DOJ's $1.4M Bread Contract Awarded to Bimbo Bakeries USA for Federal Prisons

Contract Overview

Contract Amount: $142,650 ($142.7K)

Contractor: Bimbo Bakeries USA, Inc.

Awarding Agency: Department of Justice

Start Date: 2026-04-06

End Date: 2026-06-30

Contract Duration: 85 days

Daily Burn Rate: $1.7K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY 2026 Q3 - BREAD

Place of Performance

Location: IRVING, DALLAS County, TEXAS, 75038

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $142,650 to BIMBO BAKERIES USA, INC. for work described as: FY 2026 Q3 - BREAD Key points: 1. The contract value of $1.43 million for bread is moderate for federal food service needs. 2. Competition was limited under Simplified Acquisition Procedures (SAP), potentially impacting price discovery. 3. The risk of price escalation is low due to a firm fixed-price contract. 4. This spending falls within the broader 'Food Services' or 'Commercial Bakeries' sector.

Value Assessment

Rating: good

The $1.43 million contract for bread appears reasonable given the duration and quantity. Benchmarking against similar federal food service contracts would provide a more precise assessment, but the firm fixed-price nature suggests a controlled cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves fewer vendors than full and open competition. This method can expedite the acquisition process but may limit the breadth of price discovery.

Taxpayer Impact: The firm fixed-price contract aims to provide cost certainty for taxpayers, minimizing the risk of unexpected price increases for essential food supplies.

Public Impact

Ensures a consistent supply of bread for inmates in federal correctional facilities. Supports a major commercial bakery, potentially impacting local economies where facilities are located. The contract's fixed price provides budget predictability for the Federal Prison System.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP
Potential for higher prices due to limited competition

Positive Signals

Firm fixed-price contract
Clear delivery dates and duration

Sector Analysis

This contract for commercial bakeries falls under the broader food services sector for government agencies. Spending benchmarks for food supplies vary widely based on agency size and specific needs, but this $1.43M award is a standard procurement for inmate sustenance.

Small Business Impact

The contract was awarded to Bimbo Bakeries USA, Inc., a large commercial entity. There is no indication that small businesses were involved as prime contractors or significant subcontractors in this specific award.

Oversight & Accountability

The award was made by the Department of Justice, Federal Prison System. Standard procurement regulations and oversight processes would apply to ensure compliance and accountability for this purchase order.

Related Government Programs

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

Risk Flags

Limited competition
Potential for price increases if market conditions change significantly
Reliance on a single large supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $142,650 to BIMBO BAKERIES USA, INC.. FY 2026 Q3 - 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 $142,650.

What is the period of performance?

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

What is the historical pricing trend for bread procured by the Federal Prison System?

Analyzing historical pricing data for bread procured by the Federal Prison System would reveal if this $1.43 million award represents an increase, decrease, or stable cost compared to previous periods. Understanding these trends is crucial for assessing long-term value and identifying potential market fluctuations or cost-saving opportunities.

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

The contract likely specifies quality standards and nutritional requirements to ensure the bread meets the needs of the inmate population. Details on ingredients, shelf life, and nutritional content are essential for evaluating the overall value beyond just the price, ensuring the procured product is fit for purpose.

How does the unit price of this contract compare to commercial retail prices for similar bread products?

Comparing the unit price of this federal contract to commercial retail prices for equivalent bread products can offer insights into the value obtained. While federal procurement may have different cost structures, a significant deviation could indicate either exceptional value or potential overpayment, warranting further investigation.

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: 15B50226Q00000034

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: $142,650

Exercised Options: $142,650

Current Obligation: $142,650

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline