USDA Awards $12.3M Contract for Frozen Ground Beef to American Beef Packers, Inc

Contract Overview

Contract Amount: $12,341,560 ($12.3M)

Contractor: American Beef Packers, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2025-09-15

End Date: 2025-12-31

Contract Duration: 107 days

Daily Burn Rate: $115.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000010965/4100032952/BEEF COARSE GROUND FRZ CTN-60 LB,BEEF FINE GROUND FRZ CTN-40 LB

Place of Performance

Location: CHINO, SAN BERNARDINO County, CALIFORNIA, 91710

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $12.3 million to AMERICAN BEEF PACKERS, INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010965/4100032952/BEEF COARSE GROUND FRZ CTN-60 LB,BEEF FINE GROUND FRZ CTN-40 LB Key points: 1. Contract awarded to American Beef Packers, Inc. for $12.3M. 2. Procurement is for frozen ground beef commodities for USG food donations. 3. Competition method: Full and Open Competition after Exclusion of Sources. 4. Contract type: Firm Fixed Price, Definitive Contract. 5. Duration: 107 days, ending December 31, 2025.

Value Assessment

Rating: fair

The contract value of $12.3M for 107 days of frozen ground beef seems high. Benchmarking against similar commodity contracts for food donations is needed to assess pricing effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract utilized 'Full and Open Competition after Exclusion of Sources,' suggesting a competitive process was intended. However, the specific exclusion needs review to ensure true price discovery.

Taxpayer Impact: Taxpayer funds are used for food donations, with the cost efficiency of this specific procurement impacting the overall value of the program.

Public Impact

Ensures supply of essential food items for USG donation programs. Supports agricultural sector through commodity purchases. Potential for price fluctuations impacting donation program budget. Geographic focus on California for delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price overruns due to fixed price contract.
Limited duration may not cover long-term needs.
Exclusion of sources needs justification.

Positive Signals

Supports food security initiatives.
Utilizes established agricultural supply chains.
Clear contract type and duration.

Sector Analysis

This contract falls within the agricultural commodities sector, specifically food processing and distribution. Spending benchmarks for similar government food donation contracts are essential for evaluating cost-effectiveness.

Small Business Impact

The contract was awarded to American Beef Packers, Inc. No indication of small business participation or subcontracting is provided in the data.

Oversight & Accountability

The Agricultural Marketing Service is responsible for this procurement. Oversight should focus on ensuring the quality and timely delivery of the beef, as well as the justification for the exclusion of sources.

Related Government Programs

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

Risk Flags

Potential for price inflation due to limited competition.
Lack of transparency regarding source exclusion.
Short contract duration may not be cost-effective.
Need for detailed cost analysis and benchmarking.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $12.3 million to AMERICAN BEEF PACKERS, INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000010965/4100032952/BEEF COARSE GROUND FRZ CTN-60 LB,BEEF FINE GROUND FRZ CTN-40 LB

Who is the contractor on this award?

The obligated recipient is AMERICAN BEEF PACKERS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.3 million.

What is the period of performance?

Start: 2025-09-15. End: 2025-12-31.

What is the justification for excluding certain sources in this 'Full and Open Competition after Exclusion of Sources' procurement, and how does it impact price?

The justification for excluding sources needs to be thoroughly reviewed. If exclusions are not well-founded, it can limit competition, potentially leading to higher prices for taxpayers and reduced value for the food donation program. A robust justification ensures that the chosen method still maximizes competition and achieves fair pricing.

How does the unit cost of this frozen ground beef compare to market rates for similar commodities intended for donation?

Benchmarking the unit cost against prevailing market rates for frozen ground beef intended for food donation programs is crucial. Significant deviations could indicate potential overpricing or exceptional value. A detailed cost analysis comparing this contract's pricing to historical data and industry standards is necessary for a comprehensive assessment.

What is the long-term strategy for procuring food commodities, and does this short-duration contract align with it?

This contract has a duration of 107 days, ending in late 2025. Understanding if this is part of a larger, long-term strategy for food commodity procurement or a standalone, short-term need is important. A series of short contracts could lead to less favorable pricing compared to longer-term agreements.

Industry Classification

NAICS: Manufacturing › Animal Slaughtering and Processing › Animal (except Poultry) Slaughtering

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1425B0492

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13677 YORBA AVE, CHINO, CA, 91710

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

Financial Breakdown

Contract Ceiling: $12,341,560

Exercised Options: $12,341,560

Current Obligation: $12,341,560

Actual Outlays: $12,337,360

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline