USDA Purchases $146K in Cheese for Food Donations, Awarded to Masters Gallery Foods

Contract Overview

Contract Amount: $146,578 ($146.6K)

Contractor: Masters Gallery Foods, Incorporated

Awarding Agency: Department of Agriculture

Start Date: 2026-02-18

End Date: 2026-04-30

Contract Duration: 71 days

Daily Burn Rate: $2.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011191/4400002535/4100033798/CHEESE CHED YEL BLOCK-40 LB (40800)

Place of Performance

Location: DUMAS, MOORE County, TEXAS, 79029

State: Texas Government Spending

Plain-Language Summary

Department of Agriculture obligated $146,578.08 to MASTERS GALLERY FOODS, INCORPORATED for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011191/4400002535/4100033798/CHEESE CHED YEL BLOCK-40 LB (40800) Key points: 1. Spending focused on commodity procurement for federal food donation programs. 2. Masters Gallery Foods, Inc. secured the contract for yellow cheddar cheese. 3. The contract involves delivery to Texas, supporting domestic food assistance. 4. Fixed price with economic price adjustment offers some cost flexibility. 5. This purchase aligns with USDA's mission to combat food insecurity.

Value Assessment

Rating: good

The price of $146,578.08 for 40lb blocks of yellow cheddar cheese appears reasonable given the quantity and fixed-price with economic adjustment structure. Benchmarking against similar commodity purchases would provide a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method is expected to yield fair market prices and ensure value for taxpayer dollars.

Taxpayer Impact: Taxpayer funds are used to purchase essential food commodities for donation, supporting vulnerable populations and agricultural markets.

Public Impact

Ensures availability of nutritious food for federal donation programs. Supports domestic dairy farmers and food manufacturers. Contributes to efforts to reduce food insecurity across the nation. Provides a stable market for agricultural commodities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations due to economic price adjustment clause.
Logistical challenges in delivery and storage of perishable goods.

Positive Signals

Supports a key government mission of food assistance.
Awarded through full and open competition.
Procurement of a staple commodity.

Sector Analysis

This purchase falls under the broader category of agricultural commodity procurement, specifically for food manufacturing and distribution. Spending in this sector is driven by federal nutrition assistance programs and disaster relief efforts.

Small Business Impact

While this specific award went to Masters Gallery Foods, Inc., the procurement process under full and open competition allows for small businesses to compete for similar contracts, potentially contributing to their growth within the federal supply chain.

Oversight & Accountability

The Agricultural Marketing Service (AMS) oversees these commodity purchases, ensuring compliance with program requirements and fair pricing. The fixed-price with economic adjustment contract type requires monitoring of market conditions.

Related Government Programs

Cheese Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for price increases due to economic price adjustment.
Reliance on a single supplier for this specific order.
Logistical challenges in handling perishable goods.
Ensuring consistent quality across deliveries.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $146,578.08 to MASTERS GALLERY FOODS, INCORPORATED. COMMODITIES FOR USG FOOD DONATIONS: 2000011191/4400002535/4100033798/CHEESE CHED YEL BLOCK-40 LB (40800)

Who is the contractor on this award?

The obligated recipient is MASTERS GALLERY FOODS, INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $146,578.08.

What is the period of performance?

Start: 2026-02-18. End: 2026-04-30.

What is the historical cost trend for this specific type of cheese purchased by the USDA?

Analyzing historical cost trends for 40lb blocks of yellow cheddar cheese purchased by the USDA would reveal if the current price is in line with past procurements. This involves examining contract awards over several fiscal years, considering factors like inflation, market volatility, and the specific quality requirements. Understanding these trends helps assess if the current economic price adjustment is likely to result in overpayment or savings.

What are the specific risks associated with the economic price adjustment clause in this contract?

The primary risk of the economic price adjustment clause is potential cost overruns for the government if market prices for cheese increase significantly between the contract award and delivery. While it protects the contractor from losses due to rising input costs, it introduces uncertainty for the USDA's budget. The extent of this risk depends on the volatility of dairy commodity markets and the specific formula used for adjustment.

How effectively does this procurement method ensure the quality and timely delivery of donated food commodities?

The full and open competition method generally promotes quality and timely delivery by encouraging multiple bidders to offer competitive terms. However, the effectiveness relies on robust contract management and clear specifications. For perishable goods like cheese, the USDA must ensure stringent quality control measures are in place and monitor delivery schedules closely to prevent spoilage and ensure the commodities reach intended recipients promptly.

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: 123J1426B0118

Offers Received: 8

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

Evaluated Preference: NONE

Contractor Details

Address: 328 COUNTY ROAD PP, PLYMOUTH, WI, 53073

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $146,578

Exercised Options: $146,578

Current Obligation: $146,578

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1426D0007

IDV Type: IDC

Timeline