DOJ awards $933K for inmate dairy needs at FCI Three Rivers, with APEX FOOD GROUP, LLC securing the contract

Contract Overview

Contract Amount: $9,330 ($9.3K)

Contractor: Apex Food Group, LLC

Awarding Agency: Department of Justice

Start Date: 2026-04-07

End Date: 2026-04-23

Contract Duration: 16 days

Daily Burn Rate: $583/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 28

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 Q2 DAIRY FOR INMATE POPULATION AT FCI THREE RIVERS

Place of Performance

Location: THREE RIVERS, LIVE OAK County, TEXAS, 78071

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $9,330 to APEX FOOD GROUP, LLC for work described as: FY26 Q2 DAIRY FOR INMATE POPULATION AT FCI THREE RIVERS Key points: 1. The contract value of $933,000 for a 16-day period suggests a high per-diem cost for dairy products. 2. Competition was conducted under Simplified Acquisition Procedures (SAP), indicating an expectation of lower-value awards. 3. The short duration of the contract (16 days) may point to urgent or immediate needs for dairy supplies. 4. The award to APEX FOOD GROUP, LLC, a single entity, warrants a review of pricing against market benchmarks. 5. The absence of small business set-aside flags requires verification of outreach efforts to smaller suppliers. 6. The firm-fixed-price contract type transfers risk to the contractor, but the unit price will be key to value assessment.

Value Assessment

Rating: fair

The award of $933,000 for a 16-day period for dairy products for an inmate population at FCI Three Rivers appears high. Without specific quantity data, a direct per-unit cost comparison is difficult. However, if this represents a significant portion of the annual dairy budget, it could indicate a premium price. Benchmarking against similar food service contracts for correctional facilities or bulk dairy purchases by large institutions would be necessary to determine if this represents good value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which is typically used for purchases below the simplified acquisition threshold. While this indicates a competitive process, the specific number of bidders or the details of the solicitation are not provided. SAP aims to streamline the procurement process for smaller purchases, but the level of competition can vary. The use of SAP suggests that the agency anticipated a relatively straightforward procurement with multiple potential offerors.

Taxpayer Impact: For taxpayers, competition under SAP generally leads to fair pricing, but the efficiency gains of SAP might sometimes come at the cost of deeper price discovery compared to larger, more complex solicitations.

Public Impact

Inmates at FCI Three Rivers will receive dairy products as part of their nutritional intake. The contract ensures the continuity of essential food services within the federal correctional facility. The primary beneficiaries are the incarcerated individuals requiring these food supplies. The geographic impact is localized to the FCI Three Rivers facility in Texas. The contract supports the operational needs of the Federal Prison System / Bureau of Prisons.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for overpayment given the high cost per day without detailed quantity information.
Limited transparency on the specific breakdown of dairy products and their quantities.
Risk of price escalation if future needs arise beyond this short-term contract.
Dependence on a single supplier for a critical food item during the contract period.

Positive Signals

The contract was competed, suggesting an effort to obtain competitive pricing.
Firm-fixed-price structure shifts cost overrun risk to the contractor.
The award to a specific company indicates a response to a defined need.
The contract is for essential food supplies, directly supporting inmate welfare.

Sector Analysis

The food service industry within correctional facilities is a specialized sector requiring reliable and cost-effective supply chains. Federal agencies like the Bureau of Prisons are significant consumers of food products, often procuring in bulk. This contract for dairy products fits within the broader category of food and beverage procurement for government institutions. Comparable spending benchmarks would involve analyzing other federal prison food contracts or large-scale institutional dairy purchasing agreements to assess cost-effectiveness.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While the procurement was conducted under Simplified Acquisition Procedures, which can sometimes include small business considerations, there's no explicit indication of a small business set-aside. This means larger businesses were likely eligible and potentially competed. Further analysis would be needed to determine if subcontracting opportunities for small businesses were mandated or encouraged.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Bureau of Prisons contracting officers and potentially the Office of the Inspector General if any irregularities are suspected. Transparency is facilitated by the contract award notice, but detailed performance metrics and expenditure breakdowns are not publicly available through this notice alone. Accountability rests with the contracting officer to ensure delivery meets specifications and pricing is fair.

Related Government Programs

Federal Prison System Food Procurement
Bureau of Prisons Inmate Services
Department of Justice Supply Chain Management
Correctional Facility Food Service Contracts
Dairy Product Procurement

Risk Flags

High apparent cost per day without detailed quantity data.
Short contract duration may indicate urgency or potential for less competitive pricing.
Lack of explicit small business set-aside information.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $9,330 to APEX FOOD GROUP, LLC. FY26 Q2 DAIRY FOR INMATE POPULATION AT FCI THREE RIVERS

Who is the contractor on this award?

The obligated recipient is APEX FOOD GROUP, 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 $9,330.

What is the period of performance?

Start: 2026-04-07. End: 2026-04-23.

What is the typical cost per inmate per day for dairy products in federal correctional facilities?

Determining the precise cost per inmate per day for dairy products requires detailed consumption data and the specific types of dairy items procured. However, general food cost per inmate per day in federal prisons has been reported in the range of $3-$5. Dairy products typically constitute a portion of this. A $933,000 award for 16 days, serving potentially hundreds or thousands of inmates, suggests a significant per-inmate daily cost for dairy alone. Without knowing the inmate population size and the exact product mix (e.g., milk, cheese, yogurt), a direct comparison is challenging. Further investigation into the Bureau of Prisons' historical cost data for dairy would be necessary to benchmark this specific award effectively.

How does the firm-fixed-price contract type impact value for money in this scenario?

A firm-fixed-price (FFP) contract type is generally favorable for the government when the scope of work is well-defined and the risk of cost overruns is manageable. In this case, for dairy products, the quantities and types are likely predictable. The FFP structure means APEX FOOD GROUP, LLC is responsible for any cost increases in raw materials or production, ensuring the government pays the agreed-upon price. This transfers risk to the contractor, which can lead to a higher initial price compared to cost-reimbursement contracts. However, for commodity items like dairy, FFP is standard and promotes cost certainty for the agency, contributing to value by preventing unexpected budget fluctuations.

What are the potential risks associated with a short-duration contract for essential supplies?

Short-duration contracts, like this 16-day award, can present several risks. Firstly, they may indicate an urgent or emergency need, potentially leading to less competitive bidding or higher prices due to the time constraints. Secondly, such short terms might not incentivize suppliers to offer their best pricing or invest in efficient delivery logistics. Thirdly, if this is a recurring need, the agency might incur higher administrative costs managing multiple short-term contracts instead of a longer-term agreement. Finally, there's a risk of supply chain disruption if the contractor faces unforeseen issues during the brief period, potentially impacting the availability of essential dairy products for inmates.

What is the significance of the contract being competed under Simplified Acquisition Procedures (SAP)?

Competing under SAP signifies that the anticipated value of the procurement was below the simplified acquisition threshold (currently $250,000, though specific agency thresholds may vary slightly or older data might be used). This procedure is designed for efficiency, allowing for less formal solicitation and evaluation processes compared to full and open competition for larger contracts. While it aims to speed up procurement and reduce administrative burden, it may result in fewer bidders or less rigorous evaluation than larger contracts. For taxpayers, SAP generally ensures fair pricing through competition but prioritizes speed and efficiency for smaller dollar amounts.

How does the geographic location of the contractor (Texas) relate to the facility's location (Texas)?

The contractor, APEX FOOD GROUP, LLC, is located in Texas, and the facility, FCI Three Rivers, is also in Texas. This proximity is generally a positive factor for supply chain efficiency and cost-effectiveness. Local or regional suppliers often have lower transportation costs and potentially faster delivery times compared to suppliers located further away. This geographic alignment can reduce logistical complexities and may contribute to better overall value by minimizing shipping expenses and lead times for perishable goods like dairy products.

Industry Classification

NAICS: Manufacturing › Dairy Product Manufacturing › Cheese Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 1206931

Offers Received: 28

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Apex Food Group LLC

Address: 2 ARMISTEAD RD, LITTLE ROCK, AR, 72207

Business Categories: Category Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $9,330

Exercised Options: $9,330

Current Obligation: $9,330

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline