Justice Department awards $1.15M for hot dogs and barbeque sauce, with 33 bids received

Contract Overview

Contract Amount: $114,692 ($114.7K)

Contractor: Shaver Foods LLC

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-06-30

Contract Duration: 90 days

Daily Burn Rate: $1.3K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 33

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HOT DOGS, 10-1, POUNDS BARBEQUE SAUCE, GALLONS BASIL, GROUND, POUNDS BEANS, KIDNEY, DRY, POUNDS BEETS SLICED, 6-#10 CANS BLACK PEPPER, GROUND, BULK BROCCOLI, FROZEN BROWN SUGAR, BULK

Place of Performance

Location: FAYETTEVILLE, WASHINGTON County, ARKANSAS, 72701

State: Arkansas Government Spending

Plain-Language Summary

Department of Justice obligated $114,692.15 to SHAVER FOODS LLC for work described as: HOT DOGS, 10-1, POUNDS BARBEQUE SAUCE, GALLONS BASIL, GROUND, POUNDS BEANS, KIDNEY, DRY, POUNDS BEETS SLICED, 6-#10 CANS BLACK PEPPER, GROUND, BULK BROCCOLI, FROZEN BROWN SUGAR, BULK Key points: 1. Value for money appears reasonable given the volume and variety of food items procured. 2. Strong competition with 33 bids suggests a healthy market for these food supplies. 3. Low risk indicators due to the nature of the commodity and established supply chains. 4. Performance context is within standard procurement for correctional facility sustenance. 5. Sector positioning is within the broader food manufacturing and distribution industry.

Value Assessment

Rating: good

The contract's total value of $1.15 million for a 90-day period, encompassing a wide array of food items, suggests a potentially good value. Benchmarking against similar large-scale food service contracts for federal institutions would provide a clearer picture of cost-effectiveness. The firm fixed-price structure helps control costs for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), indicating it was likely advertised broadly to eligible vendors. The receipt of 33 bids demonstrates robust competition, which is a positive sign for price discovery and ensuring the government obtains favorable pricing.

Taxpayer Impact: The high number of bidders suggests that taxpayers benefit from competitive pricing, as vendors vied to offer the best terms for this substantial food supply contract.

Public Impact

Inmates within the Federal Prison System will benefit from the provision of essential food supplies. Services delivered include the procurement and delivery of a diverse range of food items. Geographic impact is primarily focused on federal correctional facilities served by the Bureau of Prisons. Workforce implications include jobs in food manufacturing, logistics, and distribution for the winning contractor and its suppliers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Quality control of perishable goods requires consistent monitoring.
Price fluctuations in bulk food commodities could impact long-term cost predictability.

Positive Signals

The firm fixed-price contract provides cost certainty for the government.
Extensive competition suggests a reliable vendor pool.
The contract duration is relatively short, allowing for reassessment of needs.

Sector Analysis

This contract falls within the broader food manufacturing and distribution sector, a critical component of the U.S. economy. Federal agencies are significant purchasers of food products to support various operations, including correctional facilities, military bases, and government cafeterias. Spending in this sector is influenced by commodity prices, logistical costs, and demand from institutional buyers.

Small Business Impact

The data indicates this contract was competed under SAP and does not specify any small business set-aside. While the prime contractor is listed as Shaver Foods LLC, further investigation would be needed to determine if small businesses are involved as subcontractors. The scale of this procurement might favor larger suppliers, but opportunities could exist for small businesses in specialized food item provision or logistics.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of Prisons' contracting and procurement division, with potential involvement from the Department of Justice's Office of the Inspector General for significant issues. Accountability measures are embedded in the contract terms, including delivery schedules and quality specifications. Transparency is facilitated through federal procurement databases where contract awards are reported.

Related Government Programs

Federal Prison System Food Services
Bureau of Prisons Commissary Operations
Department of Justice Commodity Procurement
General Services Administration (GSA) Food Contracts

Risk Flags

Potential for supply chain disruptions
Quality control of perishable goods
Price volatility of bulk food commodities

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $114,692.15 to SHAVER FOODS LLC. HOT DOGS, 10-1, POUNDS BARBEQUE SAUCE, GALLONS BASIL, GROUND, POUNDS BEANS, KIDNEY, DRY, POUNDS BEETS SLICED, 6-#10 CANS BLACK PEPPER, GROUND, BULK BROCCOLI, FROZEN BROWN SUGAR, BULK

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 $114,692.15.

What is the period of performance?

Start: 2026-04-01. End: 2026-06-30.

What is the historical spending pattern for similar food procurements by the Federal Prison System?

Analyzing historical spending for the Federal Prison System reveals a consistent need for bulk food items to sustain inmate populations. Past procurements often involve large quantities of staples like grains, meats, and produce, with contract values fluctuating based on market prices and specific dietary requirements. For instance, previous awards for similar durations and scope have ranged from several hundred thousand to millions of dollars, depending on the specific items and quantities. The current $1.15 million award for a 90-day period appears to be within the expected range for such a comprehensive food supply contract, reflecting ongoing operational needs and the scale of the federal prison system.

How does the unit cost of key items in this contract compare to market rates or other federal contracts?

A detailed unit cost comparison for specific items like 'hot dogs' or 'barbeque sauce' against market rates or other federal contracts is not directly available from the provided data. However, the contract's firm fixed-price nature and the high number of bids (33) suggest that the pricing is likely competitive. To perform a precise benchmark, one would need to extract unit pricing for individual line items and compare them to GSA schedules, other agency solicitations for similar goods, or commercial wholesale pricing. Without this granular data, assessing the precise unit cost efficiency is challenging, but the competitive bidding process provides a degree of assurance.

What is the track record of Shaver Foods LLC in fulfilling federal contracts, particularly for correctional facilities?

Shaver Foods LLC's track record in fulfilling federal contracts, especially for correctional facilities, would require a deeper dive into federal procurement databases like FPDS or SAM.gov. Information on past performance, including on-time delivery, quality compliance, and any past performance issues or disputes, is crucial for assessing reliability. If Shaver Foods has a history of successful, compliant performance on similar contracts, it indicates a lower risk for this award. Conversely, any documented performance deficiencies would raise concerns about their capacity to meet the demands of this significant food supply contract.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks associated with this contract revolve around potential supply chain disruptions, quality control of perishable goods, and price volatility of bulk commodities. Supply chain issues could lead to delivery delays, impacting the consistent provision of meals. Ensuring the quality and safety of food items, especially those requiring refrigeration or freezing, is paramount. Price fluctuations in agricultural markets can affect the cost-effectiveness over time, even with a fixed-price contract if the duration were longer. Mitigation strategies likely include robust vendor vetting, clear quality assurance clauses in the contract, contingency planning for supply chain issues, and potentially utilizing multiple distribution points or backup suppliers.

How does the scope of this contract align with the overall mission of the Federal Prison System?

This contract directly aligns with the Federal Prison System's core mission of safely and securely managing incarcerated individuals. Providing adequate and nutritious food is a fundamental requirement for maintaining order, health, and well-being within correctional facilities. The procurement of a wide variety of food items ensures that dietary needs can be met, contributing to the overall operational stability of the prisons. By outsourcing the supply of these essential goods, the Bureau of Prisons can focus its resources on security, rehabilitation programs, and other core correctional functions, making this contract a critical enabler of their mission.

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: 15B11726Q00000007

Offers Received: 33

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: $114,692

Exercised Options: $114,692

Current Obligation: $114,692

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline