Department of Agriculture Awarded a Contract to JBS USA FOOD COMPANY for $3,757,600.00

Summary of Award

In a detailed examination of the JSON response data from usaspending.gov, it is apparent that the awarded contract involves a clear and systematic arrangement between the U.S. federal government and JBS USA Food Company – a significant player in the U.S. meat processing industry. The awarded contract, denoted by the unique identification "CONT_AWD_123J1419C0879_12K2_-NONE-_-NONE-", is categorized under a "DEFINITIVE CONTRACT", signifying a fixed agreement to supply specific goods or services within delineated financial parameters and timeframes.

The specific subject of this contract is the provision of "Pork Loin Roast FRZ CTN-6/5 LB", with a substantial total obligation of $3,757,600. This figure is consistent with both the "base exercised options" and the "base and all options" monetary values, confirming the full extent of the contract is covered from the inception. The contract was officially signed on February 15, 2019, marking the commencement of a relationship aimed at the delivery of frozen pork loin roasts. The performance period extended until June 15, 2019, with the possibility of no further extensions as indicated by the potential end date mirroring the original end date.

The U.S. Department of Agriculture, specifically its sub-agency, the Agricultural Marketing Service, facilitated the awarding of this contract. The Farm Service Agency served as the funding agency, highlighting a collaborative interagency effort within the USDA structure. The mission within this contract underscores a procurement strategy that contributes to the sustenance and competition within the U.S. meat supply chain, especially vital during fluctuating market conditions and the need for stable supply mechanisms. Focusing on JBS USA Food Company, this recipient entity highlights the scale and capability to accommodate large federal contracts, given its diversified operations in meat processing—as reflected in its classification under the NAICS code "311611", indicative of "Animal (except Poultry) Slaughtering". This classification aligns with the product or service code "8905", which explicitly covers "MEAT, POULTRY, AND FISH", thereby validating JBS USA’s logistical and operational capacity to meet federal demands effectively. Notably, JBS USA is a full-fledged U.S.-owned business, headquartered in Greeley, Colorado, as per the location data provided. The transactions related to this contract reveal insightful dynamics. The primary transaction on February 15, 2019, matches the signed date of the contract, with a transaction amount confirming the complete allocation of $3,757,600. This financial transaction aligns with the contract's intended budget outlay, ensuring JBS USA obtains the requisite capital to commence the ordered production and delivery operations. A secondary transaction dated April 10, 2025, indicates an intriguing negative adjustment of -$80,756.85. This modification (noted as "Mod: P00001") could reflect various post-contractual adjustments, possible financial reconciliations, or return/credit scenarios that merit further investigation to understand the nature and reason behind retroactive financial alterations. While the exact causation isn't detailed in the JSON, such an adjustment exemplifies the complexities of federal contract management and financial oversight, necessitating stakeholder engagement to preserve transparency and accountability. The procurement process under this contract was executed through full and open competition, affirmed by eight offers received and finalized via sealed bidding procedures. However, no evaluative preference or particular set-aside for small businesses applies, delineating the competitive and unrestricted structure of the bidding process, characteristic of a large-scale and general market-access transaction. Moreover, the transformation of contract data reveals a lack of engagement with commercial item acquisition procedures, indicating a tailored contract; however, subsisting under firm fixed pricing, ensuring budgetary stability and pricing predictability essential in governmental contracts. This echoes the government's intent to secure fixed price assurances amidst fluctuating market variables. In summary, this awarded contract between the Department of Agriculture and JBS USA Food Company exemplifies a robust governmental contracting affair, reflective of significant financial allocation to a major entity tasked with specific agricultural produce, pivotal to federal food supply strategies. This contractual insight sheds light on the interagency collaborations within the USDA, underlining the function and capacity of substantial food industry contracts to reinforce food security and operational continuity. Additionally, the transactions suggest an extended contract lifecycle, possibly indicative of subsequent procedural refinement or audit adjustments, underscoring the dynamic nature of federal contract management.