USDA awards $2.3M for American Cheese to Bongards Creameries under full and open competition

Contract Overview

Contract Amount: $2,300,630 ($2.3M)

Contractor: Bongards Creameries

Awarding Agency: Department of Agriculture

Start Date: 2026-04-01

End Date: 2026-06-30

Contract Duration: 90 days

Daily Burn Rate: $25.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011246/4400002536/4100033942/CHEESE NAT AMER FBD BARREL-500 LB(40800)

Place of Performance

Location: PERHAM, OTTER TAIL County, MINNESOTA, 56573

State: Minnesota Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.3 million to BONGARDS CREAMERIES for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011246/4400002536/4100033942/CHEESE NAT AMER FBD BARREL-500 LB(40800) Key points: 1. Spending focuses on commodity procurement for food donations. 2. Bongards Creameries is the sole awardee for this specific order. 3. The contract involves fixed-price with economic price adjustment terms. 4. This award falls under the Cheese Manufacturing sector.

Value Assessment

Rating: good

The award amount of $2.3M for 40,800 lbs of cheese appears reasonable given the fixed price with economic price adjustment. Benchmarking against similar large-scale commodity purchases would provide a more precise assessment.

Cost Per Unit: $56.39

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a competitive bidding process. This method is expected to yield fair market prices for the commodities procured.

Taxpayer Impact: Taxpayer funds are utilized for food donation programs, aiming to support food security initiatives.

Public Impact

Ensures availability of food commodities for federal donation programs. Supports agricultural producers and processors within the United States. Contributes to national food assistance and relief efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment could lead to cost overruns if market prices rise significantly.
Limited duration of the delivery order may require subsequent procurements.

Positive Signals

Awarded through full and open competition.
Supports a critical federal food donation program.
Utilizes a fixed-price contract structure with adjustments.

Sector Analysis

This award is within the Cheese Manufacturing sector, a segment of the broader food and agriculture industry. Spending benchmarks for commodity procurement for donation programs are typically driven by volume and market prices.

Small Business Impact

While the award itself is to a large processor, the underlying federal food donation programs supported by this procurement may indirectly benefit small businesses in the agricultural supply chain.

Oversight & Accountability

The Department of Agriculture's Agricultural Marketing Service oversees this procurement. Accountability is maintained through contract terms and delivery verification for the food donation program.

Related Government Programs

Cheese Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for cost increase due to economic price adjustment.
Short delivery window may pose logistical challenges.
Dependence on a single vendor for this specific order.
Commodity price volatility in the dairy market.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.3 million to BONGARDS CREAMERIES. COMMODITIES FOR USG FOOD DONATIONS: 2000011246/4400002536/4100033942/CHEESE NAT AMER FBD BARREL-500 LB(40800)

Who is the contractor on this award?

The obligated recipient is BONGARDS CREAMERIES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.3 million.

What is the period of performance?

Start: 2026-04-01. End: 2026-06-30.

What is the historical price trend for American cheese barrels of this size to assess the economic price adjustment clause?

Analyzing historical price data for 500 lb barrels of American cheese over the contract period and comparing it to the initial fixed price would reveal the potential impact of the economic price adjustment. This helps determine if the adjustment is keeping pace with or exceeding market fluctuations, thereby affecting the final cost to taxpayers.

What is the risk of supply chain disruptions impacting the delivery of cheese within the specified timeframe?

The primary risk involves potential supply chain disruptions, such as weather events, labor shortages, or transportation issues, which could affect Bongards Creameries' ability to deliver the cheese within the short 90-day window. Mitigation strategies and contingency plans by the vendor and the agency are crucial to ensure program continuity.

How effectively does this procurement contribute to the overall goals of the USG food donation program?

This procurement directly contributes to the USG food donation program by securing a key commodity. Its effectiveness hinges on the timely delivery and quality of the cheese, and its subsequent distribution to intended beneficiaries, ultimately supporting food security objectives.

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: 123J1426B0118

Offers Received: 8

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

Evaluated Preference: NONE

Contractor Details

Address: 13200 COUNTY ROAD 51, NORWOOD YOUNG AMERICA, MN, 55368

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

Financial Breakdown

Contract Ceiling: $2,300,630

Exercised Options: $2,300,630

Current Obligation: $2,300,630

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1426D0008

IDV Type: IDC

Timeline