Tyson Foods awarded $4.77M contract for chicken breast for USG food donations

Contract Overview

Contract Amount: $4,771,354 ($4.8M)

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: $43.4K/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: 2000011056/4100033444/CHICKEN BREAST BNLS IQF PKG#10/3 LB

Place of Performance

Location: CUMMING, FORSYTH County, GEORGIA, 30040

State: Georgia Government Spending

Plain-Language Summary

Department of Agriculture obligated $4.8 million to TYSON FOODS INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011056/4100033444/CHICKEN BREAST BNLS IQF PKG#10/3 LB Key points: 1. Contract awarded to a single, large business, with no small business set-aside. 2. Firm fixed-price contract indicates price certainty for the government. 3. Contract duration of 110 days suggests a short-term need for these commodities. 4. The contract is for poultry processing, a standard commodity for food assistance programs. 5. Awarded by the Department of Agriculture's Agricultural Marketing Service, indicating a focus on food supply chain management.

Value Assessment

Rating: good

The awarded amount of $4.77 million for 20,000 lbs of chicken breast appears reasonable given market prices for bulk poultry. The firm fixed-price structure helps mitigate cost overruns. Benchmarking against similar USDA food donation contracts would provide further validation, but the quantity and type of product are standard for such programs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 5 bids suggests a healthy level of interest and competition for this type of commodity contract. This competitive process is expected to drive fair market pricing.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that typically leads to better pricing and value.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USG donation programs. Services delivered include the provision of frozen, boneless, skinless chicken breast. Geographic impact is national, as these donations are distributed through various food banks and aid organizations across the United States. Workforce implications are primarily within Tyson Foods' poultry processing facilities and distribution networks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation could limit opportunities for smaller enterprises in the food supply chain.
Reliance on a single large contractor for a significant portion of donated goods may pose supply chain risks if disruptions occur.

Positive Signals

Award to a well-established supplier like Tyson Foods suggests reliability in meeting delivery requirements.
Firm fixed-price contract provides budget certainty for the government agency.
Full and open competition indicates a robust bidding process.

Sector Analysis

The food processing and distribution sector is a critical component of the agricultural economy. This contract falls within the broader category of food commodities procurement, which is a recurring need for government agencies involved in food assistance and donation programs. The market for poultry processing is substantial, with major players like Tyson Foods dominating a significant share.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in fulfilling this specific contract are limited. The focus appears to be on leveraging the capabilities of large, established food producers.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The Agricultural Marketing Service (AMS) is responsible for managing the contract and ensuring compliance with its terms. The firm fixed-price nature of the contract simplifies some aspects of financial oversight. Any significant issues would likely be handled through contract close-out procedures or potential dispute resolution mechanisms.

Related Government Programs

USDA Food Donation Programs
National School Lunch Program
Commodity Supplemental Food Program
Emergency Food Assistance Program

Risk Flags

Potential price per pound anomaly
Lack of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $4.8 million to TYSON FOODS INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000011056/4100033444/CHICKEN BREAST BNLS IQF PKG#10/3 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 $4.8 million.

What is the period of performance?

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

What is the historical spending pattern for chicken breast procurement by the Department of Agriculture for food donation purposes?

Analyzing historical spending data for chicken breast procurement by the USDA for food donation programs would reveal trends in volume, pricing, and contractor selection. For instance, examining contracts from the past 3-5 fiscal years could indicate if Tyson Foods is a regular supplier for this commodity and whether the current award amount aligns with previous price points, adjusted for inflation and market fluctuations. Understanding the frequency and scale of these awards provides context for the current $4.77 million contract, helping to assess if it represents a typical procurement or an outlier in terms of value or quantity. This historical perspective is crucial for evaluating the long-term cost-effectiveness and strategic sourcing of essential food items for donation initiatives.

How does the per-pound cost of chicken breast in this contract compare to market rates and similar government contracts?

To assess the value for money, the per-pound cost of chicken breast in this contract needs to be benchmarked. The contract is for approximately 20,000 lbs at $4.77 million, which equates to roughly $238.50 per pound. This figure seems exceptionally high for bulk chicken breast, which typically ranges from $1 to $5 per pound depending on cuts, processing, and market conditions. A more detailed breakdown of the contract's quantity is needed, as 20,000 lbs at this price would be unprecedented. If the quantity is significantly larger, the per-pound cost might be more reasonable. Comparing this to recent USDA contracts for similar commodities, or even commercial bulk purchasing rates, is essential. If the per-pound cost remains high, it could indicate issues with pricing, the specific product specifications, or the competitive bidding process, warranting further investigation into the value proposition for taxpayers.

What are the specific product specifications for the chicken breast, and do they justify the awarded price?

The contract specifies 'CHICKEN BREAST BNLS IQF PKG#10/3 LB'. This indicates boneless, skinless chicken breast, individually quick frozen (IQF), packaged in 10-pound bags, with each bag containing approximately 3 pounds of chicken. While IQF processing and specific packaging can add to costs, the calculated per-pound price of approximately $238.50 (based on 20,000 lbs) remains extraordinarily high for chicken breast, even with premium processing. Standard market rates for bulk IQF boneless, skinless chicken breast typically fall within a much lower range. It is highly probable that the quantity '20000' in the data refers to something other than pounds, or there is a significant discrepancy in the provided data. Clarification on the exact quantity in pounds is critical to accurately assess if the specifications justify the awarded price. Without this, the price appears questionable.

What is Tyson Foods' track record with similar USDA food donation contracts?

Tyson Foods is a major supplier of poultry products and has a history of participating in government contracts, including those with the USDA. Their track record with food donation programs would likely involve supplying large quantities of meat products. A review of past performance evaluations, any past performance issues or disputes, and the volume of similar contracts awarded to Tyson would provide insight into their reliability and ability to meet the specific requirements of food assistance programs. Given their scale, they are often a primary source for such commodities. Assessing their history with the Agricultural Marketing Service (AMS) or other relevant USDA agencies would confirm their suitability and provide a basis for understanding the rationale behind awarding them this contract.

Are there any specific performance risks associated with this contract, given the short duration and commodity type?

The primary performance risks for this contract, despite its short 110-day duration, revolve around supply chain reliability and quality control. While Tyson Foods is a large, established supplier, disruptions in their production, transportation, or cold chain integrity could impact timely delivery of the chicken breast. The 'IQF' (individually quick frozen) specification is important for maintaining quality during storage and distribution, but any failure in the cold chain post-processing could lead to spoilage. Given the nature of food donations, ensuring the product meets safety and quality standards upon arrival at distribution points is paramount. The government will need to monitor adherence to delivery schedules and product quality closely throughout the contract period.

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: $4,771,354

Exercised Options: $4,771,354

Current Obligation: $4,771,354

Actual Outlays: $2,749,594

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline