DOJ's $21.8M Contract for Food Manufacturing Services Awarded to North Star Imports, LLC

Contract Overview

Contract Amount: $21,840 ($21.8K)

Contractor: North Star Imports, LLC

Awarding Agency: Department of Justice

Start Date: 2026-04-02

End Date: 2026-06-30

Contract Duration: 89 days

Daily Burn Rate: $245/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 28

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: A1 FY26 QTR3-NORTH STAR IMPORTS-SUBSISTENCE SMALL BUSINESS RP#

Place of Performance

Location: SAINT PAUL, DAKOTA County, MINNESOTA, 55122

State: Minnesota Government Spending

Plain-Language Summary

Department of Justice obligated $21,840 to NORTH STAR IMPORTS, LLC for work described as: A1 FY26 QTR3-NORTH STAR IMPORTS-SUBSISTENCE SMALL BUSINESS RP# Key points: 1. The contract is for subsistence food manufacturing, a critical need for the Federal Prison System. 2. Competition was conducted under SAP (Simplified Acquisition Procedures), suggesting a focus on smaller value procurements. 3. The fixed-price contract type aims to control costs, but the specific value and duration warrant scrutiny. 4. The sector is 'All Other Miscellaneous Food Manufacturing', a niche but essential area for institutional support.

Value Assessment

Rating: fair

The contract value of $21.84 million over approximately 3 months (89 days) appears high for a fixed-price purchase order under SAP. Benchmarking against similar food manufacturing contracts for correctional facilities would be necessary to assess true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'COMPETED UNDER SAP', indicating a limited competition approach. While SAP aims for efficiency, it may not always yield the best price discovery compared to full and open competition, especially for significant dollar amounts.

Taxpayer Impact: The pricing appears fair given the limited competition, but the potential for better pricing through broader competition cannot be ruled out. Taxpayer funds are being utilized for essential services.

Public Impact

Ensures the provision of essential food supplies to federal correctional facilities. Supports the operational needs of the Bureau of Prisons. The contract's duration and value could impact the availability and cost of specific food products. Potential for price fluctuations if market conditions change during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The 'All Other Miscellaneous Food Manufacturing' sector supports essential government functions, particularly in institutional settings like prisons. Spending benchmarks for this niche are difficult to establish without more specific product details, but consistency in supply is key.

Small Business Impact

The contract was awarded under SAP, which often favors small businesses. However, the data indicates the awardee is 'NORTH STAR IMPORTS, LLC', and it is not explicitly marked as a small business award. Further investigation into the size standard for this NAICS code is needed.

Oversight & Accountability

Oversight will be crucial to ensure North Star Imports, LLC meets the contract's requirements and delivers quality subsistence products within the specified timeframe. The Bureau of Prisons should monitor performance closely, especially given the fixed-price nature.

Related Government Programs

Risk Flags

Tags

all-other-miscellaneous-food-manufacturi, department-of-justice, mn, purchase-order, under-100k

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $21,840 to NORTH STAR IMPORTS, LLC. A1 FY26 QTR3-NORTH STAR IMPORTS-SUBSISTENCE SMALL BUSINESS RP#

Who is the contractor on this award?

The obligated recipient is NORTH STAR IMPORTS, LLC.

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 $21,840.

What is the period of performance?

Start: 2026-04-02. End: 2026-06-30.

What is the specific breakdown of food products included in this contract, and how does the unit pricing compare to market averages for similar items?

The provided data lacks specific details on the food products covered. A thorough analysis would require a detailed product list and comparison of unit prices against industry benchmarks for institutional food supply. This would reveal if the $21.84 million represents a fair market value or if there's potential for cost savings through better negotiation or broader competition.

Given the limited competition under SAP, what measures are in place to mitigate the risk of inflated pricing or suboptimal product quality?

The primary risk mitigation is the firm fixed-price contract, which shifts cost overrun risk to the contractor. However, without detailed performance metrics or quality assurance clauses specified, the government relies heavily on the contractor's self-monitoring. The Bureau of Prisons should implement robust receiving inspections and performance reviews to ensure quality and value.

How effectively does this contract support the long-term nutritional and operational needs of the Federal Prison System, considering its short duration?

This contract appears to address immediate subsistence needs for a specific period (April-June 2026). Its effectiveness for long-term needs is limited due to the short duration. Future contracting strategies should consider longer-term agreements or multiple awards to ensure sustained supply chain stability and potentially better pricing through economies of scale.

Industry Classification

NAICS: ManufacturingOther Food ManufacturingAll Other Miscellaneous Food Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 28

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: North Star Imports LLC

Address: 3459 WASHINGTON DR STE 201, SAINT PAUL, MN, 55122

Business Categories: Category Business, Limited Liability Corporation, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,840

Exercised Options: $21,840

Current Obligation: $21,840

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline

Start Date: 2026-04-02

Current End Date: 2026-06-30

Potential End Date: 2026-06-30 00:00:00

Last Modified: 2026-04-02

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