DOJ's $45K Milk Contract for FCI Schuylkill Faces Scrutiny Over Competition and Value

Contract Overview

Contract Amount: $45,194 ($45.2K)

Contractor: Dan-Ed Corporation

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-06-30

Contract Duration: 90 days

Daily Burn Rate: $502/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FCI SCHUYLKILL FY26 3RD QUARTER MILK PRODUCTS

Place of Performance

Location: TAMAQUA, SCHUYLKILL County, PENNSYLVANIA, 18252

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Justice obligated $45,193.92 to DAN-ED CORPORATION for work described as: FCI SCHUYLKILL FY26 3RD QUARTER MILK PRODUCTS Key points: 1. The contract for milk products is relatively small at $45,193.92. 2. Competition was conducted under SAP, suggesting a potentially limited scope. 3. The fixed-price contract aims to control costs for fluid milk manufacturing. 4. The Federal Prison System is the end-user, impacting inmate nutrition.

Value Assessment

Rating: fair

The contract value is modest. Benchmarking against similar milk product procurements for correctional facilities is needed to assess if the $45,193.92 price is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves smaller dollar amounts and may not achieve the full benefits of open competition. This could limit price discovery and potentially lead to higher costs.

Taxpayer Impact: The taxpayer impact is minimal due to the small contract value, but ensuring fair pricing is still important for efficient use of funds.

Public Impact

Ensures a supply of essential dairy products for inmates at FCI Schuylkill. Supports a specific food manufacturing and distribution sector. The contract's limited scope may not fully leverage market competition for cost savings.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to SAP.
Potential for unoptimized pricing.
Geographic concentration in Pennsylvania.

Positive Signals

Firm fixed price contract for cost certainty.
Specific product for a defined need.

Sector Analysis

This contract falls under food manufacturing and distribution, a sector characterized by fluctuating commodity prices and established supply chains. Federal agencies often procure these goods through various methods, with SAP being common for smaller, routine purchases.

Small Business Impact

The data does not indicate if small businesses were involved in this procurement. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Bureau of Prisons is responsible for oversight. The use of SAP suggests a streamlined process, but it's crucial to ensure that adequate price reasonableness checks were performed.

Related Government Programs

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

Risk Flags

Limited competition
Potential for non-optimal pricing
Lack of detailed cost breakdown
Geographic concentration

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $45,193.92 to DAN-ED CORPORATION. FCI SCHUYLKILL FY26 3RD QUARTER MILK PRODUCTS

Who is the contractor on this award?

The obligated recipient is DAN-ED CORPORATION.

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 $45,193.92.

What is the period of performance?

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

What is the typical cost range for milk products for correctional facilities of similar size and location?

Benchmarking against similar correctional facility contracts is essential. Without specific data, it's difficult to definitively state the typical cost range. However, factors like volume, delivery frequency, and specific product types (e.g., whole milk vs. skim) significantly influence pricing. A thorough review of historical contracts and market surveys would provide a more accurate comparison.

What are the risks associated with using SAP for this type of procurement?

Using Simplified Acquisition Procedures (SAP) for this milk product contract carries risks of limited price competition and potentially higher unit costs compared to full and open competition. While SAP streamlines the process for smaller purchases, it may not attract a wide range of bidders, reducing the government's ability to secure the best possible pricing and value.

How effectively does this contract meet the nutritional needs of the inmate population?

The contract's effectiveness in meeting nutritional needs depends on the quality and quantity of milk products procured, aligning with dietary guidelines and inmate requirements. Assuming the 'Fluid Milk Manufacturing' designation covers standard dairy needs, the contract likely fulfills basic requirements. However, specific nutritional impact assessments are beyond the scope of this data.

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: RFQP02132600012

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1268 TUMBLING RUN RD, TAMAQUA, PA, 18252

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

Financial Breakdown

Contract Ceiling: $45,194

Exercised Options: $45,194

Current Obligation: $45,194

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline