The U.S. Department of Defense has awarded Tyson Foods a three-year contract worth a maximum of $444 million to supply chicken to the federal government, according to March 4 release.
The contract, for commercial chicken items, is described as fixed-price, with an economic price adjustment component. Overseas vendors supporting overseas military customers also will order from the contract, the department said.
Tyson was chosen from a group of nine offers received through a competitive bid process.
Shares of Tyson Foods reacted favorably to the news, the stock price closed Wednesday (March 5) at $40.42, up 2% or 82 cents higher on the day. For the past 52 weeks the share price has ranged from $22.47 to $40.80.