DoD's $45M contract for canned fruits and vegetables awarded to SO-PAK-CO, INC. shows strong competition

Contract Overview

Contract Amount: $44,833,341 ($44.8M)

Contractor: So-Pak-Co, Inc

Awarding Agency: Department of Defense

Start Date: 2011-11-17

End Date: 2013-02-12

Contract Duration: 453 days

Daily Burn Rate: $99.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 4519666875!BOA

Place of Performance

Location: MULLINS, MARION County, SOUTH CAROLINA, 29574, UNITED STATES OF AMERICA

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $44.8 million to SO-PAK-CO, INC for work described as: 4519666875!BOA Key points: 1. The contract was awarded under full and open competition, indicating a robust bidding process. 2. The fixed-price contract type suggests predictable costs for the government. 3. The duration of the contract was 453 days. 4. The award was made by the Defense Logistics Agency, a key procurement arm for the DoD. 5. The North American Industry Classification System (NAICS) code 311421 points to the canned fruit and vegetable processing industry.

Value Assessment

Rating: good

The contract's value of $45.2 million over its period of performance appears reasonable for the scale of procurement by the Defense Logistics Agency. Benchmarking against similar large-scale food supply contracts would provide a more precise value-for-money assessment. The firm fixed-price structure helps manage cost certainty for the government, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that multiple bidders were allowed to compete, but specific sources were excluded. The presence of 3 bids suggests a moderate level of competition. While not a completely unrestricted competition, it likely provided sufficient price discovery and encouraged competitive pricing.

Taxpayer Impact: The competitive nature of this award, even with exclusions, is beneficial for taxpayers as it likely drove down prices compared to a sole-source or limited competition scenario.

Public Impact

This contract directly supports the nutritional needs of U.S. military personnel by providing essential food supplies. The services delivered include the procurement and delivery of canned fruits and vegetables. The geographic impact is likely widespread, supporting military installations domestically and potentially overseas. The contract supports jobs within the food processing and logistics sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Quality control of canned goods over the contract duration needs consistent oversight.
Price fluctuations in agricultural commodities could impact long-term cost-effectiveness if not managed.

Positive Signals

Award to an established company (SO-PAK-CO, INC.) suggests a degree of reliability.
Firm fixed-price contract provides cost predictability.
Procurement through the Defense Logistics Agency indicates adherence to established federal acquisition processes.

Sector Analysis

This contract falls within the broader food manufacturing and wholesale trade sector, specifically focusing on canned goods. The market for supplying food products to government entities, particularly the Department of Defense, is substantial. Companies like SO-PAK-CO, INC. operate in a competitive landscape where quality, price, and reliability are key differentiators. Comparable spending benchmarks would involve analyzing other large food service contracts awarded by federal agencies.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions. As a large contract awarded to SO-PAK-CO, INC., it is unlikely to have direct subcontracting opportunities specifically targeted at small businesses unless SO-PAK-CO, INC. voluntarily pursues them. The overall impact on the small business ecosystem would be minimal unless the prime contractor actively engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Logistics Agency's contracting officers and potentially the Department of Defense's Inspector General. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated through federal procurement databases where contract awards are recorded.

Related Government Programs

DoD Food Procurement
Defense Logistics Agency Contracts
Canned Goods Supply Chain
Military Food Service

Risk Flags

Potential for supply chain vulnerabilities
Quality assurance of food products
Price volatility of agricultural commodities

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.8 million to SO-PAK-CO, INC. 4519666875!BOA

Who is the contractor on this award?

The obligated recipient is SO-PAK-CO, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $44.8 million.

What is the period of performance?

Start: 2011-11-17. End: 2013-02-12.

What is the track record of SO-PAK-CO, INC. in fulfilling government contracts, particularly for food supplies?

Information regarding SO-PAK-CO, INC.'s specific track record with government contracts, beyond this award, is not detailed in the provided data. A comprehensive analysis would require accessing historical contract databases to review past performance, any reported issues, and the volume and types of contracts previously awarded to the company. Generally, for a company to win a significant contract like this, it implies a certain level of established capability and past performance, but specific details would need further investigation. Examining past performance reviews and any contract disputes or terminations would offer a clearer picture of their reliability and adherence to contractual obligations.

How does the awarded price compare to market rates for similar canned fruit and vegetable products?

The provided data does not include the specific unit prices or detailed product specifications for the canned fruits and vegetables. Therefore, a direct comparison to current market rates is not possible. To conduct such an analysis, one would need to identify the exact items procured (e.g., canned peaches, green beans, specific pack sizes), their quantities, and then benchmark these against wholesale prices from commercial suppliers or other government contracts for identical or comparable items. The firm fixed-price nature suggests the price was agreed upon before performance, but its competitiveness relative to the market at that time would require external data.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks for this contract include potential supply chain disruptions affecting the availability of raw agricultural products or the canned goods themselves, quality control issues with perishable or shelf-stable food items, and price volatility of agricultural commodities. Mitigation strategies likely involve robust quality assurance clauses in the contract, clear delivery schedules with penalties for delays, and potentially sourcing from multiple suppliers or regions to buffer against localized disruptions. The firm fixed-price structure itself mitigates the risk of cost overruns for the government, shifting that risk to the contractor.

How effective has the Defense Logistics Agency been in procuring food supplies through competitive bidding processes like this one?

The Defense Logistics Agency (DLA) is a major procurement entity for the DoD and has extensive experience in procuring food supplies. Historically, DLA has utilized various contracting methods, including full and open competition, to ensure competitive pricing and access to a wide range of suppliers. The success of their competitive bidding processes is generally reflected in their ability to meet the logistical and nutritional requirements of the armed forces while managing costs. Analyzing DLA's overall procurement data, including contract award values, number of bidders, and cost savings achieved through competition, would provide a measure of their effectiveness in this area.

What has been the historical spending pattern for canned fruits and vegetables by the Department of Defense over the last five years?

The provided data only pertains to a single contract award. To determine historical spending patterns for canned fruits and vegetables by the Department of Defense, one would need to aggregate data from multiple contract awards over a specified period (e.g., the last five fiscal years). This would involve querying federal procurement databases (like FPDS or USASpending) for contracts with relevant NAICS codes (e.g., 311421) and product service codes (PSCs) related to canned goods, awarded by the DoD and its various components. Analyzing this aggregated data would reveal trends in spending volume, average contract values, and potentially shifts in supplier base or procurement strategies.

Industry Classification

NAICS: Manufacturing › Fruit and Vegetable Preserving and Specialty Food Manufacturing › Fruit and Vegetable Canning

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Unaka Company, Incorporated (UEI: 003374477)

Address: 118 S CYPRESS ST, MULLINS, SC, 29574

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Labor Surplus Area Firm, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,833,341

Exercised Options: $44,833,341

Current Obligation: $44,833,341

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPM3S112DZ108

IDV Type: IDC

Timeline