DOJ's $72.5K Food Contract with Shaver Foods LLC for Federal Prisons Amidst Firm Fixed Price Terms

Contract Overview

Contract Amount: $72,523 ($72.5K)

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: $2.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 21

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: A1 - FY26 Q3 SHAVER FOODS SUBSISTENCE

Place of Performance

Location: SEAGOVILLE, DALLAS County, TEXAS, 75159

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $72,522.53 to SHAVER FOODS LLC for work described as: A1 - FY26 Q3 SHAVER FOODS SUBSISTENCE Key points: 1. The contract value is $72,522.53, awarded to Shaver Foods LLC. 2. Competition was conducted under SAP (Simplified Acquisition Procedures), suggesting a potentially limited but documented process. 3. The risk appears low given the firm fixed price and short duration, but supply chain disruptions are a general concern for food. 4. This falls under the 'All Other Miscellaneous Food Manufacturing' sector, with specific PSC code not provided.

Value Assessment

Rating: fair

The contract is for a relatively small amount ($72,522.53) for a one-month period. Without specific unit cost data or benchmarks for similar food supply contracts to federal prisons, a precise pricing assessment is difficult. However, the firm fixed price structure provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, indicating a limited competition approach. While this can be efficient for smaller procurements, it may not always yield the lowest possible price compared to full and open competition. The impact on price discovery is moderate.

Taxpayer Impact: The taxpayer impact is likely minimal given the contract's small value and short duration. The use of SAP suggests an effort to streamline procurement for necessary goods.

Public Impact

Ensures essential food supplies for inmates within the Federal Prison System. Supports a specific food manufacturing company, contributing to its revenue. The firm fixed price protects the government from cost overruns for the specified period. Potential for price fluctuations in the broader food market could impact future contract renewals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may not guarantee the best price.
Reliance on a single vendor for essential supplies.
Potential for supply chain disruptions affecting food availability.

Positive Signals

Firm fixed price contract provides cost certainty.
Short contract duration limits long-term financial exposure.
Procurement under SAP can be efficient for smaller needs.

Sector Analysis

This contract falls within the miscellaneous food manufacturing sector, supplying essential goods to correctional facilities. Benchmarks for this specific niche are hard to establish without more detailed product information, but government food contracts are common across various agencies.

Small Business Impact

The data does not indicate whether Shaver Foods LLC is a small business. The contract was awarded to a specific company, and further analysis would be needed to determine its size status and impact on small business participation.

Oversight & Accountability

The contract was awarded by the Department of Justice, Federal Prison System. Standard procurement regulations and oversight processes would apply. The use of SAP suggests a streamlined process, but accountability for price and performance remains crucial.

Related Government Programs

All Other Miscellaneous Food Manufacturing
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Limited competition (SAP)
Potential supply chain vulnerabilities for food products
Lack of detailed cost breakdown for benchmarking
Uncertainty regarding small business status of awardee

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $72,522.53 to SHAVER FOODS LLC. A1 - FY26 Q3 SHAVER FOODS SUBSISTENCE

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 $72,522.53.

What is the period of performance?

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

What is the typical cost per meal or per inmate for similar food supply contracts within the federal prison system?

Determining the typical cost per meal or per inmate for federal prison food supply contracts requires access to detailed historical data and specific contract terms. Factors like location, dietary requirements, contract duration, and the specific types of food procured significantly influence these costs. Benchmarking against similar contracts, especially those awarded under full and open competition, would provide a more accurate comparison point than this isolated SAP award.

What are the specific risks associated with relying on Shaver Foods LLC for subsistence, considering potential supply chain vulnerabilities?

Reliance on Shaver Foods LLC for subsistence introduces risks related to the broader food supply chain, including potential disruptions from weather events, transportation issues, labor shortages, or global commodity price volatility. While the firm fixed price mitigates cost increases for the government during the contract period, a significant supply disruption could lead to unavailability of essential food items, impacting inmate welfare and potentially requiring emergency procurements at higher costs.

How effective is the SAP procurement method in ensuring value for money for miscellaneous food manufacturing contracts of this size?

The effectiveness of SAP in ensuring value for money for contracts of this size is debatable. While SAP streamlines the procurement process and can be faster and less resource-intensive, it often involves limited competition, potentially leading to higher prices than those achievable through full and open competition. For essential goods like food, the balance between speed, cost, and ensuring a competitive market price is critical for maximizing taxpayer value.

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: 15B51426Q00000008

Offers Received: 21

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: $72,523

Exercised Options: $72,523

Current Obligation: $72,523

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline