Government procures cheese for food donations, awarding contract to Associated Milk Producers Inc
Contract Overview
Contract Amount: $3,463,267 ($3.5M)
Contractor: Associated Milk Producers Inc
Awarding Agency: Department of Agriculture
Start Date: 2026-04-01
End Date: 2026-06-30
Sector: Other
Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011246/4400002546/4100033943/CHEESE NAT AMER FBD BARREL-500 LB(40800)
Plain-Language Summary
Department of Agriculture obligated $3.5 million to ASSOCIATED MILK PRODUCERS INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011246/4400002546/4100033943/CHEESE NAT AMER FBD BARREL-500 LB(40800) Key points: 1. Contract awarded for a significant quantity of cheese. 2. Associated Milk Producers Inc. is the sole awardee. 3. Potential for price fluctuations in dairy markets poses a risk. 4. Ensures availability of dairy products for federal food assistance programs.
Value Assessment
Rating: good
The contract value is substantial, indicating a significant need for these commodities. The pricing appears reasonable given market conditions for dairy products.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This appears to be a sole-source award, likely due to specific product requirements or existing supplier relationships. Further justification for the sole-source nature would be beneficial.
Taxpayer Impact: Taxpayers benefit from the provision of essential food items to those in need.
Public Impact
Ensures food security for vulnerable populations. Supports domestic dairy farmers and producers. Contributes to federal nutrition assistance programs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single supplier could limit future negotiation leverage.
- Market volatility in dairy prices could impact long-term cost-effectiveness.
Positive Signals
- Secures a critical supply of nutritious food.
- Supports the agricultural sector.
Sector Analysis
This procurement falls within the agricultural and food supply sector, specifically focusing on dairy commodities for federal food donation programs.
Small Business Impact
No small business set-aside was indicated for this contract. The award was made directly to a large producer.
Oversight & Accountability
The Agricultural Marketing Service is responsible for overseeing this contract to ensure timely delivery and quality of the cheese. Compliance with donation program requirements will be monitored.
Related Government Programs
- Commodities for USG Food Donations
- Dairy Products Procurement
- Federal Food Assistance
Risk Flags
- Sole-source justification
- Dairy market price volatility
Tags
food-donations, dairy-commodities, agriculture, associated-milk-producers-inc, department-of-agriculture, food-security, nutrition-assistance
Frequently Asked Questions
What is this federal contract paying for?
Department of Agriculture awarded $3.5 million to ASSOCIATED MILK PRODUCERS INC. COMMODITIES FOR USG FOOD DONATIONS: 2000011246/4400002546/4100033943/CHEESE NAT AMER FBD BARREL-500 LB(40800)
Who is the contractor on this award?
The obligated recipient is ASSOCIATED MILK PRODUCERS INC.
Which agency awarded this contract?
Awarding agency: Department of Agriculture (Agricultural Marketing Service).
What is the total obligated amount?
The obligated amount is $3.5 million.
What is the period of performance?
Start: 2026-04-01. End: 2026-06-30.
Analysis insight 1
The contract specifies barrel-aged cheese, suggesting a particular product type is required.
Analysis insight 2
The delivery period is concentrated in the summer months, potentially aligning with distribution needs.