DLA awards $52.7M for subsistence prime vendor services to BAXTERS NORTH AMERICA, INC
Contract Overview
Contract Amount: $52,684,156 ($52.7M)
Contractor: Baxters North America, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-11-30
End Date: 2013-12-30
Contract Duration: 395 days
Daily Burn Rate: $133.4K/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: 4523058638!SUBSISTENCE PRIME VENDOR
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45242
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $52.7 million to BAXTERS NORTH AMERICA, INC. for work described as: 4523058638!SUBSISTENCE PRIME VENDOR Key points: 1. Spending of $52.7M on subsistence prime vendor services. 2. Contract awarded to BAXTERS NORTH AMERICA, INC. 3. Department of Defense agency, Defense Logistics Agency. 4. Services include fruit and vegetable canning. 5. Contract duration of 395 days.
Value Assessment
Rating: fair
The contract value of $52.7M for a 395-day period appears reasonable for large-scale subsistence provisions. However, without specific unit cost data or comparison to similar contracts for the exact scope of 'Fruit and Vegetable Canning', a precise pricing assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', indicating a competitive process was used. This method aims to ensure fair pricing by allowing multiple qualified vendors to bid, though the exclusion of specific sources might warrant further investigation.
Taxpayer Impact: Taxpayer funds are utilized for essential defense logistics, specifically for food supplies. The competitive nature of the award suggests an effort to achieve value for money.
Public Impact
Ensures food supply for military personnel. Supports agricultural and food processing industries. Impacts food availability and quality for service members.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific per-unit cost data for benchmarking.
- Potential impact of 'exclusion of sources' on ultimate price.
- Limited contract duration may not reflect long-term needs.
Positive Signals
- Awarded under full and open competition.
- Clear contract type (Firm Fixed Price) for cost certainty.
- Specific agency (DLA) indicates focused procurement.
Sector Analysis
This contract falls within the broader food services and agricultural products sector, supporting the Department of Defense's logistical needs. Spending benchmarks for similar large-scale food supply contracts can vary significantly based on volume, type of goods, and delivery locations.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. The prime vendor is BAXTERS NORTH AMERICA, INC., which is likely a large business, suggesting limited direct subcontracting opportunities for small businesses unless specified within the contract.
Oversight & Accountability
The Defense Logistics Agency (DLA) is responsible for this procurement, implying established oversight mechanisms. However, the 'exclusion of sources' clause warrants scrutiny to ensure it was justified and did not unduly restrict competition.
Related Government Programs
- Fruit and Vegetable Canning
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for limited competition due to source exclusion.
- Lack of detailed cost breakdown for unit pricing.
- Short contract duration may indicate a stop-gap measure.
- No explicit mention of small business participation.
Tags
fruit-and-vegetable-canning, department-of-defense, oh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $52.7 million to BAXTERS NORTH AMERICA, INC.. 4523058638!SUBSISTENCE PRIME VENDOR
Who is the contractor on this award?
The obligated recipient is BAXTERS NORTH AMERICA, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $52.7 million.
What is the period of performance?
Start: 2012-11-30. End: 2013-12-30.
What was the rationale for excluding specific sources in this full and open competition?
The rationale for excluding specific sources in a full and open competition typically relates to pre-existing contract vehicles, specialized capabilities, or specific national security requirements that limit the pool of eligible vendors. Without further details on this particular award, it's difficult to ascertain the exact justification. Agencies often document these exclusions in contract award justifications.
How does the per-unit cost of canned fruits and vegetables compare to industry benchmarks for military rations?
Benchmarking the per-unit cost of canned fruits and vegetables for military rations is challenging without specific product details and quantities. Military procurement often involves bulk purchasing and specific quality standards that can influence pricing. A direct comparison would require detailed line-item data from the contract and access to relevant defense logistics or food industry cost databases.
What is the long-term strategic value of this specific subsistence contract for the Defense Logistics Agency?
The long-term strategic value lies in ensuring a consistent and reliable supply of essential food items, specifically canned fruits and vegetables, to support military operations and personnel. While this particular award is for a limited duration, it contributes to the DLA's overall mission of providing logistical support, potentially influencing future procurement strategies and vendor relationships.
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: DDJ Capital Management, LLC (UEI: 964928402)
Address: 4700 CREEK RD, CINCINNATI, OH, 45242
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $52,684,156
Exercised Options: $52,684,156
Current Obligation: $52,684,156
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPM3S112DZ109
IDV Type: IDC
Timeline
Start Date: 2012-11-30
Current End Date: 2013-12-30
Potential End Date: 2013-12-30 00:00:00
Last Modified: 2018-10-17
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