Government procures substantial cheese supply for food donations, awarded to a single producer
Contract Overview
Contract Amount: $1,048,172 ($1.0M)
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: 2000011246/4400002546/4100033944/CHEESE NAT AMER FBD BARREL-500 LB(40800)
Plain-Language Summary
Department of Agriculture obligated $1.0 million to ASSOCIATED MILK PRODUCERS INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011246/4400002546/4100033944/CHEESE NAT AMER FBD BARREL-500 LB(40800) Key points: 1. Significant volume of cheese secured for federal food donation programs. 2. Contract awarded to Associated Milk Producers Inc., indicating potential lack of broader competition. 3. Delivery orders span a two-month period, suggesting a focused procurement effort. 4. The procurement aims to support food assistance initiatives.
Value Assessment
Rating: good
The value appears reasonable for the quantity of cheese procured for donation purposes. The specific unit cost is not detailed but the total award is substantial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The award appears to be a sole-source or limited competition contract, as only one producer is listed. Further details on the justification for this approach are not provided.
Taxpayer Impact: Taxpayer funds are used to purchase commodities for donation, aiming to support food security.
Public Impact
Ensures availability of dairy products for federal food assistance programs. Supports domestic food supply chains and agricultural producers. Aids in meeting nutritional needs of vulnerable populations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for limited competition may lead to higher prices.
- Reliance on a single supplier could pose supply chain risks.
Positive Signals
- Supports domestic dairy industry.
- Fulfills mission of food donation programs.
- Ensures timely delivery of essential commodities.
Sector Analysis
This procurement falls within the agricultural commodities sector, specifically focusing on dairy products for federal food donation programs managed by the Department of Agriculture.
Small Business Impact
No indication of small business participation or set-aside was provided in the data. The award appears to be to a large producer.
Oversight & Accountability
The Agricultural Marketing Service is responsible for this procurement. Oversight would typically involve ensuring quality, timely delivery, and adherence to contract terms.
Related Government Programs
- Commodities for USG Food Donations
- Dairy Products Procurement
- Agricultural Support Programs
Risk Flags
- Sole-source award justification
- Market competition analysis
Tags
food-donations, dairy-procurement, agricultural-commodities, associated-milk-producers-inc, department-of-agriculture, food-security, sole-source-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Agriculture awarded $1.0 million to ASSOCIATED MILK PRODUCERS INC. COMMODITIES FOR USG FOOD DONATIONS: 2000011246/4400002546/4100033944/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 $1.0 million.
What is the period of performance?
Start: 2026-04-01. End: 2026-06-30.
Analysis insight 1
The contract value suggests a significant quantity of cheese is being acquired.
Analysis insight 2
The delivery period is relatively short, indicating an immediate need or a specific program requirement.
Analysis insight 3
The award to Associated Milk Producers Inc. warrants a review of competition and pricing strategies.