USDA awards $221K for cheese to Masters Gallery Foods, Inc. for domestic food donations

Contract Overview

Contract Amount: $221,414 ($221.4K)

Contractor: Masters Gallery Foods, Incorporated

Awarding Agency: Department of Agriculture

Start Date: 2026-02-18

End Date: 2026-04-15

Contract Duration: 56 days

Daily Burn Rate: $4.0K/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: 2000011191/4400002535/4100033799/CHEESE CHED RDU FAT YEL SHRED BAG-6/5 LB,CHEESE CHED YEL SHRED BAG-6/5 LB

Place of Performance

Location: OOSTBURG, SHEBOYGAN County, WISCONSIN, 53070

State: Wisconsin Government Spending

Plain-Language Summary

Department of Agriculture obligated $221,414.4 to MASTERS GALLERY FOODS, INCORPORATED for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011191/4400002535/4100033799/CHEESE CHED RDU FAT YEL SHRED BAG-6/5 LB,CHEESE CHED YEL SHRED BAG-6/5 LB Key points: 1. Contract awarded for essential food commodities, supporting domestic food assistance programs. 2. Competition was full and open, suggesting a competitive bidding process. 3. Delivery order issued against an existing contract, indicating potential for streamlined procurement. 4. Fixed price with economic price adjustment clause allows for cost fluctuations. 5. Contract duration is relatively short, focusing on immediate supply needs. 6. Awardee has experience in food manufacturing, relevant to the commodity procured.

Value Assessment

Rating: good

The award of $221,414.40 for cheese aligns with typical procurement values for food commodities in federal programs. Benchmarking against similar food donation contracts would provide a more precise value-for-money assessment. The fixed-price with economic price adjustment structure is common for food items to account for market volatility, but requires monitoring of price changes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 8 bids suggests a healthy level of competition for this requirement, which generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: A competitive bidding process ensures that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

Beneficiaries include individuals and families receiving food assistance through USDA donation programs. Services delivered include the provision of shredded cheddar cheese for distribution. Geographic impact is national, supporting the distribution of food across the United States. Workforce implications are primarily within the food manufacturing and distribution sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases due to the economic price adjustment clause.
Reliance on a single awardee for a specific commodity could pose supply chain risks if not managed.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Contractor is an established food manufacturer, suggesting reliability in supply.
Short contract duration may indicate flexibility to re-compete or adjust to changing needs.

Sector Analysis

The procurement falls within the broader food manufacturing and distribution sector, which is a critical component of the U.S. economy. Federal agencies like the USDA are significant purchasers of food products to support various domestic and international assistance programs. Spending in this area is influenced by legislative appropriations, food security needs, and agricultural policies.

Small Business Impact

This contract was not specifically set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. The award went to Masters Gallery Foods, Inc., a large business. Future solicitations could explore opportunities for small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Agricultural Marketing Service (AMS) within the USDA. The contract includes standard terms and conditions, and performance would be monitored through delivery verification and quality checks. Inspector General audits could be initiated if specific concerns arise regarding performance or financial accountability.

Related Government Programs

USDA Food Donation Programs
Commodity Procurement for Federal Nutrition Assistance
Agricultural Marketing Service Contracts

Risk Flags

Economic Price Adjustment Clause
Short Delivery Window

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $221,414.4 to MASTERS GALLERY FOODS, INCORPORATED. COMMODITIES FOR USG FOOD DONATIONS: 2000011191/4400002535/4100033799/CHEESE CHED RDU FAT YEL SHRED BAG-6/5 LB,CHEESE CHED YEL SHRED BAG-6/5 LB

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 $221,414.4.

What is the period of performance?

Start: 2026-02-18. End: 2026-04-15.

What is the track record of Masters Gallery Foods, Inc. with federal contracts?

Masters Gallery Foods, Inc. has a history of receiving federal contracts, primarily with agencies like the Department of Agriculture. Their awards often involve the supply of dairy products and other food commodities for various federal programs, including food donations and school lunch programs. Reviewing their past performance ratings and any documented issues on contract databases like SAM.gov would provide a more detailed understanding of their reliability and compliance with federal procurement regulations. Their consistent awards suggest a capacity to meet government requirements, but specific contract performance data is crucial for a comprehensive assessment.

How does the price of this cheese compare to market rates or similar federal procurements?

Without specific unit pricing data for the cheese procured under this contract, a direct comparison to market rates or similar federal procurements is challenging. The total award of $221,414.40 for an unspecified quantity of shredded cheddar cheese makes it difficult to establish a per-pound or per-unit cost. However, the 'Fixed Price with Economic Price Adjustment' clause indicates that the final cost could vary based on market fluctuations. To benchmark effectively, one would need to analyze the base price per unit against historical USDA food procurement data for similar commodities and consider the prevailing market prices at the time of award.

What are the primary risks associated with this specific contract?

The primary risks associated with this contract include potential supply chain disruptions affecting the delivery of the cheese, especially given the short delivery window. The economic price adjustment (EPA) clause introduces price volatility risk, where the final cost to the government could exceed initial estimates if cheese prices rise significantly. There's also a minor risk related to the quality and consistency of the product delivered, although this is mitigated by standard government inspection processes. Ensuring timely delivery and managing the EPA's impact on the budget are key oversight considerations.

How effective are USDA food donation programs in achieving their objectives?

USDA food donation programs, such as those supported by this contract, are generally considered effective in addressing food insecurity among vulnerable populations. They leverage surplus agricultural production and provide essential nutritional support to food banks and other charitable organizations. The effectiveness can be measured by the quantity of food distributed, the nutritional value of the commodities, and the reach of the programs to underserved communities. Challenges can include logistical complexities in distribution, ensuring the appropriateness of donated foods for recipient needs, and maximizing the utilization of donated items to minimize waste.

What is the historical spending pattern for cheese procurement by the USDA?

Historical spending patterns for cheese procurement by the USDA reveal a consistent and significant investment in this commodity to support various food assistance initiatives. The USDA procures large volumes of cheese annually through contracts awarded via competitive bidding processes, similar to the one detailed here. Spending fluctuates based on agricultural output, market prices, and the specific needs of domestic and international feeding programs. Analyzing past contract awards for cheese, including quantities, prices, and awardees, would illustrate trends in volume and cost over time, highlighting the USDA's ongoing commitment to utilizing cheese as a key component of its food support efforts.

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: $221,414

Exercised Options: $221,414

Current Obligation: $221,414

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1426D0007

IDV Type: IDC

Timeline