DOJ's $24.4M Bread Purchase Awarded to East Baking Company Under SAP
Contract Overview
Contract Amount: $24,455 ($24.5K)
Contractor: East Baking Company, Inc.
Awarding Agency: Department of Justice
Start Date: 2026-01-02
End Date: 2026-03-31
Contract Duration: 88 days
Daily Burn Rate: $278/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FY26 2ND QTR- BREAD
Place of Performance
Location: HOLYOKE, HAMPDEN County, MASSACHUSETTS, 01040
Plain-Language Summary
Department of Justice obligated $24,455.2 to EAST BAKING COMPANY, INC. for work described as: FY26 2ND QTR- BREAD Key points: 1. The Federal Prison System awarded a $24.4 million contract for bread. 2. Competition was conducted under the Simplified Acquisition Procedures (SAP). 3. The contract is a firm fixed price purchase order. 4. The award was made to East Baking Company, Inc.
Value Assessment
Rating: fair
The contract value of $24.4 million for an 88-day period appears high for retail bakery goods. Benchmarking against similar contracts for bulk food supplies is necessary to determine if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP, suggesting it was likely a small dollar value procurement. While competed, the limited scope of SAP may restrict the pool of potential bidders, potentially impacting price discovery.
Taxpayer Impact: Taxpayer funds are being used for this procurement. The value suggests a significant expenditure, and ensuring competitive pricing is crucial for fiscal responsibility.
Public Impact
Ensures food supply for federal correctional facilities. Supports a specific business in the food service sector. Potential for price fluctuations if competition is limited.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for overpricing due to limited competition under SAP.
- Short contract duration may lead to frequent re-procurement costs.
- Lack of detailed cost breakdown makes value assessment difficult.
Positive Signals
- Awarded to a specific company, providing business certainty.
- Firm fixed price contract provides budget predictability.
Sector Analysis
The food service sector, particularly for institutional needs like federal prisons, often involves large contracts. Benchmarks for bulk food procurement can vary significantly based on item type, quantity, and delivery logistics.
Small Business Impact
The use of SAP suggests an intent to potentially engage small businesses, however, the large contract value may exceed typical small business thresholds. Further analysis is needed to confirm if small businesses were actively solicited or participated.
Oversight & Accountability
Oversight would involve ensuring the quality and timely delivery of bread as per the purchase order terms. The Bureau of Prisons is responsible for monitoring contractor performance and adherence to contract specifications.
Related Government Programs
- Retail Bakeries
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Limited competition due to SAP.
- Potential for inflated pricing.
- Lack of detailed cost breakdown.
- Short contract duration.
- Perishability of goods.
Tags
retail-bakeries, department-of-justice, ma, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $24,455.2 to EAST BAKING COMPANY, INC.. FY26 2ND QTR- BREAD
Who is the contractor on this award?
The obligated recipient is EAST BAKING COMPANY, 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 $24,455.2.
What is the period of performance?
Start: 2026-01-02. End: 2026-03-31.
What is the typical per-unit cost for bread procured by federal agencies of similar size and scope?
Determining the typical per-unit cost requires access to historical contract data for bulk bread procurement across various federal agencies. Factors like volume, delivery frequency, and specific bread types significantly influence pricing. Without specific benchmarks, it's challenging to definitively assess if the $24.4 million award for 88 days represents a fair market price.
What are the specific risks associated with a firm fixed price contract for perishable goods like bread?
A firm fixed price contract for perishable goods like bread carries risks for both the government and the contractor. The government risks overpaying if market prices decrease, while the contractor risks losses if their costs increase beyond the fixed price due to supply chain issues or inflation. Ensuring accurate initial cost estimation is critical.
How effective is the Simplified Acquisition Procedures (SAP) in ensuring competitive pricing for large-value procurements?
SAP is designed for procurements under a certain dollar threshold (currently $250,000) to streamline the process. While it can encourage competition among a broader range of vendors for smaller purchases, its effectiveness diminishes for larger contract values like $24.4 million. For such significant amounts, more robust competition methods are generally preferred to ensure optimal price discovery and value for taxpayer money.
Industry Classification
NAICS: Manufacturing › Bakeries and Tortilla Manufacturing › Retail Bakeries
Product/Service Code: SUBSISTENCE
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 15B10926Q00000003
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 104 WHITING FARMS RD, HOLYOKE, MA, 01040
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Other Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,455
Exercised Options: $24,455
Current Obligation: $24,455
Actual Outlays: $13,160
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-01-02
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-04-10
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