DOJ awards $18.8M for bread to Bimbo Bakeries USA, Inc. for Federal Prison System

Contract Overview

Contract Amount: $18,807 ($18.8K)

Contractor: Bimbo Bakeries USA, Inc.

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-03-31

Contract Duration: 181 days

Daily Burn Rate: $104/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: A1 FY26 2ND QTR BIMBO BREAD

Place of Performance

Location: HORSHAM, MONTGOMERY County, PENNSYLVANIA, 19044

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Justice obligated $18,807.37 to BIMBO BAKERIES USA, INC. for work described as: A1 FY26 2ND QTR BIMBO BREAD Key points: 1. Spending on bread for the Federal Prison System totals $18.8M. 2. Bimbo Bakeries USA, Inc. is the sole awardee. 3. The contract is for firm fixed price, with 5 purchase orders. 4. This purchase falls under the commercial bakeries sector.

Value Assessment

Rating: fair

The contract value of $18.8M for 181 days of bread supply seems high for commercial bakeries. Benchmarking against similar food service contracts for correctional facilities is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), suggesting limited competition. This method may not yield the best price discovery compared to full and open competition.

Taxpayer Impact: Taxpayer funds are used for this procurement. The limited competition may result in a higher cost than if broader competition were pursued.

Public Impact

Ensures food supply for inmates within the Federal Prison System. Supports a major food manufacturer, Bimbo Bakeries USA, Inc. Potential for price increases due to limited competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP
Potential for overpayment due to lack of robust price discovery

Positive Signals

Ensures essential food supply
Utilizes established vendor

Sector Analysis

The Federal Prison System procures various food items to sustain inmates. Spending on staple goods like bread is a significant operational cost. Benchmarks for food service contracts in correctional settings are crucial for evaluating this award.

Small Business Impact

The awardee, Bimbo Bakeries USA, Inc., is a large corporation, not a small business. There is no indication of small business participation in this specific contract.

Oversight & Accountability

The Department of Justice, through the Federal Prison System, is responsible for this procurement. Oversight should focus on ensuring fair pricing and quality of goods delivered under the contract.

Related Government Programs

Commercial Bakeries
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Limited competition
Potential for inflated pricing
Lack of transparency in award process
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $18,807.37 to BIMBO BAKERIES USA, INC.. A1 FY26 2ND QTR BIMBO 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 $18,807.37.

What is the period of performance?

Start: 2025-10-01. End: 2026-03-31.

What is the typical cost per inmate for bread, and how does this contract compare?

Determining the exact cost per inmate requires knowing the inmate population served by this contract and the total quantity of bread procured. Without these details, a direct comparison is difficult. However, the overall contract value of $18.8M for six months suggests a substantial expenditure that warrants further investigation into per-unit pricing and potential economies of scale.

What are the risks associated with using Simplified Acquisition Procedures for a contract of this value?

Using SAP for a contract valued at $18.8M carries risks of limited competition, potentially leading to higher prices than achievable through full and open competition. It may also reduce transparency and opportunities for innovative solutions from a wider range of vendors. Ensuring fair and reasonable pricing becomes more challenging without a broader market solicitation.

How effective is Bimbo Bakeries USA, Inc. in meeting the nutritional and logistical needs of the Federal Prison System?

The effectiveness of Bimbo Bakeries USA, Inc. in meeting the needs of the Federal Prison System is not directly assessed by this data. Past performance, delivery reliability, product quality, and adherence to nutritional guidelines would be key indicators. This contract award implies a level of confidence, but ongoing monitoring of performance metrics is essential for ensuring continued effectiveness.

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: 15B41225Q00000006

Offers Received: 5

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: $18,807

Exercised Options: $18,807

Current Obligation: $18,807

Actual Outlays: $10,080

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline