DOJ's $42.9M Bread Contract Awarded to Schwebel Baking Company for Federal Prison System

Contract Overview

Contract Amount: $42,892 ($42.9K)

Contractor: Schwebel Baking Company

Awarding Agency: Department of Justice

Start Date: 2026-01-01

End Date: 2026-03-31

Contract Duration: 89 days

Daily Burn Rate: $482/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: Q2 FY 2026 BREAD - SCHWEBEL

Place of Performance

Location: YOUNGSTOWN, MAHONING County, OHIO, 44502

State: Ohio Government Spending

Plain-Language Summary

Department of Justice obligated $42,892.25 to SCHWEBEL BAKING COMPANY for work described as: Q2 FY 2026 BREAD - SCHWEBEL Key points: 1. The contract value is $42.9 million, covering a 3-month period. 2. Schwebel Baking Company secured this contract through a competitive process under SAP. 3. The award is a Purchase Order, indicating a straightforward procurement. 4. This spending falls under the 'Commercial Bakeries' product service code.

Value Assessment

Rating: good

The contract is for a short duration (89 days) with a firm fixed price, suggesting predictable costs. Benchmarking against similar bakery contracts would provide further pricing validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves a limited number of quotes. While competitive, it may not achieve the same price discovery as full and open competition.

Taxpayer Impact: Taxpayer funds are being used for essential food supplies for the federal prison system, ensuring basic needs are met.

Public Impact

Ensures a consistent supply of bread for inmates within the Federal Prison System. Supports a commercial bakery business through a significant government contract. The procurement method suggests efficiency for smaller value contracts. Geographic location of the awardee is Ohio.

Waste & Efficiency Indicators

Waste Risk Score: 48 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the food services sector, specifically commercial bakeries. Government spending on food supplies for correctional facilities is a consistent requirement, with benchmarks varying based on volume and specific product needs.

Small Business Impact

The awardee is Schwebel Baking Company. Analysis is needed to determine if this is a small or large business for the purpose of small business set-asides, though it was not explicitly awarded as such.

Oversight & Accountability

The award is a Purchase Order, which is a standard procurement instrument. Oversight would focus on delivery, quality, and adherence to the firm fixed price.

Related Government Programs

Risk Flags

Tags

commercial-bakeries, department-of-justice, oh, purchase-order, under-100k

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $42,892.25 to SCHWEBEL BAKING COMPANY. Q2 FY 2026 BREAD - SCHWEBEL

Who is the contractor on this award?

The obligated recipient is SCHWEBEL BAKING COMPANY.

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 $42,892.25.

What is the period of performance?

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

What is the historical pricing trend for bread procurement by the Federal Prison System?

Historical pricing data for bread procurement by the Federal Prison System would be crucial for assessing the value of this $42.9 million award. Analyzing past contracts, including quantities, durations, and price escalations, can reveal if Schwebel Baking Company's pricing is competitive or if there's an opportunity for better cost savings in future solicitations. This context helps determine if the current price reflects market conditions or potential inefficiencies.

What are the risks associated with a limited competition procurement under SAP for essential food items?

Limited competition under SAP, while efficient, carries the risk of suboptimal pricing and reduced innovation compared to full and open competition. For essential items like bread, this could mean higher costs for taxpayers or potential supply chain vulnerabilities if the limited pool of bidders faces disruptions. Ensuring robust price analysis and clear performance standards is critical to mitigate these risks.

How effectively does this contract meet the nutritional and logistical needs of the Federal Prison System?

The effectiveness of this contract hinges on Schwebel Baking Company's ability to consistently meet the nutritional requirements and delivery schedules for the Federal Prison System. While the firm fixed price suggests cost control, the true measure of effectiveness lies in the quality and timeliness of the bread supplied. Feedback from correctional facilities and adherence to product specifications are key indicators.

Industry Classification

NAICS: ManufacturingBakeries and Tortilla ManufacturingCommercial Bakeries

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: RFQP02162600001

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 965 E MIDLOTHIAN BLVD, YOUNGSTOWN, OH, 44502

Business Categories: Category Business, Corporate Entity Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,892

Exercised Options: $42,892

Current Obligation: $42,892

Actual Outlays: $9,132

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: 2026-04-03

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