Department of Agriculture Awarded a Contract to JBS USA FOOD COMPANY for $7,973,529.60

Summary of Award

The United States Department of Agriculture (USDA) entered into a significant contract with JBS USA Food Company, a prominent entity involved in meat processing, specifically in the slaughtering of animals other than poultry. This contract, solidified on January 8, 2019, was executed under a definitive contract type, outlining a precise and comprehensive agreement for the supply of pork loin roast, as detailed in the description "2000005732/4100016456/PORK LOIN ROAST FRZ PKG-12/5 LB". The total obligation reported for this contract reached an impressive $7,973,529.60—an indication of the substantial scale and significance of this transaction.

#### Contract Overview

The agreement is categorized as a definitive contract, meaning it provides clear stipulations, including delivery schedules and other specific terms. Notably, this contract was made possible through a full and open competition as seen in the description of the extent of competition used for procurement. Six offers were received for this contract under the solicitation identifier "123J1419B0073/4100016456," following sealed bidding procedures. These competitive processes affirm the USDA's commitment to transparency and fairness in awarding contracts of such magnitude. #### Agencies and Purpose The funding and awarding agencies involved in this contract are both under the USDA. The Commodity Credit Corporation (CCC), operating under the USDA's Farm Service Agency, serves as the funding entity. Meanwhile, the Agricultural Marketing Service (AMS) is the awarding agency, demonstrating the interconnected nature of these branches under the USDA in ensuring agricultural commodities are efficiently procured and distributed. The performance period for this contract began and ended in the first quarter of 2019, with the intended continuity of supply to be concluded by March 31, 2019. This timeframe suggests a focus on ensuring that the contract's deliverables were met swiftly and efficiently, reflecting the Agency’s priority in timely acquisitions. #### Recipient Details JBS USA Food Company, based in Greeley, Colorado, is a leading meat processing company owned by the U.S.-based segment of the globally recognized JBS S/A. It is a corporate entity not tax-exempt, primarily involved in the manufacturing of goods, specifically within the NAICS code 311611 which denotes "Animal (except Poultry) Slaughtering." This classification emphasizes the company's specialization in meat products, aligning with the contract's requirements of supplying pork loin roasts to the USDA. The business characteristics of JBS USA highlight it as a corporate entity not designated a small business, thereby categorizing it as a larger market player with extensive capabilities to meet the substantial demands outlined in federal procurement contracts like this one. #### Financial Transactions Two notable transactions are associated with this contract, each reflecting critical financial activities: 1. **Initial Contract Award:** On January 8, 2019, the contract commenced with an issuing transaction of $7,973,529.60. This transaction established the primary financial obligation under the terms agreed upon between the USDA and JBS USA. It set the foundation for the execution and fulfillment of the contract, earmarking the funds for the procurement of specified goods. 2. **Modification Action:** A subsequent transaction dated April 10, 2025, records a modification (Mod P00004) with a negative adjustment of $82,023.73. This adjustment suggests a revision or final reconciliation of accounts, perhaps due to overestimates, corrections, or contract amendments determined during or after the period of performance. Such modifications are typical in government contracts, ensuring financial accuracy and accountability in long-term or complex agreements. #### Additional Contract Details The contract specifies certain non-applicable clauses, such as the Clinger-Cohen Act planning and commercial item acquisition procedures, indicating these frameworks were not utilized in this procurement. Furthermore, the agreement did not undergo the subcontracting plans usually required for large business recipients, as JBS USA has a commercial subcontract plan instead. JBS USA, being U.S.-owned and operated, aligns with domestic procurement policies, further supported by the absence of foreign funding indicators. The firm-fixed pricing strategy employed ensures cost predictability for the USDA, mitigating risks associated with price fluctuations in the commodity market. #### Concluding Observations This contract between the USDA and JBS USA emphasizes the strategic alignment of federal procurement with domestic manufacturers to meet governmental needs for food security and supply stability. It reflects a significant financial obligation reinforced by transparent and competitive bidding processes, signifying the government's commitment to equitable and efficient contract awarding. The transactions associated with the contract provide insights into the financial management of federal obligations, ensuring that performance aligns with procurement expectations and accountability measures.