Department of Agriculture Awarded a Contract to JBS USA FOOD COMPANY for $674,033.00

Summary of Award

The JSON response from usaspending.gov provides details about a specific federal government contract awarded under the PIID "123J1419C0523". This contract falls under the category of a definitive contract, meaning it is a legally binding mutual agreement between the contractor and the government.

**Contract Overview**

The contract was initiated by the Department of Agriculture and, more specifically, by its sub-agency, the Agricultural Marketing Service (AMS). It was funded through another USDA sub-agency, the Food and Nutrition Service (FNS). The primary purpose of the contract is the procurement of pork products, notably "PORK BNLS LEG ROASTS - BULK CTN-60 LB, PORK ROAST LEG FRZ CTN-32-40 LB, PORK PICNIC BNLS FRZ CTN-60 LB" with a substantial total obligation of $674,033. The contract was signed on December 10, 2018, with a period of performance ending on February 28, 2019. According to the latest transaction recorded in the database, the contract continues to be recorded and modified as of April 10, 2025. **Recipient of the Contract** The contract was awarded to JBS USA Food Company, a significant player in the meat processing industry located in Greeley, Colorado. Their parent company, JBS S/A, is of Brazilian origin, highlighting JBS USA's status as a U.S.-owned business under corporate designations. For this particular contract, JBS USA Food Company is distinguished as a manufacturer of goods, explicitly aligning with the NAICS classification "Animal (Except Poultry) Slaughtering". This categorization is vital for understanding the nature of their operations and expertise, especially considering the contract's supply requirements in pork products. **Nature of Competition** The contract was awarded through a "sealed bid" solicitation procedure, revealing an open and transparent competitive process. Despite the open competition, only one bid was submitted. This fact emphasizes the specialized niche of large-scale pork supply that JBS USA operates within, potentially limiting other competitors' ability to meet the same specifications or volumes required by the USDA. **Transaction Details** A particularly significant transaction recorded on April 10, 2025, showed a negative amount of $347.27 against the contract. While the particulars of this adjustment isn't detailed in the current dataset, such negative entries often suggest reversals or corrections potentially due to overpayments, erroneous entries, or minor contract adjustments. It is crucial to note that these transactions are common in large-scale contracts where multiple factors could necessitate financial reconciliation. **Contractual and Regulatory Framework** The contract is structured under firm fixed pricing, ensuring that the government pays a set fee once the project’s scope is fully defined and agreed upon, providing stability in cost expectations. No set-aside options or commercial item procedures were utilized, demonstrating the direct and specified nature of the contract. The contract management adhered to domestic federal regulations without being influenced by international funding or foreign necessities. **Performing Evaluation and Compliance** Full compliance with relevant government standards was maintained. The contract was neither subjected to labor standards nor construction wage rates, which corresponds with the absence of a construction aspect in this contract's scope. These aspects ensure that the contract remains within the remit of USDA’s guidelines dedicated to food supply provision rather than infrastructural development. **Place of Performance** The designated place for contractual performance is Marshalltown, Iowa, which aligns with the operational footprint required for animal slaughtering and processing facilities. This setting must facilitate the fulfilment of the contract’s supply objectives—namely, the provision of large volumes of pork products for USDA’s strategic operations. **Conclusion** The specifics of this contract illuminate the specialized nature of government procurement in the agricultural and food sectors. The Department of Agriculture's reliance on established, regulated entities such as JBS USA demonstrates the prioritization of quality, consistency, and large-scale supply capacity. It highlights the contractual obligations that ensure effective management and local compliance within the U.S. food supply chain sector. Such contracts are pivotal to executing national food programs, reinforcing food security standards, and facilitating efficient government operations in nutrition and food distribution services.