DOJ's Bureau of Prisons awards $24.7K purchase order for inmate bread to Bimbo Bakeries USA

Contract Overview

Contract Amount: $24,743 ($24.7K)

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: $137/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2ND QTR FY2026 - BREAD ITEMS FOR INMATE POPULATION AT FCI TEXARKANA.

Place of Performance

Location: IRVING, DALLAS County, TEXAS, 75038

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $24,742.86 to BIMBO BAKERIES USA, INC. for work described as: 2ND QTR FY2026 - BREAD ITEMS FOR INMATE POPULATION AT FCI TEXARKANA. Key points: 1. Contract awarded for essential inmate sustenance, indicating a focus on basic needs within correctional facilities. 2. The award represents a small portion of the Bureau of Prisons' overall food service budget. 3. Limited contract value suggests a localized or specific need rather than a large-scale program. 4. The use of a purchase order indicates a streamlined procurement process for a relatively low-value item. 5. Fixed-price contract type provides cost certainty for the government over the performance period. 6. Awarded to a well-known commercial bakery, suggesting reliance on established supply chains for routine needs.

Value Assessment

Rating: good

The contract value of $24,742.86 for six months of bread supply appears reasonable for a federal correctional facility. While specific per-unit cost benchmarks for inmate bread are not readily available, the total amount suggests efficient procurement for a staple food item. Comparing this to similar contracts for correctional facility sustenance would provide further context, but the value seems aligned with the scope of providing bread for a specific inmate population.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under the Simplified Acquisition Procedures (SAP), which allows for a less formal bidding process for purchases below a certain threshold. While the specific number of solicitations or bidders is not detailed, SAP typically involves soliciting from a pool of qualified vendors. The limited competition under SAP might result in slightly higher prices than a full and open competition, but it ensures a timely and efficient award for essential goods.

Taxpayer Impact: For taxpayers, limited competition under SAP for a relatively small purchase like this generally means a balance between cost efficiency and timely delivery of essential services. It avoids the administrative overhead of a large-scale competition for a low-value item.

Public Impact

Inmates at FCI Texarkana will receive a consistent supply of bread as part of their daily meals. This contract directly supports the operational needs of the Federal Prison System by ensuring food availability. The geographic impact is localized to FCI Texarkana in Texas. The contract supports the food service workforce indirectly through the supply chain of Bimbo Bakeries USA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases if market conditions for grain products fluctuate significantly during the contract period.
Reliance on a single vendor for a staple food item could pose a risk if supply chain disruptions occur.

Positive Signals

Award to a reputable commercial bakery ensures product quality and adherence to food safety standards.
Fixed-price contract provides budget certainty for the Bureau of Prisons.
The contract duration is relatively short, allowing for re-evaluation of needs and vendor performance.

Sector Analysis

The food service industry within the federal government is a significant sector, encompassing a wide range of supplies and services for correctional facilities, military bases, and other government institutions. This contract for bread falls under the broader category of food and beverage procurement. Federal spending in this area is substantial, with agencies like the Bureau of Prisons relying on commercial vendors to provide essential dietary needs for large populations. Benchmarks for such contracts are often based on per-meal costs or per-pound pricing of staple goods.

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, a large commercial entity, suggests that small business participation was not a primary consideration for this specific procurement, likely due to the nature of the product and the vendor's established market presence.

Oversight & Accountability

The Bureau of Prisons, under the Department of Justice, has established procurement regulations and oversight mechanisms to ensure compliance and accountability. This purchase order would be subject to internal audits and reviews. The Government Accountability Office (GAO) could also review protests related to this procurement if any were filed. Transparency is maintained through contract databases like SAM.gov, where award details are published.

Related Government Programs

Federal Prison System Food Service Contracts
Bureau of Prisons Commissary and Food Operations
Department of Justice Commodity Purchases
Inmate Welfare and Recreation Funds

Risk Flags

Potential supply chain disruption risk
Limited competition may impact price optimization

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $24,742.86 to BIMBO BAKERIES USA, INC.. 2ND QTR FY2026 - BREAD ITEMS FOR INMATE POPULATION AT FCI TEXARKANA.

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 $24,742.86.

What is the period of performance?

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

What is the historical spending pattern for bread and related bakery items by the Bureau of Prisons?

Analyzing historical spending data for the Bureau of Prisons reveals a consistent need for staple food items like bread. Over the past five fiscal years, the BOP has allocated significant funds towards food services, with bread being a recurring line item. While specific figures for bread alone are not always itemized separately in public reports, aggregate food service expenditures have ranged in the hundreds of millions annually. This contract for FCI Texarkana represents a small, localized expenditure within that larger budget. Trends may show fluctuations based on inmate population size, regional pricing, and shifts in procurement strategies, such as increased use of simplified acquisition for routine items.

How does the per-unit cost of bread in this contract compare to commercial retail prices or other federal contracts?

Determining the exact per-unit cost of bread from this contract is challenging without knowing the quantity (e.g., loaves, weight) purchased. However, the total award of $24,742.86 over approximately six months for a facility like FCI Texarkana suggests a cost-effective solution. Commercial retail prices for a loaf of bread can range from $2 to $5, depending on the type and brand. Federal contracts often leverage bulk purchasing power, which can lead to lower per-unit costs than retail. Without specific unit details, a direct comparison is difficult, but the overall value appears reasonable for institutional supply, likely falling below average retail prices on a per-unit basis due to volume.

What is Bimbo Bakeries USA's track record with federal government contracts, particularly with the Department of Justice?

Bimbo Bakeries USA, a subsidiary of Grupo Bimbo, is a major commercial bakery with a significant presence in the U.S. market. While their primary business is commercial sales, they do engage in government contracting. Their track record with federal agencies, including the Department of Justice, typically involves supplying food products to various institutions. Publicly available data indicates they have received numerous awards for food and beverage supplies across different federal branches. Their experience suggests a capability to meet the logistical and quality requirements of government procurement, including adherence to food safety standards and delivery schedules, as evidenced by this award.

What are the potential risks associated with relying on a single vendor for a staple food item like bread?

Relying on a single vendor for a staple food item like bread introduces several potential risks. The primary concern is supply chain disruption; unforeseen events such as natural disasters, transportation issues, labor strikes, or raw material shortages could impact Bimbo Bakeries USA's ability to fulfill the contract. This could lead to shortages of a critical food item for inmates, potentially affecting morale and operational stability within the facility. Additionally, a lack of ongoing competition during the contract period could limit the government's leverage for price adjustments if market conditions change favorably for buyers. However, the relatively short duration of this contract mitigates some of these long-term risks.

How does this contract align with the Bureau of Prisons' broader food service strategy and budget?

This contract for bread aligns with the Bureau of Prisons' fundamental strategy of providing essential sustenance to its inmate population. The BOP's food service operations are a critical component of maintaining order and meeting basic human needs within correctional facilities. The budget allocated for food services is substantial, and individual contracts like this one, while small in isolation, contribute to the overall operational efficiency. The use of simplified acquisition procedures for this purchase suggests a strategy to streamline procurement for routine, low-value items, allowing procurement officers to focus resources on larger, more complex contracts. It reflects a pragmatic approach to managing a vast and complex food supply chain.

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

Offers Received: 3

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: $39,798

Exercised Options: $39,798

Current Obligation: $24,743

Actual Outlays: $10,409

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline