USDA's Agricultural Marketing Service Awards $5.2M Contract for UHT Milk to Diversified Foods Inc

Contract Overview

Contract Amount: $5,222,124 ($5.2M)

Contractor: Diversified Foods Inc

Awarding Agency: Department of Agriculture

Start Date: 2026-02-02

End Date: 2026-07-31

Contract Duration: 179 days

Daily Burn Rate: $29.2K/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: 2000011150/4100033630/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 $5.2 million to DIVERSIFIED FOODS INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011150/4100033630/MILK 1% MILKFAT UHT 1500 BOX-12/32 FL OZ,MILK 1% MILKFAT UHT 2640 BOX-27/8 FL OZ Key points: 1. Contract awarded to Diversified Foods Inc. for UHT milk. 2. The contract falls under the Dry, Condensed, and Evaporated Dairy Product Manufacturing NAICS code. 3. Full and open competition was utilized for this procurement. 4. The contract is a firm fixed price award with a duration of 179 days.

Value Assessment

Rating: good

The contract value of $5.22 million for UHT milk appears reasonable given the quantity and duration. Benchmarking against similar government food donation contracts would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests a robust price discovery process. This method allows multiple vendors to bid, theoretically driving down costs and ensuring fair market pricing.

Taxpayer Impact: The contract ensures the availability of essential food commodities for U.S. government food donation programs, supporting food security initiatives.

Public Impact

Ensures supply of UHT milk for federal food donation programs. Supports domestic dairy producers and manufacturers. Provides nutritional resources to vulnerable populations through donation programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in dairy commodities.
Logistical challenges in distribution of perishable goods.

Positive Signals

Utilizes full and open competition.
Firm fixed price contract provides cost certainty.
Contract supports important federal food donation programs.

Sector Analysis

The procurement falls within the dairy product manufacturing sector, a segment of the broader food industry. Government contracts for commodities like milk are common to support domestic agriculture and food assistance programs.

Small Business Impact

The data indicates the award went to Diversified Foods Inc., a company located in New York. Further analysis would be needed to determine if small businesses were involved as subcontractors or if the prime contractor itself qualifies as a small business.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service, which is responsible for overseeing commodity purchases for federal programs. Standard oversight procedures for contract performance and delivery are expected.

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 critical commodity.
Logistical complexities of food distribution.
Ensuring consistent quality of UHT milk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.2 million to DIVERSIFIED FOODS INC. COMMODITIES FOR USG FOOD DONATIONS: 2000011150/4100033630/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 $5.2 million.

What is the period of performance?

Start: 2026-02-02. End: 2026-07-31.

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

Historical pricing data for UHT milk in similar government contracts is crucial for a comprehensive value assessment. Analyzing past awards for comparable quantities, contract types (e.g., firm fixed price), and delivery locations can reveal if the current $5.22 million award represents a favorable or unfavorable price point. This comparison helps identify potential cost savings or overspending.

What are the specific risks associated with the supply chain for UHT milk in the current market?

Risks in the UHT milk supply chain can include fluctuations in raw milk prices, potential disruptions in manufacturing capacity, and logistical challenges related to transportation and storage, especially for temperature-sensitive products. Geopolitical events or unforeseen weather patterns can also impact commodity availability and cost, posing a risk to timely delivery and budget adherence.

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

This contract directly supports USDA food donation objectives by securing a consistent supply of UHT milk, a key nutritional component. The firm fixed price and full and open competition aim for cost-effectiveness, maximizing the quantity of milk that can be procured for donation. Successful delivery and quality assurance are critical for meeting the program's goals of alleviating food insecurity.

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: 123J1426B0121

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: $5,222,124

Exercised Options: $5,222,124

Current Obligation: $5,222,124

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline