DOJ's $88K milk purchase for Federal Prison System awarded to Hiland Dairy Foods Company, LLC

Contract Overview

Contract Amount: $88,044 ($88.0K)

Contractor: Hiland Dairy Foods Company, LLC

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-06-30

Contract Duration: 90 days

Daily Burn Rate: $978/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HILAND DAIRY FY26 QTR 3 MILK ORDER

Place of Performance

Location: SPRINGFIELD, GREENE County, MISSOURI, 65801

State: Missouri Government Spending

Plain-Language Summary

Department of Justice obligated $88,044 to HILAND DAIRY FOODS COMPANY, LLC for work described as: HILAND DAIRY FY26 QTR 3 MILK ORDER Key points: 1. Value for money assessed through competitive bidding process. 2. Competition dynamics indicate a potentially favorable pricing environment. 3. Risk indicators appear low given the nature of the commodity and established supplier. 4. Performance context is a short-term supply of a basic necessity. 5. Sector positioning is within the food and beverage supply chain for government institutions.

Value Assessment

Rating: good

The contract value of $88,044 for a 90-day milk supply appears reasonable for the Federal Prison System. While specific per-unit cost benchmarks for correctional facilities are not readily available, the firm fixed-price nature of the award suggests a predictable cost. The competitive award process likely ensured a fair market price was obtained for this essential commodity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), indicating a full and open competition for procurements below a certain threshold. The award to Hiland Dairy Foods Company, LLC suggests that multiple bids were likely solicited and evaluated, leading to the selection of the most advantageous offer. The use of SAP generally promotes fair competition for smaller value procurements.

Taxpayer Impact: The competitive nature of this award, even under SAP, is beneficial for taxpayers as it helps ensure that the government is not overpaying for essential goods like milk.

Public Impact

Inmates within the Federal Prison System will receive a consistent supply of fluid milk. The services delivered are the provision of a staple food item essential for nutrition. Geographic impact is primarily within Missouri, where Hiland Dairy Foods Company, LLC is based and likely serves the facility. Workforce implications are minimal, primarily supporting existing production and distribution roles at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions affecting delivery schedules.
Fluctuations in dairy commodity prices could impact future contract renewals if not adequately managed.

Positive Signals

Award to an established dairy provider with likely experience in government contracts.
Firm fixed-price contract provides cost certainty for the duration of the award.
Competitive bidding process suggests a focus on obtaining best value.

Sector Analysis

The dairy industry is a significant component of the broader food and beverage sector. Government agencies, particularly correctional facilities, are consistent purchasers of dairy products to meet the nutritional needs of their populations. This contract represents a small but essential part of the federal government's procurement of food supplies, fitting within the broader category of commodity food services.

Small Business Impact

This contract was awarded to Hiland Dairy Foods Company, LLC, which is not explicitly identified as a small business in the provided data. There is no indication of a small business set-aside for this particular purchase order. Subcontracting implications are not detailed but would likely involve local suppliers or distributors if applicable.

Oversight & Accountability

Oversight for this purchase order would fall under the Federal Prison System's procurement and contracting division within the Department of Justice. Accountability measures are inherent in the purchase order system, requiring delivery of specified goods. Transparency is facilitated by contract award databases, though specific performance metrics are not detailed here.

Related Government Programs

Federal Prison System Food Services
Department of Justice Commodity Procurement
Dairy Product Supply Contracts

Risk Flags

Perishable Goods Management
Supply Chain Reliability
Food Safety Compliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $88,044 to HILAND DAIRY FOODS COMPANY, LLC. HILAND DAIRY FY26 QTR 3 MILK ORDER

Who is the contractor on this award?

The obligated recipient is HILAND DAIRY FOODS COMPANY, 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 $88,044.

What is the period of performance?

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

What is the historical spending pattern for milk procurement by the Federal Prison System?

Historical spending data for milk procurement by the Federal Prison System would reveal trends in volume, pricing, and supplier relationships over time. Analyzing past purchase orders and contracts can identify fluctuations in demand, the impact of market price changes on federal spending, and the consistency of awarded contractors. For instance, a review might show if the system has relied on a few key suppliers or if there has been a rotation of awarded companies. Understanding these patterns is crucial for budgeting, forecasting future needs, and assessing whether current procurement strategies are achieving optimal value for taxpayer dollars. Without specific historical data, it's difficult to benchmark this $88,044 order against previous expenditures or to identify any significant deviations in cost or volume.

How does the per-unit cost of milk in this contract compare to other federal or state correctional facilities?

Benchmarking the per-unit cost of milk in this contract against other federal or state correctional facilities is essential for assessing value for money. While the total award is $88,044 for a 90-day period, the actual per-unit cost (e.g., per gallon or per half-pint) is not provided. Correctional facilities often benefit from bulk purchasing power, which can lead to lower per-unit costs compared to commercial retail. However, factors such as geographic location, delivery logistics, specific product requirements (e.g., fat content, pasteurization), and the competitive landscape for dairy suppliers in the region can influence pricing. A detailed analysis would require access to the specific quantities ordered and the unit price, which are not present in the provided data. Comparing this to publicly available contract awards for similar institutions could reveal if the DOJ is securing a competitive rate.

What is Hiland Dairy Foods Company, LLC's track record with federal government contracts, particularly for food supplies?

Hiland Dairy Foods Company, LLC's track record with federal government contracts is a key indicator of their reliability and experience. While this specific award is a purchase order, understanding their history with agencies like the Department of Justice or other branches of the military and federal institutions provides insight into their performance. This includes examining past contract awards, their values, durations, and whether there have been any reported issues such as delivery failures, quality complaints, or contract disputes. A strong track record suggests a lower risk of performance issues for this current milk order. Conversely, a history of problems might warrant closer scrutiny of their capacity to fulfill this requirement effectively and on time.

What are the specific nutritional requirements or standards for milk supplied to federal prisons?

The specific nutritional requirements and standards for milk supplied to federal prisons are typically outlined in the contract's statement of work or specifications. These standards ensure that the milk meets federal guidelines for safety, quality, and nutritional content, such as fat percentage, vitamin fortification (e.g., Vitamin D), and pasteurization methods. The Federal Prison System, under the Bureau of Prisons, likely adheres to established food service regulations and dietary guidelines to ensure the health and well-being of inmates. Compliance with these standards is critical for the contractor, and deviations could lead to contract non-compliance. Understanding these specifications helps in evaluating the appropriateness of the awarded product and the contractor's ability to meet them consistently.

Are there any specific risks associated with procuring fluid milk for correctional facilities, such as spoilage or supply chain vulnerabilities?

Procuring fluid milk for correctional facilities carries inherent risks, primarily related to its perishable nature and the potential for supply chain vulnerabilities. Spoilage can occur if proper handling, storage, and transportation protocols are not strictly followed by the contractor, leading to waste and potential health hazards. Supply chain disruptions, whether due to weather events, transportation issues, or fluctuations in dairy production, could impact the timely delivery of milk, affecting inmate meal services. Furthermore, the reliance on a single supplier for a critical commodity like milk can increase vulnerability. The Federal Prison System likely mitigates these risks through stringent contract terms, regular inspections, and potentially by maintaining backup supplier relationships or emergency protocols, though these are not detailed in the provided data.

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: 15B40826Q00000007

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1133 EAST KEARNEY, SPRINGFIELD, MO, 65801

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $88,044

Exercised Options: $88,044

Current Obligation: $88,044

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline