DOJ's $21,375 bread contract awarded to Bimbo Bakeries USA, Inc. for Texas facilities

Contract Overview

Contract Amount: $21,375 ($21.4K)

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: $88/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 3 BIMBO-BREAD

Place of Performance

Location: ANTHONY, EL PASO County, TEXAS, 79821

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $21,375 to BIMBO BAKERIES USA, INC. for work described as: FCI LA TUNA FY26 QTR 3 BIMBO-BREAD Key points: 1. Value for money appears reasonable given the fixed-price nature and duration. 2. Competition dynamics indicate a potentially competitive award under SAP. 3. Risk indicators are low due to the nature of the product and established contractor. 4. Performance context is for routine food supply to federal correctional facilities. 5. Sector positioning is within the food manufacturing and supply chain for government institutions.

Value Assessment

Rating: good

The contract value of $21,375 for a 242-day period appears to be a standard procurement for food supplies. Without specific per-unit data or comparison to commercial bulk pricing for similar bread products, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure suggests that the government has locked in costs, mitigating risk of price escalation. The award to a well-known commercial entity like Bimbo Bakeries USA, Inc. implies access to established supply chains and potentially competitive commercial pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves a less formal solicitation process than full and open competition. While the specific number of bidders is not provided, SAP is generally used for procurements under the simplified acquisition threshold, often resulting in fewer offers than larger, more complex solicitations. The limited competition inherent in SAP may mean less aggressive pricing compared to a full and open competition.

Taxpayer Impact: For taxpayers, limited competition under SAP can sometimes lead to slightly higher prices than might be achieved through a broader bidding process, though the cost savings from the streamlined acquisition process can offset some of this. The relatively small dollar value of this contract makes the impact on taxpayers minimal.

Public Impact

Inmates and staff at federal correctional facilities in Texas will benefit from a consistent supply of bread. The service delivered is the provision of a staple food item essential for daily operations. The geographic impact is localized to federal facilities within Texas. Workforce implications are minimal, primarily related to the contractor's existing distribution and production staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases if contract is re-competed under less favorable market conditions.
Dependence on a single supplier for a critical food item could pose a minor supply chain risk.

Positive Signals

Award to a reputable and established commercial bakery ensures product quality and reliability.
Firm-fixed-price contract protects against cost overruns for the government.
Simplified acquisition process likely leads to faster delivery of goods.

Sector Analysis

This contract falls within the broader food manufacturing and distribution sector, specifically serving institutional or government clients. The market for supplying food to federal correctional facilities is a niche but consistent segment. Comparable spending benchmarks would involve analyzing other food supply contracts for federal prisons or similar government institutions, considering factors like volume, product type, and geographic location. The overall food manufacturing industry is vast, but this contract represents a small, specific transaction within it.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Bimbo Bakeries USA, Inc., a large commercial entity, suggests that small business participation was not a primary consideration for this specific procurement. The impact on the small business ecosystem is negligible for this particular award.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Federal Prison System's procurement and facility management staff. Accountability measures are inherent in the firm-fixed-price purchase order, requiring delivery of specified goods. Transparency is limited by the nature of SAP procurements, which are not as publicly detailed as larger contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Prison System Food Services
Bureau of Prisons Commissary Operations
Department of Justice Food Procurement
General Services Administration (GSA) Food Schedules

Risk Flags

Contract awarded under Simplified Acquisition Procedures (SAP), potentially limiting competition.
No specific small business set-aside or subcontracting plan identified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $21,375 to BIMBO BAKERIES USA, INC.. FCI LA TUNA FY26 QTR 3 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 $21,375.

What is the period of performance?

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

What is the historical spending pattern for bread and baked goods by the Federal Prison System?

Analyzing historical spending for bread and baked goods by the Federal Prison System (FPS) requires access to detailed procurement data over multiple fiscal years. Typically, such spending would be categorized under food services or commissary operations. Trends might indicate fluctuations based on inmate population, dietary guidelines, and changes in procurement strategies. For instance, a consistent increase in spending could suggest rising food costs or an expanding inmate population, while a decrease might point to more efficient sourcing or changes in menu planning. Without specific historical data for this contract or similar items, it's difficult to establish a precise pattern, but it's reasonable to assume a steady demand for staple food items like bread within correctional facilities.

How does the per-unit cost of bread under this contract compare to commercial bulk pricing?

Determining the precise per-unit cost comparison requires knowing the exact quantity of bread to be supplied under this $21,375 contract and its duration. Since this information is not explicitly provided, a direct per-unit comparison to commercial bulk pricing is not feasible. However, government contracts often aim for pricing at or below commercial rates, especially for commodity items. Bimbo Bakeries USA, Inc. is a major commercial supplier, suggesting they would leverage their scale to offer competitive pricing. To perform a true benchmark, one would need to know the total number of loaves or equivalent units expected and compare that to bulk wholesale prices from commercial distributors in Texas, factoring in delivery and any specific government requirements.

What is Bimbo Bakeries USA, Inc.'s track record with federal government contracts, particularly for food supplies?

Bimbo Bakeries USA, Inc., as a subsidiary of Grupo Bimbo, is a significant player in the commercial bakery market. Their track record with federal government contracts, particularly for food supplies to institutions like correctional facilities, is likely extensive, though specific contract details might be proprietary or require deep database searches. Large food manufacturers often have dedicated divisions or experience supplying bulk goods to government entities, military bases, and correctional systems. Their ability to secure contracts suggests a history of meeting delivery schedules, quality standards, and pricing requirements. A review of federal procurement databases (like FPDS or SAM.gov) would be necessary to quantify their past performance, identify any past issues, and confirm their experience in this specific niche.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract are relatively low due to the nature of the product and the contractor. Potential risks include supply chain disruptions (e.g., ingredient shortages, transportation issues) that could affect delivery, and quality control issues with the bread itself. Mitigation strategies are inherent in the contract structure and the contractor's established operations. The firm-fixed-price nature mitigates financial risk for the government. Bimbo Bakeries USA, Inc.'s scale and established distribution network provide a degree of resilience against supply chain disruptions. Quality control is managed through the product specifications outlined in the purchase order and the contractor's own internal quality assurance processes. Any failure to meet specifications would trigger remedies under the contract.

How does the Simplified Acquisition Procedure (SAP) impact the overall efficiency and cost-effectiveness of this procurement?

The Simplified Acquisition Procedure (SAP) is designed to streamline the procurement process for purchases below the simplified acquisition threshold (currently $250,000). For this $21,375 contract, using SAP likely resulted in a faster award timeline and reduced administrative burden compared to a full and open competition. This efficiency can translate to cost savings in terms of personnel time and faster delivery of goods. However, SAP typically involves fewer bidders and less extensive documentation, which could potentially lead to less competitive pricing than a full solicitation. The cost-effectiveness is a balance between the administrative savings of SAP and the potential for slightly higher unit prices due to reduced competition. For a relatively small, routine purchase like bread, the efficiency gains of SAP often outweigh the marginal impact on price.

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: $21,375

Exercised Options: $21,375

Current Obligation: $21,375

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline