DOJ's $31.8M milk contract awarded to Rocky Step Farm LLC for Q2 FY26

Contract Overview

Contract Amount: $31,832 ($31.8K)

Contractor: Rocky Step Farm LLC

Awarding Agency: Department of Justice

Start Date: 2026-01-02

End Date: 2026-03-31

Contract Duration: 88 days

Daily Burn Rate: $362/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 2ND QTR- DAIRY

Place of Performance

Location: SCOTT DEPOT, PUTNAM County, WEST VIRGINIA, 25560

State: West Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $31,831.92 to ROCKY STEP FARM LLC for work described as: FY26 2ND QTR- DAIRY Key points: 1. Value for money appears fair given the fixed-price nature and short duration. 2. Competition dynamics indicate a potentially competitive award under SAP. 3. Risk indicators are low due to the commodity nature of the product and short performance period. 4. Performance context suggests a routine procurement for essential dairy supplies. 5. Sector positioning places this within the broader food and beverage supply chain for federal institutions.

Value Assessment

Rating: fair

The contract value of $31.8 million for a single quarter of dairy supply is substantial. However, without specific per-unit pricing or comparison to market rates for fluid milk in West Virginia, a definitive value assessment is challenging. The fixed-price nature of the award provides cost certainty for the government. Given the commodity nature of fluid milk, significant price deviations from market norms would be unexpected.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a competitive process for procurements below the simplified acquisition threshold. While the exact number of bidders is not specified, the 'COMPETED UNDER SAP' designation implies that multiple offers were solicited and considered. This level of competition, even under SAP, generally leads to better price discovery and value for the government compared to sole-source awards.

Taxpayer Impact: The competitive nature of this award, even under SAP, suggests that taxpayers are likely receiving a fair market price for the fluid milk, as multiple vendors had the opportunity to bid.

Public Impact

Inmates within the Federal Prison System (Bureau of Prisons) will benefit from the consistent supply of fluid milk. Essential nutritional services are delivered through the provision of this dairy product. The geographic impact is concentrated in West Virginia, where the dairy products will be supplied. Workforce implications are minimal, primarily related to the logistics and delivery of the milk.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if Rocky Step Farm LLC faces unforeseen operational issues.
Dependence on a single supplier for a critical commodity could pose a risk if not managed proactively.

Positive Signals

Award to a specific farm suggests potential for direct sourcing and freshness.
Fixed-price contract provides cost predictability for the duration of the award.

Sector Analysis

This contract falls within the broader food and beverage sector, specifically focusing on dairy products. The market for fluid milk is generally stable, with pricing influenced by agricultural inputs, transportation costs, and regional supply-demand dynamics. Federal agencies are significant purchasers of food products to support institutional needs, and contracts like this are common for ensuring consistent supply.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Rocky Step Farm LLC, is not explicitly identified as a small business in this data snippet. There are no direct indications of subcontracting requirements or implications for the broader small business ecosystem from this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Prison System's procurement and logistics divisions within the Department of Justice. Accountability measures are inherent in the fixed-price purchase order, requiring delivery of specified goods. Transparency is generally maintained through federal procurement databases, though specific performance monitoring details are not provided.

Related Government Programs

Federal Prison System Food Services
Department of Justice Commodity Procurement
Agricultural Product Supply Contracts

Risk Flags

Supply Chain Reliability
Single Source Dependency Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $31,831.92 to ROCKY STEP FARM LLC. FY26 2ND QTR- DAIRY

Who is the contractor on this award?

The obligated recipient is ROCKY STEP FARM 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 $31,831.92.

What is the period of performance?

Start: 2026-01-02. End: 2026-03-31.

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

Analyzing historical spending for fluid milk by the Federal Prison System requires access to detailed procurement data over multiple fiscal years. Typically, such spending would fluctuate based on inmate population, contract awards, and prevailing market prices for dairy. Consistent, long-term contracts or multiple smaller awards would indicate a stable demand. Significant year-over-year increases or decreases might signal changes in operational needs, sourcing strategies, or market conditions. Without specific historical data, it's difficult to ascertain if the current $31.8M quarterly award represents an increase, decrease, or stable level of expenditure compared to previous periods.

How does the per-unit cost of this milk contract compare to other federal or commercial contracts for similar products?

A precise per-unit cost comparison is not possible with the provided data, as it lacks specific volume metrics (e.g., gallons or liters) for the $31.8 million award. To benchmark effectively, one would need to know the total quantity of fluid milk procured over the contract period (January 2, 2026, to March 31, 2026). Once the total quantity is known, a per-unit cost can be calculated and compared against General Services Administration (GSA) schedules, other agency food service contracts, or industry reports for fluid milk pricing in West Virginia. Factors like delivery logistics, specific milk fat content, and packaging also influence price.

What is Rocky Step Farm LLC's track record with federal contracts, particularly with the Department of Justice or Federal Prison System?

Information regarding Rocky Step Farm LLC's specific track record with federal contracts, especially with the Department of Justice or the Federal Prison System, is not detailed in the provided data snippet. A thorough assessment would involve querying federal procurement databases like SAM.gov or FPDS to identify past awards, contract performance history, and any reported issues. Understanding their experience with similar large-volume food supply contracts, their past performance ratings, and their history of compliance would be crucial for evaluating reliability and potential risks associated with this award.

What are the key performance indicators (KPIs) used to measure the success of this fluid milk supply contract?

Key performance indicators for a fluid milk supply contract would likely focus on delivery timeliness, product quality (e.g., freshness, adherence to fat content specifications), order accuracy, and compliance with food safety regulations. For the Federal Prison System, maintaining an uninterrupted supply chain is paramount. Performance would be monitored through delivery receipts, quality inspections upon receipt, and potentially feedback from the facility's food service staff. Contractual terms would specify remedies for non-performance, such as penalties or termination clauses, ensuring accountability.

Are there any specific risks associated with sourcing fluid milk from a single supplier like Rocky Step Farm LLC for a federal facility?

Sourcing fluid milk from a single supplier like Rocky Step Farm LLC introduces several potential risks. Foremost is the risk of supply chain disruption due to unforeseen events affecting the supplier, such as natural disasters, equipment failure, labor issues, or disease outbreaks impacting their dairy herd. This could lead to shortages of a critical food item. Additionally, reliance on a sole provider might reduce the government's leverage in future negotiations, potentially leading to less favorable pricing or terms in subsequent contract periods. Robust contingency planning and clear contractual clauses addressing non-performance are essential mitigation strategies.

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: 15B10926Q00000002

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 351 MANDY DR, SCOTT DEPOT, WV, 25560

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

Financial Breakdown

Contract Ceiling: $31,832

Exercised Options: $31,832

Current Obligation: $31,832

Actual Outlays: $17,301

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline