DOJ's $87K Food Order for Federal Prisons Awarded to Shaver Foods LLC
Contract Overview
Contract Amount: $87,178 ($87.2K)
Contractor: Shaver Foods LLC
Awarding Agency: Department of Justice
Start Date: 2026-04-02
End Date: 2026-04-15
Contract Duration: 13 days
Daily Burn Rate: $6.7K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 31
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SHAVER FOODS FY26 QTR 3 FOOD ORDER
Place of Performance
Location: FAYETTEVILLE, WASHINGTON County, ARKANSAS, 72701
State: Arkansas Government Spending
Plain-Language Summary
Department of Justice obligated $87,178.45 to SHAVER FOODS LLC for work described as: SHAVER FOODS FY26 QTR 3 FOOD ORDER Key points: 1. Spending on food services for federal correctional facilities is a recurring need. 2. Competition under Simplified Acquisition Procedures (SAP) suggests a less complex procurement. 3. The contract is a firm-fixed-price purchase order, providing cost certainty. 4. The small business status of the awardee is not specified, impacting potential set-asides.
Value Assessment
Rating: fair
The award amount of $87,178.45 for a 13-day food order appears reasonable for a federal prison system. Benchmarking against similar food service contracts for correctional facilities would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP, indicating a limited competition approach, likely due to the relatively small dollar value and urgency. This method may limit price discovery compared to full and open competition.
Taxpayer Impact: The taxpayer impact is relatively low given the contract's modest value and the essential nature of food services for inmate welfare.
Public Impact
Ensures essential food supplies for inmates within the Federal Prison System. Supports the operational continuity of correctional facilities. Provides a contract for a specific, short-term need, avoiding long-term commitments.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may not yield the best possible price.
- Lack of specified small business status could miss opportunities for economic development.
Positive Signals
- Firm-fixed-price contract provides budget certainty.
- Short duration minimizes long-term financial exposure.
Sector Analysis
Food services are a critical component of correctional facility operations. Spending benchmarks for food procurement in federal prisons vary widely based on inmate population, location, and dietary requirements. This $87K order represents a small portion of the overall food budget.
Small Business Impact
The data does not specify if Shaver Foods LLC is a small business. If it is, this contract could have been awarded under a small business set-aside, supporting economic goals. If not, it represents a missed opportunity to engage small businesses.
Oversight & Accountability
The award is a purchase order, which is a standard procurement instrument. Oversight would focus on contract performance, delivery, and adherence to food safety standards by the Bureau of Prisons.
Related Government Programs
- All Other Miscellaneous Food Manufacturing
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Limited competition
- Potential for higher prices
- Lack of specified small business status
- Short contract duration may lead to frequent re-procurement needs
Tags
all-other-miscellaneous-food-manufacturi, department-of-justice, ar, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $87,178.45 to SHAVER FOODS LLC. SHAVER FOODS FY26 QTR 3 FOOD ORDER
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 $87,178.45.
What is the period of performance?
Start: 2026-04-02. End: 2026-04-15.
What is the typical cost per inmate per day for food services in federal prisons, and how does this contract compare?
The average cost per inmate per day for food services in federal prisons can range from $3 to $7, depending on various factors like location, specific dietary needs, and contract terms. This contract, covering 13 days for an unspecified number of inmates, would need to be broken down to a daily per-inmate cost to make a direct comparison. Without the inmate count, a precise comparison is not possible, but the total amount suggests it's for a significant population or a substantial supply.
What are the risks associated with limited competition under SAP for essential services like food procurement?
Limited competition under SAP, while efficient for smaller procurements, carries risks such as potentially higher prices due to reduced market pressure and a narrower selection of vendors. There's also a risk of vendor lock-in or reduced innovation if the same vendors consistently win these contracts. For essential services like food, ensuring quality, safety, and timely delivery remains paramount, and oversight must be robust to mitigate these risks.
How effective is the firm-fixed-price contract type in ensuring value for money in food procurement for federal prisons?
A firm-fixed-price (FFP) contract is generally effective in ensuring value for money by shifting cost risk to the contractor. For food procurement, where costs can fluctuate, FFP provides budget certainty for the agency. However, it requires careful upfront cost estimation by the contractor. If the contractor underestimates costs, they may cut corners on quality or service, posing a risk. The effectiveness hinges on the accuracy of the initial pricing and the contractor's ability to manage their costs within the fixed price.
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
Offers Received: 31
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: $87,178
Exercised Options: $87,178
Current Obligation: $87,178
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-04-02
Current End Date: 2026-04-15
Potential End Date: 2026-04-15 00:00:00
Last Modified: 2026-04-08
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