USDA Awards $2.1M for High-Protein Yogurt to Chobani LLC Under Full and Open Competition
Contract Overview
Contract Amount: $2,096,325 ($2.1M)
Contractor: Chobani LLC
Awarding Agency: Department of Agriculture
Start Date: 2025-12-05
End Date: 2026-03-25
Contract Duration: 110 days
Daily Burn Rate: $19.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011068/4100033254/YOGURT HI PROTEIN STRAWBERRY CUP-24/4 OZ,YOGURT HI PROTEIN VANILLA-TUB-6/32 OZ,YOGURT HI PROTEIN VANILLA CUP-24/4 OZ,YOGURT HI PROTEIN BLUEBERRY CUP-24/4 OZ
Place of Performance
Location: NEW BERLIN, CHENANGO County, NEW YORK, 13411
State: New York Government Spending
Plain-Language Summary
Department of Agriculture obligated $2.1 million to CHOBANI LLC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011068/4100033254/YOGURT HI PROTEIN STRAWBERRY CUP-24/4 OZ,YOGURT HI PROTEIN VANILLA-TUB-6/32 OZ,YOGURT HI PROTEIN VANILLA CUP-24/4 OZ,YOGURT HI PROTEIN BLUEBERRY CUP-24/4 OZ Key points: 1. Chobani LLC secured a $2.1 million contract for high-protein yogurt. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The spending is categorized under Fluid Milk Manufacturing (NAICS 311511). 4. The contract duration is 110 days, with an estimated completion date of March 25, 2026.
Value Assessment
Rating: good
The contract value of $2.1 million for yogurt products appears reasonable given the quantity and duration. Benchmarking against similar government food procurements would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: Taxpayer funds are being used efficiently through a competitive procurement process for essential food donations.
Public Impact
Ensures availability of nutritious food options for USG food donation programs. Supports the dairy industry and potentially local economies where yogurt is produced. Provides high-protein yogurt, contributing to dietary needs of recipients.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price fluctuations in dairy commodities impacting future contracts.
- Logistical challenges in distribution of perishable goods.
Positive Signals
- Use of high-protein yogurt aligns with nutritional goals.
- Firm fixed-price contract provides cost certainty.
- Awarded under full and open competition.
Sector Analysis
This procurement falls within the broader food manufacturing sector, specifically dairy. Government spending in this area supports agricultural supply chains and ensures the provision of essential food items for various programs.
Small Business Impact
While the award went to Chobani LLC, a large corporation, the full and open competition process theoretically allows small businesses to participate if they meet the requirements. Further analysis would be needed to determine if any small businesses bid or were subcontracted.
Oversight & Accountability
The Department of Agriculture's Agricultural Marketing Service managed this procurement. Oversight would involve ensuring contract terms are met, quality standards are upheld, and timely delivery occurs.
Related Government Programs
- Fluid Milk Manufacturing
- Department of Agriculture Contracting
- Agricultural Marketing Service Programs
Risk Flags
- Perishability of goods
- Logistical challenges in distribution
- Potential commodity price fluctuations
- Contract duration is relatively short
Tags
fluid-milk-manufacturing, department-of-agriculture, ny, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Agriculture awarded $2.1 million to CHOBANI LLC. COMMODITIES FOR USG FOOD DONATIONS: 2000011068/4100033254/YOGURT HI PROTEIN STRAWBERRY CUP-24/4 OZ,YOGURT HI PROTEIN VANILLA-TUB-6/32 OZ,YOGURT HI PROTEIN VANILLA CUP-24/4 OZ,YOGURT HI PROTEIN BLUEBERRY CUP-24/4 OZ
Who is the contractor on this award?
The obligated recipient is CHOBANI LLC.
Which agency awarded this contract?
Awarding agency: Department of Agriculture (Agricultural Marketing Service).
What is the total obligated amount?
The obligated amount is $2.1 million.
What is the period of performance?
Start: 2025-12-05. End: 2026-03-25.
What is the average cost per unit of yogurt compared to commercial retail prices?
Without specific unit breakdowns (e.g., cost per cup or tub), a direct comparison to commercial retail is difficult. However, government contracts often aim for prices at or below market rates due to bulk purchasing power and competitive bidding. The total award of $2.1 million for 110 days of supply suggests a significant volume, which should translate to a favorable per-unit cost.
What are the primary risks associated with this contract award?
Key risks include potential spoilage or logistical issues in distributing perishable yogurt products within the 110-day timeframe. Price volatility of dairy commodities could also pose a risk if not adequately managed within the firm fixed-price structure. Ensuring consistent quality and meeting delivery schedules are also critical.
How effectively does this contract support the USG's food donation objectives?
This contract directly supports food donation objectives by procuring a nutritious, high-demand item like high-protein yogurt. The competitive award process suggests value for money, maximizing the impact of taxpayer funds. Ensuring efficient distribution to intended recipients is crucial for realizing the full effectiveness of this procurement.
Industry Classification
NAICS: Manufacturing › Dairy Product Manufacturing › Fluid Milk Manufacturing
Product/Service Code: SUBSISTENCE
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Solicitation ID: 123J1426B0045
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 669 COUNTY ROAD 25, NEW BERLIN, NY, 13411
Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,096,325
Exercised Options: $2,096,325
Current Obligation: $2,096,325
Actual Outlays: $982,149
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-12-05
Current End Date: 2026-03-25
Potential End Date: 2026-03-25 00:00:00
Last Modified: 2026-03-04
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