USDA awards $2.08M for cheese to Masters Gallery Foods, Inc. under full and open competition

Contract Overview

Contract Amount: $2,075,194 ($2.1M)

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: $29.2K/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: 2000011191/4400002535/4100033801/CHEESE NAT AMER FBD BARREL-500 LB(40800)

Place of Performance

Location: DALHART, DALLAM County, TEXAS, 79022

State: Texas Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.1 million to MASTERS GALLERY FOODS, INCORPORATED for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011191/4400002535/4100033801/CHEESE NAT AMER FBD BARREL-500 LB(40800) Key points: 1. The contract focuses on cheese manufacturing for food donations. 2. Masters Gallery Foods, Inc. is the awardee. 3. The contract is for fixed price with economic price adjustment. 4. Competition was full and open, suggesting a competitive bidding process.

Value Assessment

Rating: good

The award amount of $2.08M for cheese manufacturing appears reasonable given the quantity and type of product. Benchmarking against similar commodity procurements would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The use of full and open competition is taxpayer-friendly as it drives down costs through market forces.

Public Impact

Ensures availability of essential food commodities for federal donation programs. Supports the agricultural sector, specifically cheese manufacturers. Provides a consistent supply of food to aid vulnerable populations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause could lead to cost overruns if market prices increase significantly.

Positive Signals

Full and open competition utilized.
Clear delivery dates specified.
Contract supports federal food donation initiatives.

Sector Analysis

This procurement falls under the food manufacturing sector, specifically dairy products. Spending benchmarks for commodity procurements vary widely based on the specific item and quantity, but this award appears within a typical range for bulk cheese.

Small Business Impact

While the awardee is Masters Gallery Foods, Inc., the contract was awarded under full and open competition. Further analysis would be needed to determine if small businesses participated as subcontractors or if opportunities were missed.

Oversight & Accountability

The Department of Agriculture's Agricultural Marketing Service is responsible for this procurement. Standard oversight procedures for commodity purchases and delivery orders would apply to ensure compliance and quality.

Related Government Programs

Cheese Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for cost increase due to economic price adjustment.
Lack of specific unit cost benchmark for immediate value assessment.
Limited insight into small business participation.
Dependence on market price fluctuations for final cost.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.1 million to MASTERS GALLERY FOODS, INCORPORATED. COMMODITIES FOR USG FOOD DONATIONS: 2000011191/4400002535/4100033801/CHEESE NAT AMER FBD BARREL-500 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 $2.1 million.

What is the period of performance?

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

What is the projected impact of the economic price adjustment on the final cost?

The economic price adjustment (EPA) clause allows for modifications to the contract price based on fluctuations in market prices for cheese. The actual impact on the final cost will depend on the volatility of cheese prices between the award date and the delivery period. Without specific market forecasts or historical data on cheese price movements, it's difficult to quantify the exact potential increase or decrease, but it aims to protect both the government and the contractor from extreme price shifts.

How does the unit cost compare to historical food donation commodity purchases?

A precise unit cost comparison is not possible without knowing the exact type and grade of cheese procured. However, the total award of $2.08M for 40,800 lbs of cheese suggests a per-pound cost of approximately $50.86. This figure needs to be benchmarked against historical data for similar cheese commodities purchased for federal donation programs to assess value for money effectively.

What are the specific performance metrics and quality control measures for the delivered cheese?

The contract likely includes specific quality standards and inspection protocols for the cheese to ensure it meets food safety and donation program requirements. These would typically involve adherence to USDA grading standards, proper packaging, and temperature control during transit. Performance metrics would focus on on-time delivery and compliance with all contractual specifications.

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: $2,075,194

Exercised Options: $2,075,194

Current Obligation: $2,075,194

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1426D0007

IDV Type: IDC

Timeline