USDA awards $14.1M contract for chicken to Gold Creek Foods, LLC, with 8 bidders

Contract Overview

Contract Amount: $14,125,536 ($14.1M)

Contractor: Gold Creek Foods, LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-12-11

End Date: 2026-02-28

Contract Duration: 79 days

Daily Burn Rate: $178.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011083/4100033454/CHICKEN LARGE CHILLED -BULK

Place of Performance

Location: GAINESVILLE, HALL County, GEORGIA, 30504

State: Georgia Government Spending

Plain-Language Summary

Department of Agriculture obligated $14.1 million to GOLD CREEK FOODS, LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011083/4100033454/CHICKEN LARGE CHILLED -BULK Key points: 1. The contract's firm fixed price structure aims to control costs for the government. 2. With 8 bidders, the competition level suggests a potentially competitive pricing environment. 3. The contract duration of 79 days indicates a short-term need for these commodities. 4. The geographic focus on Georgia (ST: GA, SN: GEORGIA) may point to specific regional distribution needs. 5. This award falls under the Poultry Processing industry, supporting essential food donation programs.

Value Assessment

Rating: good

The contract value of $14.1 million for approximately two months of chicken supply appears reasonable given the quantity and nature of the commodity. Benchmarking against similar large-scale food procurement contracts for government donations would provide a more precise value-for-money assessment. The firm fixed price mechanism is a positive indicator for cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 8 bidders participating. This level of competition is generally favorable as it allows for a wider range of potential suppliers to offer their services, potentially leading to better pricing and quality. The presence of multiple bidders suggests that the market for these commodities is accessible and that the government is likely to receive competitive offers.

Taxpayer Impact: A robust competition ensures that taxpayer dollars are used efficiently by driving down prices and encouraging suppliers to offer their best terms. The wide participation indicates that the government is not overly reliant on a single provider, mitigating risks associated with price gouging or supply disruptions.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USG food donation programs. The service delivered is the provision of large, chilled chicken for these donation initiatives. The geographic impact is primarily within Georgia, where the supplier is located and likely distribution will occur. This contract supports jobs within the poultry processing and food supply chain sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Fluctuations in commodity prices could affect the long-term cost-effectiveness if this becomes a recurring need.

Positive Signals

Firm fixed price contract provides cost certainty.
Full and open competition with 8 bidders suggests a healthy market and competitive pricing.
Supplier is located in Georgia, potentially streamlining logistics for regional distribution.

Sector Analysis

This contract falls within the broader food and agriculture sector, specifically focusing on poultry processing. The market for government food procurement is substantial, driven by various programs aimed at food security and donation. Comparable spending benchmarks would involve analyzing other large-scale contracts for protein commodities awarded by agencies like the USDA or DoD for similar purposes.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While Gold Creek Foods, LLC is the prime contractor, there is no explicit information provided regarding subcontracting plans or goals for small businesses. Further analysis would be needed to determine if subcontracting opportunities exist and are being utilized to engage the small business ecosystem.

Oversight & Accountability

The contract is a definitive contract, suggesting a level of established agreement. Oversight would typically be managed by the Agricultural Marketing Service (AMS) within the USDA. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to this contract.

Related Government Programs

USDA Food Donation Programs
Commodity Procurement Contracts
Poultry and Meat Processing Contracts
Agricultural Marketing Service Contracts

Risk Flags

Short contract duration may indicate a specific, time-limited need or a pilot program.
Geographic concentration in Georgia could imply localized distribution challenges or opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $14.1 million to GOLD CREEK FOODS, LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000011083/4100033454/CHICKEN LARGE CHILLED -BULK

Who is the contractor on this award?

The obligated recipient is GOLD CREEK FOODS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.1 million.

What is the period of performance?

Start: 2025-12-11. End: 2026-02-28.

What is the track record of Gold Creek Foods, LLC with federal contracts?

A review of federal procurement data indicates that Gold Creek Foods, LLC has been awarded multiple federal contracts, primarily for food and agricultural commodities. These contracts span various agencies, including the Department of Agriculture and the Defense Logistics Agency. The company's history suggests experience in supplying food products to government entities. Analyzing the performance history, including any past issues or commendations, would provide a more comprehensive understanding of their reliability and capability as a federal contractor. Specific details on past contract values, types, and performance ratings would be beneficial for a thorough assessment.

How does the unit price of this chicken compare to similar government procurements?

Without specific unit quantity data (e.g., pounds of chicken), a direct unit price comparison is challenging. However, the total award of $14.1 million for a 79-day period suggests a significant volume of chicken. To benchmark effectively, one would need to compare the average cost per pound or per unit of chicken procured under this contract against historical data for similar USDA or DoD food donation contracts. Factors such as the type of chicken (e.g., whole, parts, processed), chilling/freezing requirements, and delivery logistics can significantly influence price. A preliminary assessment suggests the price is within a reasonable range for bulk commodity procurement, but detailed benchmarking is required.

What are the primary risks associated with this contract?

Key risks include potential supply chain disruptions that could impact the timely delivery of chicken, especially given the relatively short contract duration. Commodity price volatility, although mitigated by the firm fixed price, could pose a risk if market prices were to significantly deviate from the contracted price over the long term, potentially affecting future procurement costs. There's also a risk related to the quality and freshness of the chilled chicken upon delivery, requiring robust inspection and acceptance procedures. Ensuring consistent adherence to food safety standards throughout the supply chain is paramount.

How effective are USDA food donation programs in addressing food insecurity?

USDA food donation programs, such as those supported by commodity procurement contracts like this one, play a crucial role in addressing food insecurity across the United States. These programs aim to reduce food waste and provide nutritious food to vulnerable populations through various channels, including food banks and pantries. While effective in supplementing food supplies, their overall impact is influenced by factors such as program funding levels, the efficiency of distribution networks, and the specific nutritional needs of the target populations. Continuous evaluation and adaptation are necessary to maximize their effectiveness in combating hunger.

What is the historical spending trend for chicken procurement by the USDA?

Analyzing historical spending trends for chicken procurement by the USDA would reveal patterns in demand, pricing, and supplier engagement over time. This specific contract for $14.1 million represents a significant, albeit short-term, investment. Understanding whether this award is part of a larger, recurring procurement effort or an isolated purchase is key. Historical data might show fluctuations based on agricultural market conditions, changes in federal nutrition assistance policies, or specific program needs. A trend analysis would help contextualize the current award within the broader landscape of USDA's food commodity purchasing activities.

Are there any specific performance metrics tied to this contract?

The provided data does not explicitly detail specific performance metrics or Key Performance Indicators (KPIs) for this contract. However, standard government contracts typically include clauses related to delivery schedules, quality standards, and compliance with food safety regulations. Performance would likely be assessed based on the contractor's ability to meet these requirements consistently. The Agricultural Marketing Service (AMS) would be responsible for monitoring adherence to the contract terms. Formal performance evaluations might be conducted upon completion, influencing future contracting decisions.

Industry Classification

NAICS: Manufacturing › Animal Slaughtering and Processing › Poultry Processing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1426B0060

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2063 MEMORIAL PARK DR, GAINESVILLE, GA, 30504

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Sole Proprietorship, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,125,536

Exercised Options: $14,125,536

Current Obligation: $14,125,536

Actual Outlays: $13,948,967

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline