USDA awards $2.8M contract for frozen turkey breast to Jennie-O Turkey Store Inc

Contract Overview

Contract Amount: $2,833,152 ($2.8M)

Contractor: Jennie-O Turkey Store Inc

Awarding Agency: Department of Agriculture

Start Date: 2026-01-15

End Date: 2026-07-15

Contract Duration: 181 days

Daily Burn Rate: $15.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011100/4100033601/TURKEY BREAST DELI SLC FRZ PKG 20/2 LB

Place of Performance

Location: WILLMAR, KANDIYOHI County, MINNESOTA, 56201

State: Minnesota Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.8 million to JENNIE-O TURKEY STORE INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011100/4100033601/TURKEY BREAST DELI SLC FRZ PKG 20/2 LB Key points: 1. Contract awarded for a firm fixed price, indicating predictable costs for the government. 2. The contract duration is 181 days, suggesting a short-term supply need. 3. The award was made under full and open competition, implying a competitive bidding process. 4. The North American Industry Classification System (NAICS) code 311615 points to poultry processing. 5. The contract is for commodities for USG food donations, aligning with agricultural support programs. 6. The supplier, Jennie-O Turkey Store Inc., is a known entity in the poultry market.

Value Assessment

Rating: good

The contract value of $2.83 million for 181 days of frozen turkey breast supply appears reasonable given the commodity and supplier. Without specific volume details or comparable recent awards for identical products, a precise value-for-money assessment is challenging. However, the firm fixed-price structure provides cost certainty. The supplier's established presence in the market suggests they can deliver at a competitive rate.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The fact that it was competed openly is a positive sign for price discovery and potentially achieving a competitive price. The number of bidders is not specified, but the process itself indicates a market-based approach to procurement.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality goods and services.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USG donation programs. The service delivered is the supply of frozen turkey breast deli slices. The geographic impact is primarily within the United States, where the food donations are distributed. Workforce implications are likely within the poultry processing and logistics sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in the commodity market impacting future contracts.
Dependence on a single supplier for a specific commodity could pose a risk if supply chains are disrupted.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm fixed-price contract provides cost predictability.
Supplier is an established entity in the poultry industry.

Sector Analysis

The poultry processing industry is a significant segment of the broader food manufacturing sector. This contract falls within the scope of agricultural commodities procurement, a common activity for agencies like the USDA. The market for processed poultry is competitive, with established players like Jennie-O Turkey Store Inc. serving both commercial and government needs. Government contracts for food commodities are essential for supporting domestic agriculture and ensuring food security programs.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no information provided regarding subcontracting plans for small businesses. The award to a large, established company like Jennie-O Turkey Store Inc. suggests that small businesses may not have been primary participants in this specific procurement, though they could be suppliers to the prime contractor.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. Accountability measures are embedded in the contract terms, including delivery schedules and product specifications. Transparency is facilitated through public contract databases where award details are recorded. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to this contract.

Related Government Programs

USDA Food Purchase Programs
Commodity Supplemental Food Program
National School Lunch Program
Food Bank Support Programs

Risk Flags

Potential for supply chain disruption
Commodity price volatility risk for future contracts
Quality control adherence

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.8 million to JENNIE-O TURKEY STORE INC. COMMODITIES FOR USG FOOD DONATIONS: 2000011100/4100033601/TURKEY BREAST DELI SLC FRZ PKG 20/2 LB

Who is the contractor on this award?

The obligated recipient is JENNIE-O TURKEY STORE INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.8 million.

What is the period of performance?

Start: 2026-01-15. End: 2026-07-15.

What is the historical spending pattern for frozen turkey breast by the USDA?

Analyzing historical spending for frozen turkey breast by the USDA requires access to detailed procurement data over multiple fiscal years. Typically, such spending can fluctuate based on program needs, commodity market prices, and the availability of appropriations. For instance, during periods of high agricultural surplus or increased demand for food assistance programs, spending on commodities like turkey breast might rise. Conversely, budget constraints or shifts in program focus could lead to decreased spending. Without specific historical data for this exact commodity and contract type, it's difficult to provide precise figures, but the USDA consistently procures large volumes of food items to support various domestic and international food assistance initiatives.

How does the price per pound for this contract compare to market rates?

To compare the price per pound for this contract to market rates, we would need to know the exact quantity of turkey breast being procured. The contract value is $2,833,152 for an unspecified quantity over 181 days. If we assume a typical deli slice yield and estimate a quantity, we could then calculate a price per pound. Market rates for frozen turkey breast deli slices can vary significantly based on factors such as grade, origin, processing method, and current market supply and demand. Benchmarking against industry reports or other government solicitations for similar products would be necessary for a precise comparison. Given the firm fixed-price nature, the government has locked in a price, which may or may not be advantageous depending on future market movements.

What is Jennie-O Turkey Store Inc.'s track record with federal contracts?

Jennie-O Turkey Store Inc., a subsidiary of Hormel Foods, has a history of receiving federal contracts, primarily from agencies like the Department of Agriculture (USDA) and the Defense Logistics Agency (DLA). These contracts typically involve the supply of poultry products for various government programs, including food assistance and military rations. Reviewing their contract history would reveal the types of products supplied, contract values, and performance ratings, if available. A consistent record of successful contract performance suggests reliability, while any past performance issues, such as delivery delays or quality disputes, would be a concern. For this specific contract, the award indicates they met the government's requirements.

What are the potential risks associated with this specific contract?

Potential risks for this contract include supply chain disruptions affecting Jennie-O Turkey Store Inc.'s ability to deliver the frozen turkey breast, especially given the relatively short 181-day duration. Commodity price volatility, although mitigated by the firm fixed-price structure for this award, could impact the supplier's profitability and future bidding. Quality control issues, ensuring the product meets USDA specifications for deli slices, are also a risk. Furthermore, if this contract is part of a larger food donation program, any delays or quality failures could impact the timely distribution of essential food resources to beneficiaries.

How does this contract align with USDA's mission regarding food security?

This contract directly aligns with the USDA's mission to enhance food security in the United States. By procuring commodities like frozen turkey breast, the USDA supports various food assistance programs that provide nutritional support to vulnerable populations, including low-income families, children, and the elderly. Ensuring a stable supply of protein-rich foods through such contracts is crucial for addressing food insecurity and promoting healthier diets. The procurement process itself, especially when conducted through full and open competition, aims to achieve this mission efficiently and cost-effectively, leveraging the agricultural sector to meet domestic needs.

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: 123J1426B0076

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hormel Foods Corporation

Address: 2505 WILLMAR AVE SW, WILLMAR, MN, 56201

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: $2,833,152

Exercised Options: $2,833,152

Current Obligation: $2,833,152

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline