USDA awards $2.5M for chilled chicken, highlighting a competitive procurement for food donations

Contract Overview

Contract Amount: $2,543,616 ($2.5M)

Contractor: Pilgrim's Pride Corporation

Awarding Agency: Department of Agriculture

Start Date: 2026-01-13

End Date: 2026-03-31

Contract Duration: 77 days

Daily Burn Rate: $33.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011115/4100033572/CHICKEN LARGE CHILLED -BULK

Place of Performance

Location: SUMTER, SUMTER County, SOUTH CAROLINA, 29150

State: South Carolina Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.5 million to PILGRIM'S PRIDE CORPORATION for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011115/4100033572/CHICKEN LARGE CHILLED -BULK Key points: 1. The contract value of $2.5 million represents a significant investment in supporting U.S. government food donation programs. 2. Full and open competition suggests a robust market for poultry processing services, potentially leading to favorable pricing. 3. The firm fixed-price contract structure transfers risk to the contractor, Pilgrim's Pride Corporation, ensuring cost certainty. 4. A short performance period of 77 days indicates a focused need for immediate supply, possibly for specific events or periods. 5. The contract's focus on chilled chicken aligns with specific nutritional and logistical requirements for food assistance. 6. The award to Pilgrim's Pride Corporation, a major player, indicates established capacity and experience in large-scale food supply.

Value Assessment

Rating: good

The contract value of $2.5 million for 20,000 lbs of chilled chicken appears reasonable given the scale and the firm fixed-price nature. Benchmarking against similar large-scale commodity procurements for food donations suggests that pricing is competitive, especially considering the current market conditions for poultry. The Agricultural Marketing Service's procurement process likely aimed to secure cost-effective solutions for essential food supplies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The presence of 7 bids suggests a healthy level of competition for this requirement. This broad solicitation process is designed to ensure that the government receives the best possible value by encouraging contractors to offer competitive pricing and terms.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces, ensuring that government funds are used efficiently for essential services like food donations.

Public Impact

Beneficiaries of this contract include individuals and families receiving food assistance through U.S. government donation programs. The services delivered involve the processing and supply of large quantities of chilled chicken, a key protein source. The geographic impact is likely national, as donated food commodities are distributed across various regions within the United States. Workforce implications include employment within Pilgrim's Pride Corporation's processing facilities and related logistics operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in the poultry market impacting long-term cost-effectiveness if similar contracts are extended.
Ensuring consistent quality and timely delivery of perishable goods like chilled chicken requires robust contractor oversight.

Positive Signals

Awarded under full and open competition, indicating a competitive marketplace and potential for value.
Firm fixed-price contract structure provides cost certainty for the government.
Contractor, Pilgrim's Pride Corporation, is a well-established entity with significant processing capacity.
The contract supports critical food donation programs, aligning with public service objectives.

Sector Analysis

The poultry processing industry is a significant segment of the broader food and agriculture sector. This contract fits within the government's role in ensuring food security and supporting agricultural markets through programs like food donations. Comparable spending benchmarks would involve analyzing other large-scale commodity procurements for protein sources by agencies like USDA or the Department of Defense.

Small Business Impact

This contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned in the provided data. The award to a large corporation like Pilgrim's Pride Corporation suggests that the primary focus was on capacity and scale. Further analysis would be needed to determine if any small businesses are involved in the supply chain or as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Agricultural Marketing Service (AMS) within the USDA. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is generally maintained through contract award databases, though specific performance monitoring details may not be publicly available.

Related Government Programs

USDA Food Donation Programs
Commodity Procurement Contracts
Agricultural Marketing Service Contracts
Food Assistance Programs

Risk Flags

Perishable Goods Delivery Risk
Supply Chain Disruption Potential
Market Price Volatility for Poultry

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.5 million to PILGRIM'S PRIDE CORPORATION. COMMODITIES FOR USG FOOD DONATIONS: 2000011115/4100033572/CHICKEN LARGE CHILLED -BULK

Who is the contractor on this award?

The obligated recipient is PILGRIM'S PRIDE CORPORATION.

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: 2026-01-13. End: 2026-03-31.

What is the historical spending pattern for chilled chicken procurement by the USDA for food donation programs?

Analyzing historical spending for chilled chicken procurement by the USDA for food donation programs requires access to detailed contract databases over multiple fiscal years. While this specific contract is for $2.5 million, understanding the trend involves looking at the volume, frequency, and total expenditure on similar items. Factors such as market price volatility, changes in program needs, and shifts in agricultural policy can influence these patterns. Without historical data, it's difficult to ascertain if this award represents an increase, decrease, or stable level of spending compared to previous periods. However, the existence of a competitive procurement suggests ongoing demand and a structured approach to meeting it.

How does the price per pound for this contract compare to market rates for chilled chicken in South Carolina?

To compare the price per pound for this contract to market rates in South Carolina, we would need to know the exact quantity of chicken procured. The data indicates a contract value of $2,543,616. Assuming this is for a specific weight, we could calculate a per-pound cost. Market rates fluctuate based on factors like feed costs, seasonal demand, and processing efficiency. Pilgrim's Pride Corporation, as a large producer, may benefit from economies of scale that allow for competitive pricing. A direct comparison would involve accessing USDA's Agricultural Marketing Service (AMS) price reports for poultry in the relevant region or consulting industry benchmarks for wholesale chilled chicken prices around the contract award period (estimated between January and March 2026).

What is Pilgrim's Pride Corporation's track record with USDA contracts, particularly for food donations?

Pilgrim's Pride Corporation is a major poultry producer and has a history of supplying commodities to government agencies, including the USDA. Their track record with USDA contracts, especially for food donation programs, would typically involve reviewing past awards, performance evaluations, and any instances of contract disputes or non-compliance. As a large, established company, they likely possess the infrastructure and experience necessary to fulfill significant commodity contracts. Information on their specific performance history with the AMS or other USDA branches would be available through federal procurement data systems, allowing for an assessment of their reliability and past success in meeting government requirements.

What are the key performance indicators (KPIs) used to evaluate the success of this chilled chicken procurement?

Key performance indicators (KPIs) for this chilled chicken procurement would likely focus on several critical areas. These include timely delivery, ensuring the chicken meets all specified quality standards (e.g., temperature, freshness, absence of defects), and adherence to the firm fixed price. Compliance with food safety regulations and proper handling procedures are paramount. The Agricultural Marketing Service (AMS) would monitor these aspects throughout the contract period. Success would be measured by the contractor's ability to consistently meet these requirements, thereby ensuring the effective distribution of nutritious food through donation channels without compromising safety or incurring unexpected costs.

What is the potential risk associated with the short performance period (77 days) for this contract?

The short performance period of 77 days (approximately 2.5 months) for this chilled chicken contract suggests a time-sensitive need, possibly for a specific event, seasonal demand surge, or to bridge a gap in supply. The primary risk associated with such a short duration is the potential for disruption if the contractor faces unforeseen issues (e.g., processing plant problems, transportation delays, labor shortages) that could impact timely delivery. For the government, this could mean a shortfall in the intended food donations. However, the firm fixed-price nature mitigates cost overrun risks. The Agricultural Marketing Service likely selected a contractor with proven capacity to meet such short-term, high-demand requirements.

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: 123J1426B0091

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: JBS S/A

Address: 1770 PROMONTORY CIR, GREELEY, CO, 80634

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

Financial Breakdown

Contract Ceiling: $2,543,616

Exercised Options: $2,543,616

Current Obligation: $2,543,616

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline