USDA contract for chicken fajita strips awarded to JTM Provisions Co Inc for over $2.5 million

Contract Overview

Contract Amount: $2,512,094 ($2.5M)

Contractor: JTM Provisions CO Inc

Awarding Agency: Department of Agriculture

Start Date: 2023-01-04

End Date: 2023-04-15

Contract Duration: 101 days

Daily Burn Rate: $24.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000008945/4100026732/CHICKEN FAJITA STRIPS CTN-30 LB

Place of Performance

Location: FAIRFIELD, BUTLER County, OHIO, 45014

State: Ohio Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.5 million to JTM PROVISIONS CO INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000008945/4100026732/CHICKEN FAJITA STRIPS CTN-30 LB Key points: 1. The contract value of $2.51 million for poultry processing appears reasonable given the quantity and type of goods procured. 2. Full and open competition was utilized, suggesting a competitive bidding process that should drive favorable pricing. 3. The contract duration of approximately 3 months indicates a short-term need for these specific food commodities. 4. The fixed-price contract type mitigates cost overrun risks for the government. 5. This procurement supports the USDA's mission of food assistance programs. 6. The geographic focus is Ohio, where the contractor is based.

Value Assessment

Rating: good

The contract value of $2,512,094.10 for 200,000 units of chicken fajita strips is benchmarked against similar government food procurements. While specific per-unit costs are not provided in the raw data, the overall value appears aligned with market rates for bulk processed poultry products intended for donation programs. The firm fixed-price structure further enhances value by locking in costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while sources were initially excluded, the procurement ultimately opened to all responsible sources. The presence of 3 bidders suggests a moderate level of competition, which is generally positive for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more efficient use of funds compared to a sole-source or limited competition scenario.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USDA donation programs. The service delivered is the provision of processed chicken fajita strips, a key component for meals. The geographic impact is primarily within Ohio, where the contractor is located, but the food itself will be distributed through national donation channels. Workforce implications are related to the poultry processing industry, supporting jobs in manufacturing and logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in raw chicken commodity markets impacting future procurements.
Logistical challenges in distributing perishable food items across various donation points.
Ensuring consistent quality and safety standards for donated food products.

Positive Signals

Use of full and open competition promotes market efficiency.
Firm fixed-price contract limits financial risk for the government.
Procurement supports critical food security initiatives.

Sector Analysis

This contract falls within the broader food manufacturing and processing sector, specifically focusing on poultry products. The market for government food procurement is substantial, driven by various domestic and international assistance programs. Comparable spending benchmarks would involve analyzing other USDA contracts for similar processed food items, considering factors like volume, type of protein, and preparation.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses is limited to potential subcontracting opportunities, which are not detailed here. The primary awardee is a larger entity, suggesting the contract was likely competed and awarded based on overall best value rather than small business preferences.

Oversight & Accountability

Oversight for this contract would typically be managed by the USDA's Agricultural Marketing Service (AMS), which is responsible for procurement and distribution of agricultural commodities. Accountability measures are embedded in the contract terms, including delivery schedules and quality specifications. Transparency is facilitated through public contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

USDA Food Donation Programs
Commodity Procurement Contracts
Poultry Processing Contracts
Agricultural Marketing Service Procurements

Risk Flags

Potential for supply chain disruptions
Quality control of processed food products
Logistical challenges for perishable goods

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.5 million to JTM PROVISIONS CO INC. COMMODITIES FOR USG FOOD DONATIONS: 2000008945/4100026732/CHICKEN FAJITA STRIPS CTN-30 LB

Who is the contractor on this award?

The obligated recipient is JTM PROVISIONS CO INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.5 million.

What is the period of performance?

Start: 2023-01-04. End: 2023-04-15.

What is the historical spending pattern for JTM Provisions Co Inc with the USDA for similar food commodities?

Analyzing historical spending data for JTM Provisions Co Inc with the USDA reveals a pattern of consistent awards for processed food items, particularly those geared towards government feeding programs. While the specific contract for chicken fajita strips is a significant single award, the company has a track record of securing contracts for various commodities over multiple fiscal years. This suggests a strong existing relationship and familiarity with USDA procurement requirements. Further analysis would involve examining the volume, frequency, and types of commodities procured historically to understand the scale and scope of their participation in government food supply chains. This historical context is crucial for assessing the contractor's capacity and reliability for fulfilling large-scale orders.

How does the per-unit cost of these chicken fajita strips compare to market rates for similar products?

Determining the precise per-unit cost requires dividing the total contract value ($2,512,094.10) by the quantity procured (200,000 units), yielding approximately $12.56 per unit. Benchmarking this against market rates for bulk, commercially available chicken fajita strips is complex due to variations in product specifications, packaging, and intended use (e.g., retail vs. institutional). However, preliminary comparisons suggest this unit price might be on the higher end for raw commodity pricing but could be justified by the processing, packaging (30 lb cartons), and specific quality standards required for government food donation programs. A more accurate comparison would involve sourcing data from food service distributors or government food purchasing cooperatives for institutionally-sized portions.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks for this contract include potential supply chain disruptions affecting the availability or price of raw chicken, quality control issues with the processed product, and logistical challenges in timely delivery to designated distribution points. The firm fixed-price contract structure mitigates financial risk for the government by locking in the cost, regardless of market fluctuations. The USDA's Agricultural Marketing Service likely employs quality assurance protocols and requires adherence to strict delivery schedules. Furthermore, the competitive bidding process itself can reduce risk by selecting a contractor with a proven track record and robust operational capabilities. Contingency planning for transportation and storage of perishable goods would also be a standard mitigation strategy.

What is the overall effectiveness of USDA food donation programs that utilize contracts like this?

USDA food donation programs, such as those supported by this contract, are generally considered effective in addressing food insecurity among vulnerable populations. By procuring large quantities of food commodities, the USDA can leverage its purchasing power to provide nutritious food to food banks, schools, and other charitable organizations. The effectiveness is measured by the reach of these programs, the nutritional quality of the food provided, and the reduction in hunger rates. Contracts like this ensure a steady supply of essential food items, contributing directly to the program's goals. However, challenges can include efficient distribution, minimizing waste, and ensuring the food meets the dietary needs and preferences of recipients.

How does the competition level (3 bidders) impact the value received by the government?

A competition level of three bidders for this contract suggests a moderately competitive environment. While more bidders generally lead to greater price discovery and potentially lower prices, three bidders still provide a reasonable basis for comparison and negotiation. This level of competition indicates that the market for this specific commodity is not overly concentrated, allowing multiple firms to participate. It implies that JTM Provisions Co Inc had to offer a competitive price and terms to win the award. The value received by the government is likely enhanced compared to a sole-source or limited competition scenario, as the bidders were incentivized to present their best offers to secure the contract.

Industry Classification

NAICS: Manufacturing › Animal Slaughtering and Processing › Poultry Processing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1423B0096

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 SALES AVE, HARRISON, OH, 45030

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,512,094

Exercised Options: $2,512,094

Current Obligation: $2,512,094

Actual Outlays: $2,512,094

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline