DOJ's $53,874 milk purchase for Three Rivers inmates awarded to New England Ville LLC

Contract Overview

Contract Amount: $53,874 ($53.9K)

Contractor: NEW England Ville LLC

Awarding Agency: Department of Justice

Start Date: 2026-04-07

End Date: 2026-06-30

Contract Duration: 84 days

Daily Burn Rate: $641/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 Q3 MILK FOR INMATE POPULATION FOR FCI THREE RIVERS

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22306

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $53,874 to NEW ENGLAND VILLE LLC for work described as: FY26 Q3 MILK FOR INMATE POPULATION FOR FCI THREE RIVERS 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 specialized food services. 3. Risk indicators are low due to the perishable nature and short-term contract. 4. Performance context suggests a routine supply need for correctional facilities. 5. Sector positioning is within the food services niche for government institutions.

Value Assessment

Rating: fair

The contract value of $53,874 for an 84-day period suggests a daily cost of approximately $641. This is a relatively small contract, making direct comparison difficult without more granular data on milk pricing and delivery logistics. The firm fixed-price structure provides cost certainty for the government, but limits potential savings if market prices decrease.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), suggesting it was likely solicited from a pre-approved list or through a limited number of vendors. With 7 bidders, there was some level of competition, but the specifics of the solicitation process are not detailed. Limited competition can sometimes lead to higher prices than a full and open competition.

Taxpayer Impact: The use of SAP and a limited number of bidders may mean taxpayers did not benefit from the lowest possible price achievable through broader market engagement.

Public Impact

Inmates at FCI Three Rivers in Virginia will receive milk as part of their dietary needs. The service ensures the provision of a basic nutritional staple within the federal prison system. The geographic impact is localized to the FCI Three Rivers facility in Virginia. Workforce implications are minimal, likely involving delivery personnel from the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future solicitations if competition remains limited.
Reliance on a single vendor for a critical perishable item could pose supply chain risks.

Positive Signals

Firm fixed-price contract provides budget certainty.
Multiple bidders indicate some level of vendor interest in this market segment.
Short contract duration limits long-term financial exposure.

Sector Analysis

The federal government is a significant purchaser of food products and services for its various institutions, including correctional facilities. The market for perishable food items like milk is competitive, but specialized delivery and compliance requirements for government facilities can create niche opportunities. This contract falls within the broader food services and logistics sector supporting government operations.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The contractor, NEW ENGLAND VILLE LLC, is not identified by size. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

As a purchase order under SAP, oversight is likely managed through the Bureau of Prisons' procurement and contract management systems. Transparency is limited to the award data provided. Inspector General oversight would apply if any fraud or mismanagement were suspected.

Related Government Programs

Federal Prison System Food Services
Bureau of Prisons Inmate Welfare Funds
Perishable Goods Procurement

Risk Flags

Potential for higher costs due to limited competition.
Risk of supply disruption with short-term contracts for perishables.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $53,874 to NEW ENGLAND VILLE LLC. FY26 Q3 MILK FOR INMATE POPULATION FOR FCI THREE RIVERS

Who is the contractor on this award?

The obligated recipient is NEW ENGLAND VILLE 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 $53,874.

What is the period of performance?

Start: 2026-04-07. End: 2026-06-30.

What is the typical cost per gallon of milk for federal correctional facilities?

Determining a precise 'typical' cost per gallon of milk for federal correctional facilities is challenging without access to detailed historical procurement data across multiple institutions and contract types. Factors such as volume, delivery frequency, geographic location, and specific contract terms (e.g., firm fixed-price vs. cost-plus) significantly influence pricing. However, general market data for bulk milk purchases can serve as a benchmark. For instance, if this contract covers approximately 10,000 gallons over 84 days (assuming roughly 120 gallons/day), the cost per gallon would be around $5.39. This appears high compared to typical wholesale prices, suggesting potential inefficiencies or specific service requirements driving the cost. Further investigation into the exact quantity and delivery terms is warranted.

How does the number of bidders (7) compare to similar food service contracts for correctional facilities?

A competition with 7 bidders for a food service contract under Simplified Acquisition Procedures (SAP) suggests a moderate level of interest. For smaller procurements like this ($53,874), 7 bidders can be considered a reasonable number, indicating that the opportunity was visible to multiple vendors. However, 'similar' contracts are key. If this is for a highly specialized or geographically constrained service, 7 bidders might be excellent. If it's for a common item like milk in a region with many food distributors, it might suggest less robust competition than ideal. Typically, more bidders lead to better price discovery and potentially lower costs for the government. Without comparative data on the number of bidders for comparable BOP food contracts, it's difficult to definitively assess if 7 is high or low, but it does indicate the market wasn't a sole-source situation.

What are the potential risks associated with a short-duration contract for perishable goods?

Short-duration contracts for perishable goods, like this 84-day milk supply, present specific risks. Firstly, there's a risk of supply disruption if the contractor fails to deliver or if the contract is not renewed or replaced promptly, potentially impacting inmate nutrition. Secondly, the short timeframe may limit the contractor's ability to achieve economies of scale, potentially leading to higher per-unit costs compared to longer-term agreements. Thirdly, frequent re-solicitation for such items incurs administrative costs and requires continuous market monitoring. Finally, for the government, there's the risk of price increases in subsequent short-term contracts if market conditions change or if fewer vendors are willing to bid on short notice. However, the benefit is reduced long-term financial commitment and the ability to adapt to changing needs or market prices more quickly.

What is the track record of NEW ENGLAND VILLE LLC in supplying federal agencies?

Information regarding the specific track record of NEW ENGLAND VILLE LLC in supplying federal agencies is not readily available within the provided data snippet. To assess their reliability and past performance, a search of federal procurement databases (like SAM.gov or FPDS) would be necessary. This would reveal details on previous contracts, their values, performance evaluations, and any history of disputes or contract terminations. Without this external data, it's impossible to comment on their track record, which is a crucial factor in evaluating the risk associated with awarding them this contract.

How does the contract type 'FIRM FIXED PRICE' impact value for money in this scenario?

The 'FIRM FIXED PRICE' (FFP) contract type is generally advantageous for the government when the scope of work is well-defined and risks of cost escalation are manageable. For a perishable item like milk with a short delivery window, FFP provides cost certainty, meaning the government knows the exact amount it will pay regardless of the contractor's actual costs. This protects against unexpected price increases for the contractor. It incentivizes the contractor to manage their own costs efficiently to maximize profit. For taxpayers, this means predictable budgeting. The primary risk with FFP is that if the contractor underestimated costs, they might cut corners on quality or service, or potentially default. However, for a commodity like milk with clear specifications, the value for money is often enhanced by the cost certainty provided by FFP, assuming the initial price negotiated is competitive.

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

Solicitation ID: UNISON BUY 1206793

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6375 RICHMOND HWY APT 284, ALEXANDRIA, VA, 22306

Business Categories: Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $53,874

Exercised Options: $53,874

Current Obligation: $53,874

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline