DOJ awards $29.6M for subsistence food manufacturing, with 28 bids received

Contract Overview

Contract Amount: $29,650 ($29.6K)

Contractor: H Schrier & CO Inc

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-06-30

Contract Duration: 90 days

Daily Burn Rate: $329/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 28

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OATS-FCI JES-A1-FY26 QTR3-H. SCHRIER-SUBSISTENCE SMALL BUSINESS

Place of Performance

Location: BROOKLYN, KINGS County, NEW YORK, 11234

State: New York Government Spending

Plain-Language Summary

Department of Justice obligated $29,649.9 to H SCHRIER & CO INC for work described as: OATS-FCI JES-A1-FY26 QTR3-H. SCHRIER-SUBSISTENCE SMALL BUSINESS Key points: 1. Contract awarded to H SCHRIER & CO INC for subsistence food manufacturing. 2. The contract value is approximately $29.6 million. 3. Competition was robust, with 28 bids received. 4. The contract duration is 90 days. 5. The contract is a firm-fixed-price purchase order. 6. The vendor is located in New York.

Value Assessment

Rating: good

The contract value of $29.6 million for a 90-day period suggests a significant per-diem cost for subsistence food. Benchmarking against similar contracts for food manufacturing and supply to correctional facilities would be necessary to fully assess value for money. However, the competitive nature of the award (28 bids) generally indicates a reasonable price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which allows for a broader range of competition for smaller dollar value procurements. The receipt of 28 bids indicates strong market interest and a healthy level of competition for this requirement.

Taxpayer Impact: A high number of bids suggests that taxpayers benefited from competitive pricing, as vendors vied to offer their best terms.

Public Impact

Inmates within the Federal Prison System will receive subsistence food supplies. The services delivered are the manufacturing of food products for consumption. The geographic impact is primarily within the Federal Prison System's facilities. This contract supports the food manufacturing sector and associated supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration (90 days) may lead to frequent re-competition and potential instability for the contractor.
Reliance on a single vendor for a critical need like subsistence food carries inherent supply chain risks.

Positive Signals

Robust competition with 28 bids suggests a healthy market and potential for competitive pricing.
Firm-fixed-price contract type shifts cost risk to the contractor, providing budget certainty for the government.
Award to an established company (H SCHRIER & CO INC) may indicate reliability.

Sector Analysis

The food manufacturing sector is a critical component of the broader food supply chain, providing essential goods for various consumers, including government institutions. This contract falls within the 'All Other Miscellaneous Food Manufacturing' category, indicating specialized production. Government procurement in this area often focuses on reliability, quality, and cost-effectiveness, especially for institutional needs like prisons.

Small Business Impact

While the contract was competed, there is no explicit indication of a small business set-aside. The award was made to H SCHRIER & CO INC. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this contract.

Oversight & Accountability

The contract is a purchase order, which is a standard procurement instrument. Oversight would typically be managed by the contracting officer and the Federal Prison System's procurement and operational staff. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Prison System Food Services
Department of Justice Commissary Operations
Subsistence Supply Contracts
Food Manufacturing for Government Institutions

Risk Flags

Short contract duration may impact long-term supply chain stability.
Potential for supply disruption if contractor fails to perform.
Need for further analysis on per-unit cost competitiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $29,649.9 to H SCHRIER & CO INC. OATS-FCI JES-A1-FY26 QTR3-H. SCHRIER-SUBSISTENCE SMALL BUSINESS

Who is the contractor on this award?

The obligated recipient is H SCHRIER & CO 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 $29,649.9.

What is the period of performance?

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

What is the historical spending pattern for subsistence food manufacturing by the Federal Prison System?

Analyzing historical spending for subsistence food manufacturing by the Federal Prison System (FPS) is crucial for understanding trends and establishing benchmarks. While specific data for 'All Other Miscellaneous Food Manufacturing' is not readily available without deeper FPDS queries, the FPS consistently procures a wide range of food products to sustain its inmate population. Past contracts have varied in duration and value, often awarded through competitive processes. Examining spending over the last 3-5 fiscal years would reveal average contract values, typical durations, and the prevalence of different contract types (e.g., fixed-price vs. cost-reimbursement). This historical context helps assess whether the current $29.6 million award for a 90-day period aligns with established spending patterns or represents an outlier, potentially due to specific product requirements, market fluctuations, or increased demand.

How does the per-unit cost of food manufactured under this contract compare to market rates or similar government contracts?

Determining the precise per-unit cost requires detailed knowledge of the specific food items manufactured under this contract and their respective quantities, which are not provided in the summary data. However, a general assessment can be made by considering the total contract value ($29.6 million) and the duration (90 days). This yields a daily expenditure of approximately $328,888. If this contract is for a large number of facilities or inmates, the per-unit cost might be competitive. To perform a true benchmark, one would need to compare the cost of specific food items (e.g., per pound of processed meat, per gallon of sauce) against industry price lists, data from other federal food service contracts (e.g., for military bases or other correctional facilities), and potentially state or local government contracts. The robust competition (28 bids) suggests that H SCHRIER & CO INC likely offered a competitive price relative to other bidders, but external market validation is still necessary.

What are the specific risks associated with a short-term (90-day) contract for subsistence food manufacturing?

A 90-day contract for subsistence food manufacturing presents several risks. Firstly, it creates potential instability for the contractor, H SCHRIER & CO INC. Short durations can discourage significant investment in production capacity or process improvements, as the return on investment is limited. This may lead to higher per-unit costs as the contractor seeks to recoup investments quickly. Secondly, frequent re-competition introduces administrative burden and potential gaps in supply if the transition between contractors is not seamless. There's also a risk that new bidders may not have the established infrastructure or understanding of the FPS's specific needs, potentially impacting quality or delivery schedules. Finally, a short-term contract might limit the government's ability to leverage long-term relationships for better pricing or service enhancements.

What is the track record of H SCHRIER & CO INC in fulfilling government contracts, particularly for food services?

Information regarding the specific track record of H SCHRIER & CO INC in fulfilling government contracts, especially for food services, is not detailed in the provided data. A comprehensive assessment would require accessing historical contract performance data, such as past performance evaluations (e.g., CPARS reports), any past disputes or claims, and the successful completion of previous similar contracts. Given that this is a purchase order awarded under SAP, it might be a new relationship or a continuation of smaller-scale business. Understanding their history with the Federal Prison System or other agencies would provide insight into their reliability, quality of products, and ability to meet delivery schedules. Without this specific performance history, the assessment of risk associated with this award remains incomplete.

Does the 'All Other Miscellaneous Food Manufacturing' classification indicate specialized or standard food products?

The classification 'All Other Miscellaneous Food Manufacturing' (NAICS code 311999) typically encompasses a wide array of food products that do not fit into more specific manufacturing categories like dairy, meat, or bakery product manufacturing. This could include items such as sauces, dressings, spices, prepared meals, snack foods, or even specialized dietary products. For the Federal Prison System, this classification likely covers a diverse range of subsistence items intended to supplement or form the basis of inmate meals. The 'miscellaneous' nature suggests the contract might involve multiple types of food products rather than a single commodity, potentially increasing the complexity of production and quality control for the contractor, H SCHRIER & CO INC.

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: 28

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4901 GLENWOOD RD, BROOKLYN, NY, 11234

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

Financial Breakdown

Contract Ceiling: $29,650

Exercised Options: $29,650

Current Obligation: $29,650

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline