DOJ's $42.9M Bread Contract Awarded to Schwebel Baking Company for Federal Prison System
Contract Overview
Contract Amount: $42,892 ($42.9K)
Contractor: Schwebel Baking Company
Awarding Agency: Department of Justice
Start Date: 2026-01-01
End Date: 2026-03-31
Contract Duration: 89 days
Daily Burn Rate: $482/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: Q2 FY 2026 BREAD - SCHWEBEL
Place of Performance
Location: YOUNGSTOWN, MAHONING County, OHIO, 44502
State: Ohio Government Spending
Plain-Language Summary
Department of Justice obligated $42,892.25 to SCHWEBEL BAKING COMPANY for work described as: Q2 FY 2026 BREAD - SCHWEBEL Key points: 1. The contract value is $42.9 million, covering a 3-month period. 2. Schwebel Baking Company secured this contract through a competitive process under SAP. 3. The award is a Purchase Order, indicating a straightforward procurement. 4. This spending falls under the 'Commercial Bakeries' product service code.
Value Assessment
Rating: good
The contract is for a short duration (89 days) with a firm fixed price, suggesting predictable costs. Benchmarking against similar bakery contracts would provide further pricing validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves a limited number of quotes. While competitive, it may not achieve the same price discovery as full and open competition.
Taxpayer Impact: Taxpayer funds are being used for essential food supplies for the federal prison system, ensuring basic needs are met.
Public Impact
Ensures a consistent supply of bread for inmates within the Federal Prison System. Supports a commercial bakery business through a significant government contract. The procurement method suggests efficiency for smaller value contracts. Geographic location of the awardee is Ohio.
Waste & Efficiency Indicators
Waste Risk Score: 48 / 10
Warning Flags
- Limited competition under SAP
- Short contract duration may require re-competition soon
Positive Signals
- Firm fixed price contract
- Competitive award under SAP
- Essential goods procurement
Sector Analysis
This contract falls within the food services sector, specifically commercial bakeries. Government spending on food supplies for correctional facilities is a consistent requirement, with benchmarks varying based on volume and specific product needs.
Small Business Impact
The awardee is Schwebel Baking Company. Analysis is needed to determine if this is a small or large business for the purpose of small business set-asides, though it was not explicitly awarded as such.
Oversight & Accountability
The award is a Purchase Order, which is a standard procurement instrument. Oversight would focus on delivery, quality, and adherence to the firm fixed price.
Related Government Programs
- Commercial Bakeries
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Potential for higher costs due to limited competition
- Short contract duration may lead to frequent re-procurement efforts
- Dependence on a single supplier for a critical food item
- Need to verify small business status if applicable
Tags
commercial-bakeries, department-of-justice, oh, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $42,892.25 to SCHWEBEL BAKING COMPANY. Q2 FY 2026 BREAD - SCHWEBEL
Who is the contractor on this award?
The obligated recipient is SCHWEBEL BAKING COMPANY.
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 $42,892.25.
What is the period of performance?
Start: 2026-01-01. End: 2026-03-31.
What is the historical pricing trend for bread procurement by the Federal Prison System?
Historical pricing data for bread procurement by the Federal Prison System would be crucial for assessing the value of this $42.9 million award. Analyzing past contracts, including quantities, durations, and price escalations, can reveal if Schwebel Baking Company's pricing is competitive or if there's an opportunity for better cost savings in future solicitations. This context helps determine if the current price reflects market conditions or potential inefficiencies.
What are the risks associated with a limited competition procurement under SAP for essential food items?
Limited competition under SAP, while efficient, carries the risk of suboptimal pricing and reduced innovation compared to full and open competition. For essential items like bread, this could mean higher costs for taxpayers or potential supply chain vulnerabilities if the limited pool of bidders faces disruptions. Ensuring robust price analysis and clear performance standards is critical to mitigate these risks.
How effectively does this contract meet the nutritional and logistical needs of the Federal Prison System?
The effectiveness of this contract hinges on Schwebel Baking Company's ability to consistently meet the nutritional requirements and delivery schedules for the Federal Prison System. While the firm fixed price suggests cost control, the true measure of effectiveness lies in the quality and timeliness of the bread supplied. Feedback from correctional facilities and adherence to product specifications are key indicators.
Industry Classification
NAICS: Manufacturing › Bakeries and Tortilla Manufacturing › Commercial Bakeries
Product/Service Code: SUBSISTENCE
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: RFQP02162600001
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 965 E MIDLOTHIAN BLVD, YOUNGSTOWN, OH, 44502
Business Categories: Category Business, Corporate Entity Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $42,892
Exercised Options: $42,892
Current Obligation: $42,892
Actual Outlays: $9,132
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-01-01
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-04-03
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