DOJ's $6.9M Dairy Purchase for FCI Berlin: HP Hood LLC Awarded Contract

Contract Overview

Contract Amount: $68,958 ($69.0K)

Contractor: HP Hood LLC

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-06-30

Contract Duration: 90 days

Daily Burn Rate: $766/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 3RD QTR FCI BERLIN INMATES DAIRY

Place of Performance

Location: LYNNFIELD, ESSEX County, MASSACHUSETTS, 01940

State: Massachusetts Government Spending

Plain-Language Summary

Department of Justice obligated $68,958 to HP HOOD LLC for work described as: FY26 3RD QTR FCI BERLIN INMATES DAIRY Key points: 1. Significant expenditure for essential inmate supplies. 2. Competition method (SAP) may limit price discovery. 3. Potential risk of price fluctuations for a commodity. 4. Focus on a specific correctional facility's needs.

Value Assessment

Rating: fair

The contract value of $6.9M for a 90-day period suggests a substantial per-diem cost. Benchmarking against similar correctional facility food service contracts would be necessary to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

Competed under SAP (Simplified Acquisition Procedures), this method is typically used for smaller purchases and may not achieve the best possible pricing compared to full and open competition.

Taxpayer Impact: Taxpayer funds are being used for inmate sustenance, with the efficiency of the procurement process impacting the overall cost-effectiveness.

Public Impact

Ensures a basic nutritional need for inmates at FCI Berlin. Supports a specific segment of the food manufacturing industry. Highlights the operational costs associated with federal correctional facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing.
Commodity price volatility could impact budget.
Reliance on a single vendor for a critical supply.

Positive Signals

Contract addresses a clear operational need.
Defined period of performance limits long-term exposure.

Sector Analysis

This contract falls within the food manufacturing sector, specifically supplying dairy products. Spending benchmarks for correctional facility food services vary widely based on inmate population and location.

Small Business Impact

The data does not indicate if small businesses were involved in this procurement, suggesting larger entities may dominate this supply chain.

Oversight & Accountability

Standard procurement oversight applies. The use of SAP warrants scrutiny to ensure fair pricing was achieved despite limited competition.

Related Government Programs

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

Risk Flags

Limited competition (SAP)
Commodity price volatility
Potential supply chain disruption
Lack of small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $68,958 to HP HOOD LLC. FY26 3RD QTR FCI BERLIN INMATES DAIRY

Who is the contractor on this award?

The obligated recipient is HP HOOD LLC.

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 $68,958.

What is the period of performance?

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

What is the historical cost per inmate for dairy products at FCI Berlin or similar facilities?

Determining the historical cost per inmate for dairy products at FCI Berlin or comparable facilities is crucial for value assessment. Without this benchmark, it's difficult to ascertain if the $6.9M contract represents a fair price. Analysis should consider factors like inmate population size, dietary needs, and regional dairy market prices over time.

What are the risks associated with relying on HP Hood LLC for this critical supply?

Risks include potential supply chain disruptions, quality control issues, or price increases beyond initial projections. If HP Hood LLC faces production or distribution challenges, it could impact inmate nutrition and facility operations. The limited competition also means less leverage for the government if issues arise.

How effectively does the Simplified Acquisition Procedure (SAP) ensure value for money in this context?

SAP is designed for efficiency in smaller procurements but may not yield the best value for a $6.9M contract. While it streamlines the process, it potentially limits the pool of bidders and reduces competitive pressure, which could lead to higher prices than a full and open competition might achieve.

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: 15B21826Q00000008

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6 KIMBALL LN, LYNNFIELD, MA, 01940

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $68,958

Exercised Options: $68,958

Current Obligation: $68,958

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline