USDA awards $133K cheese contract to Saputo Cheese USA Inc. for food donations

Contract Overview

Contract Amount: $133,145 ($133.1K)

Contractor: Saputo Cheese USA Inc

Awarding Agency: Department of Agriculture

Start Date: 2026-02-12

End Date: 2026-04-30

Contract Duration: 77 days

Daily Burn Rate: $1.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011190/4400002384/4100033768/CHEESE MOZ LM PART SKM SHRD FRZ BOX-30LB

Place of Performance

Location: TULARE, TULARE County, CALIFORNIA, 93274

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $133,144.7 to SAPUTO CHEESE USA INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011190/4400002384/4100033768/CHEESE MOZ LM PART SKM SHRD FRZ BOX-30LB Key points: 1. Contract value appears reasonable for the specified quantity and type of cheese. 2. Full and open competition suggests a competitive bidding process. 3. Potential for price fluctuations due to economic price adjustment clause. 4. Contract duration is relatively short, indicating a specific need. 5. Geographic focus on California for delivery. 6. This contract supports the broader mission of USG food donations.

Value Assessment

Rating: good

The contract value of $133,144.70 for 30lb boxes of frozen, part-skim, low-moisture mozzarella cheese seems aligned with market rates for bulk food commodities. Benchmarking against similar government food procurement contracts for cheese would provide a more precise value-for-money assessment. The fixed-price with economic price adjustment structure aims to balance cost certainty with market volatility.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. With 6 bidders participating, this suggests a healthy level of competition, which typically drives down prices and encourages innovation. The agency's decision to use full and open competition implies confidence in the market's ability to provide suitable options.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it likely resulted in a more favorable price for the cheese compared to a sole-source or limited competition scenario.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USG donation programs. The service delivered is the provision of essential dairy products for nutritional support. Geographic impact is focused on California, where the cheese will be delivered. This contract supports the agricultural sector by purchasing dairy products.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause introduces potential for cost overruns if market prices rise significantly.
Short delivery window (77 days) may limit flexibility if supply chain issues arise.
Reliance on a single supplier for this specific commodity could pose a risk if unforeseen issues affect their production or delivery capabilities.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Multiple bidders (6) suggest a competitive market for this product.
Contract supports a critical government function: food donations.

Sector Analysis

The procurement of food commodities like cheese falls under the broader agricultural and food services sector. The USDA's Agricultural Marketing Service plays a key role in facilitating the purchase and distribution of agricultural products for various government programs, including food assistance. Market size for bulk cheese procurement by the government can be substantial, influenced by domestic production levels and program demands. This contract represents a specific instance of the government leveraging the commercial market to fulfill its nutritional support obligations.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Saputo Cheese USA Inc., a large manufacturer, suggests that the primary focus was on securing a large quantity of cheese, and small business participation was not a specific objective of this particular procurement action.

Oversight & Accountability

Oversight for this contract would primarily fall under the USDA's Agricultural Marketing Service (AMS). The contract includes standard clauses for delivery orders and payment, with potential for audits by the USDA's Office of Inspector General. Transparency is maintained through federal procurement databases where contract awards are recorded. Accountability is ensured through the terms and conditions of the fixed-price with economic price adjustment contract.

Related Government Programs

USDA Food Purchase Programs
National School Lunch Program
Commodity Supplemental Food Program
Food and Nutrition Service Programs

Risk Flags

Economic Price Adjustment Clause
Short Performance Period

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $133,144.7 to SAPUTO CHEESE USA INC. COMMODITIES FOR USG FOOD DONATIONS: 2000011190/4400002384/4100033768/CHEESE MOZ LM PART SKM SHRD FRZ BOX-30LB

Who is the contractor on this award?

The obligated recipient is SAPUTO CHEESE USA INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $133,144.7.

What is the period of performance?

Start: 2026-02-12. End: 2026-04-30.

What is Saputo Cheese USA Inc.'s track record with federal contracts, particularly with the USDA?

Saputo Cheese USA Inc. has a history of receiving federal contracts, primarily from the Department of Agriculture, for various dairy products. A review of federal procurement data indicates multiple awards for cheese and other dairy items over the years. These contracts often align with the USDA's mission to support agricultural markets and provide food assistance. While specific performance details for each contract are not publicly detailed in summary, the continued awarding of contracts suggests a satisfactory performance history. Further analysis would involve examining past contract performance reports and any documented issues or commendations.

How does the per-pound cost of this cheese compare to similar government procurements or market rates?

The contract value is $133,144.70 for an unspecified quantity of 30lb boxes of frozen, part-skim, low-moisture mozzarella cheese. To determine the per-pound cost, the total number of pounds procured is needed. Assuming a standard 30lb box, the total weight would be the number of boxes multiplied by 30. Without the exact number of boxes, a precise per-pound cost cannot be calculated. However, if we assume a typical quantity for such a contract, the per-pound price can be estimated and benchmarked against historical USDA food donation purchases or commercial wholesale prices for similar cheese types to assess value for money.

What are the primary risks associated with the 'fixed price with economic price adjustment' clause in this contract?

The primary risk associated with the 'fixed price with economic price adjustment' (FPEPA) clause is the potential for increased costs to the government if market prices for cheese rise significantly during the contract period. While the base price is fixed, the economic price adjustment allows for modifications based on specified economic indicators, typically related to raw material costs or inflation. This protects the contractor from unforeseen cost increases but exposes the government to potential budget overruns. Conversely, if market prices decrease, the government might not benefit from a corresponding price reduction unless the adjustment clause is structured to allow for downward adjustments as well.

What is the intended use and impact of these donated cheese commodities?

These donated cheese commodities are intended to supplement food supplies for various federal nutrition assistance programs, such as the National School Lunch Program, the Commodity Supplemental Food Program, and other food banks and charitable organizations. The impact is to provide nutritious food options to vulnerable populations, including low-income families, children, and the elderly, thereby improving food security and dietary intake. By purchasing these commodities, the USDA also supports domestic dairy farmers and the agricultural economy.

How does this contract's value and duration compare to typical USDA food donation procurements?

The contract value of $133,144.70 is relatively modest for a federal food procurement, suggesting it may be for a specific delivery order or a smaller portion of a larger program's needs. The duration of 77 days (from delivery order to end of performance) is also quite short, indicating a time-sensitive requirement. Typical USDA food donation procurements can range from tens of thousands to millions of dollars and may have longer performance periods, depending on the commodity, quantity, and program requirements. This specific contract appears to address an immediate need for cheese within a defined timeframe and location.

Industry Classification

NAICS: Manufacturing › Dairy Product Manufacturing › Cheese Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 123J1425B0282

Offers Received: 6

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jolina Capital Inc

Address: 10700 W RESEARCH DR, MILWAUKEE, WI, 53226

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $133,145

Exercised Options: $133,145

Current Obligation: $133,145

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1425D0023

IDV Type: IDC

Timeline