NIGP 39368: Peanut Butter

NIGP 39368 Peanut Butter, an Item code, covers bulk peanut butter procurement by state and local public bodies—most commonly corrections departments, school districts, and institutional food service operations purchasing stabilized peanut butter in large quantities to supply centralized distribution centers and cafeteria networks. Recent solicitations show state and local governments buying USA Grade A or Fancy peanut butter meeting USDA Commercial Item Description standards, with sodium limits (typically under 280 mg per 2 tablespoon serving), minimum shelf life requirements of nine to twelve months, and texture options including smooth, medium, chunky, and crunchy. Delivery is consistently FOB Destination with freight prepaid, and pricing must remain firm fixed throughout the contract term unless major market changes trigger adjustment provisions with documented manufacturer price list support. Minimum order quantities range from approximately 80,000 pounds for a single institutional buyer up to the multi-million-dollar volumes implied by multi-district school system procurements. School districts dominate issuing volume under this code, joined by state corrections and human services departments managing centralized food procurement.

The Oregon Department of Corrections issued an Invitation to Bid (ITB) on March 10, 2026, for approximately 80,000 pounds of bulk peanut butter to the Central Distribution Center in Salem with a response deadline of March 24, 2026, at 9:00 a.m. PST; the historical award price from August 2025 was $34.30 per case (35 pounds per tub) to Highland Wholesale. Oregon vendors may access five percent preference on Oregon-fabricated or processed goods and five percent resident-bidder preference, stacking to ten percent maximum combined. Recent activity clusters in the Pacific Northwest and Southeast, with procurement cycles typically beginning in February through June for July-through-June contract years. Peanut butter appears within broader grocery procurement solicitations—notably the Bridgeport Board of Education's June 30, 2026, electronic bid (BNB052266) for over 1,100 grocery line items under the National School Lunch Program, and the Rockwood R-VI School District's April 29, 2026, electronic bid (CHILDNUTRITIONSERVICESGROCERYITEMS20262027) for over 900 grocery items supporting 19,000 student enrollment—but dedicated bulk peanut butter bids remain a distinct procurement stream for large institutional users managing centralized food logistics.