USDA awards $131,980 for frozen chicken drumsticks to George's, Inc. under firm-fixed-price contract

Contract Overview

Contract Amount: $131,980 ($132.0K)

Contractor: George's, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2026-04-01

End Date: 2026-06-30

Contract Duration: 90 days

Daily Burn Rate: $1.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011214/4100033922/CHICKEN DRUMSTICKS FROZEN PKG-8/5 LB

Place of Performance

Location: BATESVILLE, INDEPENDENCE County, ARKANSAS, 72501

State: Arkansas Government Spending

Plain-Language Summary

Department of Agriculture obligated $131,980.48 to GEORGE'S, INC. for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011214/4100033922/CHICKEN DRUMSTICKS FROZEN PKG-8/5 LB Key points: 1. Contract awarded for essential food commodities, supporting federal food donation programs. 2. Firm-fixed-price structure provides cost certainty for the government. 3. Short contract duration of 90 days suggests a tactical or immediate need. 4. Awarded to a single contractor, George's, Inc., indicating a focused procurement. 5. Geographic location of performance in Arkansas may align with production or distribution hubs. 6. The contract falls under Poultry Processing NAICS code, specifying the product category.

Value Assessment

Rating: good

The contract value of $131,980 for 90 days of frozen chicken drumsticks appears reasonable for commodity procurement. Without specific volume or detailed product specifications, a direct per-unit cost comparison is difficult. However, the firm-fixed-price nature suggests that the contractor absorbed potential cost fluctuations, which is generally favorable for the government. Benchmarking against similar commodity contracts would provide a more precise value assessment.

Cost Per Unit: N/A

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 offers. The presence of two bids suggests a competitive environment, though the specific number of interested parties and the evaluation process details are not provided. Full and open competition generally leads to better price discovery and a wider selection of potential suppliers.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures the government receives the best value available.

Public Impact

Beneficiaries include individuals and families receiving food assistance through federal donation programs. Services delivered involve the supply of frozen chicken drumsticks, a key protein source. Geographic impact is primarily within Arkansas, where the contract is performed. Workforce implications are likely within George's, Inc.'s poultry processing operations in Arkansas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited contract duration may not reflect long-term supply chain needs.
Specifics on quantity and quality of chicken drumsticks are not detailed in the provided data.
Potential for price volatility in the commodity market not fully mitigated by fixed price if market shifts significantly.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Awarded through full and open competition, suggesting a competitive process.
Contract supports vital federal food donation programs.

Sector Analysis

This contract falls within the broader food manufacturing and processing sector, specifically poultry. The market for commodity food items procured by government agencies is substantial, driven by programs like food assistance and disaster relief. Comparable spending benchmarks would involve analyzing other USDA procurements for similar protein commodities, considering factors like volume, seasonality, and market conditions at the time of award.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While George's, Inc. may be a small business itself, the contract was not formally competed with a small business set-aside. Subcontracting opportunities for small businesses are not explicitly detailed but could arise from the prime contractor's operational needs.

Oversight & Accountability

Oversight for this contract would primarily reside with the USDA's Agricultural Marketing Service (AMS), the issuing agency. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency is facilitated by public contract databases where such awards are recorded. 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
Federal Food Donation Programs

Risk Flags

Short contract duration may indicate a tactical need rather than strategic sourcing.
Limited public information on specific quantity and quality metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $131,980.48 to GEORGE'S, INC.. COMMODITIES FOR USG FOOD DONATIONS: 2000011214/4100033922/CHICKEN DRUMSTICKS FROZEN PKG-8/5 LB

Who is the contractor on this award?

The obligated recipient is GEORGE'S, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $131,980.48.

What is the period of performance?

Start: 2026-04-01. End: 2026-06-30.

What is the historical spending pattern of the Agricultural Marketing Service (AMS) on poultry products?

The Agricultural Marketing Service (AMS) procures a variety of agricultural commodities, including poultry, to support federal food assistance programs. Historical spending on poultry products can fluctuate based on program needs, commodity prices, and congressional appropriations. Analyzing AMS's procurement history reveals trends in the types of poultry products (e.g., chicken, turkey), forms (e.g., frozen, fresh), and quantities purchased over time. For instance, data might show an increasing trend in frozen chicken products due to longer shelf life and ease of distribution for donation programs. Benchmarking this $131,980 award against average annual or quarterly spending on similar items by AMS would provide context on its relative scale and significance within the agency's overall commodity procurement strategy.

How does the price per pound for these chicken drumsticks compare to market rates at the time of award?

Determining the exact price per pound requires knowing the total quantity of chicken drumsticks procured under this $131,980 contract. Without the weight specification, a direct comparison to market rates is not possible. However, if the quantity were known (e.g., 50,000 lbs), the price per pound could be calculated ($131,980 / 50,000 lbs = $2.64/lb). This calculated rate would then be benchmarked against prevailing wholesale or commodity market prices for frozen chicken drumsticks in Arkansas or the surrounding region during the contract period (April-June 2026). Factors such as grade, packaging, and delivery terms would also influence the comparison. A firm-fixed-price contract suggests the government aimed for cost certainty, but the actual value is best assessed by comparing the negotiated price per unit against contemporaneous market data.

What is George's, Inc.'s track record with federal food commodity contracts?

George's, Inc. is a significant player in the poultry industry. A review of federal procurement databases would reveal their history of awarded contracts, particularly with agencies like the USDA. This would include the types of commodities supplied, contract values, duration, and performance history. Examining past awards can indicate their reliability, capacity, and experience in meeting government specifications and delivery schedules. If George's, Inc. has a history of successful, on-time deliveries and compliance with contract terms for similar food commodities, it suggests a lower performance risk for this current award. Conversely, any past performance issues, such as late deliveries or quality disputes, would warrant closer scrutiny of this new contract.

What are the specific food donation programs this contract supports?

This contract for frozen chicken drumsticks likely supports several key USDA food donation programs designed to alleviate hunger and improve nutrition. Primary beneficiaries include the Food Purchase Program (FPP), which buys surplus commodities for distribution, and the Emergency Food Assistance Program (TEFAP), which provides food to low-income households. Other potential programs could include those serving schools (like the National School Lunch Program, though typically direct school purchases differ), disaster relief efforts, or international food aid initiatives managed by USDA. The specific program allocation would depend on the immediate needs and priorities of the Agricultural Marketing Service at the time of procurement.

What is the typical duration for USDA commodity procurement contracts of this nature?

The typical duration for USDA commodity procurement contracts can vary significantly depending on the commodity, the program it supports, and market conditions. Contracts for perishable goods might be shorter-term, focusing on immediate needs or seasonal availability, similar to this 90-day contract. However, contracts for shelf-stable items or those supporting long-term programs might extend for a year or more, often with options for renewal. The 90-day duration here suggests a specific, perhaps urgent, requirement for chicken drumsticks, possibly to replenish stocks for upcoming distribution cycles or to meet a temporary surge in demand within the food donation system. Longer-term contracts often involve more complex bidding processes and price negotiation strategies.

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: 123J1426B0176

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 402 W ROBINSON AVE, SPRINGDALE, AR, 72764

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $131,980

Exercised Options: $131,980

Current Obligation: $131,980

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline