DOJ's $39.17M Milk Contract Awarded to Morabito Baking Co. for Federal Prisons
Contract Overview
Contract Amount: $39,171 ($39.2K)
Contractor: Morabito Baking CO Inc
Awarding Agency: Department of Justice
Start Date: 2026-01-01
End Date: 2026-03-31
Contract Duration: 89 days
Daily Burn Rate: $440/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 11
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: BREAD- 2ND QTR FY26
Place of Performance
Location: NORRISTOWN, MONTGOMERY County, PENNSYLVANIA, 19401
Plain-Language Summary
Department of Justice obligated $39,171.24 to MORABITO BAKING CO INC for work described as: BREAD- 2ND QTR FY26 Key points: 1. Significant contract value for fluid milk manufacturing. 2. Competition method indicates potential for fair pricing. 3. Risk of supply chain disruption for essential goods. 4. Focus on food services within the correctional sector.
Value Assessment
Rating: fair
The contract value of $39.17M for a 3-month period suggests a substantial per-unit cost. Benchmarking against similar fluid milk contracts for institutional use is necessary to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), suggesting a limited competition environment. While SAP aims for efficiency, it may not always yield the lowest possible price compared to full and open competition.
Taxpayer Impact: Taxpayer funds are being utilized for essential food supplies. The efficiency of the SAP process and the negotiated price will determine the overall taxpayer impact.
Public Impact
Ensures a consistent supply of fluid milk for inmates. Supports the operational needs of the Federal Prison System. Impacts food service providers and dairy suppliers in Pennsylvania.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price volatility in dairy markets.
- Dependence on a single supplier for a critical commodity.
- Logistical challenges in delivering perishable goods to multiple facilities.
Positive Signals
- Contract supports a vital government function.
- Use of SAP may streamline procurement.
- Fixed price contract provides budget certainty.
Sector Analysis
This contract falls within the food manufacturing and distribution sector, specifically for institutional supply. Spending benchmarks for dairy products in correctional facilities are typically driven by volume, delivery logistics, and market prices.
Small Business Impact
The data does not indicate if Morabito Baking Co. Inc. is a small business. Further analysis would be needed to determine the impact on small business participation in this contract.
Oversight & Accountability
Oversight will be crucial to ensure product quality, timely delivery, and adherence to contract terms by the Federal Prison System. The use of SAP may require additional diligence to confirm fair pricing.
Related Government Programs
- Fluid Milk Manufacturing
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Limited competition due to SAP.
- Potential for price increases in dairy markets.
- Supply chain vulnerability for perishable goods.
- Dependence on a single vendor for essential commodity.
Tags
fluid-milk-manufacturing, department-of-justice, pa, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $39,171.24 to MORABITO BAKING CO INC. BREAD- 2ND QTR FY26
Who is the contractor on this award?
The obligated recipient is MORABITO BAKING CO 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 $39,171.24.
What is the period of performance?
Start: 2026-01-01. End: 2026-03-31.
What is the historical pricing trend for fluid milk in similar government contracts?
Analyzing historical pricing data for fluid milk in comparable government contracts is essential. This involves looking at contracts of similar duration, volume, and geographic scope. Factors such as market fluctuations, inflation, and specific contract clauses (e.g., escalation clauses) can influence pricing trends. Understanding these trends helps determine if the current award represents a fair market value and identifies potential areas for cost savings in future solicitations.
What are the risks associated with relying on a single supplier for fluid milk in federal prisons?
Relying on a single supplier for fluid milk presents several risks. These include potential supply chain disruptions due to unforeseen events like natural disasters, labor strikes, or the supplier's own operational issues. A lack of competition could also lead to price increases over time. Furthermore, quality control issues or product recalls by the sole supplier could significantly impact the nutritional needs and well-being of inmates.
How effectively does the SAP procurement method ensure value for money in this context?
The Simplified Acquisition Procedures (SAP) are designed for efficiency and speed in procuring goods and services below certain thresholds. While SAP can be effective for routine purchases, its effectiveness in ensuring maximum value for money for a substantial contract like this depends on the specific market conditions and the diligence of the contracting officers. Limited competition inherent in SAP might not always yield the most competitive pricing compared to full and open solicitations, potentially impacting overall value.
Industry Classification
NAICS: Manufacturing › Dairy Product Manufacturing › Fluid Milk Manufacturing
Product/Service Code: SUBSISTENCE
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 15B20126Q00000002
Offers Received: 11
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 757 KOHN ST, NORRISTOWN, PA, 19401
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $39,171
Exercised Options: $39,171
Current Obligation: $39,171
Actual Outlays: $19,905
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-01-01
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-04-08
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