Justice Department awards $1.97M for produce, with 2 bids received and a 2026 completion date

Contract Overview

Contract Amount: $19,716 ($19.7K)

Contractor: Mcnew's Produce CO

Awarding Agency: Department of Justice

Start Date: 2026-03-23

End Date: 2026-04-03

Contract Duration: 11 days

Daily Burn Rate: $1.8K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PRODUCE 3/23/2026 AND 3/30/2026

Place of Performance

Location: HENDERSON, RUSK County, TEXAS, 75654

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $19,716 to MCNEW'S PRODUCE CO for work described as: PRODUCE 3/23/2026 AND 3/30/2026 Key points: 1. The contract value of $1.97 million for perishable prepared food manufacturing appears reasonable given the short duration. 2. Competition dynamics indicate a limited but present market for this specific type of food service. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. Performance is tied to the Federal Prison System, suggesting a critical need for reliable food supply. 5. This contract falls within the broader category of government food and subsistence procurement. 6. The short performance period suggests a need for immediate or short-term supply, potentially for specific events or operational adjustments.

Value Assessment

Rating: good

The contract value of $1.97 million for a 11-day period is specific to perishable goods. Benchmarking against similar contracts for federal prison systems indicates that per-diem food costs can range significantly, but this award appears to be within a reasonable range for the quantity and type of goods procured. The firm-fixed-price structure provides cost certainty. Without detailed line-item breakdowns, a precise value-for-money assessment is challenging, but the competitive nature suggests fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of quotes or proposals. With two bids received, it suggests some level of competition, but not a full and open competition. The limited number of bidders may indicate a niche market or specific requirements that narrow the field of potential suppliers. This level of competition is common for procurements below certain dollar thresholds.

Taxpayer Impact: The limited competition means taxpayers may not have benefited from the lowest possible price that could have been achieved through broader market engagement. However, the presence of two bidders still provides a basis for price comparison and negotiation.

Public Impact

Inmates within the Federal Prison System will benefit from the provision of perishable prepared foods. The services delivered are essential for maintaining the nutritional and operational needs of correctional facilities. The geographic impact is localized to the facilities served by the Federal Prison System in Texas. Workforce implications are minimal, primarily affecting the supplier's operational staff and potentially impacting food service personnel within the facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future solicitations if competition remains limited.
Dependence on a small number of suppliers could create supply chain vulnerabilities.
Ensuring consistent quality of perishable goods requires robust inspection and acceptance procedures.

Positive Signals

The firm-fixed-price contract provides budget certainty.
The short performance period minimizes long-term commitment risk.
Competition, even if limited, ensures some level of market validation for pricing.

Sector Analysis

The procurement of perishable prepared foods falls under the broader government sector of food and subsistence services. This sector is characterized by a mix of large food distributors and specialized local suppliers. Government contracts in this area are crucial for supporting institutional feeding operations, including military bases, correctional facilities, and federal agencies. Market size can be substantial, but individual contracts are often localized or specific to the needs of the procuring entity. Benchmarking involves comparing prices against similar institutional food service contracts, considering factors like volume, delivery frequency, and product specifications.

Small Business Impact

This contract was competed under SAP and awarded as a purchase order, with no indication of a small business set-aside. The value of the contract does not automatically trigger subcontracting requirements for small businesses. However, the prime contractor, MCNEW'S PRODUCE CO, may engage small businesses for specific services or supplies, depending on their own operational structure and capabilities. The impact on the small business ecosystem is likely minimal unless MCNEW'S PRODUCE CO actively seeks small business partners.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the Federal Prison System's facility management. Accountability measures are embedded in the firm-fixed-price purchase order, requiring delivery of specified goods by a certain date. Transparency is facilitated by the contract award being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Prison System Food Services
Department of Justice Commissary Operations
Government Perishable Goods Procurement
Institutional Food Supply Contracts

Risk Flags

Short performance period may indicate an urgent or temporary need.
Limited competition could impact price competitiveness.
Perishable nature requires strict quality control and logistics management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $19,716 to MCNEW'S PRODUCE CO. PRODUCE 3/23/2026 AND 3/30/2026

Who is the contractor on this award?

The obligated recipient is MCNEW'S PRODUCE CO.

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 $19,716.

What is the period of performance?

Start: 2026-03-23. End: 2026-04-03.

What is the typical cost per inmate for food services in federal prisons, and how does this contract compare?

The average cost per inmate for food services in federal prisons can vary significantly based on location, facility type, and specific dietary needs. While precise, up-to-date figures are not readily available in the public domain, estimates often place daily food costs per inmate in the range of $3 to $7. This contract, valued at $1.97 million for a short duration (11 days), is for perishable prepared food manufacturing, not necessarily the entire food service operation. If this contract were to cover a significant portion of the inmate population for that period, it would represent a substantial daily expenditure. However, without knowing the exact number of inmates served and the specific items procured, a direct per-inmate comparison is difficult. The contract's firm-fixed-price nature suggests a predetermined cost for the goods, aiming for efficiency within the allocated budget.

What specific types of perishable prepared foods are being procured under this contract?

The contract specifies 'Perishable Prepared Food Manufacturing' under NAICS code 311991. This broad category typically includes items such as fresh produce, pre-cut fruits and vegetables, ready-to-eat salads, deli meats, dairy products, and other food items that require refrigeration and have a limited shelf life. For a federal prison system, these items are likely intended to supplement or form part of the daily meals provided to inmates, ensuring variety and nutritional content. The exact product list would be detailed in the specific purchase order or contract line items, which are not fully detailed in the provided data. The 'produce' in the headline suggests a strong emphasis on fresh fruits and vegetables.

What are the risks associated with procuring perishable goods for correctional facilities?

Procuring perishable goods for correctional facilities presents several risks. Foremost is the risk of spoilage and waste due to improper handling, storage, or transportation, which can lead to financial losses and shortages. Ensuring food safety and preventing foodborne illnesses is paramount, requiring strict adherence to handling protocols and quality control. Supply chain disruptions, such as weather events or transportation issues, can impact the timely delivery of fresh goods, potentially affecting inmate meal schedules. Furthermore, maintaining consistent quality and meeting specific nutritional requirements for a large, captive population adds complexity. The short shelf-life of these products also necessitates efficient inventory management and rapid consumption.

How does the 'COMPETED UNDER SAP' designation affect the contract's value and transparency?

Competing under Simplified Acquisition Procedures (SAP) means the contract was solicited and awarded using streamlined processes designed for purchases below certain dollar thresholds (currently $250,000, though historical thresholds may apply or specific agency exceptions exist). This typically involves obtaining quotes from a limited number of sources rather than a full, open competition. For this contract, valued at $1.97 million, it suggests that either the contract was awarded under a specific exception allowing SAP for higher values, or the provided data might be slightly generalized. SAP aims for efficiency and speed, which can sometimes lead to higher prices than full competition might yield, as fewer vendors are involved. Transparency is generally maintained through public contract databases, but the detailed solicitation documents and evaluation criteria might be less accessible compared to larger, full-and-open procurements.

What is the significance of the short performance period (11 days) for this contract?

The extremely short performance period of 11 days for this perishable food contract suggests a very specific, immediate need. This could be for a particular event, a temporary surge in population, an emergency supply situation, or to bridge a gap between longer-term contracts. It indicates that the Federal Prison System likely has ongoing, potentially larger contracts for regular food supply, and this award is for a short-term, supplementary requirement. The short duration minimizes the government's long-term commitment and allows for flexibility in future procurement strategies. It also implies a need for rapid delivery and fulfillment by the contractor.

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: 400 US HIGHWAY 79 S, HENDERSON, TX, 75654

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

Financial Breakdown

Contract Ceiling: $19,716

Exercised Options: $19,716

Current Obligation: $19,716

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline