DOJ awards $61.7K food service contract to Shaver Foods LLC for federal prison system

Contract Overview

Contract Amount: $61,697 ($61.7K)

Contractor: Shaver Foods LLC

Awarding Agency: Department of Justice

Start Date: 2026-04-27

End Date: 2026-04-27

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 21

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 3RD QTR FY26 TO PROVIDE FOOD SERVICE FOR PERIOD OF PERFORMANCE.

Place of Performance

Location: FAYETTEVILLE, WASHINGTON County, ARKANSAS, 72701

State: Arkansas Government Spending

Plain-Language Summary

Department of Justice obligated $61,697.33 to SHAVER FOODS LLC for work described as: 3RD QTR FY26 TO PROVIDE FOOD SERVICE FOR PERIOD OF PERFORMANCE. Key points: 1. Contract awarded for food services, indicating a need for essential supplies within correctional facilities. 2. The contract value is relatively small, suggesting a localized or specific service requirement. 3. Awarded under Simplified Acquisition Procedures (SAP), implying a streamlined process for smaller procurements. 4. The single-year duration points to a short-term need or a contract likely to be re-competed. 5. Fixed-price contract type helps manage cost certainty for the government. 6. No small business set-aside was utilized, suggesting broader market participation was sought or deemed unnecessary.

Value Assessment

Rating: good

The contract value of $61,697.33 for a one-year food service period appears reasonable for the scope. Benchmarking against similar food service contracts for federal correctional facilities would provide a more precise value-for-money assessment. However, given the relatively small dollar amount and the use of SAP, it suggests a competitive process likely yielded a fair price for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for full and open competition for procurements under the simplified threshold. While the specific number of bidders is not detailed, SAP aims to maximize competition within its parameters. The use of SAP suggests that multiple offers were likely solicited and evaluated, contributing to price discovery.

Taxpayer Impact: The competitive nature of SAP procurements generally benefits taxpayers by driving down costs through market forces, ensuring the government receives competitive pricing for goods and services.

Public Impact

Inmates within the federal prison system will receive food services, directly impacting their daily living conditions. The contract supports the operational needs of the Federal Prison System / Bureau of Prisons. Services are likely delivered within a specific federal correctional facility in Arkansas. The contract supports the food manufacturing and service industry, potentially involving local suppliers and labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting food availability.
Ensuring consistent quality and nutritional standards for inmate meals.
Dependence on a single vendor for a critical service.

Positive Signals

Contract awarded to a named entity, Shaver Foods LLC.
Fixed-price contract provides cost certainty.
Awarded under a competitive process (SAP).

Sector Analysis

The food service industry within the federal government is a significant sector, encompassing a wide range of needs from institutional catering to specialized food product manufacturing. Contracts like this, though small individually, contribute to the overall federal spending on essential services for its facilities. Benchmarking against other food service contracts within agencies like the Department of Defense or Veterans Affairs would provide broader context on pricing and service delivery models.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While Shaver Foods LLC may be a small business, the procurement method (SAP) allows for broader competition. There is no explicit information on subcontracting requirements, but for a contract of this size and nature, significant subcontracting is less common unless specific components are outsourced.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and the Federal Prison System's procurement and facility management departments. As a Purchase Order, it is a less complex instrument than a full-scale contract, but still subject to standard government procurement regulations and oversight. Any specific Inspector General involvement would depend on allegations of fraud, waste, or abuse.

Related Government Programs

Federal Prison System Food Services
Bureau of Prisons Operations
General Services Administration (GSA) Schedule Contracts (potential alternative procurement vehicles)
Department of Agriculture (USDA) Food Programs (for context on food sourcing)

Risk Flags

Potential for supply chain vulnerabilities
Ensuring consistent food quality and safety standards
Vendor performance and reliability

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $61,697.33 to SHAVER FOODS LLC. 3RD QTR FY26 TO PROVIDE FOOD SERVICE FOR PERIOD OF PERFORMANCE.

Who is the contractor on this award?

The obligated recipient is SHAVER FOODS LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $61,697.33.

What is the period of performance?

Start: 2026-04-27. End: 2026-04-27.

What is the track record of Shaver Foods LLC in performing federal contracts?

The provided data does not include historical contract performance information for Shaver Foods LLC. To assess their track record, one would need to query federal procurement databases (like SAM.gov or FPDS) for past awards, performance evaluations (e.g., CPARS), and any reported issues or successes. Without this data, it's difficult to gauge their reliability and past performance in fulfilling government requirements. The current award is a Purchase Order, suggesting it might be one of their first or a smaller engagement.

How does the price of this food service contract compare to similar federal procurements?

A direct comparison of the $61,697.33 price for a one-year food service contract is challenging without more specific details on the scope of services, quantity of food, and the specific facility's needs. However, for a single federal correctional facility's food service, this amount appears to be on the lower end, suggesting either a very specific or limited scope of service, or a highly efficient procurement. Benchmarking against contracts for similar-sized facilities or specific food item categories would be necessary for a robust comparison.

What are the primary risks associated with this food service contract?

Key risks include potential disruptions in the food supply chain, which could impact the availability and quality of meals for inmates. Ensuring consistent nutritional standards and food safety compliance is critical. There's also the risk of vendor performance issues, such as late deliveries or substandard product quality, which could affect inmate welfare and facility operations. Given it's a fixed-price contract, cost overruns due to unforeseen market fluctuations in food prices could impact the vendor's profitability, potentially leading to performance issues if not managed carefully.

How effective is the Simplified Acquisition Procedure (SAP) in ensuring value for money for this type of service?

SAP is designed to streamline the procurement process for purchases under the simplified threshold (typically $250,000). For a $61.7K contract, SAP is generally effective in reducing administrative burden and speeding up award timelines. It allows for competition among a broader range of vendors than micro-purchases, fostering price discovery. However, the level of competition and the thoroughness of evaluation might be less rigorous than under full and open competition procedures for larger contracts, potentially leading to slightly less optimized value compared to a large-scale, highly competitive bid.

What is the historical spending pattern for food services within the Federal Prison System?

Historical spending on food services within the Federal Prison System is substantial, reflecting the daily needs of a large inmate population across numerous facilities. While this specific contract is small, the Bureau of Prisons collectively spends millions annually on food and related services. Analyzing past budgets and contract awards for the FPS would reveal trends in spending, types of services procured (e.g., catering, food supplies, specialized dietary needs), and average contract values. This context helps understand if current spending aligns with historical patterns or represents a shift.

Are there any specific performance metrics or Key Performance Indicators (KPIs) associated with this contract?

The provided data does not specify the performance metrics or KPIs for this contract. Typically, food service contracts include requirements related to delivery timeliness, food quality (e.g., temperature, freshness, nutritional content), adherence to safety standards (e.g., HACCP), and inventory management. These metrics are crucial for ensuring the service meets the needs of the Federal Prison System and maintains the welfare of the inmates. Without explicit KPIs, oversight relies on general contract terms and conditions.

Industry Classification

NAICS: Manufacturing › Other Food Manufacturing › All Other Miscellaneous Food Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 15B11026Q00000006

Offers Received: 21

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1419 S BEECHWOOD AVE, FAYETTEVILLE, AR, 72701

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $61,697

Exercised Options: $61,697

Current Obligation: $61,697

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline