USDA Purchases Over $20.6M in Cheese for Food Donations from Masters Gallery Foods

Contract Overview

Contract Amount: $20,682,875 ($20.7M)

Contractor: Masters Gallery Foods, Incorporated

Awarding Agency: Department of Agriculture

Start Date: 2023-08-08

End Date: 2024-06-30

Contract Duration: 327 days

Daily Burn Rate: $63.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000009497/4400001823/4100028186/CHEESE CHED YEL CHUNKS-PKG 12/1 LB

Place of Performance

Location: OOSTBURG, SHEBOYGAN County, WISCONSIN, 53070

State: Wisconsin Government Spending

Plain-Language Summary

Department of Agriculture obligated $20.7 million to MASTERS GALLERY FOODS, INCORPORATED for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000009497/4400001823/4100028186/CHEESE CHED YEL CHUNKS-PKG 12/1 LB Key points: 1. Significant investment in dairy commodities for federal food assistance programs. 2. Masters Gallery Foods, Inc. secured a substantial contract for cheese. 3. The contract utilizes a firm fixed price, offering cost certainty. 4. This spending supports domestic agriculture and food security initiatives.

Value Assessment

Rating: good

The total award amount of $20,682,875.19 for cheese appears reasonable given the quantity and duration of the contract. Benchmarking against similar large-scale commodity purchases for food donations would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 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 being used to purchase essential food items, supporting both agricultural producers and individuals in need through donation programs.

Public Impact

Ensures availability of nutritious food for federal donation programs. Supports the dairy industry and agricultural economy in Wisconsin. Contributes to food security for vulnerable populations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition utilized
Firm fixed price contract
Supports domestic agriculture

Sector Analysis

This contract falls under the Food Manufacturing sector, specifically Cheese Manufacturing. The USDA frequently procures large quantities of commodities to support domestic food assistance programs like the Emergency Food Assistance Program (TEFAP).

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had opportunities to participate in the supply chain for this large commodity purchase.

Oversight & Accountability

The Department of Agriculture's Agricultural Marketing Service is responsible for this procurement. Standard oversight for commodity purchases would apply, ensuring quality and delivery requirements are met.

Related Government Programs

Cheese Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Lack of specific quantity data for unit price analysis
No indication of small business participation
Limited detail on specific donation programs

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $20.7 million to MASTERS GALLERY FOODS, INCORPORATED. COMMODITIES FOR USG FOOD DONATIONS: 2000009497/4400001823/4100028186/CHEESE CHED YEL CHUNKS-PKG 12/1 LB

Who is the contractor on this award?

The obligated recipient is MASTERS GALLERY FOODS, INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.7 million.

What is the period of performance?

Start: 2023-08-08. End: 2024-06-30.

What is the unit price of the cheese purchased and how does it compare to market rates?

The total award is $20,682,875.19 for an unspecified quantity of cheese chunks. To determine the unit price, the total pounds or kilograms of cheese would be required. Without this, a direct comparison to market rates is not possible. However, the firm fixed price suggests the government has locked in a price based on anticipated market conditions at the time of award.

What are the specific food donation programs this cheese is intended for?

While the data specifies 'USG FOOD DONATIONS', it does not detail the exact programs. Typically, such procurements support initiatives like the Emergency Food Assistance Program (TEFAP), school lunch programs, or disaster relief efforts. These programs aim to provide nutritional assistance to low-income individuals and families, seniors, and disaster-affected populations.

How does the volume and price of this cheese purchase compare to previous years' USDA commodity acquisitions?

This specific award is for $20.6 million. To assess trends, a comparison with historical data on USDA commodity purchases for food donations over several fiscal years is necessary. Factors like market price fluctuations, changes in program needs, and overall budget allocations would influence year-over-year spending on commodities like cheese.

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: 123J1423B0531

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 328 COUNTY ROAD PP, PLYMOUTH, WI, 53073

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,682,875

Exercised Options: $20,682,875

Current Obligation: $20,682,875

Actual Outlays: $20,682,875

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1423D0101

IDV Type: IDC

Timeline