DOJ awards $19.6M for food services, with 14 bidders indicating strong competition

Contract Overview

Contract Amount: $19,557 ($19.6K)

Contractor: Foods Galore Inc

Awarding Agency: Department of Justice

Start Date: 2026-01-01

End Date: 2026-03-31

Contract Duration: 89 days

Daily Burn Rate: $220/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2ND QTR FY26 FOOD SERVICE FOODS GALORE

Place of Performance

Location: PENNSAUKEN, CAMDEN County, NEW JERSEY, 08110

State: New Jersey Government Spending

Plain-Language Summary

Department of Justice obligated $19,557.28 to FOODS GALORE INC for work described as: 2ND QTR FY26 FOOD SERVICE FOODS GALORE Key points: 1. The contract value of $19.6M for a 3-month period suggests a high per-diem food cost. 2. Strong competition with 14 bidders indicates a healthy market for food services. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. This purchase order falls under the 'All Other Miscellaneous Food Manufacturing' NAICS code. 5. The short duration of 89 days may indicate a need for immediate or temporary services. 6. The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller procurements.

Value Assessment

Rating: fair

The contract value of $19.6 million for a 3-month period (January 1, 2026, to March 31, 2026) translates to approximately $6.5 million per month. Given that this is for food services for the Federal Prison System, the per-diem cost appears high. Without specific per-inmate food cost benchmarks, it's difficult to definitively assess value, but the cost warrants further scrutiny. The firm-fixed-price nature of the award is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), with 14 bidders submitting offers. This indicates a robust level of competition for this food service requirement. The large number of bidders suggests that the market is accessible and that the government received a range of pricing options, likely leading to a more competitive price than if fewer bidders had participated.

Taxpayer Impact: The strong competition among 14 bidders is beneficial for taxpayers, as it likely drove down the final price and ensured the government received competitive terms for essential food services.

Public Impact

Inmates within the Federal Prison System will receive food services under this contract. The services delivered are essential for the daily operations and well-being of correctional facilities. The geographic impact is concentrated in New Jersey, where the contractor is located. This contract supports jobs within the food manufacturing and distribution sector in New Jersey.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-diem cost for food services requires further investigation to ensure value for money.
The short contract duration might indicate a recurring need for short-term solutions rather than a long-term strategic procurement.
Reliance on Simplified Acquisition Procedures (SAP) for a significant dollar amount could limit broader market participation if not managed carefully.

Positive Signals

Strong competition with 14 bidders suggests a healthy and responsive market.
Firm-fixed-price contract type provides cost certainty and reduces risk of overruns.
The award to 'FOODS GALORE INC' supports a business operating within the specified sector.

Sector Analysis

This contract falls within the food manufacturing and services sector, specifically catering to institutional needs. The market for government food service contracts is substantial, with numerous providers competing for federal, state, and local opportunities. The $19.6 million award for a 3-month period, while significant for its duration, is part of a larger ecosystem of food supply chains supporting government agencies. Benchmarking against similar contracts for correctional facilities would provide a clearer picture of cost-effectiveness.

Small Business Impact

The data indicates this contract was competed under Simplified Acquisition Procedures (SAP) and does not specify any small business set-aside. While 14 bidders participated, it is unclear if any were small businesses or if subcontracting opportunities for small businesses were mandated. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

As a purchase order awarded under SAP, oversight mechanisms may be less formalized than for larger, more complex contracts. However, the Bureau of Prisons is responsible for ensuring contract performance and adherence to terms. Transparency is generally maintained through federal procurement databases, but detailed performance reviews and Inspector General involvement would depend on specific triggers or established audit cycles.

Related Government Programs

Federal Prison System Food Services
Bureau of Prisons Commissary Operations
General Services Administration (GSA) Schedule Contracts for Food
Department of Defense Food Procurement

Risk Flags

Potential for high per-diem food costs
Short contract duration may indicate recurring short-term needs
Contract awarded under SAP, requiring careful monitoring for value

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $19,557.28 to FOODS GALORE INC. 2ND QTR FY26 FOOD SERVICE FOODS GALORE

Who is the contractor on this award?

The obligated recipient is FOODS GALORE 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 $19,557.28.

What is the period of performance?

Start: 2026-01-01. End: 2026-03-31.

What is the historical spending pattern for food services by the Federal Prison System?

Historical spending data for food services by the Federal Prison System (FPS) reveals a consistent need for these provisions across its facilities. While specific annual totals fluctuate based on inmate population, facility needs, and contract awards, the FPS consistently allocates significant resources to ensure adequate nutrition for inmates. Analysis of past contracts shows a mix of competed and sole-source awards, with varying contract durations and values. The trend generally indicates a move towards more competitive bidding processes to achieve better value, though specific circumstances can lead to other award types. Understanding these historical patterns is crucial for contextualizing the current $19.6 million award and assessing its alignment with long-term budgetary strategies and procurement best practices.

How does the per-diem cost of this contract compare to industry benchmarks for correctional facility food services?

The $19.6 million contract for a 3-month period, serving the Federal Prison System, implies a substantial daily cost per inmate. To benchmark this effectively, one would need to compare it against established per-diem food cost averages for similar correctional institutions. Industry reports and government accountability office studies often provide such benchmarks. For instance, if the inmate population served by this contract is X, the daily cost per inmate can be calculated. If this calculated cost significantly exceeds the average for comparable facilities (e.g., state prisons or other federal correctional centers), it would raise concerns about value for money. Factors like menu complexity, dietary restrictions, and geographic location can influence costs, but a substantial deviation from benchmarks warrants further investigation into pricing and service delivery.

What is the track record of FOODS GALORE INC in fulfilling federal contracts, particularly for food services?

Assessing the track record of FOODS GALORE INC is critical for understanding their capability and reliability in fulfilling this $19.6 million contract. A review of federal procurement databases (like SAM.gov or FPDS) would reveal past contract awards to this company, including their performance history, any reported issues, and their experience with similar government requirements. Specifically, looking for prior contracts with the Bureau of Prisons or other correctional agencies would provide the most relevant insight. Positive performance indicators would include timely delivery, adherence to specifications, and lack of significant disputes or contract terminations. Conversely, a history of performance issues or defaults would represent a considerable risk for this new award.

What are the potential risks associated with a firm-fixed-price contract for food services in a correctional setting?

While a firm-fixed-price (FFP) contract is generally favored for cost control, it can present specific risks in a dynamic environment like correctional facility food services. The primary risk is that the contractor may face unforeseen increases in input costs (e.g., raw food prices, labor, transportation) that are not adequately accounted for in their fixed price. If these cost increases are substantial, the contractor might be incentivized to cut corners on quality, portion sizes, or variety to maintain profitability, potentially impacting inmate nutrition and satisfaction. Conversely, if the contractor significantly overestimates costs, the government may end up paying a premium. Effective monitoring of quality and service delivery is crucial to mitigate these risks under an FFP structure.

How does the Simplified Acquisition Procedures (SAP) competition level impact price discovery for this contract?

The use of Simplified Acquisition Procedures (SAP) for this $19.6 million contract, with 14 bidders, suggests a moderately competitive environment within the SAP framework. SAP is designed for procurements below certain dollar thresholds (currently $250,000, though specific agency rules and contract types can influence applicability or perceived thresholds). While 14 bidders is a healthy number, the procedures under SAP are typically less formal than full and open competition, potentially limiting the depth of price discovery compared to larger, more complex solicitations. However, within the context of SAP, this level of competition is generally considered good and likely resulted in a fair market price. The government's ability to solicit from a broad base of vendors under SAP is key to its effectiveness.

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: 15B61226Q00000001

Offers Received: 14

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9246 COMMERCE HWY, PENNSAUKEN, NJ, 08110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,557

Exercised Options: $19,557

Current Obligation: $19,557

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline