USDA Section 32 milk & butter purchase program announced

The U.S. Department of Agriculture (USDA) has announced plans to purchase $60 million in Fresh Fluid Milk and $50 million in butter for distribution to various food nutrition assistance programs. Purchases will be made under the authority of Section 32 of the Act of August 24, 1935, with the purpose to encourage the continued domestic consumption of these products by diverting them from the normal channels of trade and commerce.

Material Code	Material Description	Solicitation	Delivery Timeframe*
Gallons &Half-Gallons	Fluid Milk WholeFluid Milk 2% Fluid Milk 1%	December 2020February 2021 May 2021 August 2021	Quarter 1Quarter 2 Quarter 3 Quarter 4
100001	BUTTER PRINT SALTED CTN-36/1 LB or 30/1 LB

•  *Quarter 1 delivery period: February – March 2021
• Quarter 2 delivery period: April – June 2021
• Quarter 3 delivery period: July – September 2021
• Quarter 4 delivery period: October – December 2021

Solicitations will be issued in the near future, and will be available electronically through the Web-Based Supply Chain Management (WBSCM) system. A hard copy of the solicitation will not be available. Public WBSCM information is available without an account on the WBSCM Public Procurement Page. All future information regarding this acquisition, including solicitation amendments and award notices, will be published through WBSCM, and on the Agricultural Marketing Service’s website at www.ams.usda.gov/selling-food. Interested parties shall be responsible for ensuring that they have the most up-to-date information about this acquisition. The contract type is anticipated to be firm-fixed price. Deliveries are expected to be to various locations in the United States on an FOB destination basis.

Pursuant to Agricultural Acquisition Regulation 470.103(b), commodities and the products of agricultural commodities acquired under this contract must be a product of the United States, and shall be considered to be such a product if it is grown, processed, and otherwise prepared for sale or distribution exclusively in the United States. Packaging and container components under this acquisition will be the only portion subject to the World Trade Organization Government Procurement Agreement and Free Trade Agreements, as addressed by FAR clause 52.225-5.

Offerors are urged to review all documents as they pertain to this program, including the latest—

• AMS Master Solicitation for Commodity Procurement (MSCP), August 13, 2020;
• Applicable commodity specification(s) identified in the subsequent solicitation(s); and
• Qualification Requirements for Prospective Contractors Selling Commodities to USDA, March 1, 2017.

These documents are available on the AMS Commodity Procurement website.

To be eligible to submit offers, potential contractors must meet the AMS vendor qualification requirements. The AMS point of contact for new vendors is Andrea Lang who can be reached by email to NewVendor@usda.gov. Details of these requirements are available online at: https://www.ams.usda.gov/selling-food/becoming-approved. Once qualification requirements have been met, access to WBSCM will be provided. Bids, modifications, withdrawals of bids, and price adjustments shall be submitted using this system. Submission of the above by any means other than WBSCM will be determined nonresponsive.

To receive e-mail notification of the issuance of AMS solicitations, contract awards, and other information, subscribe online by visiting: “Stay up to date on USDA Food Purchases” available on the AMS Commodity Procurement website.

Inquiries may be directed to the Contract Specialists, Caroline Russell or Jenny Babiuch, via email, at Caroline.Russell@usda.gov or Jenny.Babiuch@usda.gov