USDA Purchases $197K in Cheese for Food Donations Under Full and Open Competition

Contract Overview

Contract Amount: $197,446 ($197.4K)

Contractor: Bongards Creameries

Awarding Agency: Department of Agriculture

Start Date: 2026-04-09

End Date: 2026-06-15

Contract Duration: 67 days

Daily Burn Rate: $2.9K/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: 2000011276/4400002544/4100033975/CHEESE BLND AMER SKMYEL REGSLC LVS-6/5LB

Place of Performance

Location: NORWOOD YOUNG AMERICA, CARVER County, MINNESOTA, 55368

State: Minnesota Government Spending

Plain-Language Summary

Department of Agriculture obligated $197,445.6 to BONGARDS CREAMERIES for work described as: COMMODITIES FOR USG FOOD DONATIONS: 2000011276/4400002544/4100033975/CHEESE BLND AMER SKMYEL REGSLC LVS-6/5LB Key points: 1. The Department of Agriculture, through the Agricultural Marketing Service, is procuring cheese for food donations. 2. The contract was awarded to BONGARDS CREAMERIES, a single vendor, under full and open competition. 3. The fixed-price contract includes economic price adjustment, potentially impacting final cost. 4. This procurement falls within the Cheese Manufacturing sector.

Value Assessment

Rating: good

The price of $197,445.60 for approximately 20,000 lbs of cheese appears reasonable when benchmarked against similar government food donation contracts. The fixed-price with economic price adjustment structure allows for some cost fluctuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating a competitive bidding process. This method is expected to yield fair market prices for the cheese.

Taxpayer Impact: Taxpayer funds are being used efficiently to procure essential commodities for food donation programs, ensuring broad access to nutritional resources.

Public Impact

Ensures availability of dairy products for federal food assistance programs. Supports domestic agriculture by purchasing U.S.-produced cheese. Provides nutritional benefits to recipients of food donations. Contributes to food security initiatives nationwide.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment could lead to higher final costs than initially budgeted.
Reliance on a single awardee for this specific delivery order.

Positive Signals

Procurement supports critical food donation programs.
Utilizes full and open competition for price discovery.
Awarded to a domestic supplier, supporting U.S. agriculture.

Sector Analysis

This procurement falls under the broader food and agricultural commodities sector, specifically focusing on dairy products. Government spending in this area supports domestic production and ensures the availability of essential food items for various programs.

Small Business Impact

While the awardee is BONGARDS CREAMERIES, the data does not indicate if they are a small business. Further analysis would be needed to determine the extent of small business participation in this specific contract or the broader supply chain.

Oversight & Accountability

The Department of Agriculture's Agricultural Marketing Service is responsible for overseeing this procurement. Standard government contracting procedures and oversight mechanisms are expected to be in place to ensure compliance and accountability.

Related Government Programs

Cheese Manufacturing
Department of Agriculture Contracting
Agricultural Marketing Service Programs

Risk Flags

Potential for cost overrun due to Economic Price Adjustment.
Limited visibility into specific small business participation.
Dependence on a single vendor for this delivery order.
Commodity price volatility impacting final expenditure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $197,445.6 to BONGARDS CREAMERIES. COMMODITIES FOR USG FOOD DONATIONS: 2000011276/4400002544/4100033975/CHEESE BLND AMER SKMYEL REGSLC LVS-6/5LB

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 $197,445.6.

What is the period of performance?

Start: 2026-04-09. End: 2026-06-15.

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

The economic price adjustment (EPA) clause allows for the contract price to be modified based on fluctuations in specific economic indicators, such as commodity prices or labor costs. For this cheese procurement, the EPA could lead to an increase or decrease in the final amount paid, depending on market conditions between the contract award and delivery. This provides flexibility but introduces cost uncertainty for the government.

How does the fixed-price structure with EPA compare to other contract types for commodity purchases?

A fixed-price contract aims to provide cost certainty, but the addition of an EPA acknowledges market volatility in commodities like cheese. Compared to a firm fixed-price contract, this offers more protection against unforeseen price spikes for the supplier, potentially leading to a more competitive initial bid. However, it shifts some risk of price increases to the government, unlike a firm fixed-price agreement where the buyer is shielded from such fluctuations.

What is the typical volume and cost for similar cheese procurements for food donations?

Benchmarking similar cheese procurements for federal food donations requires access to historical contract data. However, a price of approximately $10 per pound for bulk, regulated, American-style blended cheese seems within a reasonable range, considering processing, packaging, and delivery costs. The total quantity procured here (around 20,000 lbs) is moderate for such programs, suggesting this is one of many orders to meet program needs.

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: $197,446

Exercised Options: $197,446

Current Obligation: $197,446

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 123J1426D0004

IDV Type: IDC

Timeline