Justice Department awards $88.4M contract for prison food services, with a 105-day duration

Contract Overview

Contract Amount: $88,382 ($88.4K)

Contractor: BTS Global Supply, LLC.

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-01-14

Contract Duration: 105 days

Daily Burn Rate: $842/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NATIONAL MENU Q1 FY26 BTS GLOBAL RP:0001-26 FIRM FIXED PRICE

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77006

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $88,381.89 to BTS GLOBAL SUPPLY, LLC. for work described as: NATIONAL MENU Q1 FY26 BTS GLOBAL RP:0001-26 FIRM FIXED PRICE Key points: 1. The contract's firm fixed-price structure aims to control costs for the Bureau of Prisons. 2. Competition dynamics for this contract are noted as 'Competed under SAP', suggesting a streamlined procurement process. 3. The short duration of 105 days indicates a need for immediate or short-term supply. 4. Performance context is tied to the Federal Prison System's operational needs. 5. This contract falls within the 'All Other Miscellaneous Food Manufacturing' sector. 6. The award to BTS GLOBAL SUPPLY, LLC. represents a significant expenditure for a specific operational requirement.

Value Assessment

Rating: fair

The contract value of $88.4 million for a 105-day period appears high for a food supply contract, especially considering it is a purchase order. Benchmarking against similar, longer-term food service contracts for federal facilities is difficult without more specific service details. The firm fixed-price nature provides cost certainty but may not reflect the most competitive pricing if the scope is broad or if market fluctuations are not adequately considered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves a limited number of bidders and is used for purchases below certain thresholds. While competed, the level of competition is not explicitly stated beyond 'Competed under SAP'. This suggests a potentially less robust competition than full and open procedures, which could impact price discovery and potentially lead to higher prices than if a broader range of vendors were solicited.

Taxpayer Impact: Taxpayers may not benefit from the most aggressive pricing due to the limited competition inherent in SAP procurements. The efficiency of the procurement process is prioritized, but this can come at the cost of maximizing taxpayer value through extensive bidding.

Public Impact

Inmates within the Federal Prison System will receive food supplies under this contract. The services delivered are essential for the daily operations and sustenance of correctional facilities. The geographic impact is likely nationwide, serving federal prisons across the country. Workforce implications are minimal for the contracting agency but support the supply chain and logistics sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inflated pricing due to limited competition under SAP.
Short contract duration may lead to frequent re-procurement costs and potential supply chain disruptions.
Lack of detailed service scope makes it difficult to assess true value for money.
Firm fixed-price may not account for potential market volatility in food commodity prices.

Positive Signals

Firm fixed-price provides budget certainty for the Bureau of Prisons.
Streamlined procurement process under SAP can lead to faster contract award.
Award to a specific vendor ensures a dedicated supplier for essential food items.

Sector Analysis

This contract falls under the 'All Other Miscellaneous Food Manufacturing' category, which is a broad classification within the food production and distribution sector. The federal government is a significant consumer of food products, with substantial spending across various agencies, including correctional facilities. Comparable spending benchmarks are difficult to establish without knowing the exact nature of the food items and services provided, but federal food procurement is a large and consistent market.

Small Business Impact

The data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). There is no indication of small business set-asides or subcontracting requirements. This means the contract did not directly aim to support the small business ecosystem, and its impact on small businesses is likely indirect through the supply chain, if at all.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Bureau of Prisons contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract terms, requiring delivery as specified. Transparency is facilitated by public contract databases, but detailed operational oversight and inspector general jurisdiction would focus on contract compliance and performance rather than the strategic value or market dynamics.

Related Government Programs

Federal Prison System Food Services
Bureau of Prisons Commissary Operations
Department of Justice Supply Chain Management
Federal Food Procurement
Miscellaneous Food Manufacturing Contracts

Risk Flags

Limited competition due to SAP procurement.
Potential for above-market pricing given the limited bidding environment.
Short contract duration may indicate an urgent need or a temporary solution.
Lack of detailed scope makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $88,381.89 to BTS GLOBAL SUPPLY, LLC.. NATIONAL MENU Q1 FY26 BTS GLOBAL RP:0001-26 FIRM FIXED PRICE

Who is the contractor on this award?

The obligated recipient is BTS GLOBAL SUPPLY, 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 $88,381.89.

What is the period of performance?

Start: 2025-10-01. End: 2026-01-14.

What is the specific breakdown of food items and services included in this $88.4 million contract?

The provided data does not specify the exact breakdown of food items or services covered by the $88.4 million contract. It is classified under 'All Other Miscellaneous Food Manufacturing' for the Federal Prison System. To understand the value and scope, a detailed manifest of goods (e.g., fresh produce, packaged goods, dairy, meats) and any associated services (e.g., delivery, storage, preparation support) would be necessary. Without this granularity, assessing the per-unit cost or the appropriateness of the total award value is challenging. The firm fixed-price nature suggests a defined list of items or a comprehensive service package is expected.

How does the $88.4 million award compare to historical spending on similar food supply contracts for the Bureau of Prisons?

Direct historical spending comparisons for this specific contract are not available from the provided data. However, the Bureau of Prisons consistently procures food supplies to meet the needs of its inmate population. Annual spending on food services can range significantly based on the number of facilities, inmate count, and contract duration. A $88.4 million award for a 105-day period suggests a substantial volume or high-value specialized items. To provide a meaningful comparison, one would need to analyze prior contracts for national or regional food supply, looking at both total dollar amounts and the duration of those contracts to normalize for time and scope.

What are the key performance indicators (KPIs) for BTS GLOBAL SUPPLY, LLC. under this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) for BTS GLOBAL SUPPLY, LLC. However, for a food supply contract with the Federal Prison System, typical KPIs would likely include on-time delivery rates, adherence to product specifications (quality, freshness, nutritional content), order accuracy, and compliance with food safety regulations. Performance would also be assessed against the firm fixed-price terms, ensuring that the contracted items are provided within the agreed budget. Failure to meet these KPIs could result in penalties or impact future contract awards.

What is the risk associated with a firm fixed-price contract for food supplies, given potential market fluctuations?

The primary risk with a firm fixed-price contract for food supplies, especially over a period that might extend beyond immediate needs or if market prices are volatile, is that the contractor may face financial losses if commodity prices rise significantly above their estimated costs. Conversely, the government locks in a price, which is beneficial if prices fall. For a short 105-day contract, the risk of extreme price fluctuation impacting the fixed price is generally lower than for longer-term agreements. However, the contractor likely built in a contingency for price increases, which could mean the government is not benefiting from potential price decreases.

What does 'Competed under SAP' imply about the potential for cost savings or efficiency gains in this procurement?

'Competed under SAP' (Simplified Acquisition Procedures) implies that the procurement process was streamlined and likely involved fewer procedural requirements than full and open competition. This can lead to faster award times and potentially lower administrative costs for the government. However, SAP procedures often limit the number of bidders and may not solicit the widest possible range of vendors. While efficiency is gained, the potential for achieving the absolute lowest price through extensive competition might be reduced. The cost savings are more likely to stem from administrative efficiency rather than aggressive price negotiation among numerous bidders.

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

Solicitation ID: 1200439

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2617 WHITNEY ST, HOUSTON, TX, 77006

Business Categories: Category Business, Limited Liability Corporation, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $88,382

Exercised Options: $88,382

Current Obligation: $88,382

Actual Outlays: $85,458

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline