USDA awards $3.1M contract for frozen pork ham to John Hofmeister & Son Inc

Contract Overview

Contract Amount: $3,097,440 ($3.1M)

Contractor: John Hofmeister & SON Inc

Awarding Agency: Department of Agriculture

Start Date: 2025-09-19

End Date: 2026-01-15

Contract Duration: 118 days

Daily Burn Rate: $26.2K/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: 2000010985/4100033017/PORK HAM WATERAD FRZ CTN-12/3 LB

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60608

State: Illinois Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.1 million to JOHN HOFMEISTER & SON INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000010985/4100033017/PORK HAM WATERAD FRZ CTN-12/3 LB Key points: 1. Contract value appears reasonable for the specified quantity and type of goods. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is relatively short, indicating a focused procurement need. 4. The firm fixed-price structure transfers risk to the contractor. 5. This procurement supports U.S. government food donation programs. 6. The contractor is based in Illinois, potentially impacting local economic activity.

Value Assessment

Rating: good

The contract value of $3,097,440 for 20,000 units of frozen pork ham (12/3 lb cases) suggests a per-case price of approximately $155. This appears to be within a reasonable range for bulk commodity purchases of this nature, especially considering potential market fluctuations and the specific product requirements. Benchmarking against similar government food donation contracts would provide further validation, but initial assessment indicates fair pricing.

Cost Per Unit: Approximately $155 per 12/3 lb case of frozen pork ham.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 26 offers received, this suggests a robust competitive environment. A high number of bidders generally leads to better price discovery and can result in more favorable pricing for the government.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down the price and ensured the government received the best value for its investment in food donations.

Public Impact

This contract directly supports U.S. government food donation programs, aiding in food security initiatives. The goods procured, frozen pork ham, will be distributed to beneficiaries of these programs. The geographic impact is national, as food donations typically serve diverse populations across the U.S. The contract supports the agricultural sector by procuring a processed meat product.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Quality control of perishable goods requires consistent monitoring.
Fluctuations in commodity prices could affect future contract costs if not adequately hedged.

Positive Signals

Firm fixed-price contract mitigates cost overrun risks for the government.
Full and open competition ensures a competitive market and potentially better pricing.
Short contract duration allows for flexibility in future procurements.

Sector Analysis

This contract falls within the broader food and agriculture sector, specifically involving the procurement of processed meat products. The Agricultural Marketing Service (AMS) within the USDA frequently procures commodities to support various federal programs, including food assistance and donations. The market for processed pork products is substantial, with government contracts representing a significant portion of demand for certain types of bulk commodities.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. While the primary awardee is not specified as a small business, the robust competition may have allowed small businesses to participate as subcontractors or offerors if they met the requirements. Further analysis would be needed to determine subcontracting opportunities for small businesses.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm fixed-price nature of the contract helps in cost control. The Agricultural Marketing Service (AMS) is responsible for managing this contract, and any disputes or performance issues would be handled through established contractual channels. Transparency is maintained through public contract databases.

Related Government Programs

USDA Food Donation Programs
Commodity Procurement Contracts
National School Lunch Program (potential indirect link)
Food Banks and Pantries Support

Risk Flags

Potential for supply chain disruptions
Quality control of perishable goods
Market price volatility for commodities

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.1 million to JOHN HOFMEISTER & SON INC. COMMODITIES FOR USG FOOD DONATIONS: 2000010985/4100033017/PORK HAM WATERAD FRZ CTN-12/3 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 $3.1 million.

What is the period of performance?

Start: 2025-09-19. End: 2026-01-15.

What is the historical spending pattern for similar pork ham procurements by the USDA?

Analyzing historical spending for similar pork ham procurements by the USDA is crucial for contextualizing the current $3.1 million contract. While specific data for this exact commodity and packaging is not provided, the USDA's Agricultural Marketing Service (AMS) regularly procures various food commodities to support domestic nutrition assistance programs. Past contracts for frozen pork products have varied in quantity, duration, and price based on market conditions, program needs, and competition levels. For instance, contracts awarded in previous fiscal years might show different price points per pound or case, influenced by factors like feed costs, global supply, and demand. A detailed review of AMS procurement histories for items like 'frozen pork' or 'ham' over the last 3-5 years would reveal trends in pricing, typical contract values, and the number of bidders, allowing for a more robust comparison to the current award and an assessment of whether this $3.1 million represents an anomaly or a consistent market rate.

How does the per-unit cost of this contract compare to market rates for frozen pork ham?

The per-unit cost for this contract, estimated at approximately $155 per 12/3 lb case (or $4.30 per pound), needs to be benchmarked against prevailing market rates for frozen pork ham. Market rates can be influenced by factors such as the specific cut, quality grade, origin, and volume purchased. Government contracts often secure bulk discounts due to large quantities, which may result in prices lower than retail or even wholesale commercial rates. However, comparing this price to wholesale distributors or commodity market indices for similar frozen pork products is essential. If the contract price is significantly below market rates, it could indicate exceptional value or potentially raise questions about product specifications or contractor margins. Conversely, if it's above market rates, it warrants scrutiny into the competition process and the justification for the higher price, even with a firm fixed-price structure.

What are the specific quality and safety standards required for the frozen pork ham?

The contract likely specifies detailed quality and safety standards that the frozen pork ham must meet to ensure it is suitable for donation and consumption. These standards typically align with USDA regulations and may include requirements related to grading (e.g., USDA Grade A), fat content, moisture levels, packaging integrity, and freezing temperatures. Safety protocols would encompass adherence to the Hazard Analysis and Critical Control Points (HACCP) system to prevent foodborne illnesses. The Agricultural Marketing Service (AMS) would have outlined these specifications in the solicitation documents. Verification of compliance would occur through inspections and testing, either pre-shipment or upon receipt. Ensuring these standards are met is paramount for public health and the integrity of the food donation program, and any deviation could lead to contract non-compliance or rejection of the goods.

What is the track record of John Hofmeister & Son Inc. in fulfilling government contracts?

Assessing the track record of John Hofmeister & Son Inc. is vital for understanding their reliability in fulfilling this $3.1 million USDA contract. Information on past performance, including the types of contracts they have held, their value, and their successful completion rates, would be available through federal procurement databases like the Federal Procurement Data System (FPDS). Key indicators include whether they have a history of timely deliveries, adherence to quality specifications, and compliance with contract terms. Any past instances of contract disputes, terminations for default, or performance issues would be significant red flags. Conversely, a history of successful, on-time deliveries and positive performance reviews would indicate a lower risk for this current procurement. Understanding their experience specifically with food commodities or USDA contracts would provide further insight into their suitability.

What is the intended distribution channel and end-user for these donated food products?

The intended distribution channel and end-users for the frozen pork ham procured under this contract are critical to understanding the program's impact. USDA food donation programs typically work through a network of state and local agencies, food banks, pantries, and other charitable organizations. The ultimate beneficiaries are often low-income individuals and families, disaster relief recipients, and other vulnerable populations facing food insecurity. The specific details of the distribution network would be managed by the USDA's Food and Nutrition Service (FNS) or other relevant agencies overseeing the donation programs. Knowing the intended recipients helps contextualize the importance of the procurement and ensures the goods are channeled effectively to those in need, aligning with the program's public service mission.

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: 123J1425B0505

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: $3,097,440

Exercised Options: $3,097,440

Current Obligation: $3,097,440

Actual Outlays: $2,883,054

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline