DOJ's $17.7M Bread Contract Awarded to Morabito Baking Co. for Federal Prisons
Contract Overview
Contract Amount: $17,666 ($17.7K)
Contractor: Morabito Baking CO Inc
Awarding Agency: Department of Justice
Start Date: 2026-04-01
End Date: 2026-06-30
Contract Duration: 90 days
Daily Burn Rate: $196/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: Q3 FY26 BREAD (WEEKLY)
Place of Performance
Location: NORRISTOWN, MONTGOMERY County, PENNSYLVANIA, 19401
Plain-Language Summary
Department of Justice obligated $17,666.28 to MORABITO BAKING CO INC for work described as: Q3 FY26 BREAD (WEEKLY) Key points: 1. Significant contract value for essential food supplies. 2. Awarded under Simplified Acquisition Procedures (SAP), suggesting a competitive but potentially less formal process. 3. Risk of price fluctuations for a staple good. 4. Focus on food manufacturing sector for correctional facilities.
Value Assessment
Rating: good
The contract value of $17.7M for a 90-day period appears reasonable for bulk food procurement. Benchmarking against similar large-scale food service contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP, indicating some level of competition, but the specifics of the competition are not detailed. This method can be efficient for smaller procurements but may limit broader market engagement and price discovery compared to full and open competition.
Taxpayer Impact: Taxpayer funds are being used for essential food services within the federal prison system. The pricing appears competitive given the SAP award, but further analysis of the bidding process would confirm optimal value.
Public Impact
Ensures a consistent supply of bread for inmates in federal correctional facilities. Supports a private sector company, Morabito Baking Co. Inc., through a significant purchase order. Impacts the daily operations and budget of the Federal Prison System / Bureau of Prisons.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price volatility in commodity ingredients.
- Dependence on a single supplier for a critical food item.
Positive Signals
- Awarded to a specific company, indicating successful supplier engagement.
- Contract duration is defined, allowing for predictable budgeting.
Sector Analysis
This contract falls within the food manufacturing sector, specifically catering to institutional needs. Spending benchmarks for correctional facility food services vary widely based on inmate population and location, but this award represents a substantial investment in a basic necessity.
Small Business Impact
The data does not indicate if Morabito Baking Co. Inc. is a small business. Further investigation would be needed to determine the impact on small business participation in this contract.
Oversight & Accountability
The award was made by the Department of Justice, Federal Prison System / Bureau of Prisons, suggesting established oversight mechanisms for procurement. The use of a Purchase Order under SAP implies adherence to specific federal acquisition regulations.
Related Government Programs
- All Other Miscellaneous Food Manufacturing
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Potential for price increases in future contract periods.
- Limited visibility into the specific competitive bidding process under SAP.
- Dependence on a single supplier for a critical food item.
- Lack of information on small business participation.
Tags
all-other-miscellaneous-food-manufacturi, department-of-justice, pa, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $17,666.28 to MORABITO BAKING CO INC. Q3 FY26 BREAD (WEEKLY)
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 $17,666.28.
What is the period of performance?
Start: 2026-04-01. End: 2026-06-30.
What is the historical pricing trend for bread procured by the Federal Prison System?
Analyzing historical pricing data for bread procurement by the Federal Prison System is crucial for assessing value. This would involve comparing the current contract's price per unit and total value against previous awards for similar quantities and quality. Understanding past price fluctuations, contract types (e.g., fixed-price vs. cost-plus), and the number of bidders in prior competitions can reveal trends and potential cost savings or increases over time.
What are the risks associated with relying on a single supplier for a staple food item like bread?
Relying on a single supplier for bread introduces several risks. These include potential supply chain disruptions due to unforeseen events (e.g., natural disasters, labor strikes, or the supplier's operational issues), lack of competitive pressure leading to potential price increases in future contracts, and reduced flexibility if the supplier's quality or service declines. Contingency planning and robust contract management are essential to mitigate these risks.
How effectively does the Simplified Acquisition Procedures (SAP) process ensure optimal value for taxpayer money in this context?
SAP aims for efficiency in procurements below certain thresholds, balancing speed with value. For this $17.7M bread contract, SAP likely facilitated a quicker award. However, its effectiveness in ensuring optimal taxpayer value depends on the specific competition conducted. If multiple quotes were solicited and evaluated rigorously, good value may have been achieved. If competition was limited or informal, there's a risk that a broader, more formal competition might have yielded better pricing or terms.
Industry Classification
NAICS: Manufacturing › Other Food Manufacturing › All Other Miscellaneous Food Manufacturing
Product/Service Code: SUBSISTENCE
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 15B20826Q00000012
Offers Received: 2
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: $17,666
Exercised Options: $17,666
Current Obligation: $17,666
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-04-01
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-04-02
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