DoD's $12.5M Beef Purchase from Tyson: Full Competition, Fixed Price Contract
Contract Overview
Contract Amount: $12,514,722 ($12.5M)
Contractor: Tyson Fresh Meats Inc
Awarding Agency: Department of Defense
Start Date: 2009-03-01
End Date: 2009-03-31
Contract Duration: 30 days
Daily Burn Rate: $417.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIXED PRICE
Sector: Other
Official Description: RESALE BEEF PRODUCTS
Place of Performance
Location: DAKOTA DUNES, UNION County, SOUTH DAKOTA, 57049
Plain-Language Summary
Department of Defense obligated $12.5 million to TYSON FRESH MEATS INC for work described as: RESALE BEEF PRODUCTS Key points: 1. Significant spending on essential goods (beef products) by the Department of Defense. 2. Tyson Fresh Meats Inc. secured the contract through full and open competition. 3. Fixed-price contract type suggests price certainty for the government. 4. The contract value is substantial, indicating a large-scale procurement.
Value Assessment
Rating: good
The contract was awarded using a fixed-price structure, which is generally favorable for predictable costs. The total award amount of $12.5M for a 30-day delivery period suggests a reasonable unit price, though a direct per-unit cost benchmark is not provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust bidding process. This method is expected to drive competitive pricing and ensure the government receives fair market value for the beef products.
Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among suppliers.
Public Impact
Ensures a supply of essential food items for military personnel and their families. Supports a major meat processing company, potentially impacting the agricultural sector. The procurement contributes to the overall food supply chain management for the DoD.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited contract duration (30 days) may necessitate frequent re-procurement.
- Lack of specific per-unit cost data makes detailed efficiency analysis difficult.
Positive Signals
- Awarded through full and open competition, promoting fairness and value.
- Fixed-price contract provides cost predictability.
- Procurement addresses a clear need for food supplies.
Sector Analysis
This procurement falls within the food services and agricultural products sector, specifically related to meat processing. Spending benchmarks in this area can vary widely based on volume, type of product, and market conditions.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this specific contract.
Oversight & Accountability
The contract was awarded by the Defense Commissary Agency (DECA) under the Department of Defense, suggesting established oversight mechanisms. The use of full and open competition implies adherence to procurement regulations.
Related Government Programs
- Animal (except Poultry) Slaughtering
- Department of Defense Contracting
- Defense Commissary Agency Programs
Risk Flags
- Potential for price volatility if market conditions change significantly after contract award.
- Limited contract duration requires ongoing procurement efforts.
- Lack of detailed quantity data hinders granular cost-effectiveness analysis.
- No explicit mention of small business participation.
Tags
animal-except-poultry-slaughtering, department-of-defense, sd, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.5 million to TYSON FRESH MEATS INC. RESALE BEEF PRODUCTS
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 $12.5 million.
What is the period of performance?
Start: 2009-03-01. End: 2009-03-31.
What was the average per-pound cost of the beef products purchased under this contract?
The provided data does not include the quantity of beef products purchased, only the total award amount. To calculate the average per-pound cost, the total weight of the beef products would be required. Without this information, a precise per-pound cost cannot be determined from the available data.
How does the awarded price compare to market rates for similar beef products during the contract period?
While the contract was awarded under full and open competition, which suggests competitive pricing, a direct comparison to market rates requires access to contemporaneous market data for similar beef products. The fixed-price nature indicates the government aimed for price certainty, but the exact value proposition relative to fluctuating market prices is not detailed here.
What is the potential impact of this contract on the broader beef supply chain and Tyson's production capacity?
A $12.5 million contract for a single month's delivery suggests a significant volume of beef products. This could positively impact Tyson's revenue and production planning, while also ensuring a stable supply for the DoD. The scale of the order may influence regional supply dynamics and pricing for other buyers.
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: $12,514,722
Exercised Options: $12,514,722
Current Obligation: $12,514,722
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HDEC0207D0001
IDV Type: IDC
Timeline
Start Date: 2009-03-01
Current End Date: 2009-03-31
Potential End Date: 2009-03-31 00:00:00
Last Modified: 2019-06-07
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