USDA awards $2.27M for frozen beef products, with 8 bids received under full and open competition

Contract Overview

Contract Amount: $2,266,880 ($2.3M)

Contractor: Olga H Barrios

Awarding Agency: Department of Agriculture

Start Date: 2026-01-09

End Date: 2026-04-15

Contract Duration: 96 days

Daily Burn Rate: $23.6K/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: 2000011102/4100033557/BEEF COARSE GROUND FRZ CTN-60 LB,BEEF FINE GROUND FRZ CTN-40 LB,BEEF FINE GROUND FRZ PKG-40/1 LB

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60632

State: Illinois Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.3 million to OLGA H BARRIOS for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011102/4100033557/BEEF COARSE GROUND FRZ CTN-60 LB,BEEF FINE GROUND FRZ CTN-40 LB,BEEF FINE GROUND FRZ PKG-40/1 LB Key points: 1. Contract value appears reasonable given the quantity and type of goods procured. 2. Full and open competition suggests a competitive bidding process, likely leading to favorable pricing. 3. The contract duration of 96 days is relatively short, indicating a need for timely delivery. 4. The procurement is for essential food commodities, supporting critical government programs. 5. The geographic scope is limited to Illinois, suggesting a regional focus for distribution. 6. The fixed-price contract type mitigates cost overrun risks for the government.

Value Assessment

Rating: good

The contract value of $2.27 million for frozen beef products seems aligned with market rates for bulk food commodities. While specific per-pound costs are not provided, the total award amount for the specified quantities of coarse and fine ground frozen beef is within a reasonable range for government procurements of this nature. Benchmarking against similar USDA food donation contracts would provide further insight, but the initial assessment suggests fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that all responsible sources were permitted to submit a bid. The fact that 8 bids were received suggests a healthy level of competition for this requirement. A higher number of bidders generally correlates with better price discovery and potentially lower prices for the government.

Taxpayer Impact: The robust competition among 8 bidders is beneficial for taxpayers, as it likely drove down the final contract price through competitive pressure, ensuring that government funds are used efficiently.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USDA donation programs. Services delivered include the provision of essential frozen beef products for nutritional support. Geographic impact is focused on Illinois, where the beef products will be distributed. Workforce implications are minimal, primarily involving the logistics and distribution of the food products.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions affecting timely delivery of perishable goods.
Quality control of frozen beef products to ensure they meet safety and nutritional standards.

Positive Signals

Procurement through a competitive process increases the likelihood of receiving quality products at a fair price.
The fixed-price contract structure provides cost certainty for the government.
The short contract duration ensures that the government is not locked into long-term commitments for potentially fluctuating commodity prices.

Sector Analysis

This contract falls within the broader agricultural and food commodities sector, specifically focusing on the procurement of meat products for federal food assistance programs. The market for bulk frozen beef is influenced by factors such as livestock availability, feed costs, and processing capacity. Comparable spending benchmarks would involve analyzing other USDA procurements for similar food items, which often involve large volumes to support domestic and international food aid initiatives.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside criterion for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses through set-asides is unlikely. However, the prime contractor may engage small businesses for subcontracting opportunities related to logistics, transportation, or other support services within Illinois.

Oversight & Accountability

Oversight for this contract would primarily reside with the USDA's Agricultural Marketing Service (AMS), which is responsible for procuring agricultural commodities. Accountability measures are embedded in the contract terms, including delivery schedules and product specifications. Transparency is facilitated through public contract databases where such awards are reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

USDA Food Purchase Programs
National School Lunch Program
Commodity Supplemental Food Program
Food Pantries and Shelters

Risk Flags

Potential for supply chain disruptions impacting delivery timelines.
Ensuring consistent quality and safety standards of perishable goods.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.3 million to OLGA H BARRIOS. COMMODITIES FOR USG FOOD DONATIONS: 2000011102/4100033557/BEEF COARSE GROUND FRZ CTN-60 LB,BEEF FINE GROUND FRZ CTN-40 LB,BEEF FINE GROUND FRZ PKG-40/1 LB

Who is the contractor on this award?

The obligated recipient is OLGA H BARRIOS.

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: 2026-01-09. End: 2026-04-15.

What is the historical spending pattern for similar frozen beef procurements by the USDA?

Analyzing historical spending for similar frozen beef procurements by the USDA would involve examining contract awards over the past several fiscal years. This would include looking at the total dollar amounts, quantities purchased, types of beef (e.g., coarse ground, fine ground), and the average price per pound. Trends in pricing, volume, and the number of bidders over time can reveal market dynamics and potential shifts in government purchasing strategies. For instance, a review might show an increase in prices due to inflation or supply chain issues, or a decrease due to increased domestic production or changes in demand. Understanding these patterns helps in assessing whether the current award of $2.27 million for 2000011102/4100033557 is consistent with historical norms or represents an outlier, and why.

How does the per-unit cost of this beef procurement compare to commercial market rates?

To compare the per-unit cost to commercial market rates, we would need to calculate the price per pound from the contract data. The total award is $2,266,880. The description mentions 'BEEF COARSE GROUND FRZ CTN-60 LB' and 'BEEF FINE GROUND FRZ PKG-40/1 LB'. Without the exact quantities of each type of beef, a precise per-pound calculation is difficult. However, if we assume a significant portion is the 60lb CTN, and the 40/1lb is 40 individual 1lb packages, we can estimate. For example, if the contract were for 30,000 lbs of beef, the average cost would be approximately $75.56 per pound. This seems exceptionally high for bulk frozen ground beef. Commercial wholesale prices for bulk frozen ground beef typically range from $2 to $5 per pound, depending on fat content, origin, and market conditions. Therefore, if the calculated per-pound cost is within this commercial range, the contract represents good value. If it significantly exceeds it, further investigation into the specific product specifications and market conditions would be warranted.

What are the specific quality and safety standards required for the frozen beef products?

The contract specifications would detail the required quality and safety standards for the frozen beef products. Typically, these would align with USDA regulations and standards for meat processing and handling. This includes requirements for grading (e.g., USDA Select, Choice), fat content percentages, packaging integrity to prevent freezer burn and contamination, and temperature control throughout the supply chain (from processing to delivery). The products must be safe for human consumption, meeting all federal food safety regulations. The contract likely includes clauses for inspection and acceptance, allowing the government to reject products that do not meet the specified standards. Compliance with Hazard Analysis and Critical Control Points (HACCP) principles during processing is also a common requirement.

What is the track record of the contractor, OLGA H BARRIOS, in fulfilling similar government contracts?

Assessing the track record of OLGA H BARRIOS requires accessing historical contract data for this specific entity. Information such as past performance ratings on similar USDA or other federal food procurement contracts, any history of contract terminations, late deliveries, or quality issues would be crucial. A review of their performance on previous awards would indicate their reliability and capability to meet the demands of this current contract. If the contractor has a history of successful and timely deliveries of food commodities that meet specifications, it suggests a lower risk for this procurement. Conversely, a history of performance issues would raise concerns and might warrant closer monitoring or additional assurances from the contractor.

How does the competition level (8 bidders) typically influence pricing for USDA commodity procurements?

A competition level of 8 bidders for a USDA commodity procurement is generally considered robust and is expected to have a positive influence on pricing. With a larger pool of potential suppliers vying for the contract, each bidder is incentivized to offer more competitive pricing to secure the award. This increased competition drives down the price per unit as suppliers aim to undercut each other while still meeting the required specifications and profit margins. For taxpayers, this means that the government is more likely to achieve a lower overall cost for the procured goods, maximizing the value of federal funds. The presence of multiple bidders also reduces the risk of price gouging and ensures that the government is not overly reliant on a single supplier.

What are the potential risks associated with a short contract duration (96 days)?

A short contract duration of 96 days (approximately 3 months) for the procurement of frozen beef products primarily relates to the need for timely delivery and potential market volatility. The main risk is that the short timeframe might not allow for sufficient lead time for the contractor to source raw materials or manage production efficiently, potentially leading to delivery delays if unforeseen issues arise. It also means the government will need to re-compete or re-award contracts more frequently for ongoing needs, increasing administrative burden and potential for price fluctuations between contract periods. However, for a fixed-price contract, the short duration also limits the government's exposure to price increases in the beef market during the contract period.

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: 2333 CAMINO DEL RIO S STE 130, SAN DIEGO, CA, 92108

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $2,266,880

Exercised Options: $2,266,880

Current Obligation: $2,266,880

Actual Outlays: $178,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline