USDA Awards $15.7M for Mozzarella Cheese to Leprino Foods, Highlighting Fixed Price with EPA

Contract Overview

Contract Amount: $15,696,381 ($15.7M)

Contractor: Leprino Foods Dairy Products CO

Awarding Agency: Department of Agriculture

Start Date: 2009-09-16

End Date: 2009-12-31

Contract Duration: 106 days

Daily Burn Rate: $148.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: MCD6-022 MOZZARELLA CHEESE

Place of Performance

Location: FORT MORGAN, MORGAN County, COLORADO, 80701

State: Colorado Government Spending

Plain-Language Summary

Department of Agriculture obligated $15.7 million to LEPRINO FOODS DAIRY PRODUCTS CO for work described as: MCD6-022 MOZZARELLA CHEESE Key points: 1. The contract for mozzarella cheese was awarded to Leprino Foods Dairy Products Co. 2. The contract type is a competitive delivery order with a fixed price and economic price adjustment. 3. The total award amount is $15,696,380.76. 4. The contract duration was 106 days. 5. The spending falls under the Cheese Manufacturing industry.

Value Assessment

Rating: good

The fixed-price contract with economic price adjustment (EPA) allows for price fluctuations based on market conditions, which is common for commodity goods like cheese. The award amount appears reasonable for the specified product and duration, though a direct per-unit comparison would require more detailed specifications.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was awarded via a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. This method generally promotes price discovery and ensures fair market value is obtained.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving a fair price for the mozzarella cheese procured by the Department of Agriculture.

Public Impact

Ensures supply of a key dairy product for federal programs. Supports the agricultural sector through procurement contracts. Price adjustment mechanism reflects market volatility in dairy. Short contract duration suggests specific, time-bound need.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment could lead to cost overruns if not carefully monitored.
Short contract duration might indicate a one-time need or a pilot program.

Positive Signals

Competitive award process.
Clear product specification (mozzarella cheese).

Sector Analysis

This procurement falls within the Cheese Manufacturing sector, a significant part of the broader food and agriculture industry. Spending benchmarks for cheese manufacturing contracts can vary widely based on volume, quality, and specific product type.

Small Business Impact

The data indicates the award went to Leprino Foods Dairy Products Co., a large established company. There is no explicit indication of small business participation in this specific award, suggesting larger firms may dominate this particular supply chain segment.

Oversight & Accountability

The competitive delivery order process implies a degree of oversight in vendor selection and pricing. Further review of the contract's performance and adherence to terms would be necessary for a full accountability assessment.

Related Government Programs

Cheese Manufacturing
Department of Agriculture Contracting
Farm Service Agency Programs

Risk Flags

Lack of specific volume data hinders per-unit cost analysis.
Potential for cost increases due to economic price adjustment.
Limited contract duration may indicate a narrow scope or one-time need.
No explicit mention of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $15.7 million to LEPRINO FOODS DAIRY PRODUCTS CO. MCD6-022 MOZZARELLA CHEESE

Who is the contractor on this award?

The obligated recipient is LEPRINO FOODS DAIRY PRODUCTS CO.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Farm Service Agency).

What is the total obligated amount?

The obligated amount is $15.7 million.

What is the period of performance?

Start: 2009-09-16. End: 2009-12-31.

What was the specific volume of mozzarella cheese procured under this contract?

The provided data does not specify the exact volume of mozzarella cheese. The award amount of $15.7 million and the duration of 106 days are given, but the quantity is missing. Knowing the volume would allow for a more precise per-unit cost analysis and comparison with market rates.

How did the economic price adjustment clause impact the final cost compared to a fixed price?

The data does not provide the final cost after the economic price adjustment was applied. It only states the contract type. To assess the impact, one would need to compare the initial estimated price with the final invoiced amount, considering the market indices used for the adjustment.

Were there any performance issues or disputes during the contract's execution?

The provided data does not contain information regarding contract performance or any disputes that may have arisen. A thorough review of contract close-out documents and performance reports would be required to determine if there were any issues during the 106-day period.

Industry Classification

NAICS: Manufacturing › Dairy Product Manufacturing › Cheese Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SEALED BID

Solicitation ID: MCD6-022

Offers Received: 3

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

Evaluated Preference: NONE

Contractor Details

Parent Company: Leprino Foods Dairy Products Company (UEI: 007076664)

Address: 1830 W 38TH AVE, DENVER, CO, 90

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

Financial Breakdown

Contract Ceiling: $15,696,381

Exercised Options: $15,696,381

Current Obligation: $15,696,381

Parent Contract

Parent Award PIID: AGDPDVVDOC02394

IDV Type: IDC

Timeline