Request for Information (RFI) on Grade A Bulk Milk for Processing

This is a Request for Information (RFI) as defined in FAR 15.201(e). All information gathered in response to this RFI will be used solely for evaluation purposes. This is not a formal solicitation, but a request for interested parties to provide information. No solicitation published by this office for bulk fluid milk currently exists. The United States Department of Agriculture (USDA) Agricultural Marketing Service (AMS) is exploring the option to purchase Grade A bulk milk (hereinafter milk) for USDA domestic food distribution programs. The USDA-procured milk would be manufactured into commercially available Class II and Class III dairy products. This RFI will serve as market research to obtain information for the availability, specifications, pricing, etc., of milk which would be shipped directly into dairy processing facilities. Inclusion on the Interstate Milk Shippers List is required to show compliance with the USPHS/FDA Grade "A" Pasteurized Milk Ordinance (PMO) or USDA-approved plant list. Information is requested on supplier capacity, pricing mechanisms, etc., for milk which, per contract terms, would be required to be delivered to a specified Class II or Class III dairy product manufacturing facility. For pricing mechanisms, one example of how to price the delivered milk would be a certain amount over the AMS published milk marketing order pricing-so as to include manufacturing, transportation, handling, and other costs for various delivery locations. Milk purchased by USDA under the scenario outlined above would be delivered to a dairy product manufacturer that has a National Processing Agreement with the USDA Food and Nutrition Service (FNS). The processing agreement would outline the terms for the manufacture and delivery of approved dairy products to USDA program recipients. End products would be provided to USDA program recipients at a reduced price commensurate with the value of USDA-purchased milk provided for processing (i.e., under a pass-thru value formula or other schema to afford for a discounted unit price for USDA program recipients, such as schools). More information on the processing of USDA foods is available on the FNS website at: http://www.fns.usda.gov/fdd/about-processing-usda-foods. USDA Foods Processing is governed by regulations contained in the Code of Federal Regulations at 7 CFR Part 250.30. All information provided should take into account USDA's 100 percent domestic origin requirement; milk offered is to be produced in the United States, pursuant to Agricultural Acquisition Regulation (AGAR) 470.103(b). All vendors that would offer to sell milk to USDA must comply with all applicable Federal, State and local mandatory requirements and regulations including but not limited to Milk and Cream (21 Code of Federal Regulations Part 131) relating to the standard of identity, transport, laboratory analysis, preparation, processing, packaging, labeling, storage, distribution of the product within the commercial marketplace; the USPHS/FDA Grade "A" Pasteurized Milk Ordinance (PMO); and the Food Safety Modernization Act. The purchased product shall additionally comply with all applicable provisions of the Federal Food, Drug, and Cosmetic Act, the Fair Packaging and Labeling Act, and regulations promulgated there under. Process Interested parties should provide information on the items below, and other pertinent information, recommendations, comments, issues and/or concerns as they deem appropriate and would be beneficial to the Government. If interested in selling milk to USDA: 1) Your dairy industry category. E.g., farmer, farmer-owned cooperative, processor, non-manufacturer, distributor, etc., including any combination thereof; 2) Type of milk produced; 3) Plant(s)/farm locations-from which milk would be offered; 4) Constraints on quantity to be offered (e.g., cwt), per week/month/etc.; 5) How would you recommend the pricing be determined? What index would be appropriate to price the milk? 6) What pricing considerations for offering milk to USDA need to be accounted for? Please explain in detail what such a "price overage" would consist of and the factors for variability; e.g., the price plus manufacturing, transportation, and other costs, and 7) Inspection and quality assurance systems employed to ensure the quality and safety of bulk milk products sold/delivered. If interested in receiving USDA milk for processing into Class II and Class III dairy products: 1) Type of Class II and Class III dairy products produced at your facility. Include product brand names (send product brochures), pack size(s), shelf life, distribution model, quality assurance system employed, etc.; 2) Type of milk received at your plant 3) For the milk delivered to your plant facility(s), particular specifications standards and any impact on price of inputs and end products; 4) Current source of milk. 5) Is your milk always sourced from the same state as your processing plant's state location? 6) Status as a National Processing Agreement participant-i.e., processor with a signed agreement approved by USDA's Food & Nutrition Service (FNS); and 7) Status as supplier to schools and other USDA program recipients. When responding, please include your- Name Title Organization name Contact information Responses and questions shall be emailed to the attention of Bill Lang at [email protected].