DOJ's Bureau of Prisons awards $76.6M food contract to Shaver Foods LLC for FY26

Contract Overview

Contract Amount: $76,603 ($76.6K)

Contractor: Shaver Foods LLC

Awarding Agency: Department of Justice

Start Date: 2026-01-01

End Date: 2026-01-23

Contract Duration: 22 days

Daily Burn Rate: $3.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 27

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY 26 2ND QTR FOOD REQUIREMENT

Place of Performance

Location: FAYETTEVILLE, WASHINGTON County, ARKANSAS, 72701

State: Arkansas Government Spending

Plain-Language Summary

Department of Justice obligated $76,602.66 to SHAVER FOODS LLC for work described as: FY 26 2ND QTR FOOD REQUIREMENT Key points: 1. Contract value of $76.6M for a 22-day period. 2. Awarded to Shaver Foods LLC, a single vendor. 3. Procured under Simplified Acquisition Procedures (SAP). 4. Firm Fixed Price contract type. 5. Spending is within the 'All Other Miscellaneous Food Manufacturing' NAICS code.

Value Assessment

Rating: fair

The contract value of $76.6M for a 22-day period appears high. Benchmarking against similar food supply contracts for correctional facilities is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, suggesting a limited competition approach. This method may not yield the best price discovery compared to full and open competition.

Taxpayer Impact: The high value for a short duration raises questions about taxpayer impact and whether competitive pricing was fully leveraged.

Public Impact

Ensures food supply for federal inmates. Supports a specific food manufacturing vendor. Impacts the operational budget of the Federal Prison System.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value for a short duration.
Limited competition under SAP.
Potential for price inflation due to limited competition.

Positive Signals

Ensures essential food supply.
Firm Fixed Price provides cost certainty.

Sector Analysis

This contract falls under food manufacturing and supply for government institutions. Spending benchmarks for correctional facility food services vary widely based on inmate population and location.

Small Business Impact

The data does not indicate if Shaver Foods LLC is a small business. Further analysis is needed to determine the impact on small business participation.

Oversight & Accountability

Oversight is managed by the Department of Justice, Federal Prison System / Bureau of Prisons. The use of SAP warrants scrutiny to ensure fair pricing and competition.

Related Government Programs

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

Risk Flags

Potential for overpricing due to limited competition.
Questionable use of SAP for a large contract value.
Lack of transparency in vendor selection.
High cost for a short-duration requirement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $76,602.66 to SHAVER FOODS LLC. FY 26 2ND QTR FOOD REQUIREMENT

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 $76,602.66.

What is the period of performance?

Start: 2026-01-01. End: 2026-01-23.

What is the typical cost per inmate per day for food in federal prisons, and how does this contract compare?

Determining the exact cost per inmate per day requires detailed breakdowns of the food items and quantities within this contract, as well as the specific inmate population served. However, general estimates for correctional facility food costs can range from $3-$7 per inmate per day. A $76.6M contract for 22 days serving potentially thousands of inmates would need to be evaluated against this benchmark to assess value for money.

What were the specific justifications for using Simplified Acquisition Procedures (SAP) for a contract of this magnitude?

SAP is typically used for purchases below the simplified acquisition threshold, which is currently $250,000. A contract valued at $76.6 million significantly exceeds this threshold. The use of SAP for such a large award suggests a potential misapplication of procurement regulations or a highly unusual circumstance that would require explicit justification and approval processes to ensure fairness and prevent waste.

How does the firm fixed price structure impact the government's ability to benefit from potential market fluctuations in food prices?

A firm fixed price contract locks in the price regardless of market fluctuations. While this provides cost certainty for the government, it means the government does not benefit if food prices decrease during the contract period. Conversely, the vendor is protected from price increases. For essential supplies like food, this structure prioritizes predictable budgeting over potential savings from market downturns.

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

Offers Received: 27

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: $76,603

Exercised Options: $76,603

Current Obligation: $76,603

Actual Outlays: $63,151

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline