USDA awards $715K for frozen cheese, highlighting potential for price adjustments in food donations

Contract Overview

Contract Amount: $715,038 ($715.0K)

Contractor: Miceli Dairy Products CO

Awarding Agency: Department of Agriculture

Start Date: 2026-02-12

End Date: 2026-04-15

Contract Duration: 62 days

Daily Burn Rate: $11.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011190/4400002394/4100033770/CHEESE MOZ LM PART SKM SHRD FRZ BOX-30LB,CHEESE MOZ LM PART SKIM FRZ LVS-8/6 LB

Place of Performance

Location: CLEVELAND, CUYAHOGA County, OHIO, 44104

State: Ohio Government Spending

Plain-Language Summary

Department of Agriculture obligated $715,038.06 to MICELI DAIRY PRODUCTS CO for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011190/4400002394/4100033770/CHEESE MOZ LM PART SKM SHRD FRZ BOX-30LB,CHEESE MOZ LM PART SKIM FRZ LVS-8/6 LB Key points: 1. Contract value of $715,038 for frozen cheese indicates a significant procurement for food assistance programs. 2. The fixed-price contract with economic price adjustment suggests potential for cost fluctuations based on market conditions. 3. Awarded to Miceli Dairy Products Co., this contract involves a specific type of cheese (Mozzarella, part-skim, shredded, frozen). 4. The procurement falls under the Agricultural Marketing Service, supporting the distribution of commodities for USG food donations. 5. A short performance period of 62 days suggests a focused delivery requirement for the specified cheese. 6. The contract was awarded via Full and Open Competition after Exclusion of Sources, indicating a competitive process with specific justifications.

Value Assessment

Rating: fair

The contract value of $715,038 for 20,000 pounds of frozen cheese appears to be within a reasonable range for bulk commodity procurement. However, without specific details on the cheese's quality, origin, and exact specifications, a precise value-for-money assessment is challenging. The inclusion of an economic price adjustment clause introduces a variable that could impact the final cost, making direct comparison to fixed-price contracts difficult. Benchmarking against similar large-scale dairy procurements for food assistance would provide a clearer picture of cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition after Exclusion of Sources,' which implies that while the competition was open, there were specific reasons for excluding certain sources or methods. This suggests a competitive process was intended, but the exact nature of the exclusion needs further clarification. With 6 bidders, the competition level appears moderate, which can lead to reasonable price discovery. However, the exclusion of sources might limit the full breadth of competitive pressure.

Taxpayer Impact: The moderate number of bidders and the 'exclusion of sources' clause suggest that while taxpayers likely benefited from some level of competition, the potential for the lowest possible price may have been constrained by the specific conditions of the procurement.

Public Impact

Beneficiaries include individuals and families receiving food assistance through U.S. government donation programs. The service delivered is the provision of 20,000 pounds of frozen part-skim mozzarella cheese. The geographic impact is primarily within Ohio (st) where the contractor is located, but the ultimate distribution of food aid can be nationwide. This contract supports the agricultural sector by purchasing dairy products, indirectly impacting dairy farmers and processors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause introduces cost uncertainty for the government.
Limited performance period may indicate a time-sensitive need, potentially increasing urgency and associated costs.
The 'Exclusion of Sources' in the competition type warrants further investigation into the rationale and its impact on competition.

Positive Signals

Awarded through a competitive process, indicating multiple vendors were considered.
Procurement supports a vital government program for food donations.
Contractor is based in Ohio, potentially supporting regional economic activity.

Sector Analysis

This contract falls within the broader food manufacturing and dairy processing sector, specifically focusing on cheese production. The U.S. dairy industry is a significant part of the agricultural economy, with substantial government involvement through programs like food donations and price support. The market for bulk cheese procurement for government programs is competitive, influenced by commodity prices, production capacity, and federal procurement policies. Comparable spending benchmarks would involve analyzing other large-volume cheese contracts awarded by agencies like the USDA for domestic or international food aid.

Small Business Impact

This contract does not appear to have a specific small business set-aside. The award to Miceli Dairy Products Co., a single entity, does not provide immediate insight into their size. However, the nature of bulk commodity procurement often favors larger suppliers with significant production and logistics capabilities. There is no explicit mention of subcontracting requirements for small businesses within the provided data, suggesting limited direct impact on the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agricultural Marketing Service (AMS) within the USDA. AMS is responsible for ensuring that procured commodities meet specifications and are delivered on time. The contract's fixed-price nature with economic price adjustment would require monitoring of market indices to validate any price changes. Transparency is facilitated through public contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the procurement or fulfillment process.

Related Government Programs

USDA Food Purchase Programs
Commodity Supplemental Food Program
National School Lunch Program
Food Bank Network Support

Risk Flags

Economic Price Adjustment Clause
Exclusion of Sources in Competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $715,038.06 to MICELI DAIRY PRODUCTS CO. COMMODITIES FOR USG FOOD DONATIONS: 2000011190/4400002394/4100033770/CHEESE MOZ LM PART SKM SHRD FRZ BOX-30LB,CHEESE MOZ LM PART SKIM FRZ LVS-8/6 LB

Who is the contractor on this award?

The obligated recipient is MICELI 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 $715,038.06.

What is the period of performance?

Start: 2026-02-12. End: 2026-04-15.

What is the historical spending pattern for frozen cheese by the Agricultural Marketing Service?

Analyzing historical spending patterns for frozen cheese by the Agricultural Marketing Service (AMS) is crucial for understanding the context of this $715,038 award. While specific historical data is not provided, typical patterns involve regular procurements to support various food assistance programs, such as the National School Lunch Program or domestic food donations. Spending can fluctuate based on agricultural output, commodity prices, and congressional appropriations. Examining past contract awards for similar cheese products (e.g., mozzarella, shredded, frozen) over the last 5-10 years would reveal average quantities, price ranges, and the typical number of bidders. This analysis would help determine if the current award represents a typical volume, a significant increase or decrease, and whether the price is consistent with historical trends, adjusted for inflation and market volatility. Understanding these patterns provides a baseline for assessing the value and efficiency of the current procurement.

How does the economic price adjustment (EPA) clause typically function in USDA food procurement contracts?

The Economic Price Adjustment (EPA) clause in USDA food procurement contracts, like the one for frozen cheese, is designed to allow for modifications to the contract price based on fluctuations in specific economic indicators or market prices. For dairy products, this often involves referencing indices related to milk prices, feed costs, or general dairy commodity markets. The clause typically outlines the specific index to be used, the frequency of review (e.g., monthly, quarterly), and the formula for calculating price changes. This mechanism aims to protect both the government and the contractor from extreme price volatility. For the government, it can ensure a stable supply by preventing contractors from withdrawing bids due to anticipated market shifts. For the contractor, it mitigates the risk of incurring losses if input costs rise significantly above the initially fixed price. However, it also means the final cost to the government is not fixed, requiring careful monitoring and validation of any price adjustments claimed under the EPA.

What are the implications of 'Full and Open Competition after Exclusion of Sources' for this contract?

The designation 'Full and Open Competition after Exclusion of Sources' for this $715,038 frozen cheese contract suggests a nuanced procurement approach. 'Full and Open Competition' implies that all responsible sources were permitted to submit offers, aligning with standard federal procurement principles aimed at maximizing competition and achieving best value. However, the addition of 'after Exclusion of Sources' indicates that specific types of sources, methods, or even specific companies may have been excluded from consideration prior to the solicitation, or that certain proposals were excluded during evaluation based on predefined criteria. The justification for such exclusions must be documented and legally sound, often related to national security, specific technical requirements, or prior performance issues. For taxpayers, this means that while competition occurred, it might not have been as broad as a purely unrestricted solicitation. The rationale behind the exclusion is critical to understanding whether it potentially limited price competition or ensured the selection of highly qualified, specialized vendors, ultimately impacting the overall value achieved.

What is the typical quality and intended use of frozen mozzarella cheese procured for USG food donations?

Frozen mozzarella cheese procured for U.S. Government (USG) food donations, such as this $715,038 award, is generally intended for broad distribution through various food assistance programs. The 'part-skim' designation indicates a lower fat content compared to whole milk mozzarella, often chosen for cost-effectiveness and suitability for a wider range of dietary needs. The 'shredded' form is selected for ease of use in meal preparation by recipients or food banks. Quality specifications typically focus on safety, nutritional content, and basic sensory attributes, rather than premium culinary standards. The cheese must meet USDA standards for wholesomeness and be suitable for long-term frozen storage and eventual thawing and use. Its primary purpose is to supplement the diets of low-income individuals, families, and children, providing a source of protein and calcium. While not gourmet, the quality must be consistent and safe for consumption.

How does the contractor, Miceli Dairy Products Co., perform on other federal contracts?

Information regarding the specific performance history of Miceli Dairy Products Co. on other federal contracts is not detailed in the provided data snippet. A comprehensive assessment would require accessing federal procurement databases (like FPDS or SAM.gov) to review their contract awards, past performance evaluations, and any reported issues or disputes. Typically, federal agencies evaluate contractor performance on previous contracts as part of the source selection process, especially for significant awards. Positive past performance can be a key factor in contract awards, while negative performance (e.g., late deliveries, non-compliance with specifications, quality issues) can lead to disqualification or increased scrutiny. Without this specific data, it's difficult to gauge Miceli Dairy Products Co.'s track record beyond this single award.

Industry Classification

NAICS: Manufacturing › Dairy Product Manufacturing › Cheese Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 123J1425B0282

Offers Received: 6

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

Evaluated Preference: NONE

Contractor Details

Address: 2721 E 90TH ST, CLEVELAND, OH, 44104

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

Financial Breakdown

Contract Ceiling: $715,038

Exercised Options: $715,038

Current Obligation: $715,038

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1425D0024

IDV Type: IDC

Timeline