USDA's Agricultural Marketing Service awards $3.9M contract for UHT milk to Diversified Foods Inc

Contract Overview

Contract Amount: $3,903,372 ($3.9M)

Contractor: Diversified Foods Inc

Awarding Agency: Department of Agriculture

Start Date: 2025-12-10

End Date: 2026-03-31

Contract Duration: 111 days

Daily Burn Rate: $35.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011049/4100033390/MILK 1% MILKFAT UHT 1500 BOX-12/32 FL OZ,MILK 1% MILKFAT UHT 2640 BOX-27/8 FL OZ

Place of Performance

Location: EAST SYRACUSE, ONONDAGA County, NEW YORK, 13057

State: New York Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.9 million to DIVERSIFIED FOODS INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011049/4100033390/MILK 1% MILKFAT UHT 1500 BOX-12/32 FL OZ,MILK 1% MILKFAT UHT 2640 BOX-27/8 FL OZ Key points: 1. The contract is for UHT milk, a shelf-stable dairy product, valued at $3.9 million. 2. Diversified Foods Inc. is the awardee, with the contract being a definitive contract. 3. The contract falls under the 'Dry, Condensed, and Evaporated Dairy Product Manufacturing' NAICS code. 4. The award was made under full and open competition, suggesting a competitive bidding process.

Value Assessment

Rating: good

The contract's value of $3.9 million for UHT milk appears reasonable given the quantity and shelf-life requirements. Benchmarking against similar large-scale food donation procurements 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 that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The use of full and open competition suggests that taxpayer funds are being used efficiently by securing competitive pricing for essential food commodities.

Public Impact

Ensures a supply of shelf-stable milk for U.S. government food donation programs. Supports domestic dairy product manufacturers and distributors. Contributes to food security initiatives by providing essential nutritional items.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in commodity markets impacting future procurements.
Logistical challenges in distribution of UHT milk to various donation points.

Positive Signals

Awarded under full and open competition, indicating competitive pricing.
Long shelf-life of UHT milk reduces spoilage and waste.
Supports domestic agricultural sector.

Sector Analysis

This contract falls within the food manufacturing sector, specifically dairy products. Government procurement of commodities like milk for donation programs is a significant market, often influenced by agricultural policies and food security objectives.

Small Business Impact

The data indicates that the awardee is Diversified Foods Inc. It is not specified if this is a small business. Further analysis would be needed to determine the impact on small businesses in this sector.

Oversight & Accountability

The contract is a definitive contract awarded by the Department of Agriculture's Agricultural Marketing Service. Standard oversight mechanisms for federal contracts would apply, including performance monitoring and compliance checks.

Related Government Programs

Dry, Condensed, and Evaporated Dairy Product Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for commodity price volatility.
Dependence on a single awardee for a significant quantity.
Logistical complexities in distribution.
Ensuring consistent quality of UHT milk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.9 million to DIVERSIFIED FOODS INC. COMMODITIES FOR USG FOOD DONATIONS: 2000011049/4100033390/MILK 1% MILKFAT UHT 1500 BOX-12/32 FL OZ,MILK 1% MILKFAT UHT 2640 BOX-27/8 FL OZ

Who is the contractor on this award?

The obligated recipient is DIVERSIFIED FOODS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.9 million.

What is the period of performance?

Start: 2025-12-10. End: 2026-03-31.

What is the historical pricing trend for UHT milk in similar government contracts?

Analyzing historical pricing data for UHT milk in comparable government contracts would provide a benchmark to assess the current award's value. Factors such as volume, packaging, delivery locations, and contract duration significantly influence pricing. Understanding these trends helps determine if the $3.9 million award represents a fair market price or if there are opportunities for cost savings in future solicitations.

What are the potential risks associated with the supply chain for UHT milk for donation programs?

Potential risks include disruptions in the dairy supply chain due to weather, disease outbreaks, or labor shortages, which could impact availability and price. Transportation and logistical challenges in delivering the UHT milk to various donation sites across different regions also pose a risk. Ensuring consistent quality and meeting delivery schedules are critical for the effectiveness of food donation programs.

How effectively does this contract support the government's food donation objectives?

This contract directly supports food donation objectives by securing a large quantity of shelf-stable UHT milk, a nutritious commodity. The full and open competition process aims to ensure cost-effectiveness, maximizing the amount of food that can be procured with available funds. The long shelf-life of UHT milk also minimizes waste, contributing to the overall efficiency of the donation program.

Industry Classification

NAICS: Manufacturing › Dairy Product Manufacturing › Dry, Condensed, and Evaporated Dairy Product Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 123J1426B0026

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3115 6TH ST, METAIRIE, LA, 70002

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,903,372

Exercised Options: $3,903,372

Current Obligation: $3,903,372

Actual Outlays: $1,890,160

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline