DOJ's $2.4M contract for baked goods awarded to East Baking Company, Inc. for Q2 FY26

Contract Overview

Contract Amount: $240,233 ($240.2K)

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: $2.7K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NATIONAL MENU 2ND QTR FY26

Place of Performance

Location: HOLYOKE, HAMPDEN County, MASSACHUSETTS, 01040

State: Massachusetts Government Spending

Plain-Language Summary

Department of Justice obligated $240,233.3 to EAST BAKING COMPANY, INC. for work described as: NATIONAL MENU 2ND QTR FY26 Key points: 1. The contract value represents a significant portion of the Federal Prison System's food service budget for the specified quarter. 2. Competition dynamics for this contract appear limited, with a 'COMPETED UNDER SAP' designation suggesting a streamlined process. 3. Risk indicators include the short duration of the contract (89 days), potentially limiting long-term planning and price stability. 4. Performance context will depend on East Baking Company's prior experience and the specific quality standards required for correctional facilities. 5. This contract falls within the broader 'Commercial Bakeries' sector, serving a critical operational need for the Bureau of Prisons.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns or comparisons to similar food service contracts within correctional institutions. The firm fixed-price nature suggests a defined cost expectation, but the absence of detailed performance metrics makes a definitive value-for-money assessment difficult. The price appears reasonable for a bulk purchase of baked goods, but without specific product details or quality standards, it's hard to compare against market rates.

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 bidding process and may involve fewer bidders than full and open competition. While 'COMPETED UNDER SAP' indicates some level of competition, the exact number of bidders beyond the awardee is not specified. This suggests that the competition may have been limited to pre-qualified vendors or those responding to a specific solicitation.

Taxpayer Impact: A limited competition process under SAP may not always yield the lowest possible prices for taxpayers, as the pool of potential bidders is often restricted.

Public Impact

Inmates within the Federal Prison System will benefit from the provision of baked goods. The services delivered include the supply of commercial bakery products. The geographic impact is primarily within the Federal Prison System facilities served by this contract. Workforce implications are minimal, likely involving existing staff at East Baking Company, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract periods due to limited competition.
Dependence on a single vendor for a critical food supply item.
Lack of detailed performance metrics makes quality assurance challenging.

Positive Signals

Firm fixed-price contract provides cost certainty for the current period.
Award to an established company, East Baking Company, Inc., suggests potential for reliable delivery.
Contract serves a clear and essential need for the Bureau of Prisons.

Sector Analysis

The commercial bakeries sector is a mature industry providing essential food products. Federal agencies, particularly correctional facilities, represent a consistent customer base for bulk food supplies. The market size for commercial bakeries is substantial, with numerous regional and national players. This contract fits within the broader government procurement of food services, where efficiency and cost-effectiveness are key.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem for this specific contract is likely minimal. Future solicitations could explore small business participation if deemed appropriate.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of Prisons' contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated by the public nature of federal contract awards, though detailed operational oversight specifics are not provided.

Related Government Programs

Federal Prison System Food Services
Bureau of Prisons Commissary Operations
Commercial Food Procurement
Correctional Facility Supplies

Risk Flags

Limited competition
Short contract duration
Lack of detailed performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $240,233.3 to EAST BAKING COMPANY, INC.. NATIONAL MENU 2ND QTR FY26

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 $240,233.3.

What is the period of performance?

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

What is the historical spending pattern for baked goods by the Federal Prison System?

Analyzing historical spending patterns for baked goods by the Federal Prison System requires access to detailed procurement data over multiple fiscal years. Typically, such spending would fluctuate based on inmate population, menu changes, and the availability of competitive pricing. Without specific historical data for this contract category, it's difficult to ascertain if the $2.4 million for Q2 FY26 represents an increase, decrease, or stable expenditure compared to previous periods. Factors like inflation, changes in food sourcing strategies, and the number of facilities served would influence these historical trends. A comprehensive review would involve examining past solicitations, award values, and contract durations for similar food items to identify any significant deviations or consistent spending levels.

How does the per-unit cost of baked goods under this contract compare to market rates for similar institutions?

Determining the per-unit cost comparison for baked goods under this contract is challenging without specific details on the types and quantities of products being procured. The contract is for a broad category ('Commercial Bakeries') and awarded as a Purchase Order, suggesting a less granular breakdown of individual items and their prices compared to a detailed service contract. To perform a meaningful comparison, one would need to know the exact items (e.g., bread loaves, pastries, cookies), their specifications (weight, ingredients), and the quantities ordered. Market rates would then be benchmarked against wholesale food distributors or other correctional facility contracts that provide similar items. Given the 'COMPETED UNDER SAP' designation, the pricing might reflect a negotiated rate that balances cost and convenience for a simplified acquisition, rather than the absolute lowest possible price achievable through extensive competitive bidding.

What is East Baking Company, Inc.'s track record with federal contracts, particularly with the Department of Justice or Bureau of Prisons?

Information regarding East Baking Company, Inc.'s specific track record with federal contracts, especially with the Department of Justice or the Bureau of Prisons, would typically be found in federal procurement databases like SAM.gov or FPDS. A review of these databases would reveal past awards, contract performance history, and any reported issues or commendations. Without direct access to this specific historical data for East Baking Company, Inc., it's presumed that their selection for this purchase order indicates they met the necessary qualifications and demonstrated capability to fulfill the contract requirements. Companies that have successfully performed similar contracts, especially within correctional environments, are often favored due to their established processes and understanding of the unique demands of such clients.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks associated with this contract include potential supply chain disruptions affecting East Baking Company, Inc., quality control issues with the baked goods, and the possibility of price volatility in future procurements due to the limited competition under SAP. Additionally, the short duration (89 days) poses a risk of requiring a rapid re-solicitation process, potentially leading to temporary supply gaps or higher costs if emergency procurement measures are needed. Mitigation strategies would typically involve the Bureau of Prisons closely monitoring vendor performance, establishing clear quality standards and inspection protocols, and maintaining open communication channels with East Baking Company, Inc. For future contracts, the agency might consider a longer-term agreement or a more robust competitive process to ensure consistent supply and potentially better pricing.

How does the Bureau of Prisons ensure the nutritional standards and safety of baked goods provided under this contract?

The Bureau of Prisons (BOP) ensures the nutritional standards and safety of baked goods through a combination of contract specifications, quality assurance inspections, and adherence to federal food safety regulations. The contract likely includes detailed specifications regarding ingredients, nutritional content (e.g., caloric values, sodium limits), and preparation methods. During the contract period, BOP personnel would conduct regular inspections of the delivered products to verify compliance with these specifications and ensure they meet safety standards. This includes checking for proper handling, storage, and absence of contaminants. Furthermore, East Baking Company, Inc. would be expected to comply with all relevant FDA and USDA guidelines for food production and handling. Any deviations from these standards could result in contract penalties or termination.

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

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: $240,233

Exercised Options: $240,233

Current Obligation: $240,233

Actual Outlays: $152,538

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline