Justice Department awards $850K milk contract for 90 days to The B2G Group Corp

Contract Overview

Contract Amount: $85,050 ($85.0K)

Contractor: THE B2G Group Corp.

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-06-30

Contract Duration: 90 days

Daily Burn Rate: $945/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 3RD QTR MILK

Place of Performance

Location: OAKDALE, ALLEN County, LOUISIANA, 71463

State: Louisiana Government Spending

Plain-Language Summary

Department of Justice obligated $85,050 to THE B2G GROUP CORP. for work described as: FY26 3RD QTR MILK Key points: 1. Contract awarded under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 2. The contract is a Firm Fixed Price (FFP) type, which shifts cost risk to the contractor. 3. Awarded to The B2G Group Corp., a single entity, indicating a specific supplier relationship. 4. The contract duration is short at 90 days, suggesting a need for immediate or short-term supply. 5. The product category is 'All Other Miscellaneous Food Manufacturing', a broad classification. 6. The contract is not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned.

Value Assessment

Rating: fair

The contract value of $850,500 for a 90-day milk supply appears high on a per-day basis. Without specific details on the quantity of milk or the facilities being supplied, a direct comparison to similar contracts is difficult. However, the price per day ($9,450) for a food commodity suggests a need for further investigation into the scope and specific requirements to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a less formal bidding process than full and open competition. While the data indicates it was 'competed', the number of bidders is not specified, and SAP can sometimes limit the pool of potential offerors. This suggests a potentially less robust competition than a full and open solicitation.

Taxpayer Impact: The use of SAP may limit the number of bidders, potentially impacting the government's ability to secure the lowest possible price for taxpayers.

Public Impact

The primary beneficiaries are likely inmates within the Federal Prison System / Bureau of Prisons. The service delivered is the supply of milk, a basic nutritional commodity. The geographic impact is specified as Louisiana (LA), indicating the supply chain's focus. Workforce implications are minimal, likely limited to the logistics and distribution personnel involved in fulfilling the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for overpricing due to limited competition under SAP.
Lack of transparency regarding the number of bidders and the evaluation process.
Broad product classification ('All Other Miscellaneous Food Manufacturing') may obscure specific quality or nutritional standards.
Short contract duration could lead to frequent re-solicitations and potential supply chain disruptions if not managed effectively.

Positive Signals

Firm Fixed Price contract structure transfers cost overrun risk to the contractor.
Awarded to a specific entity, suggesting a potentially established relationship for supply.
Contract is for a basic necessity (milk), indicating a direct impact on inmate welfare.

Sector Analysis

The food manufacturing and distribution sector is a critical component of the broader supply chain for government institutions, including correctional facilities. This contract falls within the miscellaneous food manufacturing category, which can encompass a wide range of products. Benchmarking spending in this specific sub-sector is challenging due to its broad definition, but overall government spending on food and subsistence is substantial.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses. This means that opportunities for small business participation in this specific procurement were not prioritized.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Prison System / Bureau of Prisons within the Department of Justice. Accountability measures are inherent in the purchase order and firm fixed price structure. Transparency is limited by the use of SAP, and further details on oversight mechanisms would require access to internal agency procurement files.

Related Government Programs

Federal Prison System Food Services
Bureau of Prisons Commissary Operations
Department of Justice Commissary Contracts
Miscellaneous Food Procurement

Risk Flags

Potential for price inflation due to limited competition.
Lack of detailed product specifications under broad classification.
Short contract duration may indicate urgency or a stop-gap measure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $85,050 to THE B2G GROUP CORP.. FY26 3RD QTR MILK

Who is the contractor on this award?

The obligated recipient is THE B2G GROUP CORP..

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 $85,050.

What is the period of performance?

Start: 2026-04-01. End: 2026-06-30.

What is the specific quantity and type of milk being procured under this contract, and how does the unit price compare to market rates for similar institutional milk supplies?

The provided data does not specify the exact quantity or type of milk (e.g., whole, skim, fortified) being procured. The total award amount is $850,500 over 90 days. To assess the unit price, we would need the total volume (e.g., gallons or liters). Without this, a direct comparison to market rates is impossible. However, the average daily cost of $9,450 suggests a significant volume or a premium price. For context, institutional milk prices can vary widely based on volume, delivery, and specific nutritional requirements. A typical gallon of milk might range from $3-$6 in retail, but institutional bulk pricing could be lower, though delivery and specialized packaging for facilities can increase costs. Further analysis requires detailed quantity information.

What is The B2G Group Corp.'s track record with the Federal Prison System or other government agencies for supplying food products?

Information on The B2G Group Corp.'s specific track record with the Federal Prison System or other government agencies for food products is not detailed in the provided data. A comprehensive assessment would require searching federal procurement databases (like SAM.gov or FPDS) for past awards, performance evaluations, and any reported issues or successes. Understanding their history with similar contracts, delivery reliability, and compliance with food safety standards would be crucial for evaluating their suitability and the value of this award.

How does the $850,500 contract value for a 90-day milk supply compare to historical spending patterns for this specific facility or region?

The provided data does not include historical spending patterns for milk supplies at the specific facility or region in Louisiana. To make this comparison, one would need to access historical contract data for the Federal Prison System in that geographic area. Analyzing past awards for similar food items, their values, durations, and the number of bidders would provide context. A significant deviation from historical averages, especially if competition was limited, could indicate potential issues with pricing or procurement strategy.

What are the specific risks associated with a 'Miscellaneous Food Manufacturing' classification for a critical commodity like milk?

The primary risk associated with a broad 'Miscellaneous Food Manufacturing' classification for milk is a potential lack of specificity regarding quality, nutritional content, and safety standards. While milk is a common commodity, this classification might not enforce the stringent requirements typically associated with dairy products, such as specific pasteurization methods, fat content, or fortification levels. This could lead to receiving a product that does not meet the intended nutritional or safety standards for the inmate population. It also makes performance monitoring and quality assurance more challenging for the contracting agency.

Given the contract was competed under SAP, what is the likelihood that a more competitive bidding process could have yielded better pricing for the government?

Simplified Acquisition Procedures (SAP) are designed for purchases below certain thresholds (currently $250,000, though this can be higher for certain categories or agencies) and often involve less formal competition. While the data states it was 'competed', SAP typically allows for fewer bidders and less extensive documentation than full and open competition. For an $850,500 contract, it is plausible that a full and open competition, or at least a more robust solicitation under other competitive procedures, could have attracted more bidders and potentially resulted in lower prices due to increased market pressure. The actual impact depends on the number of bidders that participated under SAP and their respective offers.

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: 15B51826Q00000008

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8 ELM ST UNIT 212, SPRING VALLEY, NY, 10977

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

Financial Breakdown

Contract Ceiling: $85,050

Exercised Options: $85,050

Current Obligation: $85,050

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline