USDA awards $125K for frozen mozzarella cheese, with delivery orders expected to extend through April 2026

Contract Overview

Contract Amount: $125,363 ($125.4K)

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: $1.6K/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: 2000011190/4400002384/4100033771/CHEESE MOZ LM PART SKIM FRZ LVS-8/6 LB

Place of Performance

Location: NEWMAN, STANISLAUS County, CALIFORNIA, 95360

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $125,362.94 to SAPUTO CHEESE USA INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011190/4400002384/4100033771/CHEESE MOZ LM PART SKIM FRZ LVS-8/6 LB Key points: 1. Value for money appears reasonable given the fixed-price structure with potential economic adjustments. 2. Full and open competition suggests a healthy market for dairy suppliers. 3. The contract duration and delivery order structure indicate ongoing needs for food donation commodities. 4. Performance context is tied to the Agricultural Marketing Service's role in supporting food assistance programs. 5. Sector positioning is within the broader food manufacturing and distribution industry, specifically dairy. 6. The contract is a delivery order against a larger contract vehicle, implying a pre-negotiated framework.

Value Assessment

Rating: good

The contract value of $125,362.94 for mozzarella cheese is a specific line item within a larger potential contract. Benchmarking this specific award requires understanding the broader contract's total value and duration. However, the fixed-price with economic price adjustment (FPEPA) structure is common for commodities subject to market fluctuations, aiming to balance cost control with supplier viability. Without comparable bids or detailed cost breakdowns, a precise value-for-money assessment is limited, but the competitive nature suggests fair market pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 6 bids (no: 6) suggests a competitive marketplace for this type of commodity. A higher number of bidders generally leads to more competitive pricing and better terms for the government, as suppliers vie for the award. The specific details of the bidding process, such as the range of prices offered, are not provided, but the competition level itself is a positive indicator.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple suppliers competed to offer the best price and terms for the required mozzarella cheese.

Public Impact

Beneficiaries include recipients of U.S. government food donation programs, likely food banks and other charitable organizations. Services delivered involve the provision of frozen, part-skim mozzarella cheese in specific packaging (8/6 lb loaves). Geographic impact is primarily within the United States, supporting domestic food assistance. Workforce implications are related to the dairy processing and logistics sectors involved in fulfilling the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price volatility due to the 'economic price adjustment' clause, which could increase costs if market prices rise significantly.
Dependence on a single supplier (Saputo Cheese USA Inc.) for this specific delivery order, although the overall contract vehicle may have other awards.
Logistical challenges in ensuring timely delivery of frozen goods across potentially wide geographic areas.

Positive Signals

Awarded through full and open competition, indicating a robust market and likely competitive pricing.
The contract supports critical federal food donation programs, aligning with public service objectives.
Clear product specifications (mozzarella, part-skim, frozen, loaf form) reduce ambiguity and potential for non-compliance.

Sector Analysis

The contract falls within the Food Manufacturing (NAICS 311513 - Cheese Manufacturing) sector. This sector is characterized by large-scale production facilities, complex supply chains, and significant price sensitivity to raw material costs (milk). Government procurement of dairy products is common, often supporting domestic agriculture and food assistance initiatives. Comparable spending benchmarks would involve analyzing other USDA procurements for similar dairy products or the overall market value of processed cheese.

Small Business Impact

This contract does not appear to have a small business set-aside (sb: false). While the prime contractor is Saputo Cheese USA Inc., a large entity, the contract itself does not mandate subcontracting to small businesses. Analysis of subcontracting plans or actual performance would be necessary to determine the impact on the small business ecosystem. However, the lack of a specific set-aside suggests opportunities for larger suppliers in this commodity category.

Oversight & Accountability

Oversight is primarily managed by the Department of Agriculture's Agricultural Marketing Service (AMS), which is responsible for administering food purchase and distribution programs. Accountability measures are embedded in the contract terms, including delivery schedules, product specifications, and payment terms. Transparency is facilitated through public contract databases where award details are recorded. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

USDA Food Purchase Programs
National School Lunch Program
Commodity Supplemental Food Program
The Emergency Food Assistance Program (TEFAP)

Risk Flags

Economic Price Adjustment Clause
Potential for Market Volatility
Frozen Goods Logistics

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $125,362.94 to SAPUTO CHEESE USA INC. COMMODITIES FOR USG FOOD DONATIONS: 2000011190/4400002384/4100033771/CHEESE MOZ LM PART SKIM FRZ LVS-8/6 LB

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 $125,362.94.

What is the period of performance?

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

What is the historical spending pattern for similar cheese procurement contracts by the USDA?

Analyzing historical spending for similar cheese procurement contracts by the USDA requires accessing and processing extensive contract data over multiple fiscal years. Typically, the USDA procures large quantities of dairy products, including mozzarella, to support various food assistance programs like the National School Lunch Program and The Emergency Food Assistance Program (TEFAP). Spending patterns can fluctuate based on agricultural market conditions, congressional appropriations, and policy priorities. For instance, periods of agricultural surplus might see increased government purchases, while budget constraints could lead to reduced volumes. Examining past awards for 'mozzarella cheese' under the Agricultural Marketing Service (AMS) or other relevant agencies would reveal trends in contract values, quantities, and pricing mechanisms (e.g., fixed-price vs. cost-reimbursement). This historical context is crucial for benchmarking the current $125,362.94 award and assessing its proportionality within the broader scope of federal dairy procurement.

How does the unit price of this mozzarella cheese compare to commercial market rates or other government contracts?

Determining the precise unit price for this contract is challenging without knowing the exact quantity (pounds or kilograms) of cheese procured for the $125,362.94 award. The description mentions 'CHEESE MOZ LM PART SKIM FRZ LVS-8/6 LB', suggesting packaging details but not the total volume. If we assume a standard case size or total weight, we could derive a per-pound cost. Comparing this to commercial market rates requires accessing real-time dairy market indices (e.g., USDA's dairy market news reports) or retail prices for similar products. Government contracts often secure volume discounts, potentially leading to lower unit prices than retail, but the 'economic price adjustment' clause introduces variability. Benchmarking against other federal contracts for identical or comparable cheese specifications, awarded around the same period, would provide the most relevant comparison. Without these specific quantity details and comparative data, a definitive unit price assessment is not feasible.

What are the specific risks associated with the 'economic price adjustment' (EPA) clause in this contract?

The 'economic price adjustment' (EPA) clause in this fixed-price contract introduces a degree of risk related to price volatility for the government. This clause allows for adjustments to the contract price based on fluctuations in specified economic factors, typically related to the cost of raw materials or labor. For mozzarella cheese, the primary driver would likely be the market price of milk, which can be influenced by factors such as weather, feed costs, global demand, and government dairy support programs. The risk for the government is that if these underlying costs increase significantly between the time of award and delivery, the contract price will be adjusted upwards, potentially exceeding the initially anticipated budget. Conversely, if costs decrease, the price could be adjusted downward, benefiting the government. The specific formula or index used for the EPA calculation is critical in quantifying this risk. Without that detail, it's difficult to assess the magnitude of potential price changes.

What is the track record of Saputo Cheese USA Inc. as a government contractor, particularly for dairy products?

Saputo Cheese USA Inc. is a significant player in the dairy industry and has a history of supplying products to various entities, including government agencies. To assess their track record specifically as a government contractor, one would need to examine federal procurement databases (like SAM.gov or FPDS) for past awards and performance information. This would involve looking at the number of contracts awarded, their values, the agencies involved, and crucially, any reported performance issues, contract modifications, or disputes. For dairy products, their experience likely includes supplying commodity items for food assistance programs. A review of past performance ratings, if available, would provide insights into their reliability in terms of quality, delivery timeliness, and compliance with contract terms. Generally, large established companies like Saputo tend to have robust processes, but specific contract performance history is the best indicator.

How does this contract contribute to the USDA's mission regarding food security and agricultural support?

This contract directly supports the USDA's mission by procuring dairy products, specifically mozzarella cheese, for donation programs. These programs are integral to addressing food insecurity within the United States by providing nutritious food to low-income individuals and families, including children, the elderly, and the unemployed. By purchasing commodities like cheese, the USDA also supports the domestic dairy industry, providing a market for agricultural producers and processors. This procurement action helps stabilize demand for dairy products, contributing to the overall health of the agricultural sector. Therefore, the contract serves a dual purpose: alleviating hunger and supporting American farmers and food manufacturers.

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: $125,363

Exercised Options: $125,363

Current Obligation: $125,363

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1425D0023

IDV Type: IDC

Timeline