USDA Awards $652K Contract to Southeastern Food Distribution for Chicken Breast for Food Donations

Contract Overview

Contract Amount: $652,080 ($652.1K)

Contractor: Southeastern Food Distribution Inc

Awarding Agency: Department of Agriculture

Start Date: 2026-04-01

End Date: 2026-05-31

Contract Duration: 60 days

Daily Burn Rate: $10.9K/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: 2000011214/4100033923/CHICKEN CONSUMER SPLT BREAST PKG-6/5 LB

Place of Performance

Location: BATESVILLE, INDEPENDENCE County, ARKANSAS, 72501

State: Arkansas Government Spending

Plain-Language Summary

Department of Agriculture obligated $652,080 to SOUTHEASTERN FOOD DISTRIBUTION INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011214/4100033923/CHICKEN CONSUMER SPLT BREAST PKG-6/5 LB Key points: 1. Contract awarded to Southeastern Food Distribution Inc. for chicken breast. 2. The contract is for food donations, supporting the Agricultural Marketing Service. 3. Competition was full and open, indicating a competitive bidding process. 4. The contract duration is 60 days, with a firm fixed price. 5. This award falls under the Poultry Processing sector.

Value Assessment

Rating: good

The contract value of $652,080 for 60 days of chicken breast supply appears reasonable given the quantity and type of commodity. Benchmarking against similar food commodity contracts would provide a more precise assessment.

Cost Per Unit: $32.60 per 5lb package (approx. $6.52/lb)

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The use of taxpayer funds for food donations aims to support food security initiatives, providing essential commodities to those in need.

Public Impact

Ensures availability of essential food items for donation programs. Supports agricultural producers and processors within the poultry industry. Contributes to food security efforts across the nation. Provides a consistent supply of a key protein source for beneficiaries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration may limit long-term supplier relationships.
Reliance on a single commodity could be a vulnerability if supply chains are disrupted.

Positive Signals

Supports a vital government program for food assistance.
Utilizes a competitive bidding process for procurement.
Procurement of a staple food item.

Sector Analysis

This contract falls within the broader food and agriculture sector, specifically focusing on poultry processing. Spending benchmarks for similar commodity procurements by the USDA's Agricultural Marketing Service would provide further context on cost-effectiveness.

Small Business Impact

The data indicates the awardee is Southeastern Food Distribution Inc. Further analysis would be needed to determine if this is a small business and if subcontracting opportunities exist for small businesses.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service. Standard procurement oversight processes are expected to be in place to ensure compliance and performance.

Related Government Programs

Poultry Processing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Short contract duration
Perishable commodity
Potential for price volatility
Single commodity focus

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $652,080 to SOUTHEASTERN FOOD DISTRIBUTION INC. COMMODITIES FOR USG FOOD DONATIONS: 2000011214/4100033923/CHICKEN CONSUMER SPLT BREAST PKG-6/5 LB

Who is the contractor on this award?

The obligated recipient is SOUTHEASTERN FOOD DISTRIBUTION INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $652,080.

What is the period of performance?

Start: 2026-04-01. End: 2026-05-31.

What is the typical cost per pound for consumer split chicken breasts procured by the government for donation programs?

The benchmark cost per pound for consumer split chicken breasts procured by the government for donation programs can vary based on market conditions, volume, and specific contract terms. Based on this contract's value and quantity, the approximate cost is $6.52 per pound. This figure should be compared against historical data and current market prices for similar government procurements to assess its competitiveness.

What are the primary risks associated with procuring perishable food items like chicken for donation programs?

Key risks include spoilage during transportation and storage, potential supply chain disruptions affecting availability, and fluctuating market prices impacting cost-effectiveness. Ensuring proper handling, timely delivery, and robust supplier vetting are crucial mitigation strategies. The short 60-day duration of this contract also presents a risk of needing to re-compete frequently, potentially leading to less favorable pricing or supply interruptions.

How effectively does this contract contribute to the USDA's food donation and security objectives?

This contract directly contributes by procuring a significant quantity of a key protein source for donation programs. By ensuring the availability of chicken breast, it supports the USDA's mission to alleviate hunger and improve food security for vulnerable populations. The full and open competition method suggests an effort to achieve this efficiently and at a fair price, maximizing the impact of taxpayer funds.

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: 6025 DAYTON BLVD, CHATTANOOGA, TN, 37415

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $652,080

Exercised Options: $652,080

Current Obligation: $652,080

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline