Justice Department awards $43,939 for 2-week food service contract to Quality Produce LLC

Contract Overview

Contract Amount: $43,939 ($43.9K)

Contractor: Quality Produce LLC

Awarding Agency: Department of Justice

Start Date: 2025-09-16

End Date: 2025-09-30

Contract Duration: 14 days

Daily Burn Rate: $3.1K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TO PROVIDE FOOD SERVICE FOR PERIOD OF PERFORMANCE

Place of Performance

Location: OPELIKA, LEE County, ALABAMA, 36801

State: Alabama Government Spending

Plain-Language Summary

Department of Justice obligated $43,939.2 to QUALITY PRODUCE LLC for work described as: TO PROVIDE FOOD SERVICE FOR PERIOD OF PERFORMANCE Key points: 1. Contract focuses on perishable prepared food manufacturing for a short duration. 2. Awarded under Simplified Acquisition Procedures (SAP), indicating a smaller procurement value. 3. The firm fixed price contract type limits cost overruns for the government. 4. Performance period is brief, suggesting a specific, immediate need. 5. The contractor, Quality Produce LLC, is a new entity in federal contracting. 6. Geographic location of performance is Alabama.

Value Assessment

Rating: fair

The contract value of $43,939 for a 14-day period is relatively small. Benchmarking per-unit costs for prepared food services is challenging without more detailed service descriptions. However, the award amount appears reasonable for the short duration and scope, especially considering the firm fixed price structure which transfers some risk to the contractor. The limited duration may also preclude extensive price negotiation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was competed under Simplified Acquisition Procedures (SAP), which allows for less formal competition than larger procurements. While the data indicates it was 'COMPETED', the number of bidders is not specified. SAP procurements can sometimes result in fewer offers, potentially impacting price discovery. Further details on the solicitation process would be needed to fully assess the level of competition.

Taxpayer Impact: For taxpayers, a less competitive SAP process might mean a slightly higher price than could be achieved through full and open competition, though the overall dollar value is modest.

Public Impact

Inmates within the Federal Prison System in Alabama will benefit from the food services provided. The service delivered is perishable prepared food manufacturing. The geographic impact is localized to Alabama, specifically where the federal prison is located. This contract supports the operational needs of the Bureau of Prisons, ensuring basic necessities for inmates.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP could lead to suboptimal pricing.
Short performance period may indicate an urgent, potentially unplanned need.
Contractor's track record with the federal government is not yet established.
Lack of detailed service scope makes comprehensive value assessment difficult.

Positive Signals

Firm fixed price contract provides cost certainty for the government.
Awarded to a specific company, Quality Produce LLC, indicating a selection was made.
Contract is for a defined, short period, limiting long-term commitment.
Procurement falls under SAP, which is designed for efficient acquisition of smaller needs.

Sector Analysis

The perishable prepared food manufacturing sector is a critical component of the broader food services industry. Federal agencies, particularly correctional facilities, rely on this sector to meet the nutritional needs of populations under their care. While specific market size data for federal prepared food contracts is not readily available, the overall food service industry is substantial. This contract represents a small expenditure within this sector, likely serving a niche requirement for the Bureau of Prisons.

Small Business Impact

The provided data does not indicate if this contract was set aside for small businesses, nor does it specify subcontracting plans. Given the small value and the nature of the procurement (SAP), it's possible small businesses were encouraged to bid, but without explicit set-aside information, this remains unclear. The impact on the small business ecosystem is likely minimal due to the contract's size and duration.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Bureau of Prisons. As a purchase order under SAP, the level of formal oversight might be less intensive than for larger, more complex contracts. Accountability is managed through the terms of the firm fixed price purchase order and the contractor's adherence to delivery and quality standards. Transparency is limited by the SAP process, which typically involves less public documentation than full and open competition.

Related Government Programs

Federal Food Service Contracts
Bureau of Prisons Operations
Department of Justice Procurement
Simplified Acquisition Procedures
Perishable Goods Supply Chain

Risk Flags

New Contractor
Limited Competition Potential
Short Performance Period

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $43,939.2 to QUALITY PRODUCE LLC. TO PROVIDE FOOD SERVICE FOR PERIOD OF PERFORMANCE

Who is the contractor on this award?

The obligated recipient is QUALITY PRODUCE 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 $43,939.2.

What is the period of performance?

Start: 2025-09-16. End: 2025-09-30.

What is the typical cost for similar food service contracts within federal correctional facilities?

Determining a precise 'typical' cost for similar food service contracts is complex due to variations in inmate populations, dietary requirements, service scope (e.g., preparation vs. delivery), and contract duration. However, for short-term, localized needs like this 14-day contract valued at $43,939, the cost appears within a reasonable range for basic food preparation services. Larger, multi-year contracts for full-scale food service management in federal prisons can run into millions of dollars annually. The firm fixed price nature of this award suggests the contractor has factored in all anticipated costs, including labor, ingredients, and overhead, for the specified period. Without more granular data on the specific food items and service level, a direct per-meal or per-inmate cost comparison is difficult, but the overall award seems proportionate to the short-term requirement.

What is the track record of Quality Produce LLC with the federal government?

Based on the provided data, Quality Produce LLC appears to be a new entrant or has minimal prior contract history with the federal government, as no prior awards or extensive track record are indicated. This specific award is a purchase order for food services. For federal agencies, a lack of established track record can sometimes be a risk indicator, as performance history is a key factor in assessing contractor reliability and capability. However, the relatively small value and short duration of this contract may mitigate some of the risk associated with a new contractor. Future performance on this contract will be crucial in establishing their federal contracting history and informing future award decisions.

How does the Simplified Acquisition Procedure (SAP) impact price discovery and potential value for taxpayers?

Simplified Acquisition Procedures (SAP) are designed for procurements under the simplified acquisition threshold (typically $250,000). While SAP allows for more streamlined and faster acquisition, it can sometimes lead to less robust price discovery compared to full and open competition. Agencies may solicit quotes from a limited number of sources or rely on existing price lists. This can potentially result in prices that are not as aggressively negotiated as they might be in a highly competitive environment. For taxpayers, this means there's a possibility of paying a slightly higher price than could be achieved through broader competition. However, the efficiency gains and reduced administrative costs associated with SAP can sometimes offset this, especially for smaller procurements like this one, where the overall dollar amount is modest.

What are the risks associated with a short, 14-day performance period for food services?

A short, 14-day performance period for food services presents several potential risks. Firstly, it suggests an urgent or temporary need, which might arise from unforeseen circumstances, such as the expiration of a previous contract or an unexpected surge in demand. This urgency can sometimes lead to rushed procurement processes, potentially limiting competition and negotiation leverage. Secondly, for the contractor, a very short duration may make it challenging to fully optimize operations or achieve economies of scale, potentially leading to higher per-unit costs being factored into their bid. From a government perspective, the primary risk is ensuring continuity and quality of service during this critical period, especially if the contractor is new or if the need is emergent. There's also a risk that the short period might not be sufficient to fully vet the contractor's capabilities, although the small value mitigates some of this.

What is the significance of the 'Perishable Prepared Food Manufacturing' classification for this contract?

The 'Perishable Prepared Food Manufacturing' classification (NAICS code 311991) is significant as it defines the specific nature of the service being procured. It indicates that the contractor is responsible for not just supplying food, but actively preparing it, likely involving cooking, packaging, and ensuring freshness and safety standards are met for items that have a limited shelf life. This classification implies a higher level of service and operational complexity compared to simply supplying raw ingredients or pre-packaged, non-perishable goods. For the Bureau of Prisons, this means they are outsourcing the labor-intensive and quality-controlled process of preparing meals, requiring the contractor to have specific facilities, expertise in food safety, and a robust supply chain for fresh ingredients. It also highlights the time-sensitive nature of the delivery and consumption.

Industry Classification

NAICS: Manufacturing › Other Food Manufacturing › Perishable Prepared 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: 3616 3RD AVE, OPELIKA, AL, 36801

Business Categories: Category Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $43,939

Exercised Options: $43,939

Current Obligation: $43,939

Actual Outlays: $33,628

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline