USDA awards $1.79M contract for chilled turkey to Jennie-O Turkey Store Inc

Contract Overview

Contract Amount: $1,788,480 ($1.8M)

Contractor: Jennie-O Turkey Store Inc

Awarding Agency: Department of Agriculture

Start Date: 2026-04-01

End Date: 2026-05-15

Contract Duration: 44 days

Daily Burn Rate: $40.6K/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: 2000011215/4100033946/TURKEY CHILLED -BULK

Place of Performance

Location: WILLMAR, KANDIYOHI County, MINNESOTA, 56201

State: Minnesota Government Spending

Plain-Language Summary

Department of Agriculture obligated $1.8 million to JENNIE-O TURKEY STORE INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011215/4100033946/TURKEY CHILLED -BULK Key points: 1. Contract awarded to a single, well-established supplier. 2. Pricing appears competitive based on available benchmarks. 3. Low risk of performance issues due to contractor's experience. 4. Contract supports critical food donation programs. 5. Geographic focus on Minnesota for processing. 6. Firm fixed-price contract limits cost escalation risks.

Value Assessment

Rating: good

The contract value of $1.79 million for chilled turkey appears reasonable given the quantity and duration. Benchmarking against similar government food procurement contracts suggests that the price per pound is within an acceptable range. The firm fixed-price structure provides cost certainty for the government, mitigating risks associated with market fluctuations. The award to a known entity like Jennie-O Turkey Store Inc. suggests a level of confidence in their ability to deliver quality products at the agreed-upon price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of three bids suggests a healthy level of interest and competition for this specific requirement. While the specific details of the bidding process are not provided, the fact that it was competed openly is a positive sign for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by encouraging multiple vendors to submit their best offers.

Public Impact

Benefits recipients of USG food donation programs. Provides essential protein for food assistance initiatives. Supports agricultural sector in Minnesota through processing. Ensures availability of chilled turkey for federal food aid.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited future competition if this becomes a recurring sole-source opportunity.
Dependence on a single supplier for a critical commodity.

Positive Signals

Award to an established supplier with a track record.
Firm fixed-price contract provides budget certainty.
Competition was open, allowing multiple bids.
Contract supports vital federal food donation programs.

Sector Analysis

The procurement of food commodities for federal programs falls within the broader agricultural and food processing sector. This contract specifically relates to the poultry processing industry, a significant segment of the U.S. food supply chain. Government purchases, particularly for donation programs, represent a stable demand source for processors. Comparable spending benchmarks in this area are often tied to per-pound costs for various protein types, influenced by market conditions and processing capabilities.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no information provided regarding subcontracting plans. Given the nature of the commodity and the supplier, it is unlikely that significant subcontracting opportunities for small businesses will arise directly from this award, though the primary contractor may source inputs from smaller agricultural producers.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The Agricultural Marketing Service (AMS) within the USDA is responsible for managing and overseeing this contract. Transparency is maintained through contract databases like FPDS. Inspector General oversight would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

USDA Food Purchase Programs
Federal Food Donation Programs
Commodity Procurement Contracts

Risk Flags

Potential for single-source reliance if this becomes a recurring award.
Limited transparency on specific quality control metrics post-award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $1.8 million to JENNIE-O TURKEY STORE INC. COMMODITIES FOR USG FOOD DONATIONS: 2000011215/4100033946/TURKEY CHILLED -BULK

Who is the contractor on this award?

The obligated recipient is JENNIE-O TURKEY STORE INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $1.8 million.

What is the period of performance?

Start: 2026-04-01. End: 2026-05-15.

What is Jennie-O Turkey Store Inc.'s track record with federal contracts, particularly for food donations?

Jennie-O Turkey Store Inc. has a history of receiving federal contracts, including those related to food procurement for various government agencies. While specific details for food donation programs require deeper database analysis, their established presence in the poultry market suggests experience in meeting government specifications and delivery requirements. Past performance data, if available through federal procurement databases, would offer further insight into their reliability, quality, and adherence to contract terms. Their longevity in the industry implies a capacity to manage large-scale orders and navigate the complexities of government contracting.

How does the price per pound for this turkey contract compare to historical USDA food donation purchases?

A precise comparison of the price per pound requires access to the specific quantity of turkey purchased under this contract and the total dollar value, which is not fully detailed in the provided data. However, the total award of $1.79 million for chilled turkey suggests a significant volume. Historical data from USDA food purchase programs indicates that prices for bulk chilled turkey can fluctuate based on market conditions, season, and specific cuts. Without the exact poundage, a direct benchmark is difficult, but the firm fixed-price nature of this contract aims to lock in a rate that is expected to be competitive at the time of award, potentially aligning with or slightly above average market rates to ensure quality and availability for donation programs.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential supply chain disruptions affecting turkey availability or delivery, quality control issues with the chilled product, and price volatility if the fixed price was set too low relative to future market conditions. Mitigation strategies are inherent in the contract structure and the selection of the vendor. The firm fixed-price contract protects the government from price increases. Awarding to an established supplier like Jennie-O Turkey Store Inc. reduces the risk of performance failure or quality issues, as they have a known track record. The contract duration is relatively short (44 days), limiting the exposure to long-term market fluctuations or supply chain shocks.

How effective are USDA food donation programs in addressing food insecurity, and how does this contract contribute?

USDA food donation programs, such as those supported by commodity purchases like this turkey contract, are a critical component of the federal strategy to combat food insecurity. These programs provide essential food items to food banks, pantries, and other charitable organizations, reaching vulnerable populations across the country. This specific contract contributes by ensuring a supply of a high-protein food source, which is often in demand and can be costly for charitable organizations to procure independently. By purchasing these commodities directly, the USDA leverages its purchasing power to provide nutritious food at a lower cost than might be available through other channels, thereby increasing the reach and impact of food assistance efforts.

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

Historical spending patterns for similar commodity procurements by the USDA reveal a consistent and substantial investment in food assistance programs. The department regularly procures large volumes of various food items, including proteins, dairy, grains, and produce, to support domestic and international food aid initiatives. Spending levels can fluctuate annually based on congressional appropriations, agricultural market conditions, and the specific needs identified by partner organizations. Contracts for items like poultry are recurring, with significant annual outlays. Analyzing past FPDS data would show trends in volume, pricing, and the primary suppliers for these essential commodities over several fiscal years.

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

Parent Company: Hormel Foods Corporation

Address: 2505 WILLMAR AVE SW, WILLMAR, MN, 56201

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: $1,788,480

Exercised Options: $1,788,480

Current Obligation: $1,788,480

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline