USDA's $861K Turkey Contract Awarded to Butterball LLC for Food Donations

Contract Overview

Contract Amount: $861,120 ($861.1K)

Contractor: Butterball LLC

Awarding Agency: Department of Agriculture

Start Date: 2026-04-01

End Date: 2026-05-31

Contract Duration: 60 days

Daily Burn Rate: $14.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011215/4100033945/TURKEY CHILLED -BULK

Place of Performance

Location: HUNTSVILLE, MADISON County, ARKANSAS, 72740

State: Arkansas Government Spending

Plain-Language Summary

Department of Agriculture obligated $861,120 to BUTTERBALL LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011215/4100033945/TURKEY CHILLED -BULK Key points: 1. Significant award for food donation commodities. 2. Butterball LLC is a major player in the poultry market. 3. Risk appears low given firm fixed price and short duration. 4. Sector is essential for food security programs.

Value Assessment

Rating: good

The contract value of $861,120 for 60 days of chilled turkey is substantial. Benchmarking against similar government food donation contracts would be necessary for a precise assessment, but the firm fixed price suggests a controlled cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method is expected to yield fair market prices for the government.

Taxpayer Impact: Taxpayer funds are used to procure essential food items for donation programs, supporting food security initiatives.

Public Impact

Ensures availability of protein for vulnerable populations through food donation programs. Supports domestic agriculture and food supply chains. Contributes to the operational capacity of food banks and charitable organizations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition
Firm fixed price contract
Short contract duration

Sector Analysis

The Agricultural Marketing Service procures commodities for various federal programs, including food donations. Spending in this area is crucial for social welfare and agricultural support, with benchmarks varying based on commodity type and market conditions.

Small Business Impact

This contract was awarded to Butterball LLC, a large corporation, and there is no indication of small business participation in this specific award. Future solicitations could explore opportunities for smaller poultry producers.

Oversight & Accountability

The Agricultural Marketing Service is responsible for the oversight of this contract, ensuring delivery and quality standards are met. The definitive contract structure provides a clear framework for accountability.

Related Government Programs

Poultry Processing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for spoilage if cold chain is broken
Reliance on a single large supplier (Butterball LLC)

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $861,120 to BUTTERBALL LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000011215/4100033945/TURKEY CHILLED -BULK

Who is the contractor on this award?

The obligated recipient is BUTTERBALL LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $861,120.

What is the period of performance?

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

What is the historical pricing trend for chilled turkey purchased by the USDA for donation programs?

Analyzing historical pricing data for similar USDA food donation contracts over the past 3-5 years would reveal price trends and potential fluctuations. This context is vital to determine if the current $861,120 award for 20,000 units of chilled turkey represents a fair market value or if it deviates significantly from past procurement costs, considering inflation and market dynamics.

Are there any specific quality control or food safety risks associated with chilled turkey procurement for donation?

While chilled turkey is generally safe when handled properly, risks can include spoilage if refrigeration is compromised during transport or storage, and potential contamination. The USDA's Agricultural Marketing Service likely has stringent quality assurance protocols and inspection requirements in place to mitigate these risks, ensuring the donated food meets safety standards.

How effectively does this procurement contribute to the overall goals of the USDA's food donation programs?

This procurement directly contributes to the USDA's food donation program goals by providing a key protein source for distribution to those in need. The timely delivery of 20,000 units of chilled turkey ensures that partner organizations can meet demand, thereby supporting food security objectives and alleviating hunger within communities.

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: 123J1426B0177

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 BUTTERBALL LN, GARNER, NC, 27529

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $861,120

Exercised Options: $861,120

Current Obligation: $861,120

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline