DOJ awards $63.9M food contract to L.A. Foods, LLC for federal prisons

Contract Overview

Contract Amount: $63,947 ($63.9K)

Contractor: L.A. Foods, LLC

Awarding Agency: Department of Justice

Start Date: 2026-02-03

End Date: 2026-03-31

Contract Duration: 56 days

Daily Burn Rate: $1.1K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 A1 PASSOVER MEN

Place of Performance

Location: AGOURA HILLS, LOS ANGELES County, CALIFORNIA, 91301

State: California Government Spending

Plain-Language Summary

Department of Justice obligated $63,947.2 to L.A. FOODS, LLC for work described as: FY26 A1 PASSOVER MEN Key points: 1. Contract awarded under Simplified Acquisition Procedures (SAP) suggests a focus on smaller procurements. 2. The firm fixed-price contract type aims to provide cost certainty for the government. 3. A short performance period of 56 days indicates a need for immediate or short-term supply. 4. The award to L.A. Foods, LLC, a single entity, warrants a review of market availability and competition. 5. The contract's value, while significant, needs to be contextualized against broader federal food procurement spending.

Value Assessment

Rating: fair

The contract value of $63.9 million for a 56-day period appears high, suggesting a potential for significant per-diem costs for food services. Benchmarking against similar contracts for correctional facility food supply is crucial to assess value for money. Without more detailed cost breakdowns or comparisons to market rates for bulk food provisions, it is difficult to definitively assess the pricing's reasonableness. The fixed-price nature provides some cost control, but the overall unit cost needs further scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was competed under SAP, which typically involves simplified procedures for acquisitions below certain thresholds. The number of bidders is not specified, but the award to a single entity, L.A. Foods, LLC, raises questions about the extent of competition. Further investigation is needed to determine if this was a limited competition or if other qualified vendors were solicited. The effectiveness of price discovery under SAP can vary depending on the specific solicitation process.

Taxpayer Impact: The level of competition directly impacts taxpayer value. If competition was limited, taxpayers may have paid a premium. A robust competitive process generally leads to lower prices and better terms for the government.

Public Impact

Inmates within the Federal Prison System will receive food supplies under this contract. The services delivered are the provision of miscellaneous food manufacturing products. The geographic impact is primarily within California, where L.A. Foods, LLC is located, and potentially extends to federal correctional facilities served from this region. This contract supports the operational needs of the Bureau of Prisons by ensuring a consistent food supply for its population.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to SAP procedures.
High contract value for a short duration requires scrutiny of unit costs.
Lack of detail on the specific food items procured makes value assessment challenging.

Positive Signals

Firm fixed-price contract provides cost certainty.
Award to an established entity suggests potential for reliable supply.
Contract supports essential services for federal correctional facilities.

Sector Analysis

This contract falls within the broader food manufacturing and distribution sector, which is a critical component of the federal supply chain, particularly for institutions like prisons. The federal government is a significant purchaser of food products, with spending distributed across various agencies and needs, from military rations to dietary requirements in federal facilities. The market for bulk food supply is competitive, but specialized institutional needs can sometimes lead to concentrated vendor bases.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not provided for this contract. As the award was made to L.A. Foods, LLC, further analysis would be needed to determine if this entity is a small business or if subcontracting opportunities were made available to small businesses. The absence of explicit set-aside information suggests it may not have been a primary focus for this particular procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's Bureau of Prisons contracting officers and potentially the Office of the Inspector General. Transparency is facilitated through contract award databases, but detailed performance monitoring and accountability measures are internal to the agency. The specific oversight mechanisms for this purchase order would depend on the internal policies of the Federal Prison System.

Related Government Programs

Federal Prison System Food Procurement
Department of Justice Supply Chain Management
Bureau of Prisons Commissary Operations
Institutional Food Service Contracts

Risk Flags

Potential for limited competition due to SAP.
High daily cost requires justification.
Broad product category lacks specificity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $63,947.2 to L.A. FOODS, LLC. FY26 A1 PASSOVER MEN

Who is the contractor on this award?

The obligated recipient is L.A. FOODS, 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 $63,947.2.

What is the period of performance?

Start: 2026-02-03. End: 2026-03-31.

What is the historical spending pattern for food supplies by the Federal Prison System, and how does this $63.9 million award compare?

Historical spending data for the Federal Prison System's food supplies reveals a consistent and substantial investment in maintaining inmate nutrition. Annual expenditures often run into hundreds of millions of dollars, reflecting the large population served across numerous facilities nationwide. This $63.9 million award for a 56-day period represents a significant, albeit short-term, allocation of resources. To contextualize it fully, one would need to compare it against the average monthly or quarterly spending for similar food categories or against the total annual food budget. For instance, if the average monthly food expenditure for the Bureau of Prisons is $50 million, this $63.9 million award for less than two months would represent a substantial portion of that budget, potentially indicating a larger-than-usual order, a specific need, or a higher unit cost for the items procured during this period.

What specific types of 'All Other Miscellaneous Food Manufacturing' products are included in this contract, and what is their typical cost per unit?

The classification 'All Other Miscellaneous Food Manufacturing' is broad and encompasses a wide array of food products that do not fit into more specific categories like dairy, meat, or produce. This could include items such as baked goods, processed snacks, beverages, condiments, spices, or specialized dietary items. Without a detailed product list or specification sheet attached to the contract award, it is impossible to determine the exact nature of the goods. Consequently, establishing a typical cost per unit is also not feasible. The unit cost would vary dramatically depending on whether the contract is for bulk flour, individual snack packs, or specialized nutritional supplements. Further inquiry into the contract's statement of work or associated documentation would be necessary to identify the specific items and their associated pricing.

What is the track record of L.A. Foods, LLC in supplying federal correctional facilities or similar institutions?

Assessing the track record of L.A. Foods, LLC requires examining their past performance in fulfilling government contracts, particularly those involving food supply for correctional facilities or other large institutions. Publicly available contract databases can provide insights into previous awards, contract values, performance ratings, and any reported issues or disputes. A positive history of timely delivery, quality products, and adherence to contract terms would indicate reliability. Conversely, a history of performance failures, contract terminations, or significant disputes could raise concerns about their capacity to meet the current requirements. Without specific data on L.A. Foods, LLC's past performance with the Bureau of Prisons or comparable agencies, it is difficult to definitively gauge their suitability and reliability for this $63.9 million award.

How does the $63.9 million value for a 56-day contract compare to typical federal food procurement contracts in terms of cost per day?

A contract valued at $63.9 million for a 56-day period equates to approximately $1.14 million per day. This daily expenditure is exceptionally high for food procurement, even for a large institution like the Federal Prison System. Typical federal food procurement contracts, while varying widely in scope and duration, generally do not exhibit such a high daily cost unless they involve highly specialized, perishable, or large-volume emergency provisions. For context, annual food budgets for large federal agencies can be in the tens or hundreds of millions, meaning a daily spend of over a million dollars warrants close examination. This figure suggests either an extremely large quantity of goods being procured, very high unit costs for the items, or potentially a contract that includes services beyond simple food provision, such as logistics or specialized preparation.

What are the potential risks associated with awarding a large contract under Simplified Acquisition Procedures (SAP)?

Awarding a contract of this magnitude ($63.9 million) under Simplified Acquisition Procedures (SAP) presents several potential risks. SAP is designed for smaller procurements, typically below $250,000 (though thresholds can be higher for certain categories), to streamline the process. Using SAP for a large award may indicate that the competition was less robust than for a full and open competition, potentially leading to higher prices or less favorable terms for the government. There's also a risk that the simplified documentation and review processes might overlook critical details related to contractor performance, technical specifications, or compliance requirements. Furthermore, if the procurement was eligible for larger-scale competition, using SAP could limit the pool of potential bidders, including larger, more experienced contractors who might offer better value or innovation. This could also raise concerns about fairness and equal opportunity in contracting.

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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5115 CLARETON DR STE 200, AGOURA HILLS, CA, 91301

Business Categories: Category Business, Manufacturer of Goods, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $63,947

Exercised Options: $63,947

Current Obligation: $63,947

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline