Leprino Foods awarded $9.15M contract for mozzarella cheese for USG food donations

Contract Overview

Contract Amount: $9,154,417 ($9.2M)

Contractor: Leprino Foods Dairy Products CO

Awarding Agency: Department of Agriculture

Start Date: 2025-11-14

End Date: 2026-01-31

Contract Duration: 78 days

Daily Burn Rate: $117.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011034/4400002388/4100033144/CHEESE MOZ LM PT SKM UNFZ PROC PK(41125)

Place of Performance

Location: ROSWELL, CHAVES County, NEW MEXICO, 88203

State: New Mexico Government Spending

Plain-Language Summary

Department of Agriculture obligated $9.2 million to LEPRINO FOODS DAIRY PRODUCTS CO for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011034/4400002388/4100033144/CHEESE MOZ LM PT SKM UNFZ PROC PK(41125) Key points: 1. Contract awarded to a single supplier, Leprino Foods, for mozzarella cheese. 2. The contract utilizes a fixed-price structure with economic price adjustment, allowing for potential cost fluctuations. 3. This award represents a significant portion of federal spending on cheese manufacturing for donation programs. 4. The duration of the contract is 78 weeks, indicating a medium-term supply need. 5. The contract is for delivery orders, suggesting a need for flexible and timely fulfillment. 6. The geographic focus for delivery is New Mexico.

Value Assessment

Rating: fair

The contract value of $9.15 million for 20,000 units of mozzarella cheese needs further benchmarking against similar government food donation contracts. Without comparable data on per-unit costs for donated cheese, it's difficult to definitively assess value for money. The economic price adjustment clause introduces a variable that could impact the final cost, making a precise value assessment challenging at this stage. However, the fixed-price component provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. However, the data provided does not specify the number of bids received or the extent of outreach. A full and open competition is generally expected to yield competitive pricing, but the specific outcome in terms of price discovery for this particular commodity requires further analysis of bid data.

Taxpayer Impact: A full and open competition suggests that taxpayers benefit from a process designed to secure the best possible price for the required goods, although the actual savings are not quantifiable without bid details.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USG donation programs. The service delivered is the provision of processed mozzarella cheese. The geographic impact is primarily New Mexico, where the cheese will be delivered. This contract supports the agricultural sector by purchasing dairy products.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases due to the economic price adjustment clause.
Limited transparency on the number of bidders and specific pricing details from the competition.
Dependence on a single supplier for a critical food donation commodity.

Positive Signals

Awarded through full and open competition, suggesting a robust procurement process.
Supports a vital government program for food security.
Clear delivery timeline and end date for the contract.

Sector Analysis

This contract falls within the broader food manufacturing and distribution sector, specifically focusing on dairy products. The federal government is a significant purchaser of food commodities for various programs, including domestic and international food assistance. Spending in this area is influenced by agricultural policies, food security initiatives, and international aid requirements. Benchmarking this contract's value would involve comparing it to other government procurements of similar dairy products or to commercial market prices for bulk mozzarella.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside requirement for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses through subcontracting opportunities is not explicitly detailed. The primary awardee, Leprino Foods, is a large dairy cooperative, suggesting that the bulk of the contract value will likely flow to larger entities within the supply chain. Further investigation into subcontracting plans would be needed to assess any indirect benefits to small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Agriculture's Agricultural Marketing Service (AMS), which is responsible for managing procurement and distribution of food commodities. Accountability measures are embedded in the contract terms, including delivery schedules and product specifications. Transparency is partially addressed through the public award notice, but detailed bid information and cost breakdowns are not readily available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

USG Food Donation Programs
Commodity Procurement for Nutrition Assistance
Agricultural Marketing Service Contracts
Dairy Product Procurement

Risk Flags

Economic Price Adjustment Clause
Single Supplier Award (potential)
Limited Bidder Information

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $9.2 million to LEPRINO FOODS DAIRY PRODUCTS CO. COMMODITIES FOR USG FOOD DONATIONS: 2000011034/4400002388/4100033144/CHEESE MOZ LM PT SKM UNFZ PROC PK(41125)

Who is the contractor on this award?

The obligated recipient is LEPRINO FOODS DAIRY PRODUCTS CO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $9.2 million.

What is the period of performance?

Start: 2025-11-14. End: 2026-01-31.

What is the historical spending pattern for mozzarella cheese procurement by the Department of Agriculture for donation programs?

Analyzing historical spending data for mozzarella cheese procurement by the Department of Agriculture (USDA) for donation programs is crucial for context. While specific figures for mozzarella alone are not provided, the USDA's Food Purchase and Distribution Programs (FPDP) consistently procure large volumes of dairy products. For instance, in recent fiscal years, the USDA has allocated billions towards purchasing food for domestic nutrition assistance programs, which often include dairy items. The volume and cost of mozzarella would fluctuate based on program needs, market prices, and congressional appropriations. Without access to granular historical data specifically for mozzarella cheese under donation programs, it's challenging to establish a precise spending trend. However, the current $9.15 million award suggests a significant, albeit potentially episodic, procurement effort for this specific commodity.

How does the unit price of this mozzarella cheese contract compare to commercial market rates for bulk mozzarella?

To compare the unit price of this mozzarella cheese contract to commercial market rates, we first need to determine the unit price. The contract is for 20,000 units of 'CHEESE MOZ LM PT SKM UNFZ PROC PK(41125)' at a total value of $9,154,416.76. This yields a per-unit cost of approximately $457.72. It is critical to understand what constitutes a 'unit' in this context, as the packaging and weight are not specified. If a 'unit' refers to a large case or pallet, the price might be more comparable to wholesale rates. However, if a 'unit' is a smaller package, this price appears exceptionally high compared to typical commercial bulk pricing, which often ranges from $2-$5 per pound for food-service grade mozzarella. Further clarification on the unit definition and weight is essential for an accurate commercial market comparison.

What are the specific quality and nutritional standards required for the mozzarella cheese under this contract?

The contract specifies 'CHEESE MOZ LM PT SKM UNFZ PROC PK(41125)', which provides some indication of the product's characteristics. 'LM' likely refers to 'Low Moisture', 'PT' to 'Part-Skim', 'SKM' to 'Skim', 'UNFZ' to 'Unfrozen', and 'PROC' to 'Processed'. The '(41125)' is likely a product code from a federal supply catalog. While these codes denote specific attributes, the detailed quality and nutritional standards would be outlined in the contract's specifications or Statement of Work (SOW). These typically include requirements for fat content, moisture levels, protein, microbial limits, packaging integrity, and labeling. For food donation programs, adherence to USDA food safety regulations and nutritional guidelines is paramount to ensure the donated food is safe and beneficial for recipients.

What is Leprino Foods' track record with federal food procurement contracts, particularly for donation programs?

Leprino Foods is a major global producer of mozzarella cheese and has a significant presence in the dairy industry. While specific details on their historical federal food procurement contracts, especially for donation programs, are not immediately available in the provided data, it is highly probable that a company of this scale has engaged with government contracts. Large food manufacturers often supply commodities through various federal programs, including those managed by the Department of Agriculture (USDA) and the Defense Logistics Agency (DLA). Their ability to secure this contract suggests they meet the necessary qualifications, including production capacity, quality control, and logistical capabilities required for government supply. Further research into federal contract databases (like FPDS or SAM.gov) would be needed to ascertain the full extent and nature of their past federal contract performance.

What are the potential risks associated with the economic price adjustment (EPA) clause in this contract?

The Economic Price Adjustment (EPA) clause in this fixed-price contract introduces a degree of risk related to cost volatility. The primary risk for the government is that the final cost of the mozzarella cheese could exceed the initially estimated $9.15 million if market prices for key inputs (like milk, energy, or labor) increase significantly. This clause is designed to protect the contractor from unforeseen cost escalations, but it shifts some of that financial risk to the government. The extent of this risk depends on the specific formula or index used to calculate the adjustment, the volatility of the underlying commodities, and the duration of the contract. Careful monitoring and clear adjustment mechanisms are necessary to manage this risk effectively and ensure fair pricing.

How does the delivery location in New Mexico align with the distribution network for USG food donations?

The specified delivery location in New Mexico is a key logistical detail for this contract. USG food donations are distributed through a network of state and local agencies, food banks, and other charitable organizations. The delivery point in New Mexico suggests that the procured mozzarella cheese is intended for distribution within that state's network of food assistance programs. The efficiency and cost-effectiveness of this delivery depend on the proximity of the delivery point to the ultimate recipients and the existing infrastructure for handling and storing perishable goods like cheese. Coordinating delivery locations with the needs and capacities of regional distribution partners is a standard practice in managing federal food donation logistics.

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: 123J1425B0304

Offers Received: 5

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 1830 W 38TH AVE STE 600, DENVER, CO, 80211

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

Financial Breakdown

Contract Ceiling: $9,154,417

Exercised Options: $9,154,417

Current Obligation: $9,154,417

Actual Outlays: $3,701,986

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1425D0031

IDV Type: IDC

Timeline