VA awards $29.3M for dairy products, with Umpqua Dairy Products Co. securing the delivery order

Contract Overview

Contract Amount: $29,348 ($29.3K)

Contractor: Umpqua Dairy Products CO.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $81/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FRESH DAIRY PRODUCTS

Place of Performance

Location: ROSEBURG, DOUGLAS County, OREGON, 97471

State: Oregon Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $29,348.4 to UMPQUA DAIRY PRODUCTS CO. for work described as: FRESH DAIRY PRODUCTS Key points: 1. Contract awarded for essential dairy products, supporting healthcare services. 2. Competition dynamics indicate a potentially competitive bidding process for this requirement. 3. Performance risk appears low given the nature of the goods procured. 4. The contract duration aligns with typical supply chain needs for perishable goods. 5. This procurement falls within the broader category of food and beverage services for federal agencies.

Value Assessment

Rating: good

The contract value of $29.3 million for fluid milk manufacturing over two years appears reasonable for the scale of services provided to the Department of Veterans Affairs. Benchmarking against similar federal contracts for dairy products would provide a more precise value-for-money assessment. However, the firm fixed-price structure suggests that pricing was determined upfront, potentially offering cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a competitive process among eligible vendors. While the specific number of bidders is not detailed, SAP is designed to encourage competition for procurements below certain thresholds. This level of competition is generally favorable for price discovery and achieving fair market value.

Taxpayer Impact: A full and open competition, even under SAP, is beneficial for taxpayers as it allows multiple vendors to bid, driving down prices and ensuring the government receives competitive offers.

Public Impact

Veterans receiving care at VA facilities will benefit from the supply of fresh dairy products. The contract ensures the availability of essential food items for healthcare and nutritional support. The geographic impact is primarily within Oregon, where Umpqua Dairy Products Co. is based and likely serves VA facilities in the region. This contract supports jobs within the dairy manufacturing and distribution sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded to a known entity (Umpqua Dairy Products Co.) suggesting a degree of reliability.
Firm Fixed Price contract type provides cost predictability.
Delivery Order award indicates a specific need being met.
Contract duration of 364 days is standard for supply contracts.

Sector Analysis

This contract for fluid milk manufacturing falls within the broader food and beverage processing sector, specifically dairy. The market for dairy products is mature, with established supply chains. Federal agencies are significant consumers of food products, and contracts like this are common to support institutional needs, particularly in healthcare settings like VA hospitals.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the primary contractor's nature. Further analysis would be needed to confirm if any small business participation is mandated or voluntary.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the Department of Veterans Affairs. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Food Purchasing
Department of Veterans Affairs Healthcare Services
Dairy Product Procurement
Food and Beverage Supply Contracts

Risk Flags

Perishability of goods requires strict adherence to delivery schedules.
Potential for price volatility in the dairy market.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $29,348.4 to UMPQUA DAIRY PRODUCTS CO.. FRESH DAIRY PRODUCTS

Who is the contractor on this award?

The obligated recipient is UMPQUA DAIRY PRODUCTS CO..

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 $29,348.4.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the historical spending pattern for dairy products by the Department of Veterans Affairs?

Analyzing historical spending data for dairy products by the VA is crucial for understanding trends, identifying potential cost savings, and assessing the consistency of procurement strategies. While specific figures for dairy alone are not provided here, the VA, as a large healthcare provider, consistently procures a wide range of food and beverage items. Past contracts would reveal average award values, contract durations, and the types of dairy products most frequently purchased. Examining this history can highlight whether current spending aligns with previous patterns or represents a significant shift, potentially due to changes in patient needs, market prices, or contracting approaches. Understanding this context helps evaluate the current $29.3 million award not just in isolation, but as part of a larger, ongoing commitment to providing nutritional support to veterans.

How does the pricing of this contract compare to market rates for fluid milk manufacturing?

Benchmarking the pricing of this $29.3 million contract against prevailing market rates for fluid milk manufacturing is essential for determining value for money. This involves comparing the per-unit cost of milk and related dairy products procured under this contract with prices offered by commercial dairies or other government contracts. Factors such as volume discounts, delivery logistics, and specific product quality standards can influence these comparisons. If the contract's pricing is significantly higher than market rates, it could indicate inefficiencies in the procurement process or a lack of sufficient competition. Conversely, pricing below market rates might suggest favorable negotiation or a strategic advantage for the awarded contractor. A detailed cost analysis, potentially involving unit price breakdowns, would be necessary for a definitive assessment.

What are the potential risks associated with the supply chain for these dairy products?

The primary risks associated with the supply chain for dairy products revolve around perishability, transportation, and potential disruptions. Dairy products have a limited shelf life, necessitating efficient logistics and timely delivery to prevent spoilage and waste. Transportation risks include delays due to weather, vehicle breakdowns, or unforeseen logistical challenges, which could impact the availability of fresh products at VA facilities. Furthermore, the dairy industry can be subject to fluctuations in raw material costs (feed, energy) and potential outbreaks of animal diseases, which could affect supply and pricing. The contract's duration and the geographic scope of delivery would influence the magnitude of these risks. Robust contingency planning by both the contractor and the VA would be necessary to mitigate these potential supply chain vulnerabilities.

What is the track record of Umpqua Dairy Products Co. in fulfilling federal contracts?

Assessing the track record of Umpqua Dairy Products Co. in fulfilling federal contracts is vital for understanding their reliability and past performance. While this specific award is for $29.3 million, prior federal contract history would reveal their experience with government procurement regulations, delivery schedules, and quality standards. Information on past performance, including any instances of contract modifications, disputes, or terminations, can be found in federal contract databases. A history of successful contract completion suggests a lower risk profile for this current award. Conversely, a pattern of performance issues might warrant closer scrutiny of this new contract's execution and require more proactive oversight from the VA to ensure timely and satisfactory delivery of dairy products.

How does this contract align with the VA's overall mission to provide healthcare to veterans?

This contract directly aligns with the VA's mission by ensuring the consistent availability of essential nutritional components for veterans under its care. Fresh dairy products are a critical part of a balanced diet, contributing to patient recovery, overall health, and well-being. By securing a reliable supply of these goods, the VA can maintain the quality of meals and therapeutic diets served in its hospitals and clinics. This procurement supports the VA's commitment to providing comprehensive healthcare services, recognizing that nutrition is a fundamental aspect of medical treatment and patient support. The successful execution of this contract contributes to the operational efficiency of VA healthcare facilities by meeting a basic, yet vital, supply 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: 333 SE SYKES AVE, ROSEBURG, OR, 97470

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

Financial Breakdown

Contract Ceiling: $35,000

Exercised Options: $35,000

Current Obligation: $29,348

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26024D0006

IDV Type: IDC

Timeline