VA Awards $936K for Milk and Dairy Products to Ray Alderman & Sons Inc

Contract Overview

Contract Amount: $93,617 ($93.6K)

Contractor: RAY Alderman & Sons Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-04-01

End Date: 2026-04-07

Contract Duration: 371 days

Daily Burn Rate: $252/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VISN MILK AND DAIRY PRODUCTS

Place of Performance

Location: UNION GROVE, RACINE County, WISCONSIN, 53182

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $93,616.82 to RAY ALDERMAN & SONS INC for work described as: VISN MILK AND DAIRY PRODUCTS Key points: 1. Contract awarded for fluid milk manufacturing. 2. Ray Alderman & Sons Inc. is the contractor. 3. The contract is for the Department of Veterans Affairs. 4. Awarded under Simplified Acquisition Procedures (SAP). 5. Firm Fixed Price contract type.

Value Assessment

Rating: fair

The contract value of $936,16.82 for a 371-day period appears reasonable for milk and dairy products, especially considering it was procured under SAP. Benchmarking against similar contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, suggesting a limited competition environment. While SAP aims for efficiency, it may not always yield the lowest possible price compared to full and open competition.

Taxpayer Impact: The use of SAP for this award may result in a slightly higher cost to taxpayers than if it were fully competed, though the value is relatively small.

Public Impact

Ensures a supply of essential dairy products for veterans. Supports a specific business in Wisconsin. Awarded through a streamlined procurement process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to SAP.
Potential for higher pricing under SAP.

Positive Signals

Ensures supply of essential goods.
Streamlined procurement process.

Sector Analysis

This contract falls under the food manufacturing sector, specifically fluid milk. Spending in this sector is generally stable, driven by essential needs. The value is modest for a federal contract.

Small Business Impact

The data does not indicate if Ray Alderman & Sons Inc. is a small business. Further investigation is needed to determine the impact on small business participation.

Oversight & Accountability

Oversight is managed by the Department of Veterans Affairs. The use of SAP and a single delivery order suggests a straightforward oversight process for this specific award.

Related Government Programs

Fluid Milk Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition.
Lack of detailed pricing data for benchmarking.
Unclear small business status of contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $93,616.82 to RAY ALDERMAN & SONS INC. VISN MILK AND DAIRY PRODUCTS

Who is the contractor on this award?

The obligated recipient is RAY ALDERMAN & SONS INC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $93,616.82.

What is the period of performance?

Start: 2025-04-01. End: 2026-04-07.

What is the specific type of fluid milk being procured and its intended use?

The data specifies 'Fluid Milk Manufacturing' but does not detail the exact types of milk (e.g., whole, skim, 2%) or their intended recipients or locations within the VA system. Understanding the specific product mix and end-users would clarify the necessity and potential for cost optimization.

How does the unit price of this milk compare to market rates for similar institutional contracts?

Without specific unit pricing data (e.g., price per gallon or half-pint), a direct comparison to market rates is impossible. The total award value of $936,16.82 over 371 days suggests a daily expenditure of approximately $2,523. This figure needs to be broken down into unit costs for meaningful benchmarking against other government or commercial contracts.

What was the justification for using Simplified Acquisition Procedures (SAP) instead of full and open competition?

SAP is typically used for acquisitions valued below the simplified acquisition threshold (SAT), which is currently $250,000. The award value of $936,16.82 is well below this threshold, making SAP appropriate. The justification likely centers on efficiency and speed for a relatively small, recurring need.

Industry Classification

NAICS: Manufacturing › Dairy Product Manufacturing › Fluid Milk Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2209 S COLONY AVE, UNION GROVE, WI, 53182

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $93,617

Exercised Options: $93,617

Current Obligation: $93,617

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25224D0041

IDV Type: IDC

Timeline