Justice Department awards $23.7K for dairy items, highlighting a small but recurring need for prison sustenance

Contract Overview

Contract Amount: $23,719 ($23.7K)

Contractor: Larc Industries Inc

Awarding Agency: Department of Justice

Start Date: 2026-01-01

End Date: 2026-03-23

Contract Duration: 81 days

Daily Burn Rate: $293/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 23

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FCI MCKEAN 2ND QTR FY 26 DAIRY ITEMS AWARD

Place of Performance

Location: COLLEGEVILLE, MONTGOMERY County, PENNSYLVANIA, 19426

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Justice obligated $23,718.71 to LARC INDUSTRIES INC for work described as: FCI MCKEAN 2ND QTR FY 26 DAIRY ITEMS AWARD Key points: 1. This award represents a minor expenditure within the broader federal food procurement landscape. 2. The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 3. The short duration of the contract (81 days) indicates a need for immediate or short-term supply. 4. The fixed-price nature of the contract provides cost certainty for the government. 5. The award to LARC INDUSTRIES INC suggests a competitive market for these specific dairy items. 6. The North American Industry Classification System (NAICS) code 311999 points to a niche manufacturing category.

Value Assessment

Rating: fair

The award amount of $23,718.71 for dairy items is relatively small in the context of federal food procurement. Benchmarking this specific award is challenging without more granular data on per-unit pricing for the dairy products. However, the use of SAP suggests the government sought competitive pricing for a low-value requirement, aiming for good value within its acquisition procedures. The fixed-price contract type helps manage cost expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a broad solicitation to encourage competition among qualified vendors. While the exact number of bidders is not provided, SAP is designed to foster a competitive environment for procurements under the simplified acquisition threshold. This approach generally leads to price discovery and ensures the government receives fair and reasonable pricing.

Taxpayer Impact: For taxpayers, competition under SAP means that the government is likely to obtain these dairy items at a competitive price, avoiding potential overspending on a small but necessary purchase.

Public Impact

Inmates within the Federal Prison System will benefit from the provision of essential dairy products. The services delivered include the supply of various dairy items crucial for inmate nutrition. The geographic impact is localized to the correctional facilities managed by the Federal Prison System in Pennsylvania. The contract supports the food manufacturing sector by providing a demand for dairy products.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed product specifications makes it difficult to assess value for money on a per-unit basis.
The short contract duration may lead to frequent re-competition, potentially increasing administrative burden.
Limited visibility into the specific types and quantities of dairy items procured.

Positive Signals

The use of a competed SAP process indicates an effort to secure competitive pricing.
The firm fixed-price contract provides cost certainty for the government.
The award supports a business within the food manufacturing industry.

Sector Analysis

This contract falls within the broader food manufacturing and distribution sector, specifically focusing on dairy products. Federal agencies, particularly those managing large institutions like correctional facilities, are significant purchasers of food items. The market for dairy products is generally competitive, with numerous suppliers capable of meeting federal specifications. This award represents a small segment of the overall federal spending on food services and supplies.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Without further information on the bidding process and the size of the awardee, it is difficult to assess the direct impact on the small business ecosystem. However, the use of SAP can sometimes provide opportunities for small businesses to compete.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officers and program managers within the Federal Prison System. The purchase order mechanism allows for clear tracking of deliverables and payments. Transparency is maintained through federal procurement databases where such awards are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Prison System Food Procurement
Department of Justice Commissary Operations
Miscellaneous Food Manufacturing Contracts
Federal Correctional Institution Supplies

Risk Flags

Potential for supply chain disruptions
Quality control of perishable goods
Need for timely re-competition due to short duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $23,718.71 to LARC INDUSTRIES INC. FCI MCKEAN 2ND QTR FY 26 DAIRY ITEMS AWARD

Who is the contractor on this award?

The obligated recipient is LARC INDUSTRIES 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 $23,718.71.

What is the period of performance?

Start: 2026-01-01. End: 2026-03-23.

What specific types and quantities of dairy items were procured under this contract?

The provided data does not specify the exact types or quantities of dairy items procured. The contract is categorized under NAICS code 311999 (All Other Miscellaneous Food Manufacturing), and the description mentions 'DAIRY ITEMS'. Without a detailed product list or statement of work, it is impossible to determine if this includes milk, cheese, yogurt, butter, or other dairy-derived products, or the specific volumes required for the 81-day period.

How does the unit price of these dairy items compare to market rates or similar federal contracts?

Benchmarking the unit price is not feasible with the current data. The total award is $23,718.71 for 81 days. To compare unit prices, we would need to know the exact items, quantities, and their corresponding prices. Federal procurement databases sometimes offer aggregated data for similar items, but a direct comparison for 'dairy items' under a miscellaneous food manufacturing code is difficult without more specific product identification. The use of SAP suggests an effort to achieve competitive pricing, but without granular data, a definitive value assessment is limited.

What is the track record of LARC INDUSTRIES INC in fulfilling federal contracts, particularly for food items?

Information regarding LARC INDUSTRIES INC's specific track record with federal contracts, especially for food items, is not detailed in the provided data. A comprehensive assessment would require searching federal procurement databases (like SAM.gov or FPDS) for past performance history, contract awards, and any reported issues or successes. Without this external data, we can only note that they were awarded this specific purchase order.

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

The provided data snippet focuses on a single, recent award and does not offer historical spending patterns for dairy items by the Federal Prison System. To analyze historical spending, one would need to query federal procurement databases for similar contracts over multiple fiscal years, filtering by agency, product category (if possible), and contract type. This would reveal trends in volume, cost, and supplier engagement over time.

What are the potential risks associated with this contract, given its nature and duration?

Potential risks include supply chain disruptions affecting dairy product availability, quality control issues with perishable goods, and potential price fluctuations if the fixed price was set without adequate market foresight. The short duration also means the government will need to re-compete or extend the contract soon, introducing administrative effort and potential gaps if not managed proactively. Furthermore, the broad 'dairy items' category might mask specific vulnerabilities if certain critical items are not adequately sourced.

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: 15B20926Q00000001

Offers Received: 23

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1514 GREEN VALLEY DR, COLLEGEVILLE, PA, 19426

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

Financial Breakdown

Contract Ceiling: $23,719

Exercised Options: $23,719

Current Obligation: $23,719

Actual Outlays: $9,399

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline