DOJ's $48.2M food contract awarded to SHAVER FOODS LLC for 90 days of service

Contract Overview

Contract Amount: $48,170 ($48.2K)

Contractor: Shaver Foods LLC

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-06-30

Contract Duration: 90 days

Daily Burn Rate: $535/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 A1 SHAVER FY26 QTR3 PO APR 26

Place of Performance

Location: MARION, WILLIAMSON County, ILLINOIS, 62959

State: Illinois Government Spending

Plain-Language Summary

Department of Justice obligated $48,170.33 to SHAVER FOODS LLC for work described as: FY26 A1 SHAVER FY26 QTR3 PO APR 26 Key points: 1. Value for money appears fair given the short duration and fixed-price nature. 2. Competition dynamics indicate a potentially limited market for this specific type of food service. 3. Risk indicators are low due to the short contract term and established product category. 4. Performance context suggests a routine procurement for essential supplies. 5. Sector positioning places this within the broader federal food service and supply chain.

Value Assessment

Rating: fair

The contract value of $48.2 million for a 90-day period suggests a significant per diem cost. Benchmarking against similar federal food service contracts is challenging without more specific details on the types of food and services provided. However, the firm fixed-price structure offers cost certainty for the government, mitigating some risk of overspending. The relatively short duration may also indicate a need for immediate supply rather than a long-term strategic partnership.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), suggesting it was likely solicited from a limited pool of pre-qualified vendors or through a streamlined process for smaller dollar amounts. The data indicates 15 offers were received, which is a healthy number for SAP, but the specific nature of the solicitation method (e.g., GSA Schedule, specific RFQ) would determine the true breadth of competition. A limited competition under SAP can sometimes lead to less aggressive pricing compared to full and open competition.

Taxpayer Impact: While 15 offers suggest some level of competition, the use of SAP means taxpayers may not be benefiting from the broadest possible price discovery. However, the efficiency gains of SAP can also represent a form of value.

Public Impact

Federal inmates within the Bureau of Prisons will benefit from the provision of essential food supplies. The contract ensures the continuous delivery of food products to correctional facilities. Geographic impact is likely concentrated within the regions served by the Federal Prison System facilities receiving these supplies. Workforce implications are minimal for the government, with the primary labor impact being on the contractor's supply chain and delivery personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future, longer-term contracts if competition remains limited.
Dependence on a single supplier for a critical need could pose a supply chain risk if not managed proactively.

Positive Signals

Firm fixed-price contract provides cost predictability.
Multiple offers received indicate a degree of market interest and potential for competitive pricing within the SAP framework.
Short contract duration limits long-term financial exposure and allows for re-evaluation of needs.

Sector Analysis

This contract falls within the broader food manufacturing and distribution sector, a critical component of the federal supply chain. The federal government is a significant purchaser of food products for its various agencies, including correctional facilities, military bases, and federal hospitals. Spending in this sector is generally stable, driven by consistent demand for essential goods. Comparable spending benchmarks would typically involve analyzing per-diem food costs across different correctional systems or institutional settings.

Small Business Impact

The provided data does not indicate if this contract included a small business set-aside or if SHAVER FOODS LLC is a small business. If it was not set aside, large businesses may have competed, potentially impacting opportunities for small businesses. Subcontracting implications are unknown without further details on the contract's structure and the prime contractor's small business utilization plan.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Federal Prison System / Bureau of Prisons. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Prison System Food Services
Bureau of Prisons Commissary Operations
General Services Administration (GSA) Food Procurement
Department of Defense Food Services

Risk Flags

Potential for limited competition due to specialized nature of 'miscellaneous food'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $48,170.33 to SHAVER FOODS LLC. FY26 A1 SHAVER FY26 QTR3 PO APR 26

Who is the contractor on this award?

The obligated recipient is SHAVER 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 $48,170.33.

What is the period of performance?

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

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

Historical spending on food supplies by the Federal Prison System (FPS) has been substantial, reflecting the large inmate population requiring daily sustenance. While specific figures fluctuate annually based on inmate counts, food costs, and contract awards, the FPS consistently allocates significant portions of its budget to food procurement. Analysis of past FPDS data reveals multi-million dollar awards annually for various food categories, including fresh produce, dairy, meat, and processed goods. For instance, in recent fiscal years, total spending on food-related contracts has often exceeded hundreds of millions of dollars across the Bureau of Prisons. This current $48.2 million award for a 90-day period represents a notable, albeit short-term, expenditure within this ongoing operational necessity. Understanding these historical patterns is crucial for assessing the reasonableness of current spending and identifying trends in pricing and demand.

How does the per-unit cost of items under this contract compare to market rates or similar federal contracts?

Determining the precise per-unit cost comparison is challenging without a detailed breakdown of the specific food items and quantities included in the $48.2 million purchase order. The contract is for 'All Other Miscellaneous Food Manufacturing,' a broad category. However, given the total value and the 90-day duration, the implied daily expenditure is substantial. Federal food contracts often aim for competitive pricing through bulk purchasing and established supply chains. If this contract were for staple items like bread or milk, one could benchmark against GSA Schedule pricing or other large institutional contracts. The 'miscellaneous' nature suggests specialized or varied items, making direct comparison difficult. If prices are significantly higher than comparable institutional food service providers or commercial bulk rates, it could indicate a lack of sufficient competition or less favorable contract terms.

What is SHAVER FOODS LLC's track record with federal contracts, particularly with the Department of Justice?

SHAVER FOODS LLC has a history of receiving federal contracts, though the extent and nature of their work with the Department of Justice (DOJ) specifically requires detailed review of procurement databases. Publicly available data indicates past awards to SHAVER FOODS LLC from various federal agencies. Assessing their track record involves examining factors such as past performance evaluations, any history of contract disputes or terminations, and the types of goods or services previously provided. For a contract of this magnitude ($48.2 million), the DOJ would typically rely on past performance information as a key evaluation factor. A positive track record with similar agencies or for comparable products would suggest a lower performance risk for this specific award. Conversely, any negative past performance could raise concerns about the contractor's ability to meet the requirements effectively and on time.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential supply chain disruptions, quality control issues with the food products, and price volatility if market conditions change unfavorably during the contract period. Given the short 90-day duration, the risk of significant price volatility is somewhat mitigated. Supply chain risks are managed through the contractor's obligation to deliver specified goods, with potential penalties for non-performance. Quality control is typically addressed through inspection and acceptance procedures outlined in the contract. The firm fixed-price nature inherently shifts some price risk to the contractor. Furthermore, the receipt of 15 offers suggests a degree of market vetting, potentially reducing the risk of contractor default compared to a sole-source award.

How does the competition level (15 offers) for this contract translate into value for taxpayers?

Receiving 15 offers for a contract competed under Simplified Acquisition Procedures (SAP) is generally a positive sign for taxpayers, indicating a reasonably competitive environment for this specific procurement. A higher number of bids typically leads to more aggressive pricing as contractors vie for the award. This increased competition helps ensure that the government is not overpaying for the goods and services. While SAP is a streamlined process and may not involve the same breadth of competition as a full and open solicitation, 15 offers suggest that multiple vendors found the opportunity attractive and were willing to invest resources in bidding. This competitive pressure likely resulted in a more favorable price than if only a few or a single vendor had bid, thereby maximizing the value of taxpayer dollars.

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: 15

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1419 S BEECHWOOD AVE, FAYETTEVILLE, AR, 72701

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

Financial Breakdown

Contract Ceiling: $48,170

Exercised Options: $48,170

Current Obligation: $48,170

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline