DOJ's $39.4K Bread Purchase for Federal Prisons Awarded to East Baking Company

Contract Overview

Contract Amount: $39,369 ($39.4K)

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: $442/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 A1 EAST BAKING 2ND QTR BREAD QTR 2

Place of Performance

Location: INEZ, MARTIN County, KENTUCKY, 41224

State: Kentucky Government Spending

Plain-Language Summary

Department of Justice obligated $39,369.2 to EAST BAKING COMPANY, INC. for work described as: FY26 A1 EAST BAKING 2ND QTR BREAD QTR 2 Key points: 1. Value for money appears reasonable given the short duration and specific product. 2. Competition dynamics indicate a competed award under SAP, suggesting a streamlined process. 3. Risk indicators are low due to the small dollar value and short performance period. 4. Performance context is limited to a 3-month bread supply for a federal facility. 5. Sector positioning is within the food services and supplies category for government operations.

Value Assessment

Rating: good

The contract value of approximately $39.4K for a 3-month bread supply is modest. Benchmarking against similar small-value food service contracts for correctional facilities suggests this pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the government, and the limited scope likely minimizes opportunities for significant cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a less formal solicitation process than full and open competition. While the specific number of bidders is not detailed, SAP awards often involve a limited number of pre-qualified or solicited vendors. This approach aims for efficiency for smaller procurements.

Taxpayer Impact: For taxpayers, competition under SAP generally leads to fair pricing for smaller purchases, though the potential for deeper cost savings seen in full and open competition may be less realized.

Public Impact

Inmates at the specified federal correctional facility in Kentucky will receive bread supplies. The service delivered is the provision of baked goods, specifically bread. The geographic impact is localized to the federal prison system facility in Kentucky. Workforce implications are minimal, primarily related to the operations of East Baking Company.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited vendor pool due to SAP competition.
Lack of detailed performance metrics makes long-term value assessment difficult.

Positive Signals

Award to a single vendor suggests a clear selection.
Firm fixed-price contract provides budget predictability.
Short duration limits financial exposure and performance risk.

Sector Analysis

This contract falls within the broader food services and supplies sector, specifically catering to institutional needs. The market for correctional facility food services is substantial, with numerous providers specializing in bulk food production and delivery. This award represents a small segment of that market, focused on a specific commodity (bread) for a defined period.

Small Business Impact

Information regarding small business set-asides or subcontracting is not explicitly provided for this award. As the award was made to East Baking Company, Inc., further analysis would be needed to determine if they are a small business or if any subcontracting opportunities were directed towards small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of Prisons' contracting officers and quality assurance personnel. Given the small dollar value and short duration, extensive oversight mechanisms may not be as formalized as for larger contracts, but standard procurement regulations and contract administration procedures would apply.

Related Government Programs

Federal Prison System Food Services
Bureau of Prisons Commissary Operations
Commercial Bakery Supply Contracts

Risk Flags

Potential for limited competition due to SAP.
Lack of detailed unit cost data for benchmarking.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $39,369.2 to EAST BAKING COMPANY, INC.. FY26 A1 EAST BAKING 2ND QTR BREAD QTR 2

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 $39,369.2.

What is the period of performance?

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

What is the track record of East Baking Company, Inc. with federal contracts?

A review of federal procurement data indicates that East Baking Company, Inc. has received multiple awards, primarily purchase orders, for food and bakery items. These awards are predominantly from agencies such as the Department of Justice (Bureau of Prisons) and occasionally other federal entities. The contract values are generally in the small to moderate range, consistent with the current award. Further analysis of past performance reviews and any documented issues would be necessary for a comprehensive assessment of their track record.

How does the per-unit cost of bread compare to market rates or similar government contracts?

Without specific details on the type and quantity of bread being procured (e.g., loaves, rolls, weight per unit), a precise per-unit cost comparison is challenging. However, the total award of $39,369.20 over approximately 90 days suggests a daily expenditure of around $437. The market rate for bulk bread varies significantly by region and type. For institutional settings, costs are often negotiated at lower bulk rates. Given the competitive nature under SAP, it is presumed the pricing is fair market value for the specified product and quantity, though a detailed unit cost analysis against industry benchmarks would provide greater certainty.

What are the primary risks associated with this contract?

The primary risks associated with this contract are relatively low due to its limited scope and duration. Potential risks include supply chain disruptions affecting East Baking Company's ability to deliver fresh bread, quality control issues leading to inmate dissatisfaction, or minor price fluctuations not covered by the firm fixed-price agreement. However, the short performance period (89 days) and the nature of the product (bread) mitigate the likelihood of significant financial or operational risks for the government.

How effective is this contract in meeting the nutritional needs of inmates?

This contract specifically addresses the provision of bread, which is a staple food item. Its effectiveness in meeting overall nutritional needs depends on the broader menu and dietary planning within the federal correctional facility. While bread contributes carbohydrates and some protein, it is unlikely to be the sole determinant of nutritional adequacy. The contract's effectiveness is limited to ensuring a consistent supply of this specific item as part of a larger food service operation.

What are the historical spending patterns for bread or similar food items at this facility or within the Bureau of Prisons?

Historical spending patterns for bread and similar food items within the Bureau of Prisons (BOP) are typically characterized by recurring procurements to meet ongoing dietary needs. These contracts are often awarded through competitive processes, including SAP for smaller quantities or durations. Spending levels can fluctuate based on inmate population, specific facility requirements, and market prices for food commodities. Analyzing past BOP solicitations and awards for bread would reveal trends in contract values, durations, and awarded vendors, providing context for the current $39.4K award.

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: 15B11826Q00000002

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: $39,369

Exercised Options: $39,369

Current Obligation: $39,369

Actual Outlays: $21,253

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Timeline