DOJ's Bureau of Prisons awards $18.7M for perishable food to National Food Group Inc
Contract Overview
Contract Amount: $18,685 ($18.7K)
Contractor: National Food Group Inc
Awarding Agency: Department of Justice
Start Date: 2026-04-01
End Date: 2026-06-30
Contract Duration: 90 days
Daily Burn Rate: $208/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 24
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FY26 A1 TBD Q3 SUBSISTENCE APR 26
Place of Performance
Location: NOVI, OAKLAND County, MICHIGAN, 48377
State: Michigan Government Spending
Plain-Language Summary
Department of Justice obligated $18,684.96 to NATIONAL FOOD GROUP INC for work described as: FY26 A1 TBD Q3 SUBSISTENCE APR 26 Key points: 1. Spending focuses on essential prison subsistence, a recurring need. 2. Competition was limited under SAP, potentially impacting price discovery. 3. Risk of supply chain disruption for critical food services exists. 4. The sector is food manufacturing and distribution for government contracts.
Value Assessment
Rating: fair
The contract value of $18.7M for a 3-month period appears high. Benchmarking against similar large-scale food service contracts for correctional facilities is needed to assess if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), indicating a limited competition environment. This method is typically used for smaller dollar amounts and may not yield the best prices compared to full and open competition.
Taxpayer Impact: Taxpayer funds are used for essential services. Limited competition may result in higher costs than optimal, impacting overall value for money.
Public Impact
Ensures food supply for federal inmates, a critical operational need. Supports a specific food manufacturer, potentially impacting market dynamics. Highlights government reliance on specialized suppliers for correctional facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition under SAP
- Potential for price inflation due to limited competition
- Dependence on a single vendor for a critical service
Positive Signals
- Ensures continuity of essential food services
- Supports a known supplier within the federal system
Sector Analysis
This contract falls within the food manufacturing and distribution sector, specifically serving government institutions. Benchmarks for large-scale food service contracts in correctional settings are difficult to ascertain without more specific data, but costs can be significant due to volume and specialized requirements.
Small Business Impact
The award went to National Food Group Inc., a large business. There is no indication of small business participation in this specific award, which is common for large-scale food service contracts.
Oversight & Accountability
Oversight is managed by the Department of Justice's Bureau of Prisons. The use of SAP suggests a streamlined process, but requires diligence to ensure fair pricing and performance.
Related Government Programs
- Perishable Prepared Food Manufacturing
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Limited competition
- Potential for overpricing
- Vendor dependency
- Supply chain vulnerability
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 $18,684.96 to NATIONAL FOOD GROUP INC. FY26 A1 TBD Q3 SUBSISTENCE APR 26
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 $18,684.96.
What is the period of performance?
Start: 2026-04-01. End: 2026-06-30.
What is the typical per-unit cost for subsistence items under similar contracts, and how does this award compare?
Determining the precise per-unit cost is challenging without itemized pricing. However, given the $18.7M value for a 90-day period, the average daily cost per inmate is substantial. A comparative analysis against historical contracts or similar agency procurements for correctional facility food services would be necessary to establish a benchmark and assess value for money.
What are the risks associated with relying on a single vendor for perishable food supplies in federal prisons?
Reliance on a single vendor introduces significant risks, including potential supply chain disruptions due to unforeseen events (e.g., natural disasters, labor issues, vendor financial instability). This could lead to critical shortages of essential food items, impacting inmate welfare and facility operations. Furthermore, it reduces leverage for price negotiation and quality control.
How effective is the SAP procurement method in ensuring cost-effectiveness for large subsistence contracts?
The Simplified Acquisition Procedures (SAP) are designed for efficiency and speed in procuring goods and services below certain thresholds. While effective for smaller purchases, its application to a $18.7M contract raises questions about whether it truly maximizes cost-effectiveness. Limited competition inherent in SAP may not drive the lowest possible prices, potentially leading to higher taxpayer costs compared to a full and open competitive process.
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
Offers Received: 24
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: $18,685
Exercised Options: $18,685
Current Obligation: $18,685
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-04-01
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-04-03
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