DOJ's $7.9M inmate food contract awarded to Buona Fortuna Foods, LLC for FCI Three Rivers

Contract Overview

Contract Amount: $7,909 ($7.9K)

Contractor: Buona Fortuna Foods, LLC

Awarding Agency: Department of Justice

Start Date: 2026-04-10

End Date: 2026-04-28

Contract Duration: 18 days

Daily Burn Rate: $439/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 28

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 Q3 SUBSTANCE FOR INMATE POPULATION AT FCI THREE RIVERS

Place of Performance

Location: MODESTO, STANISLAUS County, CALIFORNIA, 95358

State: California Government Spending

Plain-Language Summary

Department of Justice obligated $7,909.44 to BUONA FORTUNA FOODS, LLC for work described as: FY26 Q3 SUBSTANCE FOR INMATE POPULATION AT FCI THREE RIVERS Key points: 1. Contract awarded for essential inmate sustenance, indicating a critical service delivery. 2. The contract was competed under the Simplified Acquisition Procedures (SAP), suggesting a focus on efficiency for smaller procurements. 3. A firm-fixed-price award indicates that the contractor assumes the risk for cost overruns. 4. The short duration of 18 days suggests this is likely a short-term or bridge contract. 5. The award value of $7.9M for an 18-day period warrants scrutiny for cost-effectiveness. 6. The contractor, Buona Fortuna Foods, LLC, is a new entity in federal contracting based on available data. 7. The contract falls under 'All Other Miscellaneous Food Manufacturing' NAICS code, indicating a broad category for food production.

Value Assessment

Rating: questionable

The contract value of $7.9 million for an 18-day period equates to approximately $439,000 per day. This daily rate appears high for food services, even for a large inmate population. Benchmarking against similar contracts for correctional facility food supply is necessary to determine if this represents a fair market price. Without more granular data on the number of inmates served and the specific food items provided, a definitive value assessment is challenging, but the daily burn rate raises concerns.

Cost Per Unit: $439,000 per day (estimated)

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders and is intended for procurements below a certain threshold. While competed, SAP does not guarantee the same level of broad market engagement as full and open competition. The number of bidders is not specified, but the use of SAP suggests a streamlined process that may not have explored the full competitive landscape.

Taxpayer Impact: The use of SAP for a contract of this magnitude may limit the potential for achieving the lowest possible price through extensive competition, potentially costing taxpayers more than a fully competed contract.

Public Impact

Inmates at FCI Three Rivers will receive sustenance, ensuring basic needs are met. The contract supports the operational continuity of the Federal Prison System / Bureau of Prisons. The primary beneficiaries are the incarcerated individuals requiring daily meals. The geographic impact is localized to FCI Three Rivers in California. This contract supports the food manufacturing and distribution sector, albeit for a specific institutional need.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High daily cost raises concerns about value for money.
Short contract duration suggests potential for recurring, higher-cost procurements.
Limited competition under SAP may not yield the best pricing.
New contractor with potentially limited track record in large-scale federal food provision.

Positive Signals

Contract was competed, indicating an effort to solicit offers.
Firm-fixed-price award shifts cost risk to the contractor.
Awarded to a specific business entity, supporting economic activity.

Sector Analysis

This contract falls within the broader food manufacturing and services sector, specifically catering to institutional needs. The federal government is a significant purchaser of food products and services for correctional facilities, military bases, and other government institutions. The market for correctional food services is competitive, with specialized providers. However, the use of SAP for a nearly $8 million contract suggests this may be a specific, perhaps urgent, requirement rather than a large-scale, long-term food service contract.

Small Business Impact

The provided data does not indicate if this contract included a small business set-aside. The contractor, Buona Fortuna Foods, LLC, is identified, but its size status (small or large business) is not specified. If Buona Fortuna Foods, LLC is a small business, this contract would contribute to federal small business prime contracting goals. However, without explicit information, the impact on the small business ecosystem remains unknown.

Oversight & Accountability

The contract is a Purchase Order, typically subject to oversight by the issuing agency, the Department of Justice's Federal Prison System. Standard procurement regulations and contract administration processes would apply. Transparency regarding the specific terms, performance metrics, and payment schedules would be available through agency contract management systems. Inspector General oversight would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Prison System Food Services
Bureau of Prisons Commissary Operations
Correctional Facility Food Supply Contracts
Department of Justice Procurement

Risk Flags

High daily cost per inmate.
Short contract duration.
Limited competition under SAP.
New contractor with potentially limited federal track record.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $7,909.44 to BUONA FORTUNA FOODS, LLC. FY26 Q3 SUBSTANCE FOR INMATE POPULATION AT FCI THREE RIVERS

Who is the contractor on this award?

The obligated recipient is BUONA FORTUNA 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 $7,909.44.

What is the period of performance?

Start: 2026-04-10. End: 2026-04-28.

What is the typical cost per inmate per day for food services in federal correctional facilities?

The cost per inmate per day for food services in federal correctional facilities can vary significantly based on location, inmate population size, dietary needs, and contract specifics. Historically, figures have ranged from $3 to $10 per inmate per day. The daily rate implied by this contract ($439,000 / estimated inmate population) appears substantially higher than these benchmarks, suggesting a need for further investigation into the specific services or circumstances justifying the cost. Factors such as specialized dietary requirements, emergency provisioning, or a very small inmate population relative to the contract value could influence this rate.

What is the track record of Buona Fortuna Foods, LLC with federal contracts?

Based on the provided data, Buona Fortuna Foods, LLC appears to be a relatively new entrant or has limited publicly available federal contracting history. The data does not indicate prior awards or extensive performance records. Further investigation into the System for Award Management (SAM) and other federal procurement databases would be necessary to ascertain the company's full federal contracting background, including past performance, any debriefings, or potential issues encountered on previous awards. The lack of a substantial track record may present a risk factor.

How does the Simplified Acquisition Procedures (SAP) process typically affect price discovery compared to full and open competition?

Simplified Acquisition Procedures (SAP) are designed for procurements below certain dollar thresholds (currently $250,000, though exceptions exist) and streamline the process for efficiency. While SAP requires competition, it often involves fewer bidders and less extensive documentation than full and open competition. This can lead to quicker awards but may limit the breadth of market exploration. Consequently, price discovery under SAP might not be as robust, potentially resulting in higher prices compared to a scenario where a larger pool of vendors competes intensely. For contracts approaching or exceeding SAP thresholds, the potential for missed savings increases.

What are the implications of a firm-fixed-price (FFP) contract for this type of service?

A firm-fixed-price (FFP) contract, like the one awarded here, obligates the contractor (Buona Fortuna Foods, LLC) to provide the specified goods or services at a predetermined price, regardless of their actual costs. This structure places the risk of cost overruns on the contractor and provides the government with cost certainty. For food services, an FFP contract is generally preferred as it simplifies budgeting and financial management. However, it requires careful initial price negotiation to ensure the fixed price is fair and reasonable, as the contractor has less incentive to control costs once the price is set.

What is the significance of the short contract duration (18 days)?

The extremely short duration of 18 days for this contract suggests it is likely intended to fulfill an immediate, short-term need. This could be a bridge contract to cover a gap until a longer-term contract is awarded, to address an emergency food supply shortage, or to procure a specific, time-sensitive batch of goods. Such short durations often come with a higher per-unit or per-day cost due to the lack of economies of scale and the administrative overhead associated with rapid procurement. It also implies that the government may be planning for a subsequent, potentially larger or longer-term, procurement.

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

Solicitation ID: 1206931

Offers Received: 28

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1573 CUMMINS DR, MODESTO, CA, 95358

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

Financial Breakdown

Contract Ceiling: $7,909

Exercised Options: $7,909

Current Obligation: $7,909

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline