DOJ's $36.7M contract for baking supplies awarded to East Baking Company, Inc

Contract Overview

Contract Amount: $36,721 ($36.7K)

Contractor: East Baking Company, Inc.

Awarding Agency: Department of Justice

Start Date: 2026-04-08

End Date: 2026-06-30

Contract Duration: 83 days

Daily Burn Rate: $442/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 A1 EAST BAKING 3RD QTR UNISON BUY 1206637

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38134

State: Tennessee Government Spending

Plain-Language Summary

Department of Justice obligated $36,720.55 to EAST BAKING COMPANY, INC. for work described as: FY26 A1 EAST BAKING 3RD QTR UNISON BUY 1206637 Key points: 1. Value for money appears fair given the firm fixed-price contract type. 2. Competition dynamics indicate a competed award under SAP, suggesting a streamlined process. 3. Risk indicators are low with a short duration and firm fixed-price terms. 4. Performance context is within the Federal Prison System, requiring reliable food services. 5. Sector positioning is within miscellaneous food manufacturing, supporting institutional needs.

Value Assessment

Rating: fair

The contract value of $36.7 million for a short duration (83 days) suggests a significant but potentially variable per-unit cost depending on the specific baking supplies procured. Without detailed line-item data, a precise value-for-money assessment is challenging. However, the firm fixed-price nature of the contract shifts risk to the contractor, which can be favorable for the government if costs are managed effectively. Benchmarking against similar contracts for institutional food supplies would provide a clearer picture of pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves a less formal solicitation process than full and open competition. While this suggests some level of competition, the exact number of bidders and the specific SAP procedures used are not detailed. The award to East Baking Company, Inc. implies they were the most advantageous offer received under these procedures. The limited competition may result in less aggressive pricing compared to a full and open competition.

Taxpayer Impact: Limited competition under SAP may mean taxpayers did not benefit from the most competitive pricing achievable through a broader solicitation. However, it can also lead to faster procurement cycles for essential goods.

Public Impact

Inmates within the Federal Prison System will benefit from the provision of baking supplies. Essential food services, specifically baked goods, will be maintained. The geographic impact is primarily within Tennessee, where the contractor is located. Workforce implications are likely for East Baking Company, Inc. and potentially related suppliers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed line-item pricing makes it difficult to assess true value for money.
Simplified Acquisition Procedures may limit the extent of price discovery.
Short contract duration could indicate a need for frequent re-solicitation, potentially increasing administrative burden.

Positive Signals

Firm fixed-price contract shifts cost overrun risk to the contractor.
Award to an established company (East Baking Company, Inc.) suggests a degree of reliability.
Procurement under SAP can lead to quicker delivery of needed supplies.

Sector Analysis

This contract falls within the miscellaneous food manufacturing sector, specifically supporting institutional needs. The market for food supplies to government facilities is substantial, driven by the requirement to provide sustenance to large populations. While specific benchmarks for institutional baking supplies are not readily available, the overall food manufacturing sector is characterized by varying degrees of competition and price sensitivity. This contract represents a portion of the government's broader spending on food and related products.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The award went to East Baking Company, Inc., whose size status is not provided in this data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's Bureau of Prisons. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified goods. Transparency is facilitated by contract databases like FPDS, though detailed performance metrics and specific oversight activities are not publicly detailed here. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Prison System Food Services
Bureau of Prisons Commissary Operations
General Services Administration (GSA) Schedule Contracts for Food Products
Department of Defense Food Procurement

Risk Flags

Potential for price increases if market conditions change significantly during the contract period.
Risk of supply chain disruptions impacting timely delivery of essential baking ingredients.
Need for robust quality assurance to ensure delivered products meet safety and quality standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $36,720.55 to EAST BAKING COMPANY, INC.. FY26 A1 EAST BAKING 3RD QTR UNISON BUY 1206637

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 $36,720.55.

What is the period of performance?

Start: 2026-04-08. End: 2026-06-30.

What is the historical spending pattern for baking supplies by the Federal Prison System?

Analyzing historical spending patterns for baking supplies by the Federal Prison System requires access to detailed procurement data over multiple fiscal years. This would involve querying databases like FPDS-NG to identify contracts specifically for baking ingredients, mixes, or related items awarded to various vendors. Key metrics to examine would include the total annual expenditure, the average contract value, the number of unique awardees, and the dominant contract types (e.g., firm fixed-price, cost-plus). Understanding historical trends, such as increasing or decreasing spending, price fluctuations, and shifts in awarded contractors, can provide context for the current $36.7 million award. For instance, if historical spending has been significantly lower, this award might represent a substantial increase in demand or a change in procurement strategy. Conversely, if spending has been consistently high, this award might be in line with previous levels.

How does the unit cost of items under this contract compare to market rates for similar institutional food suppliers?

A precise comparison of unit costs under this contract to market rates is challenging without access to the specific line items and quantities procured. The $36.7 million award is for a broad category of 'baking supplies' over a short period. To perform this comparison, one would need to identify the specific items (e.g., flour, sugar, yeast, baking powder) and their quantities, then benchmark these against prices offered by other institutional food suppliers or distributors serving similar large-scale operations. Factors such as volume discounts, delivery terms, and quality specifications would need to be standardized for a fair comparison. If the contract was competed under SAP, the pricing might not have been as aggressively negotiated as in a full and open competition, potentially leading to higher unit costs compared to market benchmarks. However, the firm fixed-price nature suggests the contractor has committed to these prices.

What is East Baking Company, Inc.'s track record with federal contracts, particularly with the Department of Justice?

Evaluating East Baking Company, Inc.'s track record with federal contracts, especially with the Department of Justice (DOJ), involves reviewing their past performance data. This includes examining the number of previous awards, their values, the agencies involved, and the contract types. A search of federal procurement databases (like FPDS-NG) would reveal if East Baking Company has a history of supplying food products or other goods to the DOJ or its components, such as the Federal Prison System. Key aspects to assess include on-time delivery rates, compliance with contract terms, any past performance issues or disputes, and the overall satisfaction levels reported by contracting officers. A consistent history of successful contract performance suggests a lower risk for this current award. Conversely, a history of issues might raise concerns about the reliability and efficiency of the contractor.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential supply chain disruptions affecting the availability of baking supplies, quality control issues with the delivered products, and price volatility if the firm fixed-price contract does not adequately account for market fluctuations. Mitigation strategies are embedded within the contract structure and oversight. The firm fixed-price nature shifts the financial risk of cost overruns to East Baking Company, Inc. The short duration (83 days) limits the exposure to long-term market volatility. The Department of Justice's Federal Prison System likely has quality assurance personnel to inspect deliveries and ensure compliance with specifications. Furthermore, the use of Simplified Acquisition Procedures, while potentially limiting competition, is intended for lower-value procurements where risks are generally considered manageable. The contractor's past performance, if positive, also serves as a risk mitigation factor.

How does the current contract value compare to the total annual spending on food supplies for the Federal Prison System?

To compare the current contract value of $36.7 million to the total annual spending on food supplies for the Federal Prison System, one would need to access aggregated historical spending data for the Bureau of Prisons (BOP). This involves summing up all food-related contract awards across various categories (e.g., fresh produce, dairy, meat, dry goods, baking supplies) for a given fiscal year. If the BOP's total annual food budget is, for example, $500 million, then this $36.7 million contract for baking supplies represents approximately 7.3% of that annual budget. If the total annual spending is significantly higher or lower, the relative impact of this single contract changes. This comparison helps contextualize the significance of this award within the broader food procurement landscape of the BOP and assess whether it represents a routine purchase or a substantial deviation.

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: UNISON BUY 1206637

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: $36,721

Exercised Options: $36,721

Current Obligation: $36,721

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline