Department of Agriculture Awarded a Contract to JBS USA FOOD COMPANY for $882,441.00

Summary of Award

The awarded contract in focus is a definitive contract identified by the unique award ID "CONT_AWD_123J1419C0522_12K2_-NONE-_-NONE-" between the United States federal government and JBS USA Food Company. This contract, formalized on December 10, 2018, was executed under the auspices of the Department of Agriculture, specifically involving its Agricultural Marketing Service, in conjunction with the Food and Nutrition Service, which acted as the funding agency. The contract's total value stands at $882,441, covering the procurement of boneless pork picnic meat intended for federal nutrition programs.

Recipient Overview: The contract's recipient, JBS USA Food Company, is a significant player in the U.S. meat processing industry, headquartered in Greeley, Colorado. It is a subsidiary of JBS S/A, a Brazilian-based multinational corporation. JBS USA is well recognized for producing and distributing beef, pork, and poultry products, significantly impacting the meat-packing sector. As a corporate entity not designated as a small business, JBS USA focuses on the manufacturing of goods, and in this context, supplies a vital commodity for national nutritional efforts under the terms of the contract.

Agency Involvement: The Department of Agriculture, known for its umbrella coverage of programs related to food safety, agriculture, and nutrition, administers this contract through two distinct sub-agencies. The awarding agency, the Agricultural Marketing Service (AMS), primarily manages the marketing of agricultural products, ensuring fair trading practices and responsible market research. In contrast, the Food and Nutrition Service (FNS), the funding body, is tasked with extending nutritional assistance and education through various feeding programs, focusing on enriching nutritional value, particularly for vulnerable population segments. Contract and Performance Details: This definitive contract entails full and open competition based on a sealed bidding procedure. Such methods ensure transparency and optimize government spending by soliciting multiple bids before selecting the most suitable contractor. Yet, in this particular case, only one offer was received. The contract embodies firm fixed pricing, a common practice ensuring the contractor meticulously adheres to specified deliverables without cost deviation, the cornerstone of fiscal reliability in government contracting. Transactions Overview: Two transactions are reported under this contract. The initial transaction aligns with the contract's inception, cataloged on December 10, 2018, referencing a transaction amount precisely matching the total obligation of $882,441. This transaction formalizes the awarding of the contract and underpins the commitment between the US federal government and JBS USA Food Company. A subsequent modification (Mod P00001) dated April 10, 2025, reflects a seemingly minor financial adjustment of -$309.6. Although appearing minimal concerning the contract's total value, such an amendment typically arises from residual processing, compliance auditing, or adjustments to account settlements. The precise rationale behind such a modification necessitates further financial review or possibly indicates a reconciliation process conducted by the agency to finalize payment details for the product or service delivered within the scope of the award. Business Categories and Compliance: JBS USA Food Company, classified under the NAICS code 311611 for "Animal (except Poultry) Slaughtering," typifies a large-scale manufacturer engaged in meat processing across the United States. The contract adheres to strict regulatory and compliance protocols. However, it omits labor standard provisions and commercial item acquisition procedures, categorically stating these are not required or applicable within the contract’s purview. Such designations might derive from the nature of the contract itself, reflecting on how certain federal standards might not uniformly apply to all commodity-based contracts within agricultural services. Place of Performance: The designated place of performance for contract fulfillment is Worthington, Minnesota. This location is a known site for meatpacking operations designed to support substantial processing capabilities necessary for fulfilling large-scale government contracts involving food products. Overall Implications of the Contract: The contract showcases a critical investment in sustaining nutritional programs, reflecting on federal priorities to ensure food security via collaborations with established industry giants like JBS USA. The extensive reliance on firm-fixed pricing awards in such arrangements emphasizes the government’s commitment to fiscal discipline and procurement integrity. This partnership epitomizes a structured approach to meet significant nutritional demands, utilizing the expertise and extensive supply chain capabilities of established entities like JBS USA, effectively supporting broader federal missions in enhancing national dietary standards and fostering economic activity within the agricultural sector.