USDA awards $9.6M contract for frozen bison to Dakota Pure Meats under full and open competition

Contract Overview

Contract Amount: $9,644,000 ($9.6M)

Contractor: Dakota Pure Meats, LLC

Awarding Agency: Department of Agriculture

Start Date: 2026-04-08

End Date: 2026-09-30

Contract Duration: 175 days

Daily Burn Rate: $55.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011224/4100033949/BISON GROUND LEAN FRZ PKG-40/1 LB,BISON STEW MEAT FRZ PKG-20/2 LB

Place of Performance

Location: CADOTT, CHIPPEWA County, WISCONSIN, 54727

State: Wisconsin Government Spending

Plain-Language Summary

Department of Agriculture obligated $9.6 million to DAKOTA PURE MEATS, LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011224/4100033949/BISON GROUND LEAN FRZ PKG-40/1 LB,BISON STEW MEAT FRZ PKG-20/2 LB Key points: 1. The contract focuses on frozen ground and stewing bison, essential for food donation programs. 2. Dakota Pure Meats, LLC, a Wisconsin-based company, is the sole awardee. 3. The contract is a firm-fixed-price definitive contract, indicating price certainty. 4. This award falls under the Animal (except Poultry) Slaughtering NAICS code.

Value Assessment

Rating: good

The contract value of $9.6 million for 175 days of supply appears reasonable given the commodity type and quantity. Benchmarking against similar government food procurement contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting a competitive bidding process that likely resulted in fair market pricing. The agency sought multiple bids, promoting price discovery.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing competitive pricing for essential food commodities.

Public Impact

Ensures continued supply of vital food commodities for USG food donation programs. Supports the agricultural sector, specifically bison producers and processors. Provides a predictable source of protein for beneficiaries of food assistance programs. The firm-fixed-price structure protects the government from cost overruns.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in commodity markets impacting long-term value.
Dependence on a single supplier for a critical food item.

Positive Signals

Awarded under full and open competition.
Firm-fixed-price contract provides cost certainty.
Supports domestic agriculture and food security initiatives.

Sector Analysis

This contract falls within the agricultural commodities sector, specifically focusing on meat processing. Government spending in this area supports food security programs and domestic agricultural markets. Benchmarks for similar food procurement contracts vary widely based on commodity and volume.

Small Business Impact

The awardee, Dakota Pure Meats, LLC, is not indicated as a small business. Further analysis would be needed to determine if small businesses were subcontracting opportunities within this award.

Oversight & Accountability

The contract is a definitive contract with a set duration and delivery schedule, allowing for clear oversight. The Agricultural Marketing Service (AMS) within the USDA is responsible for managing this procurement.

Related Government Programs

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

Risk Flags

Potential for supply chain disruption.
Price volatility of commodity markets.
Limited supplier diversity for this specific award.
Dependence on a single awardee for critical food items.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $9.6 million to DAKOTA PURE MEATS, LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000011224/4100033949/BISON GROUND LEAN FRZ PKG-40/1 LB,BISON STEW MEAT FRZ PKG-20/2 LB

Who is the contractor on this award?

The obligated recipient is DAKOTA PURE MEATS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $9.6 million.

What is the period of performance?

Start: 2026-04-08. End: 2026-09-30.

What is the historical pricing trend for frozen bison commodities procured by the government?

Analyzing historical pricing data for similar frozen bison contracts would reveal if the current $9.6 million award represents a favorable price point. Factors like market volatility, inflation, and specific quality requirements influence these prices. Understanding past trends helps assess if this contract maximizes value for taxpayer dollars and anticipates future cost efficiencies.

What are the potential risks associated with relying on a single supplier for essential food donations?

Reliance on a single supplier, Dakota Pure Meats, LLC, poses risks such as supply chain disruptions due to unforeseen events (e.g., disease outbreaks, natural disasters, operational issues). This could impact the continuity of food donations. Mitigation strategies might include contingency planning, maintaining buffer stock, or exploring secondary suppliers for future contracts.

How effectively does this contract meet the nutritional and logistical needs of the food donation program?

The contract specifies ground and stew meat bison, suggesting a focus on versatile protein sources suitable for various meal preparations within donation programs. The firm-fixed-price structure ensures budget predictability. Evaluating the contract's effectiveness requires assessing delivery timeliness, product quality compliance, and the overall impact on program beneficiaries' nutritional intake.

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: 123J1426B0182

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 26727 266TH ST, WOOD, SD, 57585

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,644,000

Exercised Options: $9,644,000

Current Obligation: $9,644,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline