DOJ's Bureau of Prisons awards $220K for Kosher meat, highlighting niche food procurement needs

Contract Overview

Contract Amount: $21,998 ($22.0K)

Contractor: Hy-Point Dairy Farms Inc

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-04-30

Contract Duration: 29 days

Daily Burn Rate: $759/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 32

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FCI FAIRTON 3RD QUARTER FY26 SUBSISTENCE. SUBSISTENCE/FROZEN/KOSHER/MEAT.

Place of Performance

Location: WILMINGTON, NEW CASTLE County, DELAWARE, 19803

State: Delaware Government Spending

Plain-Language Summary

Department of Justice obligated $21,997.5 to HY-POINT DAIRY FARMS INC for work described as: FCI FAIRTON 3RD QUARTER FY26 SUBSISTENCE. SUBSISTENCE/FROZEN/KOSHER/MEAT. Key points: 1. Contract addresses specific dietary requirements for incarcerated individuals, indicating a focus on cultural and religious accommodation. 2. Procurement method suggests a streamlined process for acquiring specialized food items. 3. Short contract duration points to a need for immediate or recurring supply of these goods. 4. The award value is relatively small, indicating a targeted procurement rather than a large-scale food service contract. 5. Fixed-price contract offers cost certainty for the government on this specific purchase.

Value Assessment

Rating: good

The award of $21,997.50 for a one-month supply of Kosher meat appears reasonable given the specialized nature of the product. Benchmarking against similar niche food procurements for correctional facilities is challenging due to limited public data. However, the firm fixed-price structure provides cost predictability for the Federal Prison System. The value is assessed as good, considering the specific dietary needs and the relatively short performance period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders for procurements under the simplified acquisition threshold. While the specific number of bids received is not detailed, SAP aims for fair and reasonable pricing through competition among a smaller pool of vendors. The limited competition may result in slightly higher prices compared to full and open competition, but it allows for more agile procurement of specialized goods.

Taxpayer Impact: Taxpayers benefit from a streamlined process that ensures essential dietary needs are met efficiently, while still seeking competitive pricing within the constraints of simplified acquisition.

Public Impact

Incarcerated individuals requiring Kosher meat will have their dietary needs met, ensuring religious and cultural compliance. The Federal Prison System (FPS) will receive a supply of specialized food products for its facility. The geographic impact is localized to the facility receiving the shipment in Delaware. This contract supports a niche segment of the food manufacturing and distribution industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited vendor pool due to specialization, impacting long-term price competitiveness.
Reliance on specific suppliers for niche products could create supply chain vulnerabilities.
Ensuring consistent quality and adherence to Kosher certification standards requires diligent oversight.

Positive Signals

Addresses a specific, documented need for Kosher food items within the correctional system.
Utilizes a procurement method (SAP) suitable for smaller value, specialized purchases.
Firm fixed-price contract provides budget certainty for this specific acquisition.

Sector Analysis

The procurement of specialized food items, such as Kosher meat, falls within the broader food manufacturing and distribution sector. This contract represents a small but important segment focused on meeting specific dietary and religious requirements within institutional settings like federal prisons. Comparable spending benchmarks are difficult to establish due to the niche nature, but the overall food service market for government institutions is substantial, with significant spending allocated to food and subsistence.

Small Business Impact

The data indicates this contract was competed under SAP and does not specify small business set-asides or subcontracting goals. Given the specialized nature of Kosher meat processing and distribution, it's possible that larger, specialized food service companies or specific Kosher-certified suppliers were involved. Further analysis would be needed to determine the extent of small business participation or subcontracting opportunities.

Oversight & Accountability

Oversight for this purchase order would typically fall under the Federal Prison System's procurement and contracting division within the Department of Justice. Accountability measures are inherent in the purchase order process, requiring delivery of specified goods. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Prison System Food Services
Department of Justice Commissary Operations
Specialized Dietary Procurement
Correctional Facility Food Supply

Risk Flags

Perishability Risk
Specialized Product Compliance
Limited Competition Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $21,997.5 to HY-POINT DAIRY FARMS INC. FCI FAIRTON 3RD QUARTER FY26 SUBSISTENCE. SUBSISTENCE/FROZEN/KOSHER/MEAT.

Who is the contractor on this award?

The obligated recipient is HY-POINT DAIRY FARMS 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 $21,997.5.

What is the period of performance?

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

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

Analyzing historical spending for Kosher meat by the Federal Prison System requires accessing detailed procurement data over multiple fiscal years. While this specific award is for FY26, understanding past expenditures would reveal trends in demand, pricing fluctuations, and the number of vendors utilized. A review of FPDS data for similar PSC codes or keywords related to 'Kosher meat' and 'Bureau of Prisons' over the last 3-5 years would be necessary. This analysis would help determine if this $220K award represents a typical expenditure, an increase, or a decrease, and identify any significant shifts in contracting strategies or vendor relationships for this specialized food item.

How does the price of Kosher meat awarded in this contract compare to market rates for similar institutions?

Benchmarking the price of Kosher meat against market rates for similar institutions is complex due to the specialized nature of the product and variations in quality, certification, and quantity. The firm fixed-price of this contract ($21,997.50 for one month) needs to be compared against data from other correctional facilities or government agencies procuring similar items. Factors such as the specific cuts of meat, the level of Kosher certification (e.g., OU, Star-K), and the volume purchased significantly influence pricing. Without access to detailed product specifications and broader market data for institutional Kosher food supply, a precise comparison is difficult. However, the use of SAP suggests the agency sought competitive pricing within a simplified acquisition framework.

What are the specific risks associated with procuring perishable, specialized food items like Kosher meat?

Procuring perishable, specialized food items like Kosher meat presents several risks. Firstly, supply chain disruptions are a significant concern; reliance on a limited number of certified suppliers can lead to shortages if unforeseen issues arise (e.g., supplier bankruptcy, natural disasters affecting production). Secondly, maintaining quality and ensuring strict adherence to Kosher dietary laws requires robust oversight and verification processes, posing a risk of non-compliance if not managed effectively. Thirdly, price volatility for niche food products can be higher than for standard commodities, potentially impacting budget predictability despite the firm fixed-price contract. Finally, the short performance period (one month) necessitates timely and efficient delivery, with delays potentially impacting the dietary needs of the inmate population.

What is the track record of HY-POINT DAIRY FARMS INC in supplying to the federal government?

To assess the track record of HY-POINT DAIRY FARMS INC, a review of their past federal contract awards is essential. This would involve searching federal procurement databases (like FPDS) for previous contracts awarded to this vendor, noting the agencies involved, the types of goods or services provided, the contract values, and performance history. Specifically, it would be beneficial to see if they have previously supplied perishable food items, specialized dietary products, or served other correctional facilities. A history of successful, timely, and compliant contract performance would indicate reliability, while a pattern of issues could raise concerns about their capacity to fulfill this current award effectively.

How does the Bureau of Prisons ensure compliance with Kosher dietary laws for this contract?

The Bureau of Prisons (BOP) ensures compliance with Kosher dietary laws through several mechanisms. Firstly, the contract specifications themselves would detail the required Kosher certifications and standards that the supplier must meet. This typically involves referencing recognized Kosher certification agencies (e.g., OU, Star-K). Secondly, the BOP likely has quality assurance personnel or designated staff responsible for inspecting deliveries to verify that the products meet the specified requirements, including proper labeling and packaging. Thirdly, the contract may include clauses requiring the vendor to maintain documentation proving ongoing compliance with Kosher standards throughout the contract period. Failure to comply could result in contract remedies, including termination or penalties.

Industry Classification

NAICS: Manufacturing › Other Food Manufacturing › Perishable Prepared Food Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 15B20426Q00000002

Offers Received: 32

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 425 BEAVER VALLEY RD, WILMINGTON, DE, 19803

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,998

Exercised Options: $21,998

Current Obligation: $21,998

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline