DOJ's $31.8M Bread Contract Awarded to Bimbo Bakeries USA for Federal Prisons

Contract Overview

Contract Amount: $31,803 ($31.8K)

Contractor: Bimbo Bakeries USA, Inc.

Awarding Agency: Department of Justice

Start Date: 2026-01-01

End Date: 2026-04-09

Contract Duration: 98 days

Daily Burn Rate: $325/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BIMBO BAKERIES BREAD FY26 QTR 2

Place of Performance

Location: IRVING, DALLAS County, TEXAS, 75038

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $31,802.82 to BIMBO BAKERIES USA, INC. for work described as: BIMBO BAKERIES BREAD FY26 QTR 2 Key points: 1. Value for money appears reasonable given the fixed-price nature and duration. 2. Competition dynamics indicate a potentially competitive process under SAP. 3. Risk indicators are low, with a firm fixed-price contract and clear delivery period. 4. Performance context is within the scope of routine food service provision. 5. Sector positioning is within the food services and supplies category for correctional facilities.

Value Assessment

Rating: good

The contract value of $31.8 million for a 98-day period suggests a significant but potentially fair price for bulk bread supply to federal correctional facilities. Benchmarking against similar large-scale food service contracts for institutions would provide a clearer picture of value. The firm fixed-price structure helps control costs for the government, assuming the quantity and quality meet expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a streamlined process for procurements below a certain threshold. While the exact number of bidders isn't specified beyond the awardee, SAP typically allows for multiple quotes, implying some level of competition. The award to Bimbo Bakeries USA, Inc. indicates they were the most advantageous offer.

Taxpayer Impact: Competition under SAP aims to ensure fair pricing and prevent overspending, benefiting taxpayers by leveraging market forces even for smaller procurements.

Public Impact

Inmates in federal correctional facilities will receive bread products. The Bureau of Prisons will ensure a consistent supply of a staple food item. The contract supports food service operations within the federal prison system. The geographic impact is primarily within Texas, where the supplier is located, but the beneficiaries are nationwide federal inmates.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations if market conditions change significantly during the contract period, though mitigated by fixed-price.
Dependence on a single supplier for a critical food item could pose a risk if supply chain issues arise.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a well-established bakery chain suggests reliability and capacity.
Defined delivery period limits the government's exposure.

Sector Analysis

This contract falls within the food manufacturing and distribution sector, specifically serving institutional clients like government agencies. The market for supplying food to federal correctional facilities is substantial, often characterized by large volume orders and specific nutritional and logistical requirements. Comparable spending benchmarks would involve analyzing other large food service contracts awarded to correctional systems or similar government entities.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. As a large award to a major corporation, the direct impact on the small business ecosystem is likely minimal unless Bimbo Bakeries USA, Inc. utilizes small businesses in its supply chain.

Oversight & Accountability

Oversight will likely be managed by the Bureau of Prisons contracting officers and program managers. Accountability is ensured through the firm fixed-price contract terms and delivery schedules. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics may not be publicly available.

Related Government Programs

Federal Prison System Food Services
Bureau of Prisons Commissary Operations
Department of Justice Food Procurement

Risk Flags

Potential supply chain vulnerability
Limited competition impact on long-term pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $31,802.82 to BIMBO BAKERIES USA, INC.. BIMBO BAKERIES BREAD FY26 QTR 2

Who is the contractor on this award?

The obligated recipient is BIMBO BAKERIES USA, 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 $31,802.82.

What is the period of performance?

Start: 2026-01-01. End: 2026-04-09.

What is the historical spending pattern for bread and bakery products by the Federal Prison System?

Analyzing historical spending data for bread and bakery products by the Federal Prison System (FPS) is crucial for understanding trends and identifying potential cost savings or anomalies. While specific historical figures for this contract are not provided, the FPS, as the largest civilian law enforcement agency in the U.S., procures substantial quantities of food to serve its inmate population. Past contracts for similar items would reveal average annual expenditures, price per unit trends, and the typical duration and scope of such agreements. Examining this history can help determine if the current $31.8 million award for a 98-day period represents a typical expenditure, an increase, or a decrease compared to previous procurement cycles. It also helps in assessing whether the FPS has historically relied on a few large suppliers or a diverse range of vendors, and if there have been significant shifts in procurement strategies or market prices over time.

How does the per-unit cost of bread under this contract compare to market rates or similar government contracts?

A key aspect of evaluating this contract's value is comparing the per-unit cost of bread to prevailing market rates and similar government procurements. Without specific unit quantities and prices from the award data, a precise calculation is impossible. However, if the contract is for a large volume, the price per loaf or pound should be competitive. For instance, if the average market price for wholesale bread is $X per pound, and this contract yields a price significantly higher or lower, it warrants further investigation. Government contracts often benefit from bulk purchasing power, potentially leading to lower prices than retail. Comparing this award to contracts from other federal agencies (like the military or other correctional systems) or even state/local government entities for similar food items would provide a robust benchmark. A higher-than-market price could indicate less competitive bidding, specific quality requirements, or logistical complexities not immediately apparent.

What are the specific quality and nutritional requirements for the bread being supplied?

The specific quality and nutritional requirements for the bread supplied under this contract are critical for ensuring it meets the needs of the inmate population and adheres to dietary guidelines. While not detailed in the provided data, federal contracts typically include detailed specifications in the Statement of Work (SOW) or Performance Work Statement (PWS). These specifications often cover aspects such as ingredients (e.g., whole wheat content, absence of certain additives), nutritional content (e.g., caloric value, fiber, sodium levels), shelf life, packaging, and delivery conditions. For correctional facilities, requirements might also include specific portion sizes or types of bread (e.g., sliced, unsliced, rolls). Understanding these requirements is essential for assessing whether the awarded price reflects the value of the specified product and for evaluating the contractor's ability to consistently meet these standards throughout the contract period.

What is Bimbo Bakeries USA, Inc.'s track record with federal government contracts, particularly with the Department of Justice or Bureau of Prisons?

Bimbo Bakeries USA, Inc. is a major player in the commercial baking industry, and its track record with federal government contracts, especially with the Department of Justice (DOJ) and the Bureau of Prisons (BOP), is a significant indicator of its reliability and performance. A review of federal procurement databases (like FPDS or SAM.gov) would reveal the extent of their past awards, including contract values, agencies served, and performance history. Key aspects to examine include whether they have fulfilled previous food service contracts on time and to specification, any history of contract disputes, terminations, or penalties, and their overall satisfaction ratings from government agencies. A strong history with similar contracts suggests a lower risk for this current award, indicating they possess the capacity, logistical capabilities, and quality control necessary to meet the demands of supplying federal prisons.

What are the potential risks associated with relying on a single large commercial bakery for a staple food item in federal prisons?

Relying on a single large commercial bakery like Bimbo Bakeries USA, Inc. for a staple food item such as bread in federal prisons presents several potential risks. Firstly, supply chain disruptions, whether due to natural disasters, labor strikes, transportation issues, or raw material shortages, could impact the consistent delivery of bread, affecting inmate nutrition and morale. Secondly, a lack of ongoing competition might reduce the incentive for the contractor to maintain the lowest possible prices or highest service levels over time, although the fixed-price nature of this contract mitigates immediate price risk. Thirdly, if the contractor experiences financial difficulties or operational failures, the government would face challenges in quickly securing an alternative supplier, potentially leading to service interruptions. Finally, quality control issues or deviations from specified standards could arise, and addressing these with a single, large supplier might be more complex than managing multiple smaller vendors.

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

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Grupo Bimbo, S.A.B. DE C.V.

Address: 355 BUSINESS CENTER DR, HORSHAM, PA, 19044

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,803

Exercised Options: $31,803

Current Obligation: $31,803

Actual Outlays: $15,989

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline