DOJ's Bureau of Prisons awards $17.8M for bread to East Baking Company in FY26

Contract Overview

Contract Amount: $17,816 ($17.8K)

Contractor: East Baking Company, Inc.

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-04-30

Contract Duration: 29 days

Daily Burn Rate: $614/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 A1 EAST BAKING APRIL BREAD QTR 3

Place of Performance

Location: HOLYOKE, HAMPDEN County, MASSACHUSETTS, 01040

State: Massachusetts Government Spending

Plain-Language Summary

Department of Justice obligated $17,815.6 to EAST BAKING COMPANY, INC. for work described as: FY26 A1 EAST BAKING APRIL BREAD QTR 3 Key points: 1. Spending is concentrated in the food services sector for correctional facilities. 2. The contract is a delivery order under a larger agreement. 3. Competition was limited, raising potential concerns about price discovery. 4. The firm fixed price contract type offers some cost certainty.

Value Assessment

Rating: fair

The award amount of $17.8M for a single quarter of bread delivery appears high. Benchmarking against similar large-scale food service contracts for correctional institutions 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 a limited competition environment. This method may not yield the most competitive pricing compared to full and open competition.

Taxpayer Impact: Taxpayer funds are being used for this procurement. The limited competition could lead to higher costs than potentially achievable through broader market engagement.

Public Impact

Ensures essential food supplies for federal inmates. Supports a specific regional food service provider. Potential for cost savings if better competition is achieved in future procurements.

Waste & Efficiency Indicators

Waste Risk Score: 61 / 10

Warning Flags

Limited competition
Potential for overpayment due to limited competition

Positive Signals

Firm fixed price contract
Ensures essential service delivery

Sector Analysis

This spending falls within the food services sector, specifically catering to institutional needs like federal prisons. Benchmarks for similar contracts are scarce due to the specialized nature of correctional facility food supply.

Small Business Impact

There is no indication that small businesses were involved in this specific delivery order, as it was awarded to East Baking Company, Inc.

Oversight & Accountability

Oversight would involve monitoring contract performance, delivery accuracy, and adherence to quality standards by the Federal Prison System. The use of SAP warrants scrutiny to ensure fair pricing.

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 detailed cost breakdown
Geographic concentration of vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $17,815.6 to EAST BAKING COMPANY, INC.. FY26 A1 EAST BAKING APRIL BREAD QTR 3

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 $17,815.6.

What is the period of performance?

Start: 2026-04-01. End: 2026-04-30.

What is the typical cost per inmate for bread in federal prisons?

Determining the precise per-inmate cost for bread is complex due to varying contract structures, regional food costs, and bulk purchasing agreements. However, a general benchmark for food services in correctional facilities can range significantly, with bread being a staple component. Without specific contract details and inmate counts for this period, a precise per-unit cost is difficult to establish.

What are the risks associated with limited competition under SAP for essential goods like bread?

Limited competition under SAP increases the risk of non-competitive pricing, potentially leading to higher costs for taxpayers. It can also reduce the incentive for the awarded vendor to maintain high quality or efficiency. Furthermore, it may exclude potentially more capable or cost-effective vendors who were not aware of or eligible for the SAP process.

How effective is a firm fixed price contract in managing costs for bread procurement?

A firm fixed price (FFP) contract is generally effective in controlling costs for predictable goods like bread, as the price is set upfront. This shifts the risk of cost overruns to the contractor. However, if the initial price was inflated due to limited competition, the FFP structure still results in paying a higher-than-necessary price.

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: 15BFA024Q00000052

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, Limited Liability Corporation, Minority Owned Business, Other Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,816

Exercised Options: $17,816

Current Obligation: $17,816

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15BFA024D00000039

IDV Type: IDC

Timeline