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

Positive Signals

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

Risk Flags

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: ManufacturingOther Food ManufacturingAll 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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