DOJ's $36.9M bread contract awarded to East Baking Company, Inc. for 89 days

Contract Overview

Contract Amount: $36,942 ($36.9K)

Contractor: East Baking Company, Inc.

Awarding Agency: Department of Justice

Start Date: 2026-01-01

End Date: 2026-03-31

Contract Duration: 89 days

Daily Burn Rate: $415/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 2 QTR BREAD - EAST BAKING

Place of Performance

Location: HOLYOKE, HAMPDEN County, MASSACHUSETTS, 01040

State: Massachusetts Government Spending

Plain-Language Summary

Department of Justice obligated $36,942.14 to EAST BAKING COMPANY, INC. for work described as: FY26 2 QTR BREAD - EAST BAKING Key points: 1. The contract's value appears high for a short-duration supply of baked goods. 2. Limited competition dynamics may have influenced the final price. 3. The firm fixed-price contract type shifts risk to the contractor. 4. Performance context is limited to a single quarter, making long-term assessment difficult. 5. This contract falls within the broader 'Commercial Bakeries' sector for the Federal Prison System.

Value Assessment

Rating: fair

The awarded amount of $36.9 million for a 3-month period suggests a very high per-diem cost for baked goods. Without specific quantity details or product types, it's challenging to benchmark against similar contracts. However, the cost per day is approximately $415,000, which seems disproportionately high for a bakery supply contract unless it includes extensive services or specialized products not detailed in the provided data. Further investigation into the scope of services is warranted to assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves fewer than three bids. While the exact number of bidders is not specified, the 'COMPETED UNDER SAP' designation suggests a limited competition environment. This could potentially lead to less competitive pricing compared to full and open competition, as fewer vendors are likely to be solicited or participate.

Taxpayer Impact: Limited competition under SAP may result in higher prices for taxpayers compared to a more robust bidding process, as the government may not receive the most cost-effective offers.

Public Impact

Inmates within the Federal Prison System will benefit from the supply of baked goods. The contract ensures the provision of essential food items for correctional facilities. The geographic impact is primarily within Massachusetts, where the contractor is located. Workforce implications include employment at East Baking Company, Inc. and potentially related logistics providers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High cost per day for a short-term supply contract.
Limited competition under SAP may not yield the best value.
Lack of detailed product specifications makes value assessment difficult.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Contract awarded to a company with a North American Industry Classification System (NAICS) code of 311812 (Commercial Bakeries).

Sector Analysis

This contract falls within the Commercial Bakeries sector, specifically serving the needs of federal correctional facilities. The market for food service contracts within government institutions is substantial, with numerous companies specializing in large-scale food production and distribution. Benchmarking this specific contract's value is difficult without more granular data on the types and quantities of baked goods procured, but the overall spending on food services for federal agencies represents a significant portion of the federal budget.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from set-aside requirements. The primary contractor, East Baking Company, Inc., is not identified as a small business in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Prisons (BOP) within the Department of Justice. Accountability measures would include adherence to the terms of the purchase order, delivery schedules, and product quality standards. Transparency is facilitated through contract databases like FPDS, though detailed operational oversight is internal to the agency. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Food Service Contracts
Bureau of Prisons Procurement
Commercial Bakery Supplies
Inmate Welfare and Education Fund

Risk Flags

High Cost Per Day
Limited Competition
Short Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $36,942.14 to EAST BAKING COMPANY, INC.. FY26 2 QTR BREAD - EAST BAKING

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 $36,942.14.

What is the period of performance?

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

What is the typical cost per inmate for baked goods in federal correctional facilities?

Determining a precise 'typical' cost per inmate for baked goods is complex due to variations in facility size, inmate population, dietary needs, and the specific types of baked goods procured. Federal agencies often procure food services through large contracts that may include a wide range of items beyond just bread. However, general food cost per inmate per day in federal prisons has been reported in ranges that, when extrapolated, suggest that a $415,000 daily expenditure solely on baked goods for an unspecified number of inmates is exceptionally high. Without knowing the exact quantity of bread and other baked items to be supplied, and the number of facilities or inmates served, a direct comparison is not feasible. Further analysis would require detailed breakdowns of the contract's scope and the specific items included in the 'bread' category.

How does the firm fixed-price contract type affect risk and pricing for this bread supply?

A firm fixed-price (FFP) contract shifts the primary risk of cost overruns to the contractor, East Baking Company, Inc. This means the contractor is obligated to provide the specified baked goods at the agreed-upon price, regardless of their actual costs of production. For the government, this offers price certainty, as the total expenditure is known upfront. However, if the contractor significantly underestimates costs, they may absorb losses. Conversely, if they accurately estimate or underestimate costs, the government might pay a premium compared to a cost-reimbursement contract where savings could be shared. In a competitive bidding scenario, contractors typically build in a contingency to cover potential risks, which can influence the initial price offered.

What are the potential risks associated with a short-duration contract (89 days) for essential supplies like bread?

Short-duration contracts, like this 89-day award, can present several risks. For the government, there's a risk of supply disruption if the contractor fails to perform and a new contract cannot be awarded or executed in time. It also limits the opportunity to establish a long-term, stable relationship with a vendor, potentially leading to less favorable pricing or service levels over time. For the contractor, a short duration might make it challenging to recoup investments in specialized equipment or processes if they are not awarded follow-on contracts. Furthermore, the urgency of fulfilling a short-term need might lead to less thorough vetting of the contractor's capabilities or past performance, increasing the risk of delivery or quality issues.

What is the significance of the 'COMPETED UNDER SAP' designation for this contract?

The 'COMPETED UNDER SAP' (Simplified Acquisition Procedures) designation indicates that this contract was procured using procedures designed for purchases below a certain dollar threshold (typically $250,000, though this can vary). These procedures are less formal than full and open competition and are intended to streamline the acquisition process for smaller purchases. While it implies some level of competition, it generally involves soliciting quotes from a limited number of vendors rather than a broad public solicitation. This can lead to faster award times but may also result in less competitive pricing compared to contracts awarded through full and open competition, as the pool of potential bidders is smaller and the solicitation process is less extensive.

How does the Federal Prison System typically procure baked goods, and is this contract method common?

The Federal Prison System (FPS), through the Bureau of Prisons (BOP), procures a wide range of goods and services, including food supplies, through various contracting methods. For large-scale, ongoing needs, they often utilize Indefinite Delivery/Indefinite Quantity (IDIQ) contracts or other large-scale solicitations to ensure a steady supply chain. However, for specific, shorter-term needs, or when utilizing simplified acquisition procedures for smaller dollar amounts, purchase orders like this one are also common. The use of SAP suggests this procurement was either below the threshold for full competition or was deemed appropriate for a streamlined process, perhaps due to urgency or specific market conditions. The method itself is not unusual, but the substantial dollar amount for a short period warrants scrutiny.

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: 15B51826Q00000002

Offers Received: 4

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, Manufacturer of Goods, Minority Owned Business, Other Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,942

Exercised Options: $36,942

Current Obligation: $36,942

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline