DOJ awards $3.9M for bread, with 89-day duration, to Bimbo Bakeries USA

Contract Overview

Contract Amount: $39,150 ($39.1K)

Contractor: Bimbo Bakeries USA, Inc.

Awarding Agency: Department of Justice

Start Date: 2026-04-02

End Date: 2026-06-30

Contract Duration: 89 days

Daily Burn Rate: $440/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BIMBO BAKERIES FY26 QTR 3 BREAD

Place of Performance

Location: IRVING, DALLAS County, TEXAS, 75038

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $39,150 to BIMBO BAKERIES USA, INC. for work described as: BIMBO BAKERIES FY26 QTR 3 BREAD Key points: 1. Value for money appears fair given the short duration and fixed-price nature. 2. Competition dynamics indicate a competed award under SAP, suggesting potential for multiple bids. 3. Risk indicators are low due to the firm fixed-price contract type and short performance period. 4. Performance context is limited to a short-term supply of bread for the Federal Prison System. 5. Sector positioning is within the food services and supplies category for correctional facilities.

Value Assessment

Rating: fair

The contract value of $3.915 million for an 89-day period suggests a daily expenditure of approximately $43,988. This appears to be a reasonable rate for bulk bread procurement for a federal facility, though specific product details and quantities are not provided. Benchmarking against similar contracts for correctional facility food services would provide a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under the Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition than micro-purchases but may not involve the full extent of open bidding required for larger contracts. The number of bidders is not specified, but SAP is designed to encourage competition among qualified vendors.

Taxpayer Impact: Competing under SAP generally leads to better price discovery and value for taxpayers compared to sole-source awards, ensuring that the government receives competitive pricing for goods and services.

Public Impact

Inmates within the Federal Prison System in Texas will benefit from the provision of bread. The service delivered is the supply of bread, a staple food item. The geographic impact is localized to Federal Prison System facilities in Texas. Workforce implications are primarily for Bimbo Bakeries USA, Inc., with potential for local employment in their Texas operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed product specifications could lead to variations in quality.
Potential for price fluctuations in raw materials impacting long-term cost-effectiveness if extended.

Positive Signals

Firm fixed-price contract limits cost overruns for the government.
Short contract duration minimizes exposure to market volatility.
Award to an established bakery chain suggests reliable supply chain management.

Sector Analysis

This contract falls within the broader food services and supplies sector, specifically catering to institutional needs. The market for bulk food procurement for federal agencies, particularly correctional facilities, is substantial. Comparable spending benchmarks would involve analyzing other contracts for food supplies to similar institutions, considering factors like inmate population size and dietary requirements.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor is there information suggesting significant subcontracting opportunities for small businesses. The award to a large corporation like Bimbo Bakeries USA, Inc. suggests that the primary focus was on large-scale production capacity and established distribution networks rather than fostering small business participation.

Oversight & Accountability

Oversight for this contract would likely fall under the purview of the Federal Prison System's contracting officers and potentially the Department of Justice's Office of the Inspector General. Accountability measures are inherent in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated by the contract award data being publicly available.

Related Government Programs

Federal Prison System Food Services
Department of Justice Commissary Operations
Correctional Facility Food Procurement
Commercial Bakery Supply Contracts

Risk Flags

Potential for waste due to perishability
Lack of detailed product specifications
Limited competition visibility under SAP

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $39,150 to BIMBO BAKERIES USA, INC.. BIMBO BAKERIES FY26 QTR 3 BREAD

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 $39,150.

What is the period of performance?

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

What specific types and quantities of bread are being procured under this contract?

The provided data does not specify the exact types or quantities of bread being procured. It only states 'BREAD' as the item. To conduct a more thorough analysis of value for money and suitability, detailed specifications regarding the types of bread (e.g., white, whole wheat, enriched), weight per loaf, and the total quantity required over the 89-day period would be necessary. Without this information, it is difficult to benchmark the price against market rates for specific bread products.

How does the daily cost of approximately $43,988 compare to similar procurements for correctional facilities?

Benchmarking the daily cost of $43,988 requires comparison with similar contracts for correctional facilities, considering factors such as inmate population, geographic location, and specific dietary needs. Without access to a database of comparable contracts, a precise comparison is challenging. However, this figure represents the total daily expenditure for bread. If this serves a large inmate population, the per-inmate cost might be relatively low. Further analysis would involve understanding the scale of the facility being supplied and the typical cost per meal or per inmate for bread products in similar institutional settings.

What is the track record of Bimbo Bakeries USA, Inc. in supplying federal agencies?

Bimbo Bakeries USA, Inc. is a large, established commercial bakery with extensive experience in producing and distributing a wide range of bakery products. While specific details of their past federal contracts are not provided in this data snippet, their size and market presence suggest a capacity to fulfill large-scale supply agreements. Federal agencies often contract with major food suppliers due to their logistical capabilities and consistent product availability. A deeper dive into federal procurement databases would reveal the extent and nature of their prior government contracts.

What are the potential risks associated with a firm fixed-price contract for perishable goods like bread?

The primary risk with a firm fixed-price contract for perishable goods like bread is the potential for waste if demand forecasts are inaccurate or if delivery schedules are disrupted, leading to spoilage. For the contractor, underestimating production costs or facing unexpected increases in raw material prices could reduce profit margins. However, for the government, the fixed-price nature provides cost certainty and protects against price escalations. The short duration of this contract (89 days) mitigates some of these risks by limiting the period of exposure to potential market fluctuations or demand variability.

What oversight mechanisms are in place to ensure the quality and timely delivery of bread?

Oversight for this contract would typically involve the contracting officer's representative (COR) from the Federal Prison System. The COR is responsible for monitoring contractor performance, ensuring compliance with contract terms, inspecting deliveries for quality and quantity, and verifying timely delivery. The firm fixed-price nature of the contract incentivizes the contractor to meet these requirements to ensure payment. Any deviations from quality standards or delivery schedules could result in contract remedies, such as rejection of goods or financial penalties, depending on the contract's specific clauses.

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: 15B40826Q00000007

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 5525 N MACARTHUR BLVD STE 850, IRVING, TX, 75038

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

Financial Breakdown

Contract Ceiling: $39,150

Exercised Options: $39,150

Current Obligation: $39,150

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline