DOJ's Federal Prison System awards $150K contract for fluid milk manufacturing in Virginia

Contract Overview

Contract Amount: $150,000 ($150.0K)

Contractor: Virginia Department Corrections

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-06-30

Contract Duration: 90 days

Daily Burn Rate: $1.7K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: A1-FY26-3RD QTR - ,MILK (04/01/26-06/30/26)

Place of Performance

Location: BLAND, BLAND County, VIRGINIA, 24315

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $150,000 to VIRGINIA DEPARTMENT CORRECTIONS for work described as: A1-FY26-3RD QTR - ,MILK (04/01/26-06/30/26) Key points: 1. Contract value appears reasonable for a short-term supply of a commodity. 2. Competition dynamics for this type of essential good are likely robust. 3. Risk indicators are low given the nature of the product and short duration. 4. Performance context is a standard operational requirement for correctional facilities. 5. Sector positioning is within essential goods and services for government operations.

Value Assessment

Rating: good

The contract value of $150,000 for a 90-day supply of fluid milk is a modest amount. Benchmarking against similar contracts for correctional facility supplies would be necessary for a precise value-for-money assessment. However, given that milk is a widely available commodity, the price is likely competitive, assuming standard market fluctuations. The firm fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), indicating a full and open competition for a purchase order valued at $150,000. This suggests that multiple vendors had the opportunity to bid. The use of SAP for procurements under the federal micro-purchase threshold generally promotes fair competition and efficient acquisition of goods and services.

Taxpayer Impact: Full and open competition under SAP helps ensure that taxpayers receive the best possible price for essential goods like fluid milk, as it encourages multiple suppliers to offer competitive bids.

Public Impact

Inmates within the Federal Prison System in Virginia will receive a consistent supply of fluid milk. This contract supports the basic nutritional needs of the incarcerated population. The geographic impact is localized to the facilities served by the Virginia Department of Corrections. The contract supports the dairy supply chain and potentially local distribution networks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price volatility in commodity markets impacting long-term affordability if extended.
Dependence on a single supplier for a critical food item could pose a minor disruption risk.

Positive Signals

Contract addresses a fundamental need for a correctional facility.
Firm fixed-price agreement provides budget predictability.
Competition under SAP suggests a fair market price was likely obtained.

Sector Analysis

This contract falls within the broader category of food and beverage supply for government institutions. The market for fluid milk is mature and highly competitive, with numerous dairy producers and distributors. Government agencies, particularly correctional facilities, are significant purchasers of such commodities to meet the daily needs of their populations. Spending benchmarks for similar food service contracts can vary widely based on the number of individuals served and geographic location.

Small Business Impact

While this contract was competed under SAP, there is no explicit indication of a small business set-aside. However, the nature of fluid milk distribution often involves regional suppliers, some of which may be small businesses. Further analysis would be needed to determine if small businesses participated in the bidding process or if subcontracting opportunities exist.

Oversight & Accountability

The contract is a Purchase Order, a standard procurement instrument. Oversight would typically be managed by the contracting officer at the Bureau of Prisons, ensuring compliance with the terms and conditions. Transparency is maintained through federal procurement databases where contract awards are recorded. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Prison System Food Services
Bureau of Prisons Commissary Operations
Department of Justice Commodity Procurement

Risk Flags

Unusual awardee: Virginia Department of Corrections listed as contractor.
Potential data entry error regarding the awardee's role.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $150,000 to VIRGINIA DEPARTMENT CORRECTIONS. A1-FY26-3RD QTR - ,MILK (04/01/26-06/30/26)

Who is the contractor on this award?

The obligated recipient is VIRGINIA DEPARTMENT CORRECTIONS.

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 $150,000.

What is the period of performance?

Start: 2026-04-01. End: 2026-06-30.

What is the historical spending pattern for fluid milk by the Federal Prison System in Virginia?

Historical spending data for fluid milk by the Federal Prison System in Virginia is not directly available in the provided data snippet. However, the contract value of $150,000 for a 90-day period suggests an annualized spending potential of approximately $600,000 for this specific facility or region if similar contracts are awarded consistently. To understand the historical pattern, one would need to access procurement records for previous years, looking for similar purchase orders or contracts awarded to supply fluid milk to federal correctional facilities within the state. Analyzing trends in award values, number of bidders, and contract duration over time would reveal patterns in demand, pricing, and supplier engagement.

How does the price per unit for this milk contract compare to market rates or similar government contracts?

The provided data does not include the specific quantity of milk being procured, making a direct per-unit cost comparison impossible. The contract value is $150,000 for a 90-day period. To benchmark the price per unit, we would need to know the total gallons or liters of milk to be supplied. Once the quantity is known, this figure could be compared against average wholesale milk prices in Virginia or national averages for similar government food service contracts. Without the quantity, assessing the value for money on a per-unit basis remains speculative. However, the firm fixed-price nature suggests the government aimed to lock in a price.

What are the primary risks associated with this fluid milk supply contract?

The primary risks associated with this fluid milk supply contract are relatively low due to its short duration and the nature of the commodity. Potential risks include supply chain disruptions (e.g., weather events affecting dairy farms or transportation), quality control issues (ensuring the milk meets safety and freshness standards), and price volatility if the contract were to be extended or re-competed in a fluctuating market. For a 90-day contract, the risk of significant price escalation is mitigated by the firm fixed-price agreement. Ensuring consistent delivery schedules and maintaining appropriate refrigeration at the receiving facilities are operational considerations.

What is the track record of the awarded contractor, VIRGINIA DEPARTMENT CORRECTIONS, in supplying goods to the federal government?

The data indicates that the 'contractor' is listed as 'VIRGINIA DEPARTMENT CORRECTIONS' (CO: VIRGINIA DEPARTMENT CORRECTIONS). This is highly unusual, as state departments of corrections are typically recipients of federal funds or services, not direct federal contractors for goods like milk. It is possible this is an internal transfer or a misunderstanding in the data entry, where the state agency is facilitating the supply rather than being the primary vendor. If it is indeed the state agency acting as a vendor, its track record as a federal contractor for milk supply would be limited or non-existent. Typically, such contracts are awarded to private dairy producers or distributors. Further clarification on the entity awarded the contract is necessary to assess its track record.

What is the expected impact of this contract on the small business ecosystem in Virginia?

The direct impact on the small business ecosystem from this specific contract is unclear without knowing the identity of the actual supplier. If the Virginia Department of Corrections is acting as an intermediary, the ultimate supplier could be a large corporation or a small dairy farm. If the contract was competed broadly under SAP, small businesses would have had an opportunity to bid. However, the 'full-and-open' competition doesn't guarantee small business participation or success. If a large distributor wins, subcontracting opportunities for small businesses in logistics or delivery might arise. Without more information on the awardee and the procurement process details, assessing the specific impact on Virginia's small business ecosystem is difficult.

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

Solicitation ID: 15B10626Q00000008

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 256 BLAND FARM RD, BLAND, VA, 24315

Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $150,000

Exercised Options: $150,000

Current Obligation: $150,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline