DOJ awards $6.4M purchase order for prison subsistence to East Baking Company, Inc

Contract Overview

Contract Amount: $64,020 ($64.0K)

Contractor: East Baking Company, Inc.

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-06-30

Contract Duration: 90 days

Daily Burn Rate: $711/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 28

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OATS-FCI JES - FY26 Q2-SUBSISTENCE-EAST BAKING SMALL BUSINESS

Place of Performance

Location: JESUP, WAYNE County, GEORGIA, 31599

State: Georgia Government Spending

Plain-Language Summary

Department of Justice obligated $64,020 to EAST BAKING COMPANY, INC. for work described as: OATS-FCI JES - FY26 Q2-SUBSISTENCE-EAST BAKING SMALL BUSINESS Key points: 1. The contract value of $6.4 million for a 90-day period suggests a high per-diem cost for inmate subsistence. 2. Competition was conducted under Simplified Acquisition Procedures (SAP), indicating a focus on smaller value procurements. 3. The award to East Baking Company, Inc. for 'All Other Miscellaneous Food Manufacturing' raises questions about specialized vs. general food provision. 4. A firm-fixed-price contract type aims to control costs, but the short duration may limit opportunities for significant cost savings. 5. The contract's geographic focus on Georgia (ST: GA, SN: GEORGIA) suggests a localized need for these subsistence services. 6. The absence of small business set-aside flags indicates this was not specifically targeted to small businesses.

Value Assessment

Rating: fair

The total award of $6.4 million for a 90-day period equates to approximately $71,111 per day. Benchmarking this against typical per-diem costs for correctional facility subsistence is challenging without more specific service details. However, given the short duration, this amount suggests a potentially high unit cost for food services, warranting further investigation into the specific items and quantities procured. The firm-fixed-price nature provides cost certainty for the government, but the value proposition depends heavily on the efficiency and scale of East Baking Company's operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which are typically used for procurements valued between the micro-purchase threshold and the simplified acquisition threshold ($250,000 for most agencies). The data indicates 28 offers were received, suggesting a reasonable level of interest within the SAP framework. However, the specific nature of SAP competition can sometimes limit the breadth of outreach compared to full and open competition, potentially impacting price discovery.

Taxpayer Impact: While SAP aims for efficiency, the level of competition achieved here means taxpayers may not have benefited from the lowest possible price that could have been achieved through broader market engagement.

Public Impact

Inmates within the Federal Prison System in Georgia will receive subsistence services, ensuring basic nutritional needs are met. The services delivered are primarily the provision of food and related subsistence items. The geographic impact is concentrated within the state of Georgia, serving federal correctional facilities in that region. The contract supports the operational workforce of East Baking Company, Inc. and potentially its supply chain partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inflated per-unit costs due to the high daily expenditure for a short-term contract.
Lack of clarity on whether 'All Other Miscellaneous Food Manufacturing' aligns with specialized correctional facility nutritional requirements.
Limited transparency on the specific food items and quantities procured under this award.
SAP competition may not have yielded the most competitive pricing compared to a broader solicitation.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Receipt of 28 offers indicates a competitive process within the SAP framework.
The contract addresses a fundamental need for inmate subsistence within the Federal Prison System.

Sector Analysis

The food manufacturing and distribution sector is vast, encompassing everything from raw ingredient processing to prepared meal delivery. Federal agencies, particularly those with large institutional populations like the Bureau of Prisons, are significant consumers of these services. Contracts for subsistence often fall under broader categories like 'Food Services' or 'Miscellaneous Food Preparations.' While specific benchmarks for correctional facility subsistence are not readily available, the overall food service industry is highly competitive, with many players ranging from large national caterers to specialized local suppliers. This contract appears to fit within the 'Miscellaneous Food Manufacturing' category, suggesting a focus on processed or prepared food items rather than bulk raw ingredients.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false). Furthermore, there is no explicit mention of subcontracting requirements for small businesses within the provided details. This suggests that the primary contractor, East Baking Company, Inc., will be responsible for fulfilling the contract requirements, and there is no direct mechanism in place to ensure small business participation through subcontracting on this specific award.

Oversight & Accountability

The contract is managed by the Department of Justice, Federal Prison System / Bureau of Prisons. Oversight mechanisms would typically involve contract officers, program managers, and potentially quality assurance personnel within the Bureau of Prisons. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Prison System Food Services
Bureau of Prisons Commissary Operations
Department of Justice Procurement
Inmate Welfare and Recreation Funds

Risk Flags

Potential for high per-unit cost given the daily expenditure for a short duration.
Lack of specificity in the NAICS code for the goods procured.
Competition conducted under SAP may limit optimal price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $64,020 to EAST BAKING COMPANY, INC.. OATS-FCI JES - FY26 Q2-SUBSISTENCE-EAST BAKING SMALL BUSINESS

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 $64,020.

What is the period of performance?

Start: 2026-04-01. End: 2026-06-30.

What is the typical cost per inmate per day for subsistence in federal correctional facilities, and how does this contract's implied cost compare?

Determining the precise per-inmate, per-day cost for this specific contract is challenging without knowing the exact number of inmates served and the precise scope of 'subsistence' provided by East Baking Company, Inc. The total award of $6.4 million over 90 days averages to approximately $71,111 per day. If this serves a significant population, the daily cost might be reasonable. However, if it serves a smaller population or includes services beyond basic meals, the cost could be high. General estimates for federal prison food costs can range from $3 to $10 per inmate per day, though this varies widely based on location, dietary needs, and contract specifics. The high daily total for this contract suggests it likely serves a substantial number of inmates or encompasses a broader range of food-related services than just basic meal provision.

What specific products or services are included under 'All Other Miscellaneous Food Manufacturing' for federal prison subsistence?

The classification 'All Other Miscellaneous Food Manufacturing' (NAICS code 311999) is broad and encompasses a wide array of food products not specified under other manufacturing categories. For federal prison subsistence, this could potentially include items such as baked goods, snack items, beverages, pre-packaged meals, or ingredients for inmate consumption. The lack of specificity in the NAICS code means that the exact nature of the goods procured is not immediately clear from the contract details alone. Further clarification would be needed from the Bureau of Prisons to understand the precise role of East Baking Company, Inc.'s products in meeting the nutritional requirements of the inmate population.

How does competition under Simplified Acquisition Procedures (SAP) typically affect pricing compared to full and open competition for similar goods?

Simplified Acquisition Procedures (SAP) are designed for procurements below the simplified acquisition threshold (SAT), generally $250,000, though agencies can use it up to $7.5 million for construction and $10 million for other supplies/services if authorized. SAP emphasizes efficiency and reduced administrative burden. While this contract was competed under SAP and received 28 offers, the process typically involves fewer formal requirements and may not reach as broad a market as full and open competition. This can sometimes lead to less aggressive pricing, as the pool of potential bidders might be smaller or less aware of the opportunity. However, for smaller value procurements, SAP can still yield competitive prices due to the ease of participation for vendors.

What is the track record of East Baking Company, Inc. in fulfilling federal contracts, particularly for correctional facilities?

Information regarding East Baking Company, Inc.'s specific track record with federal contracts, especially for correctional facilities, is not detailed in the provided data. A comprehensive assessment would require searching federal procurement databases (like FPDS or SAM.gov) for past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. Without this historical data, it is difficult to evaluate their past performance, reliability, and experience in meeting the unique demands of government procurement, particularly within the sensitive environment of a correctional institution.

What are the potential risks associated with a short-duration (90-day) contract for essential services like inmate subsistence?

Short-duration contracts, such as this 90-day award, can introduce several risks. Firstly, there's a risk of price inflation, as contractors may charge a premium for a short-term commitment, knowing they need to recoup setup and operational costs quickly. Secondly, it can lead to service discontinuity if a follow-on contract is not awarded promptly, potentially disrupting essential services like inmate subsistence. Thirdly, it limits the government's ability to fully assess contractor performance and value over a longer period, making it harder to identify inefficiencies or potential issues. Finally, it may discourage contractors from making significant investments in service quality or efficiency improvements that would typically be justified over a longer contract term.

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

Offers Received: 28

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: $64,020

Exercised Options: $64,020

Current Obligation: $64,020

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline