USDA's $3.8M Chicken Fillets Contract Awarded to JTM Provisions Under Full and Open Competition

Contract Overview

Contract Amount: $3,795,580 ($3.8M)

Contractor: JTM Provisions CO Inc

Awarding Agency: Department of Agriculture

Start Date: 2023-05-26

End Date: 2023-09-30

Contract Duration: 127 days

Daily Burn Rate: $29.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000009303/4100027684/CHICKEN FILLETS UNBRD FRZ CTN-30 LB,CHICKEN STRIPS FRZ CTN-30 LB

Place of Performance

Location: FAIRFIELD, BUTLER County, OHIO, 45014

State: Ohio Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.8 million to JTM PROVISIONS CO INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009303/4100027684/CHICKEN FILLETS UNBRD FRZ CTN-30 LB,CHICKEN STRIPS FRZ CTN-30 LB Key points: 1. The contract focuses on frozen chicken fillets and strips for U.S. food donations. 2. JTM Provisions Co Inc secured the award, indicating potential market concentration. 3. The firm fixed price contract type suggests predictable costs for the government. 4. The award falls under the Poultry Processing sector, with a NAICS code of 311615.

Value Assessment

Rating: good

The contract value of $3.8M for 30-lb cartons of frozen chicken products appears reasonable given the quantity and market for food commodities. 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 after exclusion of sources, suggesting a robust price discovery process. This method aims to ensure the government receives competitive pricing by soliciting offers from all responsible sources.

Taxpayer Impact: The use of full and open competition is expected to yield fair market prices, maximizing the value of taxpayer funds allocated for food donations.

Public Impact

Ensures supply of essential protein for federal food donation programs. Supports domestic agriculture and food processing industries. Provides nutritional assistance to vulnerable populations through government programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited vendor pool in specialized frozen poultry products.
Reliance on a single awardee for a significant quantity of food items.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract provides cost certainty.
Supports critical food donation initiatives.

Sector Analysis

This contract falls within the food manufacturing sector, specifically poultry processing. Government spending in this area supports national food security initiatives and agricultural supply chains. Benchmarks for similar commodity procurements would be necessary for a detailed comparison.

Small Business Impact

The contract was awarded to JTM Provisions Co Inc and does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The contract was awarded by the Department of Agriculture's Agricultural Marketing Service. Standard oversight mechanisms for federal procurement contracts would apply, including monitoring performance and ensuring compliance with terms.

Related Government Programs

Poultry Processing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for supply chain disruption due to single awardee.
Limited visibility into small business participation.
Dependence on vendor's production capacity.
Price competitiveness requires further historical analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.8 million to JTM PROVISIONS CO INC. COMMODITIES FOR USG FOOD DONATIONS: 2000009303/4100027684/CHICKEN FILLETS UNBRD FRZ CTN-30 LB,CHICKEN STRIPS FRZ 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 $3.8 million.

What is the period of performance?

Start: 2023-05-26. End: 2023-09-30.

What is the historical pricing trend for similar frozen chicken products procured by the USDA?

Analyzing historical pricing data for comparable frozen chicken products procured by the USDA is crucial for assessing the value of this $3.8M contract. Understanding past price fluctuations, contract volumes, and awarded vendors can reveal whether JTM Provisions' pricing is competitive or if there are opportunities for cost savings in future solicitations. This historical context helps determine if the current price reflects market conditions or potential inefficiencies.

What are the specific risks associated with relying on a single vendor for a large quantity of frozen chicken products?

Relying on a single vendor like JTM Provisions for a substantial quantity of frozen chicken products carries risks such as supply chain disruptions, potential quality control issues, and reduced leverage in future negotiations. If JTM Provisions faces production or logistical challenges, the government's food donation programs could be significantly impacted. This dependency also limits the government's ability to benefit from competitive bidding in subsequent procurements.

How effectively does this contract support the USDA's mission of ensuring food security and nutritional assistance?

This contract directly supports the USDA's mission by procuring essential protein sources for food donation programs, thereby contributing to food security and nutritional assistance for vulnerable populations. The firm fixed price structure ensures budget predictability for these vital programs. However, the long-term effectiveness depends on consistent quality, timely delivery, and the overall reach of the donation programs utilizing these products.

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: 123J1423B0380

Offers Received: 6

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: $3,795,580

Exercised Options: $3,795,580

Current Obligation: $3,795,580

Actual Outlays: $3,795,580

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline