DOJ's $48K milk contract for FCI Texarkana inmate population awarded to Hiland Dairy Foods Company, LLC

Contract Overview

Contract Amount: $48,112 ($48.1K)

Contractor: Hiland Dairy Foods Company, LLC

Awarding Agency: Department of Justice

Start Date: 2026-01-01

End Date: 2026-03-31

Contract Duration: 89 days

Daily Burn Rate: $541/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2ND QTR FY2026 - MILK PRODUCTS FOR INMATE POPULATION AT FCI TEXARKANA.

Place of Performance

Location: SPRINGFIELD, GREENE County, MISSOURI, 65807

State: Missouri Government Spending

Plain-Language Summary

Department of Justice obligated $48,112.05 to HILAND DAIRY FOODS COMPANY, LLC for work described as: 2ND QTR FY2026 - MILK PRODUCTS FOR INMATE POPULATION AT FCI TEXARKANA. Key points: 1. Contract value appears reasonable for a 3-month supply of milk. 2. Limited competition due to the nature of the product and short duration. 3. Risk indicators are low given the commodity nature of the product. 4. Performance context is a routine supply for correctional facility needs. 5. Sector positioning is within the food manufacturing and distribution industry.

Value Assessment

Rating: good

The contract value of $48,112.05 for a 3-month period for milk products at FCI Texarkana seems appropriate for the quantity and duration. Benchmarking against similar correctional facility food supply contracts would provide further validation, but the price per day per inmate is likely within expected ranges for a staple commodity. The firm fixed-price structure helps manage cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), suggesting a limited number of bidders were solicited. While the specific number of bidders is not detailed, SAP is typically used for procurements under the micro-purchase threshold or for smaller dollar value contracts where full and open competition may not be cost-effective. The limited competition may result in slightly higher prices than a full and open competition, but it also allows for faster award.

Taxpayer Impact: Taxpayers benefit from the efficiency of SAP for smaller procurements, which reduces administrative costs. However, the limited competition means there's a reduced opportunity to secure the absolute lowest price achievable through broader market engagement.

Public Impact

Inmates at FCI Texarkana will receive a consistent supply of milk products. The contract supports the operational needs of the Federal Prison System. The geographic impact is localized to Texarkana, Texas, where the facility is located. The contract supports jobs within Hiland Dairy Foods Company, LLC, a regional dairy producer.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in dairy markets impacting long-term affordability if contracts were longer.
Reliance on a single supplier for a critical food item could pose a minor supply chain risk.

Positive Signals

Hiland Dairy Foods Company, LLC is an established regional supplier, suggesting reliability.
The firm fixed-price contract provides cost certainty for the government.
The short duration minimizes exposure to market volatility.

Sector Analysis

This contract falls within the broader food manufacturing and distribution sector, specifically focusing on dairy products. The market for supplying correctional facilities is a niche within this sector, often characterized by routine procurements of staple goods. Comparable spending benchmarks would involve analyzing other contracts for milk and dairy products awarded to federal correctional facilities or other government entities.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses, given the nature of the product and the supplier. Hiland Dairy Foods Company, LLC's size is not specified, but the procurement method suggests it may not be a large prime contractor in this instance.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Prisons' contracting officers and facility management. Accountability is ensured through the terms of the purchase order and performance expectations. Transparency is facilitated by public contract databases where such awards are reported.

Related Government Programs

Federal Prison System Food Services
Bureau of Prisons Commissary Operations
Commodity Food Procurement

Risk Flags

Potential for supply chain disruption
Quality control of perishable goods

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $48,112.05 to HILAND DAIRY FOODS COMPANY, LLC. 2ND QTR FY2026 - MILK PRODUCTS FOR INMATE POPULATION AT FCI TEXARKANA.

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 $48,112.05.

What is the period of performance?

Start: 2026-01-01. End: 2026-03-31.

What is the historical spending pattern for milk products at FCI Texarkana?

Analyzing historical spending data for milk products at FCI Texarkana would reveal trends in pricing, volume, and supplier consistency. Without specific historical data, it's difficult to ascertain if the current award represents an increase or decrease in cost per unit or volume compared to previous periods. However, the current award of $48,112.05 for a 3-month period suggests an approximate quarterly expenditure. Understanding past contract durations and award values would provide context on whether this is a typical procurement cycle or a deviation. Consistent awards to the same vendor might indicate satisfaction with performance and pricing, while frequent changes could suggest competitive bidding or performance issues.

How does the price of milk under this contract compare to market rates for similar institutions?

The price of milk under this contract, approximately $48,112.05 for 89 days, needs to be benchmarked against market rates for similar correctional facilities or government institutions. Factors such as volume, specific product types (e.g., whole, skim, 2%), and delivery logistics influence per-unit costs. If this contract is for a significant inmate population, the per-gallon or per-unit cost should be compared to wholesale dairy prices and prices paid by comparable state or federal facilities. Without specific volume data, a precise per-unit cost comparison is challenging, but the overall contract value for a 3-month supply is a starting point for assessing value for money.

What is Hiland Dairy Foods Company, LLC's track record with federal contracts?

Hiland Dairy Foods Company, LLC's track record with federal contracts is a key indicator of their reliability and performance. A review of federal procurement databases would show if they have been awarded other contracts, particularly with the Department of Justice or Bureau of Prisons, and their performance history on those awards. Past performance, including on-time delivery, product quality, and adherence to contract terms, influences future award decisions. A history of successful contract fulfillment suggests a lower risk for this current award, while a history of issues might warrant closer scrutiny of this procurement.

What are the potential risks associated with this milk supply contract?

The primary risks associated with this milk supply contract are relatively low due to its commodity nature and short duration. Potential risks include supply chain disruptions (e.g., weather affecting milk production, transportation issues), quality control failures (e.g., spoilage), or price volatility if the contract were longer-term. For this specific 3-month contract, the risk of significant price fluctuations is minimal. The Bureau of Prisons would mitigate these risks through clear contract specifications, quality assurance checks, and potentially by having contingency plans for alternative suppliers, though this is less critical for a short-term commodity purchase.

How does the contract's firm fixed-price (FFP) structure impact value for money?

The Firm Fixed-Price (FFP) structure of this contract is advantageous for the government in managing costs for a predictable commodity like milk. It shifts the risk of cost overruns to the contractor, Hiland Dairy Foods Company, LLC. This means the government pays the agreed-upon price regardless of the contractor's actual costs. For a staple item with relatively stable demand and predictable production costs over a short period, FFP provides budget certainty and simplifies financial administration. It encourages the contractor to be efficient to maximize profit, potentially leading to better value if their cost management is effective.

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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1133 EAST KEARNEY, SPRINGFIELD, MO, 65801

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

Financial Breakdown

Contract Ceiling: $51,123

Exercised Options: $51,123

Current Obligation: $48,112

Actual Outlays: $18,159

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline