodities impacting future procurements.
Logistical challenges in distributing frozen goods across various locations.
Dependence on a single supplier for a critical food item.

Positive Signals

Full and open competition promotes fair pricing.
Firm fixed price contract provides budget certainty.
Supports domestic agricultural sector.
Clear contract duration and delivery schedule.

Sector Analysis

This contract falls within the Food Manufacturing sector, specifically related to meat processing. Government spending in this area supports national food security initiatives and agricultural supply chains. Benchmarks for similar commodity procurements would be necessary for a detailed comparison.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were solicited or participated in the bidding process.

Oversight & Accountability

The contract is a definitive contract, suggesting it has undergone standard procurement processes. Oversight would involve monitoring delivery schedules, product quality, and adherence to contract terms by the Department of Agriculture's Agricultural Marketing Service.

Related Government Programs

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

Risk Flags

Potential for price volatility in beef commodities.
Dependence on a single supplier.
Logistical complexity of frozen food distribution.
Short contract duration may limit long-term planning.
No small business award noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $18.7 million to CAVINESS BEEF PACKERS, LIMITED. COMMODITIES FOR USG FOOD DONATIONS: 2000011089/4100033418/BEEF SPP PTY 85/15 FRZ 2.0 MMA CTN-40 LB,BEEF 100% PTY 85/15 FRZ 2.0MMA 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

Who is the contractor on this award?

The obligated recipient is CAVINESS BEEF PACKERS, LIMITED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.7 million.

What is the period of performance?

Start: 2025-12-11. End: 2026-03-06.

What is the estimated per-pound cost of the beef products under this contract, and how does it compare to market rates?

The total contract value is $1,865,0060 for 85 days of supply. Without specific weight details for each beef product type, calculating an exact per-pound cost is difficult. However, a rough estimate can be made by dividing the total value by the total pounds if that information were available. Comparing this to average market prices for similar cuts of frozen beef would reveal if the government secured a competitive price.

What are the potential risks associated with relying on a single supplier for these beef products, especially given the short contract duration?

Relying on a single supplier, Caviness Beef Packers, for these essential beef products carries risks such as potential supply chain disruptions due to unforeseen events (e.g., plant issues, transportation problems, or natural disasters). The short 85-day duration might also limit the supplier's ability to scale production efficiently, potentially leading to shortages or delays if demand surges unexpectedly.

How effectively does this contract support the goals of the USG food donation programs in terms of nutritional value and reach?

This contract directly supports USG food donation programs by procuring specific beef products, which are a source of protein and nutrients. The effectiveness in terms of nutritional value depends on the specific cuts and fat content specified. The reach is determined by the distribution network of the food donation programs, which this contract aims to supply efficiently with the contracted beef items.

Industry Classification

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

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1426B0065

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4206 E AMARILLO BLVD, AMARILLO, TX, 79107

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,650,060

Exercised Options: $18,650,060

Current Obligation: $18,650,060

Actual Outlays: $15,436,657

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline