USDA awards Tyson Foods $2.5M for frozen chicken drumsticks for food donations

Contract Overview

Contract Amount: $2,507,164 ($2.5M)

Contractor: Tyson Foods Inc.

Awarding Agency: Department of Agriculture

Start Date: 2025-12-11

End Date: 2026-03-31

Contract Duration: 110 days

Daily Burn Rate: $22.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011056/4100033443/CHICKEN DRUMSTICKS FROZEN PKG#8/5 LB

Place of Performance

Location: BROKEN BOW, MCCURTAIN County, OKLAHOMA, 74728

State: Oklahoma Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.5 million to TYSON FOODS INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011056/4100033443/CHICKEN DRUMSTICKS FROZEN PKG#8/5 LB Key points: 1. Contract awarded to Tyson Foods Inc. for frozen chicken drumsticks. 2. The contract is for a firm fixed price with a total value of $2,507,164. 3. Competition was full and open, indicating a competitive bidding process. 4. The contract duration is 110 days, with an end date of March 31, 2026.

Value Assessment

Rating: good

The contract price of $2,507,164 for 200,001.1056 lbs of chicken drumsticks appears reasonable given the market price for poultry products.

Cost Per Unit: $12.54 per lb

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally leads to competitive pricing.

Taxpayer Impact: The use of taxpayer funds for food donations through competitive procurement aims to maximize the value and reach of these programs.

Public Impact

Ensures availability of essential food items for donation programs. Supports domestic agriculture and food processing industries. Provides nutritional resources to vulnerable populations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Firm Fixed Price contract
Full and Open Competition
Clear end date for delivery

Sector Analysis

This contract falls within the broader food and agriculture sector, specifically poultry processing. Spending benchmarks for commodity procurement by the USDA are typically driven by market fluctuations and program needs.

Small Business Impact

While Tyson Foods Inc. is a large corporation, the procurement process under full and open competition allows for participation by businesses of all sizes, though large entities often have advantages in scale.

Oversight & Accountability

The Agricultural Marketing Service (AMS) within the USDA is responsible for overseeing commodity procurement. The contract's firm fixed price and defined delivery schedule provide clear accountability.

Related Government Programs

Poultry Processing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for price fluctuations in commodity markets impacting future procurements.
Dependence on a single large supplier for a significant quantity.
Logistical challenges in distribution to various donation points.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.5 million to TYSON FOODS INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000011056/4100033443/CHICKEN DRUMSTICKS FROZEN PKG#8/5 LB

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 $2.5 million.

What is the period of performance?

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

What is the historical pricing trend for frozen chicken drumsticks procured by the USDA?

Analyzing historical pricing data for similar USDA food donation contracts would provide a more robust benchmark. This would help determine if the current price of $12.54 per pound is competitive relative to past procurements, considering potential market volatility and inflation.

What are the specific food donation programs this procurement will support?

Understanding the specific programs, such as the National School Lunch Program or the Food Purchase and Distribution Program, clarifies the intended beneficiaries and the impact of this procurement. It also helps assess if the quantity and type of commodity align with program requirements and nutritional guidelines.

Are there any quality control or food safety measures specified in the contract beyond standard industry practices?

The contract specifies 'OK' for quality and safety, but further details on specific inspection protocols, certifications, or traceability requirements would offer greater assurance. This is crucial for ensuring the donated food meets safety standards for consumption by vulnerable populations.

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: 123J1426B0033

Offers Received: 5

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: $2,507,164

Exercised Options: $2,507,164

Current Obligation: $2,507,164

Actual Outlays: $1,566,930

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline