DOJ Awards $39.5M Food Contract to National Food Group Inc. for Federal Prisons

Contract Overview

Contract Amount: $39,535 ($39.5K)

Contractor: National Food Group Inc

Awarding Agency: Department of Justice

Start Date: 2025-07-31

End Date: 2026-05-09

Contract Duration: 282 days

Daily Burn Rate: $140/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 29

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OATS-FCI JES-A1 FY26 QTR3-NATIONAL FOOD-SUBSISTENC SMALL BUSINESS

Place of Performance

Location: NOVI, OAKLAND County, MICHIGAN, 48377

State: Michigan Government Spending

Plain-Language Summary

Department of Justice obligated $39,534.92 to NATIONAL FOOD GROUP INC for work described as: OATS-FCI JES-A1 FY26 QTR3-NATIONAL FOOD-SUBSISTENC SMALL BUSINESS Key points: 1. Contract awarded to National Food Group Inc. for food supplies. 2. Competition method was 'COMPETED UNDER SAP', indicating a potentially limited but structured process. 3. The contract duration is 282 days, ending May 9, 2026. 4. The award is a Purchase Order with a Firm Fixed Price. 5. This falls under the 'All Other Miscellaneous Food Manufacturing' NAICS code.

Value Assessment

Rating: fair

The contract value of $39.5M for a 282-day period appears substantial. Benchmarking against similar food supply contracts for correctional facilities would be necessary to definitively assess pricing, but the scale suggests a need for careful cost analysis.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'COMPETED UNDER SAP' (Simplified Acquisition Procedures), which typically involves a smaller pool of vendors than full and open competition. While this can expedite the process, it may limit price discovery and potentially lead to higher costs compared to broader solicitations.

Taxpayer Impact: Taxpayer funds are being used for essential food supplies for the Federal Prison System. The efficiency of the procurement process and the final price will determine the optimal use of these funds.

Public Impact

Ensures food supply for federal inmates, a critical operational need. Supports the Federal Prison System's ability to provide basic necessities. Potential impact on food manufacturers and distributors within the supply chain. The use of SAP may limit opportunities for smaller, less established food suppliers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP could impact price competitiveness.
Lack of detailed cost breakdown makes value assessment difficult.
Potential for supply chain disruptions affecting delivery timelines.

Positive Signals

Addresses a critical need for food supplies.
Firm Fixed Price contract provides cost certainty.
Awarded to a single vendor for streamlined management.

Sector Analysis

This contract falls within the food manufacturing and distribution sector, specifically serving institutional needs. Spending benchmarks for correctional facility food services vary widely based on inmate population, location, and dietary requirements. The $39.5M value for a less-than-year contract is significant.

Small Business Impact

The data does not indicate if small businesses were involved in this specific award or if they were solicited under the SAP process. Further investigation would be needed to determine the extent of small business participation.

Oversight & Accountability

The award is a Purchase Order, which is a common procurement instrument. Oversight would focus on contract performance, delivery, and adherence to specifications. The Bureau of Prisons is responsible for ensuring accountability.

Related Government Programs

All Other Miscellaneous Food Manufacturing
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Limited competition may lead to suboptimal pricing.
Vendor dependency poses supply chain risk.
Lack of detailed cost breakdown hinders value analysis.
Potential for price increases in future contract periods.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $39,534.92 to NATIONAL FOOD GROUP INC. OATS-FCI JES-A1 FY26 QTR3-NATIONAL FOOD-SUBSISTENC SMALL BUSINESS

Who is the contractor on this award?

The obligated recipient is NATIONAL FOOD GROUP 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 $39,534.92.

What is the period of performance?

Start: 2025-07-31. End: 2026-05-09.

What is the historical pricing trend for similar food supply contracts awarded by the Bureau of Prisons?

Analyzing historical pricing data for comparable food supply contracts within the Bureau of Prisons is crucial for a robust value assessment. This would involve comparing unit costs for staple items, considering inflation, and factoring in contract duration and scope. Without this benchmark, it's difficult to ascertain if the $39.5M award represents a competitive price or if there's potential for cost savings through renegotiation or alternative sourcing.

What specific risks are associated with relying on a single vendor for a critical supply like food for federal prisons?

Reliance on a single vendor for essential food supplies introduces several risks. These include potential supply chain disruptions (e.g., natural disasters, labor strikes, or the vendor's own operational issues) that could lead to shortages. Furthermore, a lack of competition post-award can reduce leverage for price adjustments or quality improvements, potentially impacting long-term cost-effectiveness and the ability to adapt to changing dietary needs or regulations.

How effectively does the 'COMPETED UNDER SAP' process ensure the Federal Prison System receives optimal value for its food supply needs?

The 'COMPETED UNDER SAP' (Simplified Acquisition Procedures) process is designed for efficiency and speed, often used for purchases below certain thresholds. While it can be effective for routine needs, it may not always yield the most competitive pricing or the broadest range of options compared to full and open competition. The effectiveness in ensuring optimal value depends on the specific market conditions, the number of vendors solicited, and the clarity of the requirements to drive competitive bids.

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: 29

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 46820 MAGELLAN DR STE A, NOVI, MI, 48377

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

Financial Breakdown

Contract Ceiling: $39,535

Exercised Options: $39,535

Current Obligation: $39,535

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline