DOJ's $33M FY26 Dairy Purchase for Berlin Inmates Awarded to HP Hood LLC
Contract Overview
Contract Amount: $33,091 ($33.1K)
Contractor: HP Hood LLC
Awarding Agency: Department of Justice
Start Date: 2026-01-02
End Date: 2026-03-31
Contract Duration: 88 days
Daily Burn Rate: $376/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FY26 2ND QTR FCI BERLIN INMATES DAIRY
Place of Performance
Location: LYNNFIELD, ESSEX County, MASSACHUSETTS, 01940
Plain-Language Summary
Department of Justice obligated $33,091.36 to HP HOOD LLC for work described as: FY26 2ND QTR FCI BERLIN INMATES DAIRY Key points: 1. Significant expenditure for inmate sustenance, highlighting essential service provision. 2. Limited competition noted, potentially impacting price discovery and value. 3. Risk of supply chain disruption for a critical inmate need. 4. Sector: Food & Agriculture, with implications for institutional procurement.
Value Assessment
Rating: fair
The contract value of $33.1M for 88 days of dairy supply appears high on a per-day basis. Benchmarking against similar institutional food contracts is needed to confirm fair pricing.
Cost Per Unit: $376,038 per day (estimated)
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), suggesting limited competition. This method may not yield the best possible price due to fewer bidders.
Taxpayer Impact: Taxpayer funds are being used for inmate sustenance. Ensuring competitive pricing is crucial to maximize value for money.
Public Impact
Ensures a consistent supply of a staple food item for federal inmates. Supports the operational needs of the Federal Prison System. Potential impact on local dairy producers if HP Hood LLC sources regionally.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to overpayment.
- Potential for supply chain disruptions affecting inmate welfare.
- Lack of detailed cost breakdown for the firm fixed price contract.
Positive Signals
- Ensures a critical supply for inmate nutrition.
- Utilizes a standard procurement process (SAP).
Sector Analysis
This purchase falls within the Food & Agriculture sector, specifically institutional food supply. Benchmarks for large-scale dairy procurement for correctional facilities are scarce, making direct comparison difficult.
Small Business Impact
No specific indication of small business participation in this award. The focus appears to be on established suppliers capable of meeting large-scale demand.
Oversight & Accountability
Oversight is managed by the Department of Justice's Federal Prison System. The use of SAP suggests a streamlined process, but may reduce opportunities for robust oversight compared to full-scale competitive bidding.
Related Government Programs
- Fluid Milk Manufacturing
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Limited competition
- Potential for price inflation
- Supply chain risk for essential goods
- Lack of detailed cost breakdown
Tags
fluid-milk-manufacturing, department-of-justice, ma, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $33,091.36 to HP HOOD LLC. FY26 2ND QTR FCI BERLIN INMATES DAIRY
Who is the contractor on this award?
The obligated recipient is HP HOOD 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 $33,091.36.
What is the period of performance?
Start: 2026-01-02. End: 2026-03-31.
What is the historical pricing for similar dairy contracts within the Federal Prison System?
Historical pricing data for similar dairy contracts within the Federal Prison System is essential for a comprehensive value assessment. Without this benchmark, it's challenging to definitively determine if the current $33.1 million award represents fair market value. Analyzing past awards for quantity, duration, and specific dairy products will provide crucial context for evaluating the current contract's cost-effectiveness and identifying potential areas for negotiation in future procurements.
What are the specific risks associated with a sole-source or limited-competition award for essential inmate supplies?
Limited competition for essential inmate supplies like dairy carries risks of inflated pricing, reduced quality, and potential supply chain vulnerabilities. A lack of robust bidding can lead to the government overpaying for goods. Furthermore, reliance on a single or few suppliers can create dependencies, making the system susceptible to disruptions if that supplier faces operational issues, potentially impacting inmate welfare and facility operations.
How does the firm fixed-price contract structure impact the government's ability to ensure cost-effectiveness for this dairy purchase?
A firm fixed-price contract locks in the price regardless of the contractor's actual costs, which can be advantageous for the government by providing cost certainty. However, if competition was limited, the initial price might be set higher than necessary. The government bears less risk of cost overruns, but also has less opportunity to benefit from contractor efficiencies or cost savings, potentially leading to a less cost-effective outcome if the initial price wasn't aggressively negotiated.
Industry Classification
NAICS: Manufacturing › Dairy Product Manufacturing › Fluid Milk Manufacturing
Product/Service Code: SUBSISTENCE
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 15B21826Q00000004
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6 KIMBALL LN, LYNNFIELD, MA, 01940
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,091
Exercised Options: $33,091
Current Obligation: $33,091
Actual Outlays: $19,223
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-01-02
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-04-06
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