DOJ's $75,943 purchase order for subsistence to Shaver Foods LLC awarded under SAP

Contract Overview

Contract Amount: $75,943 ($75.9K)

Contractor: Shaver Foods LLC

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-04-30

Contract Duration: 29 days

Daily Burn Rate: $2.6K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 28

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SUBSISTENCE 3RD QTR FY26

Place of Performance

Location: FAYETTEVILLE, WASHINGTON County, ARKANSAS, 72701

State: Arkansas Government Spending

Plain-Language Summary

Department of Justice obligated $75,943.32 to SHAVER FOODS LLC for work described as: SUBSISTENCE 3RD QTR FY26 Key points: 1. Value for money appears fair given the short duration and specific need for subsistence. 2. Competition dynamics indicate a small business set-aside was not utilized, but the contract was competed. 3. Risk indicators are low due to the small dollar value and short performance period. 4. Performance context suggests a routine procurement for essential supplies. 5. Sector positioning is within the food manufacturing and distribution sector supporting federal operations.

Value Assessment

Rating: fair

The contract value of $75,943 for a one-month subsistence supply is modest. Benchmarking against similar federal contracts for food services or supplies is difficult without more specific product details. However, the price appears reasonable for a short-term, high-demand item like subsistence, especially considering potential fluctuations in food costs. The fixed-price nature of the award provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), suggesting it was likely advertised on a government-wide point of entry. While the specific number of bids received isn't detailed, SAP is designed to encourage broad competition for acquisitions below the simplified acquisition threshold. The use of SAP implies a reasonable level of competition was sought.

Taxpayer Impact: Competing contracts under SAP helps ensure taxpayer dollars are used efficiently by fostering price discovery and preventing overpayment on smaller procurements.

Public Impact

Federal inmates within the Bureau of Prisons will benefit from the provision of essential subsistence supplies. The services delivered include the supply of food items necessary for daily sustenance. The geographic impact is likely localized to the federal correctional facility receiving the supplies. Workforce implications are minimal, primarily affecting logistics and supply chain personnel within the Bureau of Prisons.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract periods if competition diminishes.
Reliance on a single vendor for a critical need like subsistence carries inherent supply chain risk.

Positive Signals

Awarded under a competitive process, indicating potential for good pricing.
Short contract duration limits long-term financial exposure and allows for re-evaluation of needs.
Fixed-price contract provides budget certainty for the agency.

Sector Analysis

This contract falls within the broader food manufacturing and distribution sector, which is a critical component of the U.S. economy. Federal agencies are significant consumers of food products, procuring them for various purposes including correctional facilities, military bases, and government cafeterias. Spending in this sector is influenced by factors such as commodity prices, logistics costs, and agency-specific dietary requirements.

Small Business Impact

The data indicates this contract was competed under SAP and was not specifically set aside for small businesses (ss: false, sb: false). While Shaver Foods LLC may be a small business, the procurement method did not mandate a small business set-aside. This means larger businesses could also compete. There is no explicit information on subcontracting requirements for this specific award.

Oversight & Accountability

Oversight for this purchase order would typically fall under the Department of Justice's Office of the Inspector General, which is responsible for auditing and investigating federal programs. The Bureau of Prisons, as the end-user agency, would also have internal controls and procurement oversight to ensure compliance with federal regulations and the terms of the contract.

Related Government Programs

Federal Prison System Food Services
Bureau of Prisons Commissary Operations
Department of Justice Food Procurement
General Services Administration (GSA) Schedule Contracts (potential alternative procurement vehicles)

Risk Flags

Potential for supply chain disruption if vendor fails to deliver.
Lack of detailed performance metrics in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $75,943.32 to SHAVER FOODS LLC. SUBSISTENCE 3RD QTR FY26

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 $75,943.32.

What is the period of performance?

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

What is the typical cost range for subsistence supplies for federal correctional facilities of similar size?

Determining the typical cost range for subsistence supplies for federal correctional facilities requires detailed analysis of specific food item requirements, quantities, and delivery locations. The provided data for this $75,943 purchase order covers a one-month period for an unspecified number of inmates. General benchmarks suggest that per-inmate food costs can vary significantly, often ranging from $3 to $7 per day, depending on the facility's location, dietary standards, and contract specifics. Without knowing the exact number of individuals served by this contract and the precise mix of food items procured, a direct comparison is challenging. However, the total value for a single month suggests it serves a moderate population or covers a specific subset of subsistence needs.

Has Shaver Foods LLC previously held contracts with the federal government, and what is their performance history?

Information regarding Shaver Foods LLC's prior federal contract history and performance is not directly available in the provided data snippet. A comprehensive review would require accessing federal procurement databases like SAM.gov or FPDS to search for past awards, contract types, values, and any associated performance evaluations or disputes. Without this historical data, it's difficult to assess their track record, reliability, and experience in fulfilling government requirements. For a thorough analysis, one would investigate their past performance ratings, on-time delivery history, and any instances of contract modifications or terminations.

How does the 'COMPETED UNDER SAP' designation impact the potential for cost savings compared to other procurement methods?

Competing under Simplified Acquisition Procedures (SAP) is intended to streamline the procurement process for acquisitions below the simplified acquisition threshold (currently $250,000, but can be higher for certain categories). This method generally involves fewer administrative hurdles than full and open competition, potentially leading to faster award times. For cost savings, SAP typically requires posting opportunities on a government-wide point of entry, allowing multiple vendors to bid. This competition, even within the simplified framework, helps drive prices down compared to non-competitive or sole-source awards. However, the level of savings might be less pronounced than in large-scale, highly competitive full and open procurements due to the smaller scale and potentially fewer bidders attracted to SAP opportunities.

What are the specific 'subsistence' items covered by this contract, and are they considered essential or discretionary?

The term 'subsistence' in this context generally refers to essential food and drink items required for daily sustenance. For federal correctional facilities, this typically includes basic food staples, meals, and beverages necessary to meet the nutritional needs of the inmate population. These are considered essential services, not discretionary purchases, as they are fundamental to the operation of the facility and the well-being of individuals in custody. The specific items would be detailed in the contract's statement of work or product list, encompassing items like grains, proteins, dairy, fruits, vegetables, and beverages, all procured to meet specific dietary guidelines and quantities.

What is the significance of the 'PURCHASE ORDER' award type for this contract?

A Purchase Order (PO) is a common and relatively simple contractual instrument used for acquiring supplies or services, particularly for smaller dollar value transactions. For this $75,943 contract, using a PO signifies a straightforward procurement process, often used when the terms and conditions are standardized or pre-negotiated. It indicates a commitment to buy specific goods or services from a vendor. Unlike a more complex contract, a PO typically has fewer clauses and is less formal, making it efficient for routine purchases like subsistence supplies. The fixed-price nature of this PO further clarifies the financial commitment.

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: 15B20126Q00000003

Offers Received: 28

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: $75,943

Exercised Options: $75,943

Current Obligation: $75,943

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline