DOJ's $49,449 Purchase Order for Milk to LARC INDUSTRIES INC Under SAP Competition

Contract Overview

Contract Amount: $49,449 ($49.4K)

Contractor: Larc Industries Inc

Awarding Agency: Department of Justice

Start Date: 2026-04-08

End Date: 2026-06-30

Contract Duration: 83 days

Daily Burn Rate: $596/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MILK FOR THE INMATES 1/2 PINT NON-FAT MILK WEEKLY DELIVERY

Place of Performance

Location: COLLEGEVILLE, MONTGOMERY County, PENNSYLVANIA, 19426

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Justice obligated $49,449.4 to LARC INDUSTRIES INC for work described as: MILK FOR THE INMATES 1/2 PINT NON-FAT MILK WEEKLY DELIVERY Key points: 1. The contract is for fluid milk manufacturing, a common commodity. 2. LARC INDUSTRIES INC is the sole awardee under this specific purchase order. 3. The contract duration is 83 days, suggesting a short-term need. 4. The award is a Firm Fixed Price, providing cost certainty. 5. The total award value is $49,449.40.

Value Assessment

Rating: fair

The price of $49,449.40 for 83 days of milk delivery appears reasonable for a correctional facility. Benchmarking against similar contracts for bulk dairy products in institutional settings would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), indicating it was likely below the threshold for full and open competition. This method may limit the number of potential bidders and impact price discovery.

Taxpayer Impact: The cost of $49,449.40 for milk is a direct taxpayer expense for inmate sustenance. The use of SAP suggests an effort to streamline procurement for smaller value contracts.

Public Impact

Ensures a basic nutritional need for federal inmates. Supports a specific industry (food manufacturing/distribution). Represents a small portion of the overall federal budget for correctional services.

Waste & Efficiency Indicators

Waste Risk Score: 100 / 10

Warning Flags

Limited competition due to SAP.
Potential for price increases if market conditions change.
Dependence on a single supplier for a critical item.

Positive Signals

Firm Fixed Price contract provides budget certainty.
Short duration limits long-term financial commitment.
Procurement under SAP can be efficient for smaller needs.

Sector Analysis

The food manufacturing and distribution sector, particularly for institutional supply, is characterized by established players and competitive bidding for large contracts. This award falls within the typical range for essential supplies in correctional facilities.

Small Business Impact

The data does not indicate if LARC INDUSTRIES INC is a small business. If it is, this contract could represent significant business. However, SAP procurements are not exclusively for small businesses.

Oversight & Accountability

Standard oversight for purchase orders applies, including ensuring delivery and quality. The Bureau of Prisons is responsible for managing this contract and ensuring compliance with terms.

Related Government Programs

Fluid Milk Manufacturing
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Limited competition.
Potential supply chain vulnerability.
Price volatility risk.
Dependence on one vendor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $49,449.4 to LARC INDUSTRIES INC. MILK FOR THE INMATES 1/2 PINT NON-FAT MILK WEEKLY DELIVERY

Who is the contractor on this award?

The obligated recipient is LARC INDUSTRIES INC.

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 $49,449.4.

What is the period of performance?

Start: 2026-04-08. End: 2026-06-30.

What is the per-unit cost of milk based on this contract, and how does it compare to market rates for similar institutions?

The contract value is $49,449.40 over 83 days. Without knowing the exact quantity of milk (e.g., number of inmates, total gallons), a precise per-unit cost cannot be calculated. However, a rough estimate can be made if assumptions about consumption are available. Comparing this to industry benchmarks for institutional milk supply is crucial for assessing value for money.

What are the risks associated with relying on a single supplier for a staple like milk in a correctional facility?

The primary risks include supply chain disruptions (e.g., weather, transportation issues, supplier production problems), potential price gouging if competition was truly limited, and lack of flexibility if needs change. A single supplier also means less leverage for the government if quality or delivery issues arise.

How effective is the SAP procurement method in ensuring fair pricing and adequate supply for essential items like milk?

SAP is designed for efficiency and speed for purchases below certain thresholds. While it can be effective for routine items, it may not always yield the best prices compared to full and open competition, especially if the market has many capable suppliers. Its effectiveness depends on the specific market and the diligence of the contracting officer in soliciting adequate quotes.

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: 15B509Q00000002

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1514 GREEN VALLEY DR, COLLEGEVILLE, PA, 19426

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

Financial Breakdown

Contract Ceiling: $49,449

Exercised Options: $49,449

Current Obligation: $49,449

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline