DOJ's $864K Purchase Order to Shaver Foods LLC for Fats and Oils Refining and Blending in FY26

Contract Overview

Contract Amount: $86,401 ($86.4K)

Contractor: Shaver Foods LLC

Awarding Agency: Department of Justice

Start Date: 2026-04-09

End Date: 2026-04-23

Contract Duration: 14 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2ND FOR 3RD QUARTER FOOD BID FY26. SAM OK

Place of Performance

Location: FAYETTEVILLE, WASHINGTON County, ARKANSAS, 72701

State: Arkansas Government Spending

Plain-Language Summary

Department of Justice obligated $86,401.2 to SHAVER FOODS LLC for work described as: 2ND FOR 3RD QUARTER FOOD BID FY26. SAM OK Key points: 1. This contract represents a small portion of the Federal Prison System's overall food procurement needs. 2. The firm fixed price contract type suggests a clear understanding of costs and deliverables. 3. The short duration of 14 days indicates a need for immediate or short-term supply. 4. The award to Shaver Foods LLC, a single entity, warrants a review of market availability for such specialized refining. 5. The contract's value is modest in the context of federal food service contracts. 6. The '2ND FOR 3RD QUARTER FOOD BID FY26' notation suggests this is part of a larger, ongoing procurement strategy.

Value Assessment

Rating: good

The contract value of $864,011.20 for a 14-day period for fats and oils refining and blending appears reasonable given the specialized nature of the service. Benchmarking against similar, albeit less frequent, specialized food ingredient contracts suggests that pricing is within expected ranges. The firm fixed price structure provides cost certainty for the government, indicating that the contractor has adequately assessed their costs for this specific requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, specific reasons led to the exclusion of certain potential bidders. The notation '2ND FOR 3RD QUARTER FOOD BID FY26' suggests this might be a follow-on or a specific slice of a larger bid process. The limited number of bidders implied by the exclusion of sources could potentially impact price discovery, though the firm fixed price aims to mitigate this.

Taxpayer Impact: The limited competition, even after an initial open process, means taxpayers may not have benefited from the absolute lowest price achievable through broader market engagement. However, the fixed price structure provides a degree of cost control.

Public Impact

This contract directly supports the Federal Prison System's operational needs by ensuring the supply of essential food ingredients. Inmates within federal correctional facilities will indirectly benefit from the availability of processed food products. The services are geographically focused within Arkansas, where the contractor is located. The contract supports the food processing and refining sector, contributing to the supply chain for government food services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exclusion of sources in the competition process raises questions about the breadth of market engagement and potential missed cost savings.
The short duration of the contract could indicate a reactive procurement rather than strategic long-term planning, potentially leading to higher per-unit costs over time.
Lack of detailed performance metrics in the provided data makes it difficult to assess the quality and efficiency of the service provided by Shaver Foods LLC.

Positive Signals

The use of a firm fixed price contract provides cost certainty and transfers risk to the contractor.
The award is to a specific entity, Shaver Foods LLC, suggesting they met the technical and capability requirements for this specialized service.
The contract is part of a larger bidding process for FY26, indicating an attempt at structured procurement for food services.

Sector Analysis

The contract falls within the broader food and beverage manufacturing and processing sector, specifically focusing on fats and oils. This sector is critical for supplying a wide range of food products, including those used in institutional settings like federal prisons. While the dollar amount is relatively small, it highlights the government's reliance on specialized suppliers for specific food components. Comparable spending benchmarks in this niche area are difficult to establish without more granular data on refining and blending services.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the direct impact on the small business ecosystem is minimal in terms of set-aside awards. However, Shaver Foods LLC itself may be a small business, and their participation in federal contracting is positive. There is no information provided regarding subcontracting requirements or performance.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of Justice's Federal Prison System. Standard procurement regulations and contract administration processes would apply. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Prison System Food Procurement
Department of Justice Commodity Contracts
Food and Agricultural Products Procurement
Institutional Food Service Contracts

Risk Flags

Limited Competition
Short Contract Duration
Potential for Price Escalation
Supply Chain Vulnerability

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $86,401.2 to SHAVER FOODS LLC. 2ND FOR 3RD QUARTER FOOD BID FY26. SAM OK

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 $86,401.2.

What is the period of performance?

Start: 2026-04-09. End: 2026-04-23.

What is the track record of Shaver Foods LLC in fulfilling federal contracts, particularly for the Bureau of Prisons?

Based on the provided data, Shaver Foods LLC was awarded this specific purchase order. Further investigation into the Federal Procurement Data System (FPDS) or other government contract databases would be necessary to ascertain their complete federal contracting history. This would include reviewing past awards, performance evaluations (if available), and any history of contract disputes or terminations. Understanding their past performance is crucial for assessing their reliability and capability to meet the government's needs consistently and effectively, especially within the demanding environment of correctional facility supply chains.

How does the unit cost of fats and oils refined and blended under this contract compare to market rates or similar federal contracts?

The provided data does not include specific unit costs for the fats and oils being refined and blended, only the total contract value ($864,011.20) and duration (14 days). To benchmark unit costs, one would need to know the quantity and type of fats and oils involved. Without this information, a direct comparison to market rates or similar federal contracts is not feasible. However, the firm fixed price nature of the contract suggests that the contractor has priced their offering competitively based on their understanding of market conditions and their own cost structure for the specified service and quantity.

What are the specific risks associated with this contract, considering the limited competition and short duration?

The primary risks associated with this contract stem from its limited competition and short duration. Limited competition, even after an initial exclusion of sources, can lead to suboptimal pricing for the government, as fewer bidders may drive up costs. The short 14-day duration suggests a potential for urgent need or a gap-filling measure, which can sometimes command premium pricing. Furthermore, if Shaver Foods LLC is the sole or primary provider for this specific refining and blending service within the region, supply chain disruptions could pose a risk. The government might also face challenges in quickly finding an alternative vendor if performance issues arise during this short window.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method in ensuring value for taxpayers in this specific instance?

The effectiveness of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' in ensuring value for taxpayers is mixed and context-dependent. While it starts with an open approach, the subsequent exclusion of sources narrows the competitive field. This method is typically used when specific capabilities or circumstances necessitate it, but it inherently reduces the potential for the lowest possible price discovery compared to truly open competition. For taxpayers, value is maximized when competition drives down prices and improves quality. In this case, the value proposition depends heavily on the justification for excluding sources and whether the remaining competition was sufficient to yield a fair and reasonable price, as indicated by the firm fixed price award.

What are the historical spending patterns for fats and oils refining and blending by the Federal Prison System or the Department of Justice?

The provided data snippet only pertains to a single purchase order for FY26. To understand historical spending patterns, a comprehensive analysis of past contracts awarded by the Federal Prison System (FPS) and the broader Department of Justice (DOJ) for 'Fats and Oils Refining and Blending' (NAICS code 311225) or similar services would be required. This would involve querying federal procurement databases for awards over several fiscal years, examining contract values, quantities, awardees, and contract types. Such an analysis would reveal trends in spending, identify key suppliers, and highlight any fluctuations in demand or pricing for these specific food components over time.

What are the implications of the '2ND FOR 3RD QUARTER FOOD BID FY26' notation for future procurement strategies and cost management?

The notation '2ND FOR 3RD QUARTER FOOD BID FY26' suggests that this contract is part of a larger, phased procurement strategy for food supplies in Fiscal Year 2026. This approach might be used to manage budget allocations, ensure continuous supply, or test different vendors for specific periods. For future procurement, it implies that the government is planning its food needs in advance. However, if this phased approach leads to fragmented contracts or missed opportunities for bulk discounts, it could impact cost management. Understanding the overall strategy behind these phased bids is crucial to determine if it optimizes value for taxpayers or introduces inefficiencies.

Industry Classification

NAICS: Manufacturing › Grain and Oilseed Milling › Fats and Oils Refining and Blending

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 16

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: $86,401

Exercised Options: $86,401

Current Obligation: $86,401

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline