USDA awards $6.3M contract for milk and flour mixes to Transylvania Vocational Services

Contract Overview

Contract Amount: $6,303,969 ($6.3M)

Contractor: Transylvania Vocational Services, Inc

Awarding Agency: Department of Agriculture

Start Date: 2025-12-11

End Date: 2026-07-15

Contract Duration: 216 days

Daily Burn Rate: $29.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011050/4100033424/MILK INSTANT NDM PKG-24/12.8 OZ,BAKERY FLOUR MIX LOWFAT PKG-20/20 OZ

Place of Performance

Location: BREVARD, TRANSYLVANIA County, NORTH CAROLINA, 28712

State: North Carolina Government Spending

Plain-Language Summary

Department of Agriculture obligated $6.3 million to TRANSYLVANIA VOCATIONAL SERVICES, INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011050/4100033424/MILK INSTANT NDM PKG-24/12.8 OZ,BAKERY FLOUR MIX LOWFAT PKG-20/20 OZ Key points: 1. Contract awarded to Transylvania Vocational Services, Inc. for $6.3M. 2. Procurement is for milk and bakery flour mix commodities. 3. Competition method was Full and Open. 4. Contract type is Firm Fixed Price. 5. Duration is 216 days.

Value Assessment

Rating: fair

The contract value of $6.3M for food commodities appears reasonable given the quantity and duration. Benchmarking against similar commodity contracts would provide a clearer assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The use of appropriated funds for food donations impacts taxpayers by funding essential programs, with competition aiming to ensure efficient use of these funds.

Public Impact

Ensures availability of essential food commodities for USG food donation programs. Supports agricultural producers and manufacturers within the dairy and grain sectors. Provides nutritional support through donated food items.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in commodity markets.
Dependence on a single awardee for a significant quantity of goods.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract limits cost risk.
Supports critical food donation initiatives.

Sector Analysis

This contract falls within the Agricultural Marketing Service's purview, specifically supporting food commodity procurement for donation programs. Spending benchmarks in this sector are highly variable based on commodity prices and program scale.

Small Business Impact

The awardee, Transylvania Vocational Services, Inc., is not identified as a small business in the provided data. Further analysis would be needed to determine if small businesses were subcontracting opportunities.

Oversight & Accountability

The contract is a definitive contract awarded by the Department of Agriculture. Oversight would involve monitoring delivery, quality, and adherence to contract terms by the Agricultural Marketing Service.

Related Government Programs

Dry, Condensed, and Evaporated Dairy Product Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for commodity price volatility.
Single awardee for a significant quantity.
Contract duration requires consistent vendor performance.
Need for detailed quality assurance oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $6.3 million to TRANSYLVANIA VOCATIONAL SERVICES, INC. COMMODITIES FOR USG FOOD DONATIONS: 2000011050/4100033424/MILK INSTANT NDM PKG-24/12.8 OZ,BAKERY FLOUR MIX LOWFAT PKG-20/20 OZ

Who is the contractor on this award?

The obligated recipient is TRANSYLVANIA VOCATIONAL SERVICES, INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Marketing Service).

What is the total obligated amount?

The obligated amount is $6.3 million.

What is the period of performance?

Start: 2025-12-11. End: 2026-07-15.

What is the historical pricing for these specific commodity mixes to assess if the $6.3M award represents good value?

Historical pricing data for instant milk powder and bakery flour mix would be crucial for a comprehensive value assessment. Without this, it's difficult to definitively state if $6.3M is optimal. Factors like market volatility, bulk purchasing power, and specific product formulations influence pricing, making direct comparison challenging without detailed context.

What are the potential risks associated with relying on a single vendor for these essential food commodities, especially given the contract duration?

Reliance on a single vendor introduces supply chain risks, including potential disruptions due to the vendor's operational issues, quality control failures, or unforeseen market events impacting their ability to fulfill the contract. The 216-day duration necessitates robust vendor performance monitoring to mitigate these risks and ensure timely delivery of critical food supplies.

How effectively does this procurement method ensure the quality and nutritional integrity of the food commodities provided for donation programs?

The effectiveness in ensuring quality and nutritional integrity depends heavily on the specific contract requirements and the Agricultural Marketing Service's oversight. While full and open competition can drive competitive pricing, stringent quality specifications, testing protocols, and regular inspections are essential to guarantee that the milk and flour mixes meet all nutritional and safety standards for donation recipients.

Industry Classification

NAICS: Manufacturing › Dairy Product Manufacturing › Dry, Condensed, and Evaporated Dairy Product Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1426B0027

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11 MOUNTAIN INDUSTRIAL DR, BREVARD, NC, 28712

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Minority Owned Business, Nonprofit Organization, Other Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,279,314

Exercised Options: $6,279,314

Current Obligation: $6,303,969

Actual Outlays: $1,877,389

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline