DOJ's Bureau of Prisons awards $20,885 for dairy products to LARC INDUSTRIES INC

Contract Overview

Contract Amount: $20,885 ($20.9K)

Contractor: Larc Industries Inc

Awarding Agency: Department of Justice

Start Date: 2026-01-01

End Date: 2026-03-31

Contract Duration: 89 days

Daily Burn Rate: $235/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FCI SCHUYLKILL 2ND QTR LARC INDUSTRIES MILK, COTTAGE CHEESE, SOUR CREAM

Place of Performance

Location: COLLEGEVILLE, MONTGOMERY County, PENNSYLVANIA, 19426

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Justice obligated $20,885 to LARC INDUSTRIES INC for work described as: FCI SCHUYLKILL 2ND QTR LARC INDUSTRIES MILK, COTTAGE CHEESE, SOUR CREAM Key points: 1. The contract is for essential dairy items like milk, cottage cheese, and sour cream. 2. Competition was utilized under SAP (Simplified Acquisition Procedures), suggesting a focus on smaller value procurements. 3. The award is a Purchase Order, a common method for acquiring goods and services. 4. The contract duration is 89 days, indicating a short-term need for these supplies.

Value Assessment

Rating: good

The total award amount of $20,885 for a 3-month period appears reasonable for bulk dairy products. Benchmarking against similar federal or commercial contracts for dairy supplies would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, which typically involves simplified procedures for acquisitions below the simplified acquisition threshold. This method aims for efficiency but may not always yield the lowest possible price compared to full and open competition.

Taxpayer Impact: The relatively small contract value suggests a minimal direct taxpayer impact, primarily serving the needs of the federal prison system.

Public Impact

Ensures a consistent supply of essential dairy products for inmates at FCI Schuylkill. Supports the operational needs of the Federal Prison System / Bureau of Prisons. Provides economic activity for LARC INDUSTRIES INC. within Pennsylvania.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in dairy markets impacting firm fixed price.
Limited competition under SAP may not guarantee the best value.
Dependence on a single supplier for a critical food item.

Positive Signals

Utilizes simplified acquisition procedures for efficiency.
Awarded to a specific business entity, potentially supporting local economies.
Clear product specifications and delivery timeline.

Sector Analysis

The food manufacturing and distribution sector is crucial for institutional support services. Spending benchmarks for dairy products can vary significantly based on volume, location, and contract type. This award falls within the typical range for localized, short-term supply contracts.

Small Business Impact

The data does not indicate if LARC INDUSTRIES INC. is a small business. If it is, this contract could represent significant business for them. Further analysis would be needed to determine the small business impact.

Oversight & Accountability

Standard purchase order procedures are in place. Oversight would focus on delivery timeliness, product quality, and adherence to the firm fixed price agreement by the Bureau of Prisons.

Related Government Programs

Fluid Milk Manufacturing
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Price volatility of dairy products.
Potential for quality issues with perishable goods.
Limited competition under SAP.
Contractor performance risk.
Dependence on a single supplier for essential items.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $20,885 to LARC INDUSTRIES INC. FCI SCHUYLKILL 2ND QTR LARC INDUSTRIES MILK, COTTAGE CHEESE, SOUR CREAM

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 $20,885.

What is the period of performance?

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

What is the per-unit cost of the dairy products under this contract?

The provided data does not include specific per-unit pricing details. The total award is $20,885 for 89 days of supply. To determine per-unit costs, one would need the quantities of each dairy item (milk, cottage cheese, sour cream) specified in the purchase order.

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

A firm fixed price contract for perishable goods carries the risk of price volatility in the dairy market. If market prices increase significantly, the contractor may face reduced profit margins or potential quality compromises. Conversely, if prices drop, the government may overpay.

How effective is the use of SAP in procuring these dairy products for the Bureau of Prisons?

Using SAP (Simplified Acquisition Procedures) for this $20,885 contract likely enhances procurement efficiency and speed, which is beneficial for acquiring perishable goods with short-term needs. However, its effectiveness in achieving the absolute lowest price is debatable compared to broader competition.

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: RFQP02132600002

Offers Received: 3

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: $20,885

Exercised Options: $20,885

Current Obligation: $20,885

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline