DOJ's $23M food service contract awarded to Matts Trading Inc. for 22 months

Contract Overview

Contract Amount: $23,055 ($23.1K)

Contractor: Matts Trading Inc

Awarding Agency: Department of Justice

Start Date: 2026-01-01

End Date: 2026-01-23

Contract Duration: 22 days

Daily Burn Rate: $1.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 27

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 2ND QTR FOOD SERVICE

Place of Performance

Location: BOCA RATON, PALM BEACH County, FLORIDA, 33431

State: Florida Government Spending

Plain-Language Summary

Department of Justice obligated $23,055.06 to MATTS TRADING INC for work described as: FY26 2ND QTR FOOD SERVICE Key points: 1. Value for money appears fair given the firm-fixed-price structure and 22-month duration. 2. Competition dynamics indicate a potentially limited market for specialized food manufacturing services. 3. Risk indicators are low due to the short-term nature and established federal purchasing procedures. 4. Performance context suggests routine supply chain management for correctional facilities. 5. Sector positioning places this contract within the broader federal food service and manufacturing landscape.

Value Assessment

Rating: fair

The contract value of $23.06 million over 22 months averages approximately $1.05 million per month. Without specific details on the quantity and type of food products, a direct comparison to similar contracts is challenging. However, the firm-fixed-price award suggests that the government has locked in costs, which can be advantageous if market prices for these goods increase. The pricing is likely benchmarked against historical federal food procurement data and market rates for food manufacturing and distribution.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), suggesting it was likely advertised on a federal procurement platform. With 27 bids received, this indicates a reasonably competitive process for this type of requirement. The number of bidders suggests that there are multiple capable suppliers in the market for these food services, which generally aids in price discovery and achieving a fair market price.

Taxpayer Impact: The competitive bidding process under SAP likely resulted in a fair price for taxpayers, preventing excessive costs for essential food supplies.

Public Impact

Federal Prison System inmates will receive essential food supplies. The contract supports the operational needs of the Bureau of Prisons. The geographic impact is primarily within Florida, where the contractor is located. Workforce implications include jobs at Matts Trading Inc. and potentially its suppliers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if Matts Trading Inc. faces operational issues.
Ensuring consistent quality and nutritional standards across all delivered food products.
Monitoring contract performance to ensure timely delivery and adherence to specifications.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Competitive bidding process suggests a fair market price was likely achieved.
Short contract duration allows for periodic re-evaluation of market needs and supplier performance.

Sector Analysis

This contract falls within the broader food manufacturing and distribution sector, which is a critical component of the federal supply chain. The federal government is a significant purchaser of food products for various agencies, including correctional facilities, military bases, and disaster relief efforts. Spending in this sector is influenced by factors such as inmate populations, dietary requirements, and food cost inflation. Comparable spending benchmarks would involve analyzing other federal food service contracts awarded to manufacturers and distributors.

Small Business Impact

The data indicates this contract was competed under SAP and awarded to Matts Trading Inc., with no specific mention of small business set-asides or subcontracting goals. While the contract itself may not be a direct set-aside, the competitive nature under SAP could allow for small business participation if they were among the bidders. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within Matts Trading Inc.'s operations.

Oversight & Accountability

The contract is managed by the Department of Justice, Federal Prison System. Oversight mechanisms would include standard government contract administration procedures, performance monitoring, and potentially audits by the DOJ Office of the Inspector General. Transparency is facilitated through federal procurement databases where contract awards are reported. The firm-fixed-price nature of the award also provides a degree of accountability regarding cost.

Related Government Programs

Federal Prison System Food Procurement
Department of Justice Supply Chain Management
Food Manufacturing and Distribution Contracts
Correctional Facility Services

Risk Flags

Potential for supply chain vulnerabilities
Ensuring consistent food quality and safety standards

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $23,055.06 to MATTS TRADING INC. FY26 2ND QTR FOOD SERVICE

Who is the contractor on this award?

The obligated recipient is MATTS TRADING 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 $23,055.06.

What is the period of performance?

Start: 2026-01-01. End: 2026-01-23.

What is the historical spending pattern of the Federal Prison System on food services?

The Federal Prison System (FPS) consistently allocates significant funds towards food services to meet the dietary needs of its inmate population. Historical data shows a steady expenditure, often in the tens to hundreds of millions of dollars annually, depending on the number of facilities and inmates. Spending is typically managed through a combination of large-scale contracts for food supplies, distribution services, and sometimes on-site food preparation. Factors influencing historical spending include inflation rates for food commodities, changes in nutritional guidelines, and the overall capacity of the federal prison network. Analyzing past contract awards for similar food manufacturing and supply services can provide benchmarks for current pricing and identify trends in procurement strategies over time.

How does the per-unit cost of food items under this contract compare to market rates?

Determining the precise per-unit cost for food items under this $23.06 million contract is not feasible with the provided data, as it lacks itemized details of the food products procured. However, the contract's firm-fixed-price structure suggests that Matts Trading Inc. has committed to delivering specified food items at agreed-upon prices for the 22-month duration. To benchmark against market rates, one would need to identify the specific food items (e.g., types of canned goods, frozen items, dry staples) and their quantities. This information could then be compared to wholesale food prices, distributor price lists, and pricing from other federal or commercial food service contracts. The competitive bidding process, with 27 bids, implies that the awarded price is likely reflective of market conditions, but a detailed item-by-item analysis would be required for a definitive comparison.

What is Matts Trading Inc.'s track record with federal food service contracts?

Information regarding Matts Trading Inc.'s specific track record with federal food service contracts is not detailed in the provided data. To assess their performance history, one would need to consult federal procurement databases (like SAM.gov or FPDS) for past awards, contract values, durations, and any performance evaluations or past performance questionnaires. A review of their history would reveal if they have previously supplied similar food products to the Bureau of Prisons or other federal agencies, the scale of those contracts, and whether they have a history of successful delivery, compliance, and adherence to quality standards. Any past issues, such as contract disputes, delivery delays, or quality control problems, would be important risk indicators.

What are the potential risks associated with this contract, and how are they mitigated?

Potential risks for this food service contract include supply chain disruptions (e.g., raw material shortages, transportation issues), quality control failures (e.g., non-compliance with nutritional or safety standards), and price volatility if the firm-fixed-price was set too low. Mitigation strategies are inherent in the contract structure and oversight. The firm-fixed-price nature shifts some price risk to the contractor. The competitive bidding process helps ensure a reasonable price and selects a capable vendor. The Bureau of Prisons' contract administration team would monitor performance, conduct inspections, and enforce contract terms. The short 22-month duration also allows for periodic reassessment of the contractor's performance and market conditions, enabling timely intervention or contract modification if issues arise.

How does this contract align with the Bureau of Prisons' overall food procurement strategy?

This contract for food services aligns with the Bureau of Prisons' (BOP) fundamental need to provide sustenance to its inmate population. The BOP's strategy typically involves securing reliable and cost-effective sources for a wide variety of food products. Contracts like this one, awarded through competitive processes, are crucial for meeting these objectives. The BOP likely aims for a mix of contract types and durations to balance cost, flexibility, and supply chain resilience. Awarding to a specialized food manufacturer like Matts Trading Inc. suggests a focus on obtaining specific types of food products efficiently. The BOP's strategy would also emphasize adherence to strict nutritional, safety, and quality standards, which are typically incorporated into contract specifications and monitored throughout the performance period.

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

Offers Received: 27

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2202 SW BRADFORD PL, PALM CITY, FL, 34990

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

Financial Breakdown

Contract Ceiling: $23,055

Exercised Options: $23,055

Current Obligation: $23,055

Actual Outlays: $23,055

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline