USDA Purchases Over $800K in UHT Milk for Food Donations via Full and Open Competition

Contract Overview

Contract Amount: $801,859 ($801.9K)

Contractor: Gossner Foods, Inc

Awarding Agency: Department of Agriculture

Start Date: 2026-04-10

End Date: 2026-12-31

Contract Duration: 265 days

Daily Burn Rate: $3.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011228/4100033987/MILK 2% MILKFAT UHT 2640 BOX-27/8 FL OZ,MILK 1% MILKFAT UHT 2640 BOX-27/8 FL OZ

Place of Performance

Location: LOGAN, CACHE County, UTAH, 84321

State: Utah Government Spending

Plain-Language Summary

Department of Agriculture obligated $801,859.15 to GOSSNER FOODS, INC for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011228/4100033987/MILK 2% MILKFAT UHT 2640 BOX-27/8 FL OZ,MILK 1% MILKFAT UHT 2640 BOX-27/8 FL OZ Key points: 1. Significant purchase of UHT milk for donation programs. 2. Competition was full and open, suggesting potential for good pricing. 3. Contract awarded to Gossner Foods, Inc. with a fixed price. 4. The sector is Dry, Condensed, and Evaporated Dairy Product Manufacturing.

Value Assessment

Rating: good

The contract price of $801,859.15 for UHT milk appears reasonable given the quantity and the firm fixed price structure. Benchmarking against similar large-scale dairy procurements would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically fosters competitive pricing and ensures the government receives fair market value. The use of a firm fixed price contract further locks in costs.

Taxpayer Impact: Taxpayer funds are being used efficiently to procure essential food commodities for donation programs, supporting food security initiatives.

Public Impact

Ensures availability of essential dairy products for food assistance programs. Supports domestic dairy producers through government procurement. Contributes to food security for vulnerable populations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in dairy markets impacting future procurements.
Logistical challenges in distributing perishable goods.

Positive Signals

Full and open competition likely secured competitive pricing.
Firm fixed price contract provides cost certainty.
Supports important USDA food donation missions.

Sector Analysis

This procurement falls within the dairy product manufacturing sector, specifically focusing on shelf-stable UHT milk. Spending in this area is driven by food assistance programs and agricultural support initiatives.

Small Business Impact

While the award went to Gossner Foods, Inc., it's unclear if small businesses were involved as subcontractors or suppliers in this specific transaction. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service, indicating established oversight for this type of procurement. The firm fixed price and defined delivery period offer clear accountability metrics.

Related Government Programs

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

Risk Flags

Potential for price volatility in the dairy market.
Logistical complexities of food distribution.
Ensuring product quality and shelf-life adherence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $801,859.15 to GOSSNER FOODS, INC. COMMODITIES FOR USG FOOD DONATIONS: 2000011228/4100033987/MILK 2% MILKFAT UHT 2640 BOX-27/8 FL OZ,MILK 1% MILKFAT UHT 2640 BOX-27/8 FL OZ

Who is the contractor on this award?

The obligated recipient is GOSSNER 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 $801,859.15.

What is the period of performance?

Start: 2026-04-10. End: 2026-12-31.

What is the historical pricing trend for UHT milk procured by the USDA for donation programs?

Analyzing historical pricing data for similar UHT milk procurements by the USDA would reveal trends and identify any significant price deviations in this contract. This context is crucial for assessing whether the current $801,859.15 represents a favorable or unfavorable price point compared to past acquisitions, considering market fluctuations and inflation.

What are the primary risks associated with the long-term storage and distribution of UHT milk for donation?

Key risks include potential spoilage if storage conditions are not maintained, logistical challenges in timely delivery to distribution points, and the possibility of product expiration before it can be utilized. Ensuring robust supply chain management and monitoring expiration dates are critical to mitigate these risks and maximize the value of the donated commodities.

How effectively does this procurement method contribute to the USDA's food donation program goals?

The full and open competition method, coupled with a firm fixed price, is generally effective in securing necessary commodities at competitive prices, directly supporting the USDA's goal of providing food assistance. This approach ensures that taxpayer funds are used efficiently to acquire a substantial quantity of UHT milk for donation.

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: 123J1426B0186

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1051 N 1000 W, LOGAN, UT, 84321

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

Financial Breakdown

Contract Ceiling: $801,859

Exercised Options: $801,859

Current Obligation: $801,859

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline