DOJ's $25K food contract for FCI Seagoville awarded to National Food Group Inc. for Q2 FY26

Contract Overview

Contract Amount: $25,233 ($25.2K)

Contractor: National Food Group Inc

Awarding Agency: Department of Justice

Start Date: 2026-01-01

End Date: 2026-01-31

Contract Duration: 30 days

Daily Burn Rate: $841/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 21

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NATIONAL FOOD GROUP - SEA FY26 QUARTER 2 FY2026 DELIVERY FOR THE POPULATION OF FCI SEAGOVILLE. JANUARY 1 THROUGH MARCH 31, 2026 HALAL, KOSHER, NATIONAL MENUS

Place of Performance

Location: NOVI, OAKLAND County, MICHIGAN, 48377

State: Michigan Government Spending

Plain-Language Summary

Department of Justice obligated $25,232.56 to NATIONAL FOOD GROUP INC for work described as: NATIONAL FOOD GROUP - SEA FY26 QUARTER 2 FY2026 DELIVERY FOR THE POPULATION OF FCI SEAGOVILLE. JANUARY 1 THROUGH MARCH 31, 2026 HALAL, KOSHER, NATIONAL MENUS Key points: 1. Contract focuses on specialized dietary needs (Halal, Kosher) alongside national menus. 2. Awarded via Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 3. The contract duration is 30 days, indicating a short-term, specific need. 4. The firm fixed-price structure aims to control costs for the specified food delivery. 5. This award represents a small portion of the Bureau of Prisons' overall food service budget. 6. The contract is for a specific facility (FCI Seagoville), limiting broad geographic impact.

Value Assessment

Rating: fair

The contract value of $25,232.56 for a 30-day period appears reasonable for specialized food services at a federal correctional institution. Benchmarking against similar, smaller-scale food service contracts within the Bureau of Prisons would provide a clearer picture of value for money. The firm fixed-price nature helps mitigate cost overruns for this specific delivery period. However, without detailed cost breakdowns or comparisons to commercial food service providers for similar institutional needs, a definitive value assessment is challenging.

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 solicitation process than full and open competition. While the specific number of bidders is not provided, SAP is often used for procurements under the simplified acquisition threshold, where competition may be more limited. This approach is intended to streamline the acquisition process for smaller dollar value items.

Taxpayer Impact: For taxpayers, limited competition under SAP can sometimes lead to less aggressive pricing compared to full and open competition, though the smaller contract value here mitigates significant financial risk.

Public Impact

Inmates at FCI Seagoville will receive food services meeting specific dietary requirements (Halal, Kosher) and standard menus. The primary beneficiaries are the incarcerated population at FCI Seagoville. The services delivered are essential food provisions for the institution's daily operations. The geographic impact is localized to Seagoville, Texas, where FCI Seagoville is located. Workforce implications are minimal, likely involving existing prison staff for distribution and potentially a small contingent from the contractor for delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher per-unit costs due to limited competition under SAP.
Risk of supply chain disruptions impacting specialized dietary needs if contractor has limited capacity.
Lack of detailed performance metrics in the provided data makes assessing service quality difficult.

Positive Signals

Addresses specific, important dietary needs (Halal, Kosher) for the inmate population.
Firm fixed-price contract provides cost certainty for this period.
Utilizes SAP, which can expedite delivery for urgent or smaller needs.

Sector Analysis

The food services sector within federal corrections is a critical component of institutional operations. This contract falls under the broader category of food manufacturing and distribution services. While the overall federal spending on food services is substantial, individual contracts like this one for specific facilities and short durations represent niche requirements. Benchmarking would involve comparing this contract's pricing and scope to other similar correctional facility food service awards.

Small Business Impact

The provided data indicates this contract was competed under SAP and does not specify any small business set-aside. It is unclear if National Food Group Inc. is a small business. Subcontracting implications are not detailed, but for a contract of this size and duration, significant subcontracting is less likely. The impact on the broader small business ecosystem for food services would be minimal given the localized and short-term nature of this award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Prisons (BOP) contracting officers and facility staff at FCI Seagoville. Accountability measures are inherent in the firm fixed-price structure, requiring delivery as specified. Transparency is limited by the SAP process, which is less publicly scrutinized than larger contract awards. There is no specific mention of an Inspector General's direct involvement for this particular small award, though the Office of the Inspector General retains broad oversight authority.

Related Government Programs

Bureau of Prisons Food Service Contracts
Federal Inmate Welfare Funds
Department of Justice Commissary Operations
National School Lunch Program (for comparison of food service models)

Risk Flags

Potential for limited competition
Short contract duration may limit performance assessment
Reliance on specialized supply chains for Halal/Kosher ingredients

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $25,232.56 to NATIONAL FOOD GROUP INC. NATIONAL FOOD GROUP - SEA FY26 QUARTER 2 FY2026 DELIVERY FOR THE POPULATION OF FCI SEAGOVILLE. JANUARY 1 THROUGH MARCH 31, 2026 HALAL, KOSHER, NATIONAL MENUS

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 $25,232.56.

What is the period of performance?

Start: 2026-01-01. End: 2026-01-31.

What is the track record of National Food Group Inc. with federal contracts, particularly within the Bureau of Prisons?

A review of federal procurement data would be necessary to fully assess National Food Group Inc.'s track record. Information such as past performance ratings, previous contract values, types of goods or services provided, and any history of disputes or terminations would be crucial. For this specific contract, the award is a Purchase Order, suggesting a routine transaction. Understanding their experience with correctional facilities, specifically their ability to meet stringent dietary requirements like Halal and Kosher consistently and on time, is key to evaluating their reliability for this requirement.

How does the per-meal cost of this contract compare to other federal correctional facilities or commercial food service providers?

To compare the per-meal cost, we would need to estimate the number of meals to be provided during the 30-day period. Assuming a population of approximately 1,500 inmates at FCI Seagoville (a typical size for a medium-security facility), and accounting for staff meals, the total number of meals could range from 45,000 to 60,000. Dividing the $25,232.56 contract value by this meal range yields a per-meal cost between approximately $0.42 and $0.56. This appears low compared to commercial catering or even other BOP contracts, potentially indicating a focus on basic provisions or a highly efficient delivery model. However, without knowing the exact meal count and specific inclusions (e.g., snacks, beverages), a precise comparison is difficult.

What are the specific risks associated with a 30-day firm fixed-price contract for specialized dietary needs?

The primary risks with a short-term, firm fixed-price contract for specialized dietary needs include potential supply chain vulnerabilities and limited flexibility. If National Food Group Inc. faces unexpected shortages of Halal or Kosher certified ingredients, or if their supplier experiences disruptions, fulfilling the contract precisely within the 30-day window could be challenging. The fixed price may also disincentivize the contractor from absorbing unforeseen cost increases for these specialized items, potentially leading to quality compromises if not closely monitored. Furthermore, the short duration limits the ability to build a robust performance history or identify systemic issues.

How does this contract align with the Bureau of Prisons' broader strategy for food service procurement and inmate welfare?

This contract aligns with the BOP's fundamental responsibility to provide sustenance to the inmate population, including accommodating religious and cultural dietary requirements. Awarding contracts for specific facilities and short durations allows for flexibility in meeting immediate or changing needs. The use of SAP suggests an approach to efficiently procure necessary goods and services below certain dollar thresholds, potentially saving administrative time. However, the BOP's broader strategy likely emphasizes cost-effectiveness, nutritional standards, and reliable supply chains across its network of institutions, making individual contract performance part of a larger operational picture.

What is the historical spending pattern for food services at FCI Seagoville, and how does this award compare?

To determine historical spending patterns at FCI Seagoville, one would need to analyze past contract awards for food services at that specific institution over several fiscal years. This would involve looking at contract values, durations, awarded vendors, and the nature of the services provided (e.g., full meal service, specific food items, dietary accommodations). This $25,232.56 award for a single month (January 2026) represents a relatively small, targeted expenditure. If historical contracts were for longer periods or comprehensive meal services, this award might be for supplementary items or a gap-filling measure. A trend analysis could reveal if spending is increasing, decreasing, or remaining stable.

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: 21

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: $25,233

Exercised Options: $25,233

Current Obligation: $25,233

Actual Outlays: $24,391

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline