USDA Peanut Barter Announced

March 29, 2019

The U.S. Department of Agriculture (USDA), acting under authority granted in 7 U.S. Code § 1431, plans to conduct a barter of farmer stock peanuts acquired by Commodity Credit Corporation (CCC) in exchange for commercial peanut butter.

Offers will be solicited with the intent to issue an Indefinite Delivery Contract for the following material:

 Material #

Material Description




The initial solicitation will be issued in the near future for commercial peanut butter deliveries beginning July 1, 2019 through December 30, 2019, in exchange for CCC owned farmer stock peanuts in store. The Government intends to issue subsequent solicitations. Offerors will be advised of the results of the prior solicitation before being asked to submit a final bid for subsequent solicitations. Delivery periods per solicitation will not overlap.

For the purpose of bidding, the United States will be divided into five regions. The CCC owned farmer stock peanuts will be grouped by “lots”, which will include multiple warehouse receipts. Multiple warehouse locations will not be combined in a single lot. Lots will be advertised in a specific region of the United States. Participants shall submit their offer identifying the number of lots they will accept, and in exchange, the number of full trucks of peanut butter they will provide in that region for the given delivery period July 1, 2019 – Dec 30, 2019.  Separate offers shall be submitted for each region.  The regions include:

  • Western (Western): Arizona, California, Idaho, Nevada, Oregon, Washington
  • Mountain West (Mountain Plains and Midwest): Colorado, Iowa, Kansas, Missouri, Montana, Nebraska, North Dakota, South Dakota, Utah, Wyoming, Illinois, Indiana, Michigan, Minnesota, Ohio, Wisconsin
  • Southwest (Southwest): Arkansas, Louisiana, New Mexico, Oklahoma, Texas
  • Southeast (Southeast): Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee
  • Eastern (Mid-Atlantic, Northeast): Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island, Vermont, Delaware, District of Columbia, Maryland, New Jersey, Pennsylvania, Puerto Rico, Virginia, Virgin Islands, West Virginia

The resulting award will be a firm-fixed price, indefinite delivery, definite quantity contract. Multiple awards may be made. Orders specifying a two-week delivery period and location will be issued 45 days prior to the start of each delivery period. Deliveries are expected to be to various locations in the United States on an FOB destination basis.

Offers must be received not later than the date specified on the solicitations. Solicitations will be available electronically on FedBizOpps ( and the AMS Commodity Procurement Website. A hard copy of the solicitation will not be available. All future information regarding this acquisition, including solicitation amendments and award notices, will be published through, and on the Agricultural Marketing Service's website at Interested parties shall be responsible for ensuring that they have the most up-to-date information about this acquisition.

Commercial peanut butter 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.

Offerors are urged to review the commodity specification, PP16 Peanut Products For Use In Domestic Programs. This document is available on the AMS Commodity Procurement website.

To be eligible to submit offers, potential contracts must be registered on All commercial peanut butter shall be supplied from AMS approved plant locations.

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.

A presolicitation call is scheduled for Wednesday, April 3rd at 10 a.m. Central Time.  Call details are as follows:

  • Call Number:  888.844-9904
  • Access:  1801764

Written questions may be submitted in advance of the call; not later than 4 p.m. CT on Monday, April 1st.

Inquiries may be directed to the Contracting Officer, Hilary Cole at 816-823-2169 of

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