DOJ's $82.7K food contract for Yazoo City prison awarded to National Food Group Inc

Contract Overview

Contract Amount: $82,738 ($82.7K)

Contractor: National Food Group Inc

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2025-12-31

Contract Duration: 91 days

Daily Burn Rate: $909/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 35

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FCC YAZOO CITY FY 2026 1ST QUARTER SUBSISTENCE OCTOBER 1, 2025 - DECEMBER 31, 2025

Place of Performance

Location: NOVI, OAKLAND County, MICHIGAN, 48377

State: Michigan Government Spending

Plain-Language Summary

Department of Justice obligated $82,737.69 to NATIONAL FOOD GROUP INC for work described as: FCC YAZOO CITY FY 2026 1ST QUARTER SUBSISTENCE OCTOBER 1, 2025 - DECEMBER 31, 2025 Key points: 1. Contract awarded to a single vendor, raising questions about competitive pricing. 2. Fixed-price contract type offers cost certainty but may limit flexibility. 3. Short duration suggests a tactical procurement rather than a long-term strategic need. 4. The award value is relatively small, indicating a localized or specific requirement. 5. Procurement under SAP suggests a streamlined process for smaller value contracts. 6. No small business set-aside indicates potential missed opportunities for smaller vendors.

Value Assessment

Rating: fair

The contract value of approximately $82.7K for a 3-month period is modest. Benchmarking this specific subsistence procurement is challenging without more detailed cost breakdowns or comparisons to similar federal prison system food service contracts. However, given the limited competition and fixed-price nature, it's difficult to definitively assess if the government secured the best possible value. The price appears reasonable for the specified period and quantity, but a more competitive process could have potentially yielded better pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves a less formal solicitation process than full and open competition. While the data indicates it was 'competed,' the specific number of bids received is not provided, making it difficult to assess the level of competition. SAP is often used for procurements under a certain dollar threshold, and while it aims for fair competition, it may not always attract the same breadth of bidders as larger, more formal solicitations.

Taxpayer Impact: For taxpayers, a limited competition under SAP may mean that the government did not explore the full range of potential suppliers, potentially leading to a higher price than could have been achieved through broader competition. However, the streamlined process can also lead to faster award times and reduced administrative costs.

Public Impact

Inmates at the Yazoo City Federal Correctional Institution will receive subsistence (food) supplies. The contract directly supports the operational needs of the Federal Prison System. The geographic impact is localized to Yazoo City, Mississippi, where the facility is located. The contract ensures the provision of essential daily needs for the inmate population.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a suboptimal price for taxpayers.
Lack of detail on the specific food items procured makes value assessment difficult.
Short contract duration could indicate a reactive procurement rather than proactive planning.

Positive Signals

Contract was competed, suggesting some level of market outreach.
Fixed-price contract provides cost predictability for the government.
Procurement under SAP can lead to faster delivery of essential goods.

Sector Analysis

This contract falls within the broader food manufacturing and distribution sector, specifically serving institutional needs. The federal government is a significant purchaser of food products for its various agencies, including correctional facilities. The market for institutional food supply is competitive, with many large and small companies vying for these contracts. This specific procurement, however, appears to be a smaller, localized requirement within the larger federal food spending landscape.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements. This suggests that the procurement was open to all eligible vendors, including large corporations. While this ensures a wide pool of potential suppliers, it also means that opportunities for small businesses to participate in this specific contract were not explicitly prioritized through a set-aside program.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's Bureau of Prisons procurement and financial management divisions. As a purchase order under SAP, it likely undergoes standard internal review processes. Transparency is generally maintained through contract databases like FPDS, though detailed performance metrics or specific oversight reports for such a small contract may not be publicly available.

Related Government Programs

Federal Prison System Food Services
Bureau of Prisons Commissary Operations
Department of Justice Commissary Contracts
Federal Inmate Welfare Fund Purchases

Risk Flags

Potential for overpayment due to limited competition.
Lack of detailed product specification hinders value assessment.
High calculated cost per inmate per day requires further scrutiny.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $82,737.69 to NATIONAL FOOD GROUP INC. FCC YAZOO CITY FY 2026 1ST QUARTER SUBSISTENCE OCTOBER 1, 2025 - DECEMBER 31, 2025

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 $82,737.69.

What is the period of performance?

Start: 2025-10-01. End: 2025-12-31.

What is the historical spending pattern for subsistence at the Yazoo City Federal Correctional Institution?

Analyzing historical spending for subsistence at the Yazoo City Federal Correctional Institution would require access to detailed procurement data over multiple fiscal years. This would involve identifying all contracts awarded for food supplies to this specific facility, noting the vendors, contract values, durations, and types of food procured. Without this granular historical data, it's difficult to establish a baseline for current spending or identify trends in pricing, vendor performance, or demand fluctuations. Such an analysis would help determine if the current $82.7K award for a 3-month period is consistent with past expenditures or represents a significant deviation.

How does the price per inmate per day for this contract compare to national benchmarks?

To compare the price per inmate per day, we first need to know the inmate population at the Yazoo City facility during the contract period and the total cost. Assuming the $82,737.69 covers 35 inmates for 91 days, the cost per inmate per day would be approximately $67.40 ($82,737.69 / 35 inmates / 91 days). This figure appears exceptionally high for basic subsistence. National benchmarks for correctional facility food costs typically range from $3 to $10 per inmate per day, depending on location, dietary needs, and contract specifics. The calculated rate suggests a significant discrepancy, warranting further investigation into what 'subsistence' entails in this contract and the accuracy of the inmate count provided.

What specific food items are included in the 'subsistence' category for this contract?

The term 'subsistence' in this contract likely refers to basic food supplies intended to sustain the inmate population. However, without a detailed line-item breakdown or product list within the contract documentation, the exact composition of these supplies remains unclear. It could range from staple goods like grains, canned items, and basic proteins to pre-packaged meals or specific dietary components. Understanding the precise nature of the food items is crucial for a thorough value-for-money assessment, as the cost of different food categories can vary significantly. This lack of specificity makes it challenging to benchmark against comparable procurements or assess nutritional adequacy.

What is National Food Group Inc.'s track record with federal food service contracts?

National Food Group Inc. has a history of securing federal contracts, including those related to food services. A review of federal procurement databases would reveal the extent and nature of their past awards. This includes examining the types of agencies they have served (e.g., military, correctional facilities, other government institutions), the value and duration of those contracts, and any reported performance issues or successes. Understanding their past performance provides insight into their reliability, capacity, and pricing strategies when competing for government business, helping to assess the risk associated with this current award.

What are the potential risks associated with a sole-source or limited competition award for essential supplies like food?

Sole-source or limited competition awards for essential supplies like food carry several potential risks. Primarily, it can lead to inflated prices as the vendor faces less pressure to offer competitive rates. This lack of competition can also reduce the incentive for the vendor to maintain high quality or efficient service, as alternative options for the government are limited. Furthermore, it may stifle innovation and prevent smaller, potentially more agile businesses from entering the market. For taxpayers, the risk is a less efficient use of public funds and potentially compromised supply chain resilience if the single awarded vendor faces disruptions.

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: 1200017

Offers Received: 35

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: $82,738

Exercised Options: $82,738

Current Obligation: $82,738

Actual Outlays: $83,043

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline