DOJ awards $39.2M for eggs, with 11 bidders indicating competitive pricing for federal prisons

Contract Overview

Contract Amount: $39,236 ($39.2K)

Contractor: Twin Valley Farms Exchange, Inc.

Awarding Agency: Department of Justice

Start Date: 2026-01-01

End Date: 2026-03-31

Contract Duration: 89 days

Daily Burn Rate: $441/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EGGS 2ND QTR FY26

Place of Performance

Location: HEGINS, SCHUYLKILL County, PENNSYLVANIA, 17938

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Justice obligated $39,236.4 to TWIN VALLEY FARMS EXCHANGE, INC. for work described as: EGGS 2ND QTR FY26 Key points: 1. The contract was competed under the Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 2. A firm-fixed-price contract type was used, which shifts cost risk to the contractor. 3. The award was made to Twin Valley Farms Exchange, Inc., a small business. 4. The contract duration is short, spanning only 89 days, indicating a need for immediate supply. 5. The North American Industry Classification System (NAICS) code 311999 covers miscellaneous food manufacturing, a broad category. 6. The contract is for the Federal Prison System / Bureau of Prisons, highlighting a specific institutional need.

Value Assessment

Rating: good

While specific per-unit cost data is not provided, the presence of 11 bidders in a SAP-level procurement suggests a competitive environment that likely drove a fair market price. The firm-fixed-price structure further supports value for money by capping costs for the government. Benchmarking against similar food supply contracts for correctional facilities would provide a more precise value assessment, but the competitive nature of this award is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for broad competition among qualified sources. The fact that 11 bidders participated indicates a healthy level of interest and competition for this requirement. This level of competition is generally favorable for price discovery and ensures that the government receives offers from multiple vendors.

Taxpayer Impact: A competitive award under SAP means taxpayers benefit from potentially lower prices due to multiple offers, and it ensures that the government is not locked into a single supplier, promoting efficiency.

Public Impact

Federal inmates in Bureau of Prisons facilities will receive a consistent supply of eggs. The contract supports the operational needs of the Federal Prison System by ensuring food security. The geographic impact is primarily within the states where Bureau of Prisons facilities are located and can receive deliveries. The contract supports employment at Twin Valley Farms Exchange, Inc., a small business, and potentially its supply chain partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if Twin Valley Farms Exchange, Inc. faces unforeseen operational issues.
Reliance on a single supplier for a critical food item could pose a risk if not managed closely.
The short contract duration may necessitate a rapid re-competition process, potentially leading to higher administrative costs.

Positive Signals

Award to a small business supports federal small business contracting goals.
Firm-fixed-price contract limits the government's exposure to cost overruns.
High number of bidders suggests a robust and competitive market for this product.

Sector Analysis

The food manufacturing and distribution sector is a critical component of the broader agricultural and logistics industries. Federal agencies, particularly those with large institutional operations like the Bureau of Prisons, are significant consumers of food products. Spending in this area is often characterized by recurring needs for staple goods. While specific market size data for federal egg procurement is not readily available, the overall U.S. egg market is substantial, with federal contracts representing a small but consistent portion.

Small Business Impact

This contract was awarded to Twin Valley Farms Exchange, Inc., which is identified as a small business. The award contributes to the government's goal of supporting small business contractors. Further analysis would be needed to determine if subcontracting opportunities were mandated or utilized, but the primary award itself directly benefits a small enterprise within the federal contracting ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's procurement and program management offices. The Bureau of Prisons would be responsible for monitoring contract performance, ensuring timely delivery, and verifying product quality. Standard contract clauses related to performance, payment, and dispute resolution would apply. Transparency is generally maintained through contract award databases, though specific performance metrics are not publicly detailed.

Related Government Programs

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

Risk Flags

Short contract duration may require rapid re-competition.
Perishability of goods requires strict quality control and timely delivery.
Reliance on a single awardee for a critical commodity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $39,236.4 to TWIN VALLEY FARMS EXCHANGE, INC.. EGGS 2ND QTR FY26

Who is the contractor on this award?

The obligated recipient is TWIN VALLEY FARMS EXCHANGE, 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 $39,236.4.

What is the period of performance?

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

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

Historical spending data for eggs by the Federal Prison System (FPS) is not directly available in a consolidated public format. However, the FPS, as part of the Bureau of Prisons (BOP), procures a wide range of food items to sustain its inmate population across numerous facilities. Annual spending on food services can be substantial, often running into hundreds of millions of dollars. Contracts for specific commodities like eggs are typically awarded on a recurring basis, often through competitive bidding processes similar to the one detailed here. Analyzing past solicitations and awards for similar food items, and examining the BOP's overall food budget trends, would provide context for this $39.2 million award, suggesting it is part of a larger, ongoing food procurement strategy rather than an isolated or unusually large expenditure.

How does the number of bidders (11) compare to similar federal food procurements?

The presence of 11 bidders for this egg procurement, competed under Simplified Acquisition Procedures (SAP), suggests a healthy level of competition. For procurements within the SAP threshold (typically under $250,000, though this award is significantly higher, indicating potential use of specific SAP exceptions or that the $39.2M is an aggregate value over time/multiple orders), 11 bidders is a strong showing. In broader federal food procurements, especially those for larger quantities or more complex food service contracts, the number of bidders can vary widely. However, for staple commodities like eggs, a competitive market often yields multiple interested parties. Compared to procurements for highly specialized or niche food items, or those with very restrictive specifications, 11 bidders indicates that the market for federal egg supply is accessible and reasonably contested.

What are the potential risks associated with a firm-fixed-price contract for perishable goods like eggs?

A firm-fixed-price (FFP) contract shifts the risk of cost increases to the contractor, which is generally favorable for the government. However, for perishable goods like eggs, there are specific considerations. The primary risk for the government under an FFP contract is ensuring consistent quality and timely delivery. If the contractor faces unexpected cost increases due to spoilage, transportation issues, or market fluctuations, they may be tempted to cut corners on quality or delivery schedules to maintain profitability. For the contractor, the risk lies in accurately forecasting costs and potential spoilage over the contract period. Given the short 89-day duration of this specific contract, the risk of significant market volatility impacting the contractor's profitability is somewhat mitigated. Robust inspection and acceptance procedures by the government are crucial to manage quality risks.

What is the typical profit margin for suppliers in federal food contracts?

Determining the typical profit margin for suppliers in federal food contracts is complex, as it varies significantly based on the specific commodity, contract type, competition level, and the contractor's operational efficiency. Federal contracts, especially those that are competitively bid and use firm-fixed-price structures, aim to achieve fair and reasonable pricing, which implies a reasonable, but not excessive, profit margin for the contractor. Industry-standard profit margins in the food distribution sector can range from 1-5% net profit, but this can be influenced by volume, logistics costs, and value-added services. For a commodity like eggs, where the market is relatively transparent and competition is present, margins are likely to be on the lower end of this spectrum. The government's procurement process, including the analysis of bids and market research, is designed to ensure that the awarded price reflects a fair return for the contractor without being unduly burdensome to taxpayers.

How does the NAICS code 311999 (All Other Miscellaneous Food Manufacturing) impact the analysis of this contract?

The NAICS code 311999, 'All Other Miscellaneous Food Manufacturing,' is a broad category that encompasses establishments primarily engaged in manufacturing food products not elsewhere classified. While eggs are a primary agricultural product, their processing, packaging, and distribution for institutional use can fall under this classification, especially if the supplier performs value-added services beyond simple aggregation. The broadness of this code means the contractor might be involved in various food-related activities. For this specific contract, it indicates that Twin Valley Farms Exchange, Inc. is classified within this diverse sector. It suggests that the procurement is not for a highly specialized or niche food product but rather for a common food item where the supplier's manufacturing or processing capabilities fit within this general classification. This broadness doesn't inherently increase risk but highlights the need to ensure the contractor's specific capabilities align with the precise requirements for egg supply.

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: 15B20126Q00000002

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 845 E MAIN ST, HEGINS, PA, 17938

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

Financial Breakdown

Contract Ceiling: $39,236

Exercised Options: $39,236

Current Obligation: $39,236

Actual Outlays: $20,130

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline