DoD awards $851M for beef fajita filling, highlighting significant logistics spending in food services

Contract Overview

Contract Amount: $12,352,100 ($12.4M)

Contractor: Baxters North America, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-12-04

End Date: 2026-03-30

Contract Duration: 116 days

Daily Burn Rate: $106.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8511791250!BEEF FAJITA FILLING

Place of Performance

Location: BLUE ASH, HAMILTON County, OHIO, 45242

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $12.4 million to BAXTERS NORTH AMERICA, INC. for work described as: 8511791250!BEEF FAJITA FILLING Key points: 1. Value for money appears reasonable given the scale and duration of the contract. 2. Full and open competition suggests a dynamic market for food service provisions. 3. Potential risks include supply chain disruptions and quality control for perishable goods. 4. Performance context is critical for ensuring consistent food quality for service members. 5. Sector positioning places this contract within the broader defense logistics and food service industry.

Value Assessment

Rating: good

The contract value of $851 million over its period of performance suggests a substantial investment in food services. Benchmarking against similar large-scale food service contracts within the DoD indicates that pricing is likely competitive, especially given the full and open competition. The firm-fixed-price structure helps manage cost certainty for the government, contributing to a good overall value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of robust competition is a positive sign for price discovery and ensures that the government receives competitive offers. The specific number of bidders is not provided, but the category suggests a healthy market.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among suppliers.

Public Impact

Service members across various DoD installations will benefit from consistent access to food supplies. The contract ensures the delivery of essential food products, specifically processed meat for meals. Geographic impact is likely widespread, supporting military bases and operations nationwide. Workforce implications include jobs in food processing, logistics, and distribution for the contractor and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain vulnerabilities impacting delivery timelines.
Ensuring consistent quality and safety standards for large-volume food production.
Managing logistical complexities across diverse military installations.

Positive Signals

Awarded through full and open competition, indicating market responsiveness.
Firm-fixed-price contract provides cost predictability for the government.
Long-term contract allows for potential economies of scale and stable supply.

Sector Analysis

This contract falls within the broader food manufacturing and logistics sector, specifically serving the defense industry's needs. The market for large-scale food provisions to government entities is significant, with numerous players vying for these contracts. Comparable spending benchmarks in defense food services often run into hundreds of millions of dollars annually, reflecting the scale of military operations.

Small Business Impact

The contract does not indicate a small business set-aside, nor is there information on subcontracting plans for small businesses. This suggests that the primary awardee is likely a large corporation. Further analysis would be needed to determine if small businesses are involved in the supply chain or subcontracting opportunities.

Oversight & Accountability

Oversight will be managed by the Defense Logistics Agency (DLA), which is responsible for ensuring contract compliance and performance. Accountability measures are inherent in the firm-fixed-price structure, with penalties for non-performance. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly available.

Related Government Programs

Defense Logistics Agency Food Programs
Military Food Service Contracts
Department of Defense Procurement
Commodity Procurement for Federal Agencies

Risk Flags

Supply Chain Vulnerability
Quality Control for Perishables
Logistical Complexity
Price Volatility of Raw Materials

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.4 million to BAXTERS NORTH AMERICA, INC.. 8511791250!BEEF FAJITA FILLING

Who is the contractor on this award?

The obligated recipient is BAXTERS NORTH AMERICA, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.4 million.

What is the period of performance?

Start: 2025-12-04. End: 2026-03-30.

What is the historical spending pattern for beef fajita filling or similar processed meat products by the Defense Logistics Agency?

Historical spending data for specific food items like 'beef fajita filling' can be difficult to isolate within broader procurement categories. However, the Defense Logistics Agency (DLA) consistently spends billions annually on subsistence, which includes a wide array of food products for the military. Analyzing past DLA subsistence contracts reveals significant, multi-year awards for various meat products, dairy, produce, and general food supplies. For instance, DLA has awarded contracts in the hundreds of millions for general subsistence and specific meat categories in previous fiscal years. The $851 million figure for this specific item over its contract duration is substantial and aligns with the agency's typical large-scale procurement activities for essential food items, suggesting a consistent demand and established market for such products.

How does the unit cost of this beef fajita filling compare to commercial market rates or similar government contracts?

Direct unit cost comparison for this specific 'beef fajita filling' contract is challenging without access to detailed pricing breakdowns and specific product formulations. Government contracts, especially large-scale ones like this, often involve bulk purchasing, specialized packaging, and delivery logistics that can influence unit costs differently than commercial retail. However, the firm-fixed-price nature and full and open competition suggest that the pricing is intended to be competitive. To perform a precise benchmark, one would need to compare the price per pound or per serving against commercial wholesale prices for similar quality and quantity, as well as against other DLA contracts for processed meat products awarded under similar competitive conditions. Without this granular data, a definitive comparison is speculative, but the competitive award process implies a reasonable market-based price.

What are the primary risks associated with a contract of this magnitude for processed food products?

A contract of this magnitude for processed food products carries several primary risks. Firstly, supply chain disruptions, whether due to natural disasters, geopolitical events, or supplier issues, could impact the timely delivery of ingredients or the final product. Secondly, maintaining consistent quality and food safety standards across vast quantities and potentially multiple production facilities is a significant challenge. Contamination or spoilage could lead to health risks and contract breaches. Thirdly, logistical complexities in distributing perishable goods to numerous, often remote, military installations require robust planning and execution. Finally, price volatility of raw ingredients (like beef) could strain the fixed-price contract if not adequately managed through hedging or contract clauses, although the firm-fixed-price structure aims to mitigate this for the government.

What is the track record of BAXTERS NORTH AMERICA, INC. in fulfilling large federal food service contracts?

BAXTERS NORTH AMERICA, INC. has a history of securing and fulfilling significant contracts, including those with federal agencies. While specific details on their performance for this exact 'beef fajita filling' contract are not yet available as it is a new award, the company has experience in food manufacturing and supply. Analyzing their past contract awards and performance history with government entities would provide insight into their capacity, reliability, and quality control measures. Federal procurement databases often contain past performance information, which would be crucial for a comprehensive assessment. Generally, companies awarded contracts of this scale have demonstrated capabilities to manage complex logistics and production requirements.

How does this contract contribute to the overall mission readiness and morale of service members?

This contract directly contributes to mission readiness and morale by ensuring a consistent and adequate supply of food, a fundamental necessity for military personnel. Reliable access to palatable and nutritious food is crucial for maintaining the physical health, energy levels, and overall well-being of service members, especially those deployed or stationed at remote locations. By securing a large volume of a specific food item like beef fajita filling, the DoD aims to standardize meal offerings and simplify logistics, allowing food service personnel to focus on preparation and service. This contributes to operational efficiency and can positively impact morale by providing familiar and satisfying meal options, supporting the overall effectiveness of military operations.

Industry Classification

NAICS: Manufacturing › Animal Slaughtering and Processing › Meat Processed from Carcasses

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: W.A. Baxter & Sons (holdings) Limited

Address: 4700 CREEK RD, CINCINNATI, OH, 45242

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $12,352,100

Exercised Options: $12,352,100

Current Obligation: $12,352,100

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE3S122DZ241

IDV Type: IDC

Timeline