USDA Awards $2.59M for Chicken Breast to Foster Poultry Farms Under Full and Open Competition

Contract Overview

Contract Amount: $2,589,581 ($2.6M)

Contractor: Foster Poultry Farms, LLC

Awarding Agency: Department of Agriculture

Start Date: 2023-11-21

End Date: 2024-06-30

Contract Duration: 222 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000009717/4400001945/4100028712/CHICKEN BREAST BONELESS IQF PKG#10/3 LB

Place of Performance

Location: FRESNO, FRESNO County, CALIFORNIA, 93706

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.6 million to FOSTER POULTRY FARMS, LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009717/4400001945/4100028712/CHICKEN BREAST BONELESS IQF PKG#10/3 LB Key points: 1. The contract focuses on essential food commodities for U.S. government donations. 2. Foster Poultry Farms, LLC secured the award, indicating established market presence. 3. The contract is firm fixed price, providing cost certainty for the government. 4. This award falls within the Poultry Processing sector, a key agricultural segment.

Value Assessment

Rating: good

The awarded amount of $2,589,580.50 for chicken breast appears reasonable given the quantity and market for such commodities. Benchmarking against similar large-scale 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 under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors have the opportunity to bid.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it promotes market efficiency and aims to secure the best possible prices for government purchases.

Public Impact

Ensures availability of nutritious food for federal donation programs. Supports the agricultural sector, specifically poultry farming and processing. Provides cost predictability for a significant government expenditure. Highlights the role of the Department of Agriculture in food security initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in poultry markets impacting future procurements.
Logistical challenges in distribution of perishable goods.

Positive Signals

Firm fixed price contract provides budget certainty.
Awarded under full and open competition, suggesting competitive pricing.
Supports domestic food supply chains.

Sector Analysis

This procurement falls within the Agricultural Marketing Service's role of supporting domestic food programs through commodity purchases. The poultry sector is a significant part of the U.S. agricultural economy, with established benchmarks for large-scale processing and distribution.

Small Business Impact

While Foster Poultry Farms, LLC is the awardee, the contract was competed under full and open competition. There is no specific indication of small business participation in this particular award, though they may be suppliers or subcontractors.

Oversight & Accountability

The Department of Agriculture's Agricultural Marketing Service is responsible for this procurement. Oversight would involve ensuring delivery quality, timeliness, and adherence to contract terms, particularly given the perishable nature of the goods.

Related Government Programs

Poultry Processing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for market price volatility impacting future procurements.
Logistical challenges in timely delivery of perishable goods.
Dependence on a single awardee for a large quantity.
Lack of explicit small business participation noted in award details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.6 million to FOSTER POULTRY FARMS, LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000009717/4400001945/4100028712/CHICKEN BREAST BONELESS IQF PKG#10/3 LB

Who is the contractor on this award?

The obligated recipient is FOSTER POULTRY FARMS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2023-11-21. End: 2024-06-30.

What is the historical pricing trend for IQF boneless chicken breast in similar government contracts?

Analyzing historical pricing data for similar government contracts involving IQF boneless chicken breast is crucial for a comprehensive value assessment. This would involve comparing the current per-pound cost against previous awards, considering factors like inflation, market volatility, and contract volume. Without this data, it's difficult to definitively state if the $2.59 million award represents optimal value or if there's potential for cost savings in future solicitations.

What are the potential risks associated with the supply chain for perishable goods like chicken breast in government contracts?

Risks in the supply chain for perishable goods like chicken breast include spoilage during transport and storage, potential disruptions from disease outbreaks affecting poultry, and fluctuations in feed costs impacting producer prices. Ensuring robust quality control measures, reliable logistics partners, and contingency plans for supply chain interruptions are vital for government contracts to guarantee timely delivery of safe, usable products.

How effectively does the firm fixed price contract structure mitigate cost overruns for this food donation commodity?

The firm fixed price (FFP) contract structure is highly effective in mitigating cost overruns for this food donation commodity. Under an FFP agreement, the contractor assumes the risk of increased costs, meaning the government pays the agreed-upon price regardless of the contractor's actual expenses. This provides significant budget certainty and protects taxpayer funds from market volatility or unforeseen production cost increases.

Industry Classification

NAICS: Manufacturing › Animal Slaughtering and Processing › Poultry Processing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 123J1424B0026

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Foster Poultry Farms

Address: 1000 DAVIS ST, LIVINGSTON, CA, 95334

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

Financial Breakdown

Contract Ceiling: $2,589,581

Exercised Options: $2,589,581

Current Obligation: $2,589,581

Actual Outlays: $2,559,320

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1424D0185

IDV Type: IDC

Timeline