DOJ's $20K Food Contract Awarded to National Food Group Inc. for Philadelphia Federal Prison
Contract Overview
Contract Amount: $20,153 ($20.2K)
Contractor: National Food Group Inc
Awarding Agency: Department of Justice
Start Date: 2026-04-01
End Date: 2026-06-26
Contract Duration: 86 days
Daily Burn Rate: $234/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 19
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FY26 3RD QTR SUBSISTENCE FOOD FOR FDC PHILADELPHIA
Place of Performance
Location: NOVI, OAKLAND County, MICHIGAN, 48377
State: Michigan Government Spending
Plain-Language Summary
Department of Justice obligated $20,152.64 to NATIONAL FOOD GROUP INC for work described as: FY26 3RD QTR SUBSISTENCE FOOD FOR FDC PHILADELPHIA Key points: 1. Low contract value suggests a routine procurement for essential supplies. 2. Competition under SAP indicates a streamlined process, potentially limiting broader market engagement. 3. Risk is moderate, primarily related to supply chain disruptions for perishable goods. 4. The sector is food services, a critical but generally stable area of government operations.
Value Assessment
Rating: good
The contract value of $20,152.64 is modest. Pricing is likely benchmarked against established food service contracts for correctional facilities, with firm fixed pricing offering cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), suggesting a limited competition among pre-approved vendors or those meeting specific small business criteria. This method prioritizes efficiency for smaller dollar amounts but may not achieve the lowest possible price compared to full and open competition.
Taxpayer Impact: Taxpayer impact is minimal due to the low contract value. The focus is on ensuring essential services are met efficiently.
Public Impact
Ensures essential food supplies for inmates at FDC Philadelphia. Supports a specific vendor, National Food Group Inc., in the food distribution sector. Maintains operational continuity for a federal correctional facility. Demonstrates routine government procurement for basic needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for supply chain disruptions affecting perishable goods.
- Limited competition may not yield the absolute best price.
- Reliance on a single vendor for a critical need.
Positive Signals
- Ensures timely delivery of essential subsistence food.
- Utilizes a streamlined procurement process for efficiency.
- Firm fixed price contract provides cost predictability.
Sector Analysis
This contract falls within the food services sector, specifically for correctional facility sustenance. Spending benchmarks for such items are typically driven by volume, quality standards, and logistical costs, with government facilities often seeking competitive bids for bulk purchasing.
Small Business Impact
While the contract was competed under SAP, it's unclear if small businesses were specifically targeted or participated. SAP procedures can sometimes favor small businesses, but the primary driver here appears to be efficiency for a low-value procurement.
Oversight & Accountability
Standard oversight for purchase orders applies, focusing on delivery, quality, and adherence to contract terms. The Bureau of Prisons is responsible for ensuring the vendor meets the nutritional and safety requirements.
Related Government Programs
- Perishable Prepared Food Manufacturing
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Perishable goods risk
- Limited competition impact on price
- Supply chain vulnerability
- Vendor performance consistency
Tags
perishable-prepared-food-manufacturing, department-of-justice, mi, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $20,152.64 to NATIONAL FOOD GROUP INC. FY26 3RD QTR SUBSISTENCE FOOD FOR FDC PHILADELPHIA
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 $20,152.64.
What is the period of performance?
Start: 2026-04-01. End: 2026-06-26.
What is the typical cost per meal or per inmate for subsistence food in federal prisons?
The typical cost per meal or per inmate for subsistence food in federal prisons can vary significantly based on location, dietary needs, and contract specifics. While this contract's total value is low, larger contracts often aim for costs between $3-$7 per meal per inmate. Benchmarking requires comparing this contract's unit price (if available) against similar facilities and contract types to assess value.
What are the primary risks associated with procuring perishable food for correctional facilities?
The primary risks include supply chain disruptions (weather, transportation issues), spoilage leading to waste and potential health hazards, and ensuring consistent quality and nutritional value. For correctional facilities, these risks are amplified due to the critical nature of inmate welfare and the potential for unrest if basic needs are unmet.
How effective is the SAP procurement method for ensuring value in food service contracts?
SAP is effective for ensuring timely and efficient procurement of low-value items, which this contract represents. However, its effectiveness in maximizing value is limited compared to full and open competition, as it restricts the pool of potential bidders. For routine, essential supplies like food, SAP can be adequate if vendor pricing is competitive within its limited scope.
Industry Classification
NAICS: Manufacturing › Other Food Manufacturing › Perishable Prepared Food Manufacturing
Product/Service Code: SUBSISTENCE
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 15B21726Q00000003
Offers Received: 19
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: $20,153
Exercised Options: $20,153
Current Obligation: $20,153
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-04-01
Current End Date: 2026-06-26
Potential End Date: 2026-06-26 00:00:00
Last Modified: 2026-04-02
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