DoD's $11.1M Meat Contract with Tyson: Full Competition Achieved for Resale

Contract Overview

Contract Amount: $11,109,007 ($11.1M)

Contractor: Tyson Fresh Meats Inc

Awarding Agency: Department of Defense

Start Date: 2007-12-01

End Date: 2007-12-31

Contract Duration: 30 days

Daily Burn Rate: $370.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE

Sector: Other

Official Description: MEAT FOR RESALE

Place of Performance

Location: DAKOTA DUNES, UNION County, SOUTH DAKOTA, 57049

State: South Dakota Government Spending

Plain-Language Summary

Department of Defense obligated $11.1 million to TYSON FRESH MEATS INC for work described as: MEAT FOR RESALE Key points: 1. Significant contract value of $11.1 million for essential meat products. 2. Tyson Fresh Meats Inc. secured the award through full and open competition. 3. The contract addresses a critical need for resale within the Defense Commissary Agency. 4. Fixed-price contract type suggests predictable costs for the agency.

Value Assessment

Rating: good

The $11.1 million award for meat resale appears reasonable given the volume and fixed-price nature. Benchmarking against similar large-scale food service contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, indicating a robust price discovery process. This method likely resulted in competitive pricing for the Defense Commissary Agency.

Taxpayer Impact: The competitive award ensures taxpayer funds are used efficiently for essential goods.

Public Impact

Ensures availability of quality meat products for military personnel and their families through commissaries. Supports the Defense Commissary Agency's mission to provide groceries at a savings. Demonstrates effective use of competitive contracting for essential supplies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in the meat market impacting long-term value.
Dependence on a single supplier for a critical commodity.

Positive Signals

Awarded through full and open competition.
Fixed-price contract provides cost certainty.
Supports military family welfare through commissary services.

Sector Analysis

The meat processing and wholesale sector is characterized by large players and fluctuating commodity prices. This contract falls within the broader food and beverage industry, with significant government procurement activity.

Small Business Impact

While this specific contract was awarded to a large entity, the Defense Commissary Agency's overall procurement strategy may include opportunities for small businesses in related food supply chains.

Oversight & Accountability

The Defense Commissary Agency is responsible for oversight. The use of full and open competition suggests a structured procurement process, but ongoing monitoring of delivery and quality is essential.

Related Government Programs

Animal (except Poultry) Slaughtering
Department of Defense Contracting
Defense Commissary Agency Programs

Risk Flags

Potential for price volatility in the meat market.
Dependence on a single supplier for a critical commodity.
Need for ongoing quality assurance and delivery monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 million to TYSON FRESH MEATS INC. MEAT FOR RESALE

Who is the contractor on this award?

The obligated recipient is TYSON FRESH MEATS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Commissary Agency).

What is the total obligated amount?

The obligated amount is $11.1 million.

What is the period of performance?

Start: 2007-12-01. End: 2007-12-31.

What was the specific unit pricing or cost per pound compared to market rates at the time of award?

The provided data does not include specific unit pricing or cost per pound. A detailed analysis would require access to the bid details and market price indices for meat products during the contract period (December 2007). Without this, a precise comparison to market rates is not possible.

Were there any performance issues or contract modifications during the delivery order period?

The data indicates a single delivery order with a 30-day duration in December 2007. There is no information provided regarding performance issues or modifications. Typically, short-term delivery orders have fewer complexities, but a review of contract performance reports would be necessary for a definitive answer.

How does the fixed-price structure mitigate risks associated with volatile meat commodity prices?

A fixed-price contract shifts the risk of price volatility to the contractor, Tyson Fresh Meats Inc. This provides the Defense Commissary Agency with cost certainty for the duration of the delivery order. However, if market prices significantly decrease, the agency might miss out on potential savings compared to a variable-price contract.

Industry Classification

NAICS: Manufacturing › Animal Slaughtering and Processing › Animal (except Poultry) Slaughtering

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tyson Foods Inc. (UEI: 006903702)

Address: 800 STEVENS PORT DRIVE, NORTH SIOUX CITY, SD, 57049

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,109,007

Exercised Options: $11,109,007

Current Obligation: $11,109,007

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDEC0207D0001

IDV Type: IDC

Timeline