USDA awards $2.9M for frozen pork ham to John Hofmeister & Son Inc. under full and open competition

Contract Overview

Contract Amount: $2,912,907 ($2.9M)

Contractor: John Hofmeister & SON Inc

Awarding Agency: Department of Agriculture

Start Date: 2023-08-04

End Date: 2023-10-31

Contract Duration: 88 days

Daily Burn Rate: $33.1K/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: 2000009520/4100028182/PORK HAM SMKD PIT FRZ CTN#6/5 LB,PORK HAM WATERAD SLC FRZ PKG-8/5 LB,PORK HAM WTRADCBEDFRZ PKG-4/10 OR 8/5 LB

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60608

State: Illinois Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.9 million to JOHN HOFMEISTER & SON INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009520/4100028182/PORK HAM SMKD PIT FRZ CTN#6/5 LB,PORK HAM WATERAD SLC FRZ PKG-8/5 LB,PORK HAM WTRADCBEDFRZ PKG-4/10 OR 8/5 LB Key points: 1. Contract awarded for essential food donation commodities. 2. John Hofmeister & Son Inc. is the sole awardee. 3. Risk appears low due to standard commodity procurement. 4. Spending falls within the broader agricultural commodities sector.

Value Assessment

Rating: good

The contract value of $2.9M for frozen pork ham appears reasonable for the quantity and type of goods procured. Benchmarking against similar USDA food donation 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. This method is expected to yield fair market prices for the commodities.

Taxpayer Impact: Taxpayer funds are used to procure food for donation programs, aiming to support food security initiatives.

Public Impact

Ensures availability of essential food items for federal donation programs. Supports agricultural producers and processors within the pork industry. Contributes to food security efforts by providing nutritious food.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

No small business participation noted.
Limited duration of the contract (88 days).

Positive Signals

Procurement through full and open competition.
Awarded to a known supplier in the food industry.

Sector Analysis

This contract falls under the agricultural commodities sector, specifically the procurement of processed pork products. Spending benchmarks for similar food donation contracts would be relevant for comparison.

Small Business Impact

The contract data indicates that small business participation was not a factor in this award, as the 'sb' field is false. Future procurements could explore opportunities for small business involvement.

Oversight & Accountability

The Department of Agriculture's Agricultural Marketing Service managed this procurement. Standard oversight for commodity contracts would apply, ensuring delivery and quality standards are met.

Related Government Programs

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

Risk Flags

No small business participation.
Short contract duration may indicate urgent need or limited scope.
Sole awardee, though competition was full and open.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.9 million to JOHN HOFMEISTER & SON INC. COMMODITIES FOR USG FOOD DONATIONS: 2000009520/4100028182/PORK HAM SMKD PIT FRZ CTN#6/5 LB,PORK HAM WATERAD SLC FRZ PKG-8/5 LB,PORK HAM WTRADCBEDFRZ PKG-4/10 OR 8/5 LB

Who is the contractor on this award?

The obligated recipient is JOHN HOFMEISTER & SON INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.9 million.

What is the period of performance?

Start: 2023-08-04. End: 2023-10-31.

What is the typical price range for similar quantities of frozen pork ham procured by the USDA for donation?

The typical price range for similar quantities of frozen pork ham procured by the USDA for donation can vary based on market fluctuations, specific cuts, and packaging requirements. While this contract is valued at $2.9M, a detailed analysis of historical data and current market prices for comparable items like smoked, water-added, or salt-cured pork ham would be necessary for a precise benchmark. Factors such as grade, fat content, and processing methods also influence pricing.

Are there any identified risks associated with the supplier, John Hofmeister & Son Inc., for this commodity procurement?

Based on the provided data, there are no immediate red flags or specific risks identified concerning John Hofmeister & Son Inc. The contract was awarded through full and open competition, suggesting the company met the necessary qualifications and offered competitive pricing. Standard due diligence and performance monitoring by the USDA would mitigate any potential supplier-related risks during contract execution.

How effectively does this contract contribute to the USDA's food donation program objectives?

This contract effectively contributes to the USDA's food donation program objectives by ensuring the timely procurement of a significant quantity of essential protein (pork ham). The firm fixed-price structure and full and open competition suggest a cost-effective acquisition. The short duration indicates a focus on immediate needs, directly supporting the program's goal of providing food assistance to eligible recipients.

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: 123J1423B0550

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2386 S BLUE ISLAND AVE, CHICAGO, IL, 60608

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

Financial Breakdown

Contract Ceiling: $2,912,907

Exercised Options: $2,912,907

Current Obligation: $2,912,907

Actual Outlays: $2,912,907

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline