DOJ's $24.4M Bread Purchase Awarded to East Baking Company Under SAP

Contract Overview

Contract Amount: $24,455 ($24.5K)

Contractor: East Baking Company, Inc.

Awarding Agency: Department of Justice

Start Date: 2026-01-02

End Date: 2026-03-31

Contract Duration: 88 days

Daily Burn Rate: $278/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 2ND QTR- BREAD

Place of Performance

Location: HOLYOKE, HAMPDEN County, MASSACHUSETTS, 01040

State: Massachusetts Government Spending

Plain-Language Summary

Department of Justice obligated $24,455.2 to EAST BAKING COMPANY, INC. for work described as: FY26 2ND QTR- BREAD Key points: 1. The Federal Prison System awarded a $24.4 million contract for bread. 2. Competition was conducted under the Simplified Acquisition Procedures (SAP). 3. The contract is a firm fixed price purchase order. 4. The award was made to East Baking Company, Inc.

Value Assessment

Rating: fair

The contract value of $24.4 million for an 88-day period appears high for retail bakery goods. Benchmarking against similar contracts for bulk food supplies is necessary to determine if the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, suggesting it was likely a small dollar value procurement. While competed, the limited scope of SAP may restrict the pool of potential bidders, potentially impacting price discovery.

Taxpayer Impact: Taxpayer funds are being used for this procurement. The value suggests a significant expenditure, and ensuring competitive pricing is crucial for fiscal responsibility.

Public Impact

Ensures food supply for federal correctional facilities. Supports a specific business in the food service sector. Potential for price fluctuations if competition is limited.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The food service sector, particularly for institutional needs like federal prisons, often involves large contracts. Benchmarks for bulk food procurement can vary significantly based on item type, quantity, and delivery logistics.

Small Business Impact

The use of SAP suggests an intent to potentially engage small businesses, however, the large contract value may exceed typical small business thresholds. Further analysis is needed to confirm if small businesses were actively solicited or participated.

Oversight & Accountability

Oversight would involve ensuring the quality and timely delivery of bread as per the purchase order terms. The Bureau of Prisons is responsible for monitoring contractor performance and adherence to contract specifications.

Related Government Programs

Risk Flags

Tags

retail-bakeries, department-of-justice, ma, purchase-order, under-100k

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $24,455.2 to EAST BAKING COMPANY, INC.. FY26 2ND QTR- BREAD

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 $24,455.2.

What is the period of performance?

Start: 2026-01-02. End: 2026-03-31.

What is the typical per-unit cost for bread procured by federal agencies of similar size and scope?

Determining the typical per-unit cost requires access to historical contract data for bulk bread procurement across various federal agencies. Factors like volume, delivery frequency, and specific bread types significantly influence pricing. Without specific benchmarks, it's challenging to definitively assess if the $24.4 million award for 88 days represents a fair market price.

What are the specific risks associated with a firm fixed price contract for perishable goods like bread?

A firm fixed price contract for perishable goods like bread carries risks for both the government and the contractor. The government risks overpaying if market prices decrease, while the contractor risks losses if their costs increase beyond the fixed price due to supply chain issues or inflation. Ensuring accurate initial cost estimation is critical.

How effective is the Simplified Acquisition Procedures (SAP) in ensuring competitive pricing for large-value procurements?

SAP is designed for procurements under a certain dollar threshold (currently $250,000) to streamline the process. While it can encourage competition among a broader range of vendors for smaller purchases, its effectiveness diminishes for larger contract values like $24.4 million. For such significant amounts, more robust competition methods are generally preferred to ensure optimal price discovery and value for taxpayer money.

Industry Classification

NAICS: ManufacturingBakeries and Tortilla ManufacturingRetail Bakeries

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 15B10926Q00000003

Offers Received: 3

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: $24,455

Exercised Options: $24,455

Current Obligation: $24,455

Actual Outlays: $13,160

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline

Start Date: 2026-01-02

Current End Date: 2026-03-31

Potential End Date: 2026-03-31 00:00:00

Last Modified: 2026-04-10

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