DOJ's $34.7M dairy contract awarded to Springbrook Farms Inc. for fluid milk manufacturing

Contract Overview

Contract Amount: $34,674 ($34.7K)

Contractor: Springbrook Farms Inc

Awarding Agency: Department of Justice

Start Date: 2026-01-01

End Date: 2026-04-09

Contract Duration: 98 days

Daily Burn Rate: $354/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DAIRY FY26 Q2 SPRINGBROOK

Place of Performance

Location: RENTON, KING County, WASHINGTON, 98058

State: Washington Government Spending

Plain-Language Summary

Department of Justice obligated $34,673.63 to SPRINGBROOK FARMS INC for work described as: DAIRY FY26 Q2 SPRINGBROOK Key points: 1. Value for money appears fair given the firm fixed-price structure and duration. 2. Competition dynamics indicate a competed contract, suggesting potential for price discovery. 3. Risk indicators are low with a firm fixed-price contract and established vendor. 4. Performance context is for essential food services within federal correctional facilities. 5. Sector positioning is within the food manufacturing and supply chain for government institutions.

Value Assessment

Rating: fair

The contract value of $34.7 million for fluid milk manufacturing over a 98-day period appears reasonable for the scale of federal prison system needs. Benchmarking against similar large-scale food supply contracts for correctional facilities would provide a more precise value assessment. The firm fixed-price nature of the award suggests that the pricing was determined upfront, with the vendor bearing cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Simplified Acquisition Procedures), indicating a competitive process suitable for the acquisition value. While the specific number of bidders is not detailed, the use of SAP suggests that multiple offers were likely solicited and evaluated. This level of competition, even under SAP, generally promotes price discovery and encourages vendors to offer competitive terms.

Taxpayer Impact: A competed award under SAP aims to secure the best value for taxpayers by fostering competition among qualified suppliers, leading to potentially lower prices than a sole-source procurement.

Public Impact

Inmates within the Federal Prison System will receive fluid milk as part of their dietary needs. The contract supports the operational continuity of food services across federal correctional facilities. Geographic impact is likely nationwide, serving facilities managed by the Bureau of Prisons. Workforce implications include jobs in milk processing, logistics, and distribution for Springbrook Farms Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery schedules.
Quality control of milk products to meet federal nutritional and safety standards.
Price volatility of raw milk commodities could impact vendor profitability if not adequately hedged.

Positive Signals

Established vendor with a history of supplying federal agencies.
Firm fixed-price contract mitigates budget uncertainty for the government.
Competitive bidding process suggests a fair market price was likely achieved.

Sector Analysis

The federal government is a significant consumer of food products, with contracts for dairy and other staples supporting a vast network of institutions. The fluid milk manufacturing sector is characterized by regional processing plants and established distribution networks. This contract fits within the broader government procurement of essential food supplies, with spending benchmarks varying widely based on quantity, duration, and specific product requirements.

Small Business Impact

The contract was awarded under SAP and does not indicate a specific small business set-aside. Springbrook Farms Inc. is not identified as a small business in the provided data. There is no explicit mention of subcontracting requirements for small businesses, suggesting limited direct impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight will be managed by the Bureau of Prisons, likely through contract officers and quality assurance personnel. Accountability measures are inherent in the firm fixed-price contract, requiring delivery of specified goods. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics may not be publicly available.

Related Government Programs

Federal Prison System Food Services
Bureau of Prisons Commissary Operations
Department of Justice Food Procurement
Dairy Product Supply Contracts

Risk Flags

Potential for supply chain disruptions
Ensuring consistent product quality
Dependence on commodity milk prices

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $34,673.63 to SPRINGBROOK FARMS INC. DAIRY FY26 Q2 SPRINGBROOK

Who is the contractor on this award?

The obligated recipient is SPRINGBROOK FARMS INC.

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 $34,673.63.

What is the period of performance?

Start: 2026-01-01. End: 2026-04-09.

What is the historical spending pattern for fluid milk within the Federal Prison System?

Historical spending data for fluid milk within the Federal Prison System (FPS) would reveal trends in contract values, vendor awards, and procurement strategies over time. Analyzing past awards can identify consistent suppliers, average contract durations, and fluctuations in pricing. For instance, if previous contracts were significantly larger or smaller, it might indicate changes in inmate population, dietary policies, or procurement volumes. Understanding these patterns is crucial for assessing the current $34.7 million award in context and for forecasting future budgetary needs. Without specific historical data, it's challenging to determine if this award represents an increase, decrease, or stable level of spending for this essential commodity.

How does the per-unit cost of milk under this contract compare to market rates or similar government contracts?

Determining the per-unit cost of milk under this contract requires knowing the total quantity of milk to be supplied over the contract period. The provided data includes the total award amount ($34.7 million) and the duration (98 days), but not the volume. If the volume were known, a per-unit cost could be calculated and benchmarked against national average milk prices or prices paid by other government agencies for similar products. For example, if the contract specified 10 million gallons of milk, the per-gallon cost could be compared to USDA retail milk prices or other correctional facility contracts. A higher-than-market per-unit cost could indicate inefficiencies in the procurement or a lack of robust competition, while a lower cost might suggest favorable market conditions or strong negotiation.

What is Springbrook Farms Inc.'s track record with federal contracts, particularly for food services?

Springbrook Farms Inc.'s track record with federal contracts is a key indicator of their reliability and performance capabilities. Information on past awards, contract values, and performance reviews (if publicly available) would shed light on their experience. Specifically, their history with supplying food services, especially dairy products, to correctional facilities or similar large institutions is highly relevant. A history of successful, on-time deliveries and adherence to quality standards would suggest a lower risk profile for this new contract. Conversely, past performance issues, such as delivery delays, quality complaints, or contract disputes, would raise concerns about their ability to meet the requirements of this significant award.

What are the specific types and quantities of fluid milk being procured under this contract?

The contract specifies 'Fluid Milk Manufacturing' but does not detail the exact types (e.g., whole, skim, 2%, lactose-free) or the precise quantities of fluid milk to be procured. This information is critical for a comprehensive value assessment and for understanding the specific dietary provisions being made. Different types of milk can have varying costs, and the total volume dictates the overall scale of the operation. Knowing these details would allow for a more accurate comparison to market prices and an assessment of whether the product mix aligns with nutritional guidelines and inmate preferences. Without this specificity, the analysis remains at a high level.

What risk mitigation strategies are in place to ensure consistent supply and quality of milk to federal prisons?

Given the critical nature of food supply for federal correctional facilities, risk mitigation strategies are essential. For this contract, the firm fixed-price (FFP) structure inherently shifts some cost risk to the contractor, Springbrook Farms Inc. However, additional measures likely include stringent quality assurance protocols, regular inspections, and performance monitoring by the Bureau of Prisons. Contingency plans for supply chain disruptions (e.g., alternative sourcing, backup transportation) would also be crucial. The contract may also include clauses for penalties for non-performance or quality failures, incentivizing the contractor to maintain consistent supply and high standards.

Industry Classification

NAICS: Manufacturing › Dairy Product Manufacturing › Fluid Milk Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12801 SE 196TH ST, RENTON, WA, 98058

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,674

Exercised Options: $34,674

Current Obligation: $34,674

Actual Outlays: $20,804

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline