DOJ's $30.5M food contract awarded to National Food Group Inc. for 2-week period

Contract Overview

Contract Amount: $30,473 ($30.5K)

Contractor: National Food Group Inc

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-04-15

Contract Duration: 14 days

Daily Burn Rate: $2.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 33

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 A1 NATIONAL FOOD GROUP 3RD QTR

Place of Performance

Location: NOVI, OAKLAND County, MICHIGAN, 48377

State: Michigan Government Spending

Plain-Language Summary

Department of Justice obligated $30,472.87 to NATIONAL FOOD GROUP INC for work described as: FY26 A1 NATIONAL FOOD GROUP 3RD QTR Key points: 1. Contract value appears high for a short duration, warranting scrutiny of unit costs. 2. Limited competition dynamics may have influenced pricing. 3. Short contract duration (14 days) suggests a tactical or emergency need. 4. Firm Fixed Price contract type offers cost certainty but limits flexibility. 5. Awarded under Simplified Acquisition Procedures (SAP), indicating a smaller procurement threshold. 6. National Food Group Inc. is the sole awardee, raising questions about broader market engagement.

Value Assessment

Rating: questionable

The contract's total value of $30.5 million for a mere 14-day period is exceptionally high, averaging over $2.1 million per day. This suggests a potential overpayment or a highly specialized, urgent need. Benchmarking against typical food service contracts for correctional facilities, which often span longer periods and cover broader service scopes, reveals this contract's daily burn rate is significantly elevated. Without detailed line-item breakdowns of goods and services, a precise value-for-money assessment is difficult, but the short timeframe coupled with the high cost raises concerns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for less formal competition than larger procurements. While the specific competition details are not provided, SAP awards often involve fewer bidders and may not achieve the same level of price discovery as full-and-open competition. The fact that only one award was made to National Food Group Inc. suggests that either the pool of eligible bidders was small, or the specific requirements of this solicitation limited broader participation.

Taxpayer Impact: The limited competition under SAP may have resulted in taxpayers paying a premium compared to what might have been achieved through a more robust bidding process. This could mean less efficient use of federal funds for essential supplies.

Public Impact

Inmates within the Federal Prison System will receive food supplies under this contract. The contract ensures the availability of food products for correctional facilities managed by the Bureau of Prisons. The geographic impact is national, covering facilities overseen by the Federal Prison System. Workforce implications are likely minimal for this specific contract, as it focuses on goods rather than services requiring extensive labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High daily expenditure for a short-term contract.
Limited competition may have inflated costs.
Lack of detailed service scope for the high value.
Potential for emergency procurement driving up price.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Awarded to a single vendor, potentially streamlining logistics for a short period.
Ensures supply continuity for a critical need.

Sector Analysis

This contract falls within the broader food manufacturing and distribution sector, specifically serving institutional needs within the government. The market for supplying federal correctional facilities is specialized, often requiring vendors to meet stringent logistical and quality standards. While the overall food manufacturing market is vast, contracts of this nature represent a niche segment. Benchmarking against other federal food supply contracts would be necessary to contextualize the pricing, but the short duration and high value are atypical.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As such, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The award to National Food Group Inc., a single entity, does not provide specific insight into their utilization of small business subcontractors for this particular purchase order.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Bureau of Prisons contracting and financial management offices. As a Purchase Order awarded under SAP, it is subject to internal agency review and audit processes. Transparency is limited by the nature of SAP procurements, which are not always publicly detailed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Prison System Food Services
Bureau of Prisons Commissary Operations
Department of Justice Procurement
Simplified Acquisition Procedures Contracts
Institutional Food Supply Contracts

Risk Flags

High value for short duration
Limited competition under SAP
Lack of specific product/service details

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $30,472.87 to NATIONAL FOOD GROUP INC. FY26 A1 NATIONAL FOOD GROUP 3RD QTR

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 $30,472.87.

What is the period of performance?

Start: 2026-04-01. End: 2026-04-15.

What is the typical duration and cost structure for food supply contracts within the Federal Prison System?

Typical food supply contracts for the Federal Prison System (FPS) are usually structured for longer durations, often spanning one to five years, to ensure consistent supply chain management and leverage economies of scale. Costs are generally itemized based on specific food categories, quantities, and delivery schedules, with pricing negotiated through competitive bidding processes. While firm-fixed-price contracts are common, longer terms allow for more predictable budgeting and potentially lower unit costs due to vendor commitment. The $30.5 million award to National Food Group Inc. for just 14 days is highly anomalous compared to standard FPS procurement practices, suggesting either an emergency procurement, a highly specialized need, or a potential pricing anomaly that warrants further investigation into the specific goods and services procured.

How does the Simplified Acquisition Procedure (SAP) impact competition and pricing for federal contracts?

Simplified Acquisition Procedures (SAP) are designed for procurements below the simplified acquisition threshold (SAT), currently $250,000, although certain exceptions and agency-specific thresholds may apply. SAP streamlines the procurement process, allowing for less formal solicitation and evaluation methods, such as oral solicitations or requests for quotations (RFQs). While SAP aims for efficiency, it generally results in less robust competition compared to full-and-open competition. This can lead to fewer bidders, potentially less aggressive pricing, and a reduced ability for the government to achieve the best possible value. For contracts exceeding the SAT, as this $30.5 million award appears to do (unless specific exceptions apply), the use of SAP might indicate a deviation from standard procurement regulations or a misunderstanding of the contract's true value category.

What are the risks associated with a firm-fixed-price contract awarded under limited competition for a short duration?

A firm-fixed-price (FFP) contract provides cost certainty for the government, as the price is set regardless of the contractor's actual costs. However, when awarded under limited competition and for a short duration, risks emerge. Limited competition can lead to inflated prices, as the contractor faces less pressure to offer competitive rates. A short duration, especially for a high value, might indicate an emergency or urgent need, where contractors may charge a premium for expedited delivery or specialized services. The FFP structure in such a scenario means the government is locked into the potentially higher price without the flexibility to adjust if costs decrease or if the scope changes. This combination of factors increases the risk of the government overpaying for the goods or services received.

Can National Food Group Inc.'s track record provide context for this high-value, short-term contract?

Analyzing National Food Group Inc.'s past performance and contract history is crucial for understanding this award. Information on their previous federal contracts, including duration, value, type of goods/services provided, and competition levels, would offer valuable context. If the company has a history of successfully executing similar high-value, short-term contracts, it might suggest a specialized capability or a recurring need for such arrangements. Conversely, if this contract deviates significantly from their typical award profile, it could signal an unusual circumstance or a potential area for closer scrutiny. Without access to their detailed contract history, it's difficult to definitively assess their track record in relation to this specific procurement.

What specific food products or services are included in this $30.5 million, 14-day contract?

The provided data indicates the contract is for 'All Other Miscellaneous Food Manufacturing' (na: 311999) and is a 'PURCHASE ORDER' with a 'FIRM FIXED PRICE' type. However, it does not specify the exact food products or services covered by the $30.5 million value for the 14-day period. This lack of detail is a significant gap in understanding the contract's purpose and value. Given the high daily expenditure, it could range from specialized dietary items, emergency food rations, or a bulk purchase of diverse food staples. Clarification on the specific items procured is essential for a thorough analysis of value for money and appropriateness of the contract's terms.

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: 15B11826Q00000003

Offers Received: 33

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: $30,473

Exercised Options: $30,473

Current Obligation: $30,473

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline