USDA's Agricultural Marketing Service awards $6.57M contract for frozen ground beef to American Beef Packers, Inc

Contract Overview

Contract Amount: $6,568,380 ($6.6M)

Contractor: American Beef Packers, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2026-01-09

End Date: 2026-03-31

Contract Duration: 81 days

Daily Burn Rate: $81.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011102/4100033556/BEEF COARSE GROUND FRZ CTN-60 LB

Place of Performance

Location: CHINO, SAN BERNARDINO County, CALIFORNIA, 91710

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $6.6 million to AMERICAN BEEF PACKERS, INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011102/4100033556/BEEF COARSE GROUND FRZ CTN-60 LB Key points: 1. The contract is for 60-pound cartons of coarse ground beef, a staple commodity. 2. American Beef Packers, Inc. secured the award, indicating potential market concentration. 3. The contract duration is 81 days, suggesting a short-term need. 4. The use of Firm Fixed Price suggests cost certainty for the government.

Value Assessment

Rating: good

The contract value of $6.57M for 81 days of beef supply appears reasonable given the quantity and commodity type. Benchmarking against similar food commodity 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 After Exclusion of Sources,' which implies a competitive process was used, but specific details on source exclusion are not provided. This method aims for fair pricing through competition.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it promotes competitive pricing and potentially lower costs for government procurements.

Public Impact

Ensures availability of essential food commodities for USG food donation programs. Supports the agricultural sector, specifically beef processing and distribution. Provides a consistent supply of a key protein source for beneficiaries of food assistance programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on 'Exclusion of Sources' in competition.
Short contract duration may lead to frequent re-solicitations and potential price fluctuations.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Award to a single vendor ensures a focused supply chain for this period.

Sector Analysis

This contract falls within the Food and Agriculture sector, specifically related to commodity procurement for federal food assistance programs. Spending benchmarks for similar commodity contracts would be relevant for a deeper analysis.

Small Business Impact

The data does not indicate if small businesses were involved in this procurement, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Agricultural Marketing Service (AMS) is responsible for overseeing this contract. Standard procurement oversight processes should ensure compliance with contract terms and delivery schedules.

Related Government Programs

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

Risk Flags

Potential lack of robust competition due to source exclusion.
Short contract duration may lead to inefficiencies.
Limited transparency on small business participation.
Dependence on a single supplier for the contract period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $6.6 million to AMERICAN BEEF PACKERS, INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000011102/4100033556/BEEF COARSE GROUND FRZ CTN-60 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 $6.6 million.

What is the period of performance?

Start: 2026-01-09. End: 2026-03-31.

What is the typical price range for 60-lb cartons of frozen coarse ground beef in the current market?

Determining the precise market price range requires access to real-time commodity market data and historical pricing for similar government contracts. Factors like grade, fat content, and specific cuts influence pricing. Without this granular data, a definitive benchmark is difficult, but the awarded price should be compared against recent USDA food purchase data and industry reports to assess value.

What were the specific reasons for excluding other sources in this 'Full and Open Competition After Exclusion of Sources' award?

The justification for excluding specific sources under this procurement method is crucial for understanding the competitive landscape and potential impact on pricing. Reasons could range from specialized capabilities to specific product requirements. A thorough review of the solicitation documents and award justification would reveal these details and help assess if the exclusion limited competition unfairly or was based on legitimate factors.

How does the short 81-day duration of this contract impact the overall effectiveness and cost-efficiency of the food donation program?

A short contract duration like 81 days can lead to administrative overhead from frequent re-procurement processes and may prevent securing volume discounts achievable with longer-term agreements. While it allows for flexibility to adapt to changing needs or market conditions, it could also result in less predictable supply chains and potentially higher per-unit costs compared to longer-term contracts. Evaluating the program's strategic goals is key to assessing this impact.

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: 123J1426B0078

Offers Received: 8

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: $6,568,380

Exercised Options: $6,568,380

Current Obligation: $6,568,380

Actual Outlays: $1,010,520

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline