USDA Awards $2.3M for Frozen Chicken Leg Quarters to O.K. Foods, Inc. Under Firm Fixed Price Contract

Contract Overview

Contract Amount: $2,305,469 ($2.3M)

Contractor: O. K. Foods, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2024-04-10

End Date: 2024-12-31

Contract Duration: 265 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010001/4400002084/4100029732/CHICKEN LEG QTRS FROZEN PKG#8/5 LB

Place of Performance

Location: FORT SMITH, SEBASTIAN County, ARKANSAS, 72904

State: Arkansas Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.3 million to O. K. FOODS, INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010001/4400002084/4100029732/CHICKEN LEG QTRS FROZEN PKG#8/5 LB Key points: 1. Contract awarded to O.K. Foods, Inc. for frozen chicken leg quarters. 2. The contract is a delivery order under a larger contract with a firm fixed price. 3. Competition was full and open, suggesting a competitive bidding process. 4. The spending is within the Agricultural Marketing Service's purview for food donations.

Value Assessment

Rating: good

The firm fixed price contract for chicken leg quarters appears reasonable given the market for poultry products. Benchmarking against similar USDA food donation contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for food donations, a program aimed at supporting food security initiatives. The competitive award process aims to ensure efficient use of these funds.

Public Impact

Ensures availability of food commodities for U.S. government food donation programs. Supports domestic agriculture and food processing industries. Contributes to food security efforts by providing essential protein sources.

Waste & Efficiency Indicators

Waste Risk Score: 87 / 10

Positive Signals

Full and open competition
Firm fixed price contract
Supports food donation programs

Sector Analysis

This contract falls within the food commodities sector, specifically poultry processing, supporting federal food assistance and donation programs. Spending benchmarks for similar commodity procurements are typically driven by market fluctuations and program demand.

Small Business Impact

The data indicates that the awardee, O.K. Foods, Inc., is not a small business. There is no specific indication of small business participation in this particular delivery order.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service, which has established procurement processes. Oversight would involve ensuring delivery specifications and contract terms are met.

Related Government Programs

Poultry Processing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for price volatility impacting vendor profitability and product quality.
Dependence on a single awardee for this specific delivery order.
Need for ongoing quality assurance to ensure donated food meets standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.3 million to O. K. FOODS, INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000010001/4400002084/4100029732/CHICKEN LEG QTRS FROZEN PKG#8/5 LB

Who is the contractor on this award?

The obligated recipient is O. K. FOODS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.3 million.

What is the period of performance?

Start: 2024-04-10. End: 2024-12-31.

What is the historical pricing trend for frozen chicken leg quarters procured by the USDA for donation programs?

Analyzing historical pricing data for similar USDA food donation contracts would reveal trends in frozen chicken leg quarter costs. This context is crucial for assessing whether the current $2.3 million award represents a fair market value, considering factors like inflation, supply chain dynamics, and specific product quality requirements over time.

What are the potential risks associated with the firm fixed price contract for chicken leg quarters?

A primary risk with firm fixed price contracts is that the vendor may face challenges if input costs (feed, labor, energy) rise significantly above projections, potentially impacting product quality or delivery. Conversely, if costs fall unexpectedly, the government might be overpaying. Ensuring robust quality control and monitoring market conditions are key mitigation strategies.

How effectively does this contract contribute to the overall goals of the USDA's food donation programs?

This contract directly contributes by securing a necessary commodity for food donation programs. Its effectiveness hinges on the timely delivery of quality chicken leg quarters that meet program specifications. The competitive award process suggests an effort to procure efficiently, but ongoing monitoring of distribution and recipient feedback is vital for assessing ultimate effectiveness.

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: 123J1424B0250

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4601 N 6TH ST, FORT SMITH, AR, 72904

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

Financial Breakdown

Contract Ceiling: $2,305,469

Exercised Options: $2,305,469

Current Obligation: $2,305,469

Actual Outlays: $2,259,617

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1424D0056

IDV Type: IDC

Timeline