DOJ awards $23M food service contract to H Schrier & Co Inc for Bureau of Prisons

Contract Overview

Contract Amount: $23,073 ($23.1K)

Contractor: H Schrier & CO Inc

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-06-30

Contract Duration: 90 days

Daily Burn Rate: $256/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 23

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 3RD QTR FOOD SERVICE

Place of Performance

Location: BROOKLYN, KINGS County, NEW YORK, 11234

State: New York Government Spending

Plain-Language Summary

Department of Justice obligated $23,073.45 to H SCHRIER & CO INC for work described as: FY26 3RD QTR FOOD SERVICE Key points: 1. Contract awarded via competitive procurement under simplified acquisition procedures. 2. Firm fixed-price contract indicates predictable costs for the government. 3. Short duration of 90 days suggests a tactical or short-term need. 4. Awarded to a single vendor, H Schrier & Co Inc, for specific food manufacturing. 5. Geographic location of the contractor in New York may influence logistics. 6. No indication of small business set-aside or subcontracting requirements.

Value Assessment

Rating: fair

The contract value of $23.07 million for a 90-day period appears high for a food service contract, suggesting a significant volume or specialized requirement. Without comparable contract data for similar food manufacturing services for correctional facilities, it is difficult to definitively benchmark value. The firm fixed-price structure provides cost certainty, but the overall value proposition requires further analysis against the specific needs of the Federal Prison System.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders for contracts under the simplified acquisition threshold. While the specific number of bids received is not detailed, the 'COMPETED UNDER SAP' designation implies a streamlined process that may not achieve the same level of price discovery as full and open competition. The award to a single entity suggests that H Schrier & Co Inc was the selected offeror from a limited pool.

Taxpayer Impact: Competition under SAP generally leads to reasonable pricing due to some level of bidding, but it may not secure the absolute best value for taxpayers compared to broader solicitations.

Public Impact

Inmates within the Federal Prison System will receive food services facilitated by this contract. The contract supports the operational needs of the Bureau of Prisons in maintaining essential services. The primary beneficiaries are the incarcerated individuals requiring daily sustenance. The geographic impact is localized to the facilities served by the Bureau of Prisons, with contractor operations likely based in New York.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation if market conditions change significantly during the contract period, despite fixed-price structure.
Dependence on a single supplier for a critical service like food provision could pose supply chain risks.
Limited competition under SAP might result in a less than optimal price for taxpayers.

Positive Signals

Firm fixed-price contract provides budget certainty for the Bureau of Prisons.
Competitive bidding under SAP, even if limited, suggests some level of market validation.
Contract addresses a fundamental operational need for the correctional facilities.

Sector Analysis

The food service industry within the federal government is a significant sector, encompassing a wide range of needs from general catering to specialized food manufacturing for institutions like prisons. This contract falls under the 'All Other Miscellaneous Food Manufacturing' category, indicating a specific type of food production rather than general catering. Federal spending in this area is driven by the operational requirements of agencies managing large populations, such as the Bureau of Prisons. Benchmarking would typically involve comparing per-unit costs of food items or prepared meals against similar institutional contracts.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false) and there is no explicit mention of subcontracting requirements for small businesses (sb: false). Therefore, this award does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting. The primary focus seems to be on fulfilling the food service needs of the Bureau of Prisons through the selected vendor.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of Justice's Federal Prison System / Bureau of Prisons. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified goods or services within the agreed-upon price. Transparency is facilitated by the public availability of contract awards, though detailed performance metrics may not be publicly disclosed. 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 Food Procurement
General Services Administration (GSA) Food Service Contracts
Defense Logistics Agency (DLA) Troop Support - Subsistence

Risk Flags

Potential for price not being optimized due to limited competition under SAP.
Supply chain risk due to reliance on a single vendor for essential services.
Short contract duration may indicate a temporary solution rather than a long-term strategy.
Lack of small business set-aside or subcontracting requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $23,073.45 to H SCHRIER & CO INC. FY26 3RD QTR FOOD SERVICE

Who is the contractor on this award?

The obligated recipient is H SCHRIER & CO 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 $23,073.45.

What is the period of performance?

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

What is the historical spending pattern for food services by the Federal Prison System, and how does this award compare?

Analyzing historical spending for food services by the Federal Prison System (FPS) is crucial for context. While specific data for 'All Other Miscellaneous Food Manufacturing' is not readily available without deeper database access, the FPS consistently spends significant amounts on inmate sustenance. Typically, these contracts are awarded through competitive processes, often with firm fixed-price agreements to manage costs. The $23.07 million award for a 90-day period suggests a substantial requirement, potentially for specialized food items or a large inmate population. Comparing this to previous years' spending on similar categories would reveal if this represents an increase, decrease, or stable expenditure level. Factors like inflation, changes in inmate population, and evolving dietary standards can influence year-over-year spending. Without historical figures, it's challenging to definitively state if this award is higher or lower than average, but its magnitude indicates a significant procurement.

What specific types of 'Miscellaneous Food Manufacturing' are covered under this contract?

The classification 'All Other Miscellaneous Food Manufacturing' (NAICS code 311999) is broad and encompasses a wide array of food production activities not specified under more granular categories. For this specific contract with H Schrier & Co Inc for the Federal Prison System, it likely pertains to the manufacturing of specific food items intended for consumption by inmates. This could include items like baked goods, processed meats, dairy products, pre-packaged meals, or specialized dietary components. The exact nature of the 'miscellaneous' items would be detailed in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Given the context of a correctional facility, these manufactured food items are likely intended to supplement or form the basis of inmate meals, ensuring nutritional requirements are met while potentially offering cost efficiencies through bulk manufacturing.

What is the track record of H Schrier & Co Inc in performing federal contracts, particularly for correctional facilities?

Assessing the track record of H Schrier & Co Inc is vital for understanding their capability to fulfill this $23.07 million food service contract. A review of federal procurement databases (like SAM.gov or FPDS) would reveal their past performance history, including the types of contracts awarded, their value, duration, and agencies served. Specific attention should be paid to any prior contracts with the Bureau of Prisons or other correctional agencies, as these would provide the most relevant performance indicators. Key aspects to examine include on-time delivery, quality of goods/services provided, adherence to contract terms, and any history of disputes, terminations, or performance issues. Positive past performance with similar agencies and contract types would increase confidence in their ability to successfully execute this current award. Conversely, any negative performance history would raise concerns about potential risks.

How does the 90-day duration of this contract impact its overall value and strategic importance?

The short 90-day duration (approximately three months) of this $23.07 million contract is a significant factor influencing its interpretation. Such a short term typically indicates a tactical need, such as bridging a gap between longer-term contracts, addressing an urgent requirement, or fulfilling a specific, time-bound operational demand. It suggests that this is not a long-term strategic sourcing arrangement for the Bureau of Prisons' food services. From a value perspective, the annualized cost would be substantial (approximately $92 million if extrapolated), but the immediate outlay is contained. This short duration might also limit the contractor's ability to achieve economies of scale that could be realized over a longer period, potentially impacting the per-unit cost. For taxpayers, it means the agency will likely need to re-compete or re-evaluate its food service needs shortly after this period concludes.

What are the potential risks associated with awarding a large food service contract to a single vendor under Simplified Acquisition Procedures?

Awarding a contract of this magnitude ($23.07 million) to a single vendor, even under Simplified Acquisition Procedures (SAP), carries inherent risks. Firstly, SAP is designed for smaller purchases, and while there are thresholds, using it for a large dollar value might indicate a less robust competition than a full and open solicitation. This limited competition could potentially lead to suboptimal pricing for the government. Secondly, reliance on a single vendor for a critical service like food provision creates supply chain vulnerability. Any disruption from the contractor's end (e.g., production issues, labor disputes, financial instability) could directly impact the Bureau of Prisons' operations. Thirdly, without extensive pre-qualification or performance history review typical of larger procurements, there's a risk that the selected vendor may not be the most capable or cost-effective option in the long run. Finally, the lack of explicit small business subcontracting requirements means potential missed opportunities to foster small business participation.

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: 15B11926Q00000006

Offers Received: 23

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4901 GLENWOOD RD, BROOKLYN, NY, 11234

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

Financial Breakdown

Contract Ceiling: $23,073

Exercised Options: $23,073

Current Obligation: $23,073

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline