DoD's $18.8M Chilled Meats Contract Awarded to Tyson Foods Amidst Limited Competition

Contract Overview

Contract Amount: $18,828,069 ($18.8M)

Contractor: Tyson Foods Inc.

Awarding Agency: Department of Defense

Start Date: 2011-04-01

End Date: 2011-06-30

Contract Duration: 90 days

Daily Burn Rate: $209.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RESALE-SEC B CHILLED MEATS

Place of Performance

Location: SPRINGDALE, WASHINGTON County, ARKANSAS, 72762

State: Arkansas Government Spending

Plain-Language Summary

Department of Defense obligated $18.8 million to TYSON FOODS INC. for work described as: RESALE-SEC B CHILLED MEATS Key points: 1. The Department of Defense awarded $18.8 million for chilled meats to Tyson Foods Inc. 2. The contract was not available for competition, raising questions about price discovery. 3. This award falls under the Poultry Processing NAICS code (311615). 4. The contract duration was 90 days, indicating a short-term need. 5. The award value is significant for a 90-day delivery order.

Value Assessment

Rating: questionable

The contract was awarded as a delivery order with a firm fixed price. However, without competitive bidding, it is difficult to assess if the price is optimal or reflects market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, suggesting a sole-source or limited source justification. This lack of competition may have led to a higher price than if multiple vendors had bid.

Taxpayer Impact: Without competitive pricing, taxpayers may have paid a premium for these chilled meats.

Public Impact

Ensures supply of essential food items for military personnel. Supports a major food processing company, Tyson Foods. Potential for higher costs due to lack of competitive bidding. Impacts the Defense Commissary Agency's budget for food procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Short contract duration may indicate urgency or limited need

Positive Signals

Ensures supply of critical goods
Award to established vendor

Sector Analysis

The Defense Commissary Agency procures a wide range of food products for military personnel. Spending in the food processing sector, particularly for meat products, is substantial. Benchmarks for similar contracts are difficult to ascertain without competitive data.

Small Business Impact

The award went to Tyson Foods Inc., a large corporation, with no indication of small business participation or subcontracting in the provided data.

Oversight & Accountability

The limited competition aspect warrants further review to ensure the Defense Commissary Agency followed appropriate procurement regulations and achieved best value for taxpayer dollars.

Related Government Programs

Poultry Processing
Department of Defense Contracting
Defense Commissary Agency Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency on justification for limited competition
Short contract duration may mask underlying issues

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.8 million to TYSON FOODS INC.. RESALE-SEC B CHILLED MEATS

Who is the contractor on this award?

The obligated recipient is TYSON FOODS INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Commissary Agency).

What is the total obligated amount?

The obligated amount is $18.8 million.

What is the period of performance?

Start: 2011-04-01. End: 2011-06-30.

What was the specific justification for limiting competition on this $18.8 million chilled meats contract?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION'. This suggests a sole-source award or a limited competition scenario where only specific vendors were solicited. A detailed review of the contract file would be necessary to understand the precise justification, which could range from urgent needs to the unique capabilities of a specific supplier.

How does the firm fixed price compare to market rates for chilled meats during the contract period, given the lack of competition?

Without competitive bids or access to market analysis conducted by the agency, it is impossible to definitively state how the firm fixed price compares to market rates. The absence of competition inherently limits the ability to benchmark pricing against other potential suppliers, raising concerns about whether the government secured the best possible price.

What is the potential impact on future commissary pricing if limited competition becomes a trend for essential food items?

If limited competition becomes a trend for essential food items, it could lead to consistently higher prices for commissaries. This would reduce the value proposition for military families and potentially strain the agency's budget. It also discourages new entrants and innovation within the food supply chain serving the Department of Defense.

Industry Classification

NAICS: Manufacturing › Animal Slaughtering and Processing › Poultry Processing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2200 DON TYSON PKWY, SPRINGDALE, AR, 72762

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,828,069

Exercised Options: $18,828,069

Current Obligation: $18,828,069

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDEC0110G4001

IDV Type: BOA

Timeline