USDA Food Donations: $5.8M for Cheese Products from Bongards Creameries, Full and Open Competition

Contract Overview

Contract Amount: $5,823,887 ($5.8M)

Contractor: Bongards Creameries

Awarding Agency: Department of Agriculture

Start Date: 2026-02-20

End Date: 2026-04-30

Contract Duration: 69 days

Daily Burn Rate: $84.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: COMMODITIES FOR USG FOOD DONATIONS: 2000011204/4400002544/4100033844/CHEESE BLEND AMER SKM LVS-12/2 LB,CHEESE PROCESS YEL SLC LVS-6/5 LB,CHEESE BLEND AMER SKM YEL SLC LVS-6/5 LB,CHEESE PROCESS WHT SLC LVS-6/5 LB,CHEESE BLEND AMER SKM WHT SLC LVS-6/5

Place of Performance

Location: HUMBOLDT, GIBSON County, TENNESSEE, 38343

State: Tennessee Government Spending

Plain-Language Summary

Department of Agriculture obligated $5.8 million to BONGARDS CREAMERIES for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011204/4400002544/4100033844/CHEESE BLEND AMER SKM LVS-12/2 LB,CHEESE PROCESS YEL SLC LVS-6/5 LB,CHEESE BLEND AMER SKM YEL SLC LVS-6/5 LB,CHEESE PROCESS WHT SLC LVS-6/5 LB,CHEESE BLEND AMER SKM WHT SLC LVS-6/5 Key points: 1. Spending focuses on cheese products for USG food donations. 2. Bongards Creameries is the sole awardee for this delivery order. 3. The contract utilizes fixed-price with economic price adjustment terms. 4. Competition was full and open, indicating a broad market search.

Value Assessment

Rating: good

The awarded amount of $5.8M for cheese products appears reasonable given the quantity and type of goods. Benchmarking against similar commodity procurements for food donations would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting 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 competitive bidding is expected to result in cost savings for taxpayers by securing favorable pricing for essential food commodities.

Public Impact

Ensures availability of cheese products for federal food donation programs. Supports domestic dairy producers and the agricultural sector. Provides essential food items to those in need through government initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price volatility due to economic price adjustment clause.
Reliance on a single awardee for this specific delivery order.

Positive Signals

Full and open competition utilized.
Supports critical food donation missions.

Sector Analysis

This procurement falls within the agricultural commodities sector, specifically dairy manufacturing. Spending on food donations is a key component of USDA's mission to combat food insecurity.

Small Business Impact

While the awardee is Bongards Creameries, the data does not indicate if small businesses were involved as subcontractors or if this procurement specifically targeted small business participation.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Marketing Service. Oversight would involve ensuring timely delivery, product quality, and adherence to contract terms.

Related Government Programs

Cheese Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Economic Price Adjustment (EPA) clause introduces price uncertainty.
Potential for supply chain disruptions affecting delivery.
Dependence on a single supplier for this specific order.
Ensuring consistent quality of cheese products over the contract period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $5.8 million to BONGARDS CREAMERIES. COMMODITIES FOR USG FOOD DONATIONS: 2000011204/4400002544/4100033844/CHEESE BLEND AMER SKM LVS-12/2 LB,CHEESE PROCESS YEL SLC LVS-6/5 LB,CHEESE BLEND AMER SKM YEL SLC LVS-6/5 LB,CHEESE PROCESS WHT SLC LVS-6/5 LB,CHEESE BLEND AMER SKM WHT SLC LVS-6/5

Who is the contractor on this award?

The obligated recipient is BONGARDS CREAMERIES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.8 million.

What is the period of performance?

Start: 2026-02-20. End: 2026-04-30.

What is the historical pricing trend for similar cheese products procured by the government?

Analyzing historical pricing data for comparable cheese products procured by federal agencies would reveal if the current $5.8M award is in line with past expenditures. This comparison, considering inflation and market fluctuations, helps determine if the government is achieving value for money and if the economic price adjustment clause is being managed effectively.

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

The primary risk of the EPA clause is potential cost overruns if market prices for cheese ingredients or production rise significantly beyond initial projections. This could lead to higher-than-anticipated spending for the government. Effective monitoring of market indices tied to the EPA is crucial to mitigate this risk and ensure taxpayer funds are used efficiently.

How effectively does this procurement contribute to the overall goals of USG food donation programs?

This procurement directly contributes by securing a substantial quantity of cheese products, a valuable and nutritious food item, for donation programs. Its effectiveness hinges on the timely delivery and quality of the cheese, ensuring it reaches intended recipients and supports the program's mission to alleviate food insecurity.

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: 123J1426B0130

Offers Received: 4

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

Evaluated Preference: NONE

Contractor Details

Address: 13200 COUNTY ROAD 51, NORWOOD YOUNG AMERICA, MN, 55368

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

Financial Breakdown

Contract Ceiling: $5,823,887

Exercised Options: $5,823,887

Current Obligation: $5,823,887

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1426D0004

IDV Type: IDC

Timeline