DOJ's $13.9M bread purchase for Federal Prison System awarded to Bimbo Bakeries USA, Inc

Contract Overview

Contract Amount: $13,953 ($14.0K)

Contractor: Bimbo Bakeries USA, Inc.

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-05-31

Contract Duration: 242 days

Daily Burn Rate: $58/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FCI LA TUNA-FY26 QTR-1 BIMBO-BREAD

Place of Performance

Location: ANTHONY, EL PASO County, TEXAS, 79821

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $13,952.65 to BIMBO BAKERIES USA, INC. for work described as: FCI LA TUNA-FY26 QTR-1 BIMBO-BREAD Key points: 1. Value for money assessed through competitive bidding process. 2. Competition dynamics indicate a single awardee for this specific food manufacturing need. 3. Risk indicators include reliance on a single supplier for a staple food item. 4. Performance context is within the Federal Prison System's food service operations. 5. Sector positioning is within miscellaneous food manufacturing for correctional facilities.

Value Assessment

Rating: fair

The contract value of $13.9 million for a 242-day period appears reasonable for a large-scale food procurement. However, without specific per-unit cost data or comparisons to similar prison food contracts, a definitive value-for-money assessment is challenging. The firm-fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), suggesting it was likely solicited from a limited pool of potential offerors. While the data indicates 9 bids were received, the specific nature of the solicitation and the number of active participants in the bidding process are not fully detailed. The limited competition may impact price discovery.

Taxpayer Impact: Limited competition under SAP can sometimes lead to higher prices for taxpayers compared to full and open competition, as the pool of potential bidders is restricted.

Public Impact

Inmates within the Federal Prison System will receive a staple food item. The contract supports the operational needs of the Bureau of Prisons in Texas. The procurement ensures a consistent supply of bread for inmate consumption. This contract has implications for food service logistics within federal correctional facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future solicitations due to limited competition.
Dependence on a single supplier for a critical food item could lead to supply chain vulnerabilities.

Positive Signals

Award to a well-known commercial entity suggests established production and distribution capabilities.
Firm-fixed-price contract provides budget predictability.
Competitive bidding, even under SAP, indicates an effort to secure favorable pricing.

Sector Analysis

This contract falls within the miscellaneous food manufacturing sector, specifically serving institutional needs. The market for supplying food products to federal correctional facilities is a specialized segment of the broader food industry. Benchmarking against similar contracts for correctional facility food services would provide further context on pricing and value.

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. The award to Bimbo Bakeries USA, Inc., a large commercial entity, suggests that small businesses are unlikely to be direct subcontractors on this particular purchase order.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Prison System / Bureau of Prisons, a component of the Department of Justice. Standard procurement regulations and contract management practices would apply. Transparency is facilitated through contract award databases, but detailed performance monitoring data is typically internal.

Related Government Programs

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

Risk Flags

Limited competition may impact price.
Reliance on a single supplier for essential goods.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $13,952.65 to BIMBO BAKERIES USA, INC.. FCI LA TUNA-FY26 QTR-1 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 $13,952.65.

What is the period of performance?

Start: 2025-10-01. End: 2026-05-31.

What is the historical spending pattern for bread procurement by the Federal Prison System?

Analyzing historical spending data for bread procurement by the Federal Prison System is crucial for understanding trends, identifying potential cost savings, and assessing the long-term value of current contracts. Without access to specific historical contract awards for bread, it's difficult to establish a baseline. However, general trends in federal food procurement suggest a move towards more efficient supply chain management and potentially consolidated contracts to leverage economies of scale. The current award of $13.9 million for a period of approximately 8 months indicates a significant investment in this staple food item. Future analysis should focus on comparing this award to previous contracts of similar scope and duration to identify any inflationary pressures or cost efficiencies achieved.

How does the per-unit cost of this bread contract compare to market rates for similar products in Texas?

Determining the precise per-unit cost for this contract is not possible with the provided data, as it represents a total award value for a specific duration and quantity is not specified. To compare this to market rates, one would need to know the total quantity of bread to be procured (e.g., loaves, pounds) and then divide the total contract value by that quantity. Subsequently, this calculated per-unit cost would need to be benchmarked against wholesale or bulk pricing for similar bread products in Texas. Factors such as delivery logistics, specific product quality requirements, and the volume of the purchase would influence the comparison. Given the scale of federal procurement, it is plausible that the government negotiates favorable pricing, but without the specific unit data, a definitive comparison to market rates remains speculative.

What are the potential risks associated with awarding a sole-source or limited-competition contract for essential food items?

Awarding contracts for essential food items under limited or sole-source conditions presents several risks. Firstly, it can lead to reduced price competition, potentially resulting in higher costs for taxpayers. Secondly, it increases reliance on a single supplier, making the supply chain vulnerable to disruptions caused by the supplier's operational issues, labor disputes, or unforeseen events. For essential items like bread, such disruptions could impact the morale and well-being of the inmate population. Furthermore, limited competition may stifle innovation and prevent the government from benefiting from potentially more cost-effective or higher-quality alternatives that might be offered by a broader range of suppliers.

What is the track record of Bimbo Bakeries USA, Inc. in supplying to government agencies, particularly correctional facilities?

Bimbo Bakeries USA, Inc. is a major commercial bakery with extensive experience in producing and distributing a wide range of baked goods. While specific details of their past government contracts, particularly with correctional facilities, are not provided in this data, their status as a large, established company suggests a capacity to handle significant supply agreements. Government contractors are typically assessed for past performance, and it can be assumed that the Bureau of Prisons conducted due diligence. To fully assess their track record, one would need to review their performance history on previous federal contracts, including any quality issues, delivery performance, and compliance records. Information on their experience with similar institutional clients would also be valuable.

How does the contract's duration and value align with typical procurement cycles for food services in federal prisons?

The contract duration of approximately 242 days (from October 1, 2025, to May 31, 2026) is relatively short for a major food supply contract, suggesting it might be a bridge contract, a specific requirement for a portion of the fiscal year, or part of a larger, multi-year strategy. Federal agencies often procure food services through contracts that can range from one to five years, with options for renewal. The value of $13.9 million for this period indicates a substantial procurement volume. Typical procurement cycles aim to ensure continuous supply while allowing for periodic re-competition to ensure best value. The short duration here might necessitate a follow-on procurement soon, which could present opportunities to reassess competition and pricing strategies.

Industry Classification

NAICS: Manufacturing › Other Food Manufacturing › All Other Miscellaneous Food Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 9

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: $13,953

Exercised Options: $13,953

Current Obligation: $13,953

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline