DoD's $76.7M specialty canning contract awarded to SO-PAK-CO, INC. shows fair value with 3 bidders

Contract Overview

Contract Amount: $76,715,316 ($76.7M)

Contractor: So-Pak-Co, Inc

Awarding Agency: Department of Defense

Start Date: 2010-10-28

End Date: 2012-01-31

Contract Duration: 460 days

Daily Burn Rate: $166.8K/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: TAS::97 4930::TAS

Place of Performance

Location: MULLINS, MARION County, SOUTH CAROLINA, 29574

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $76.7 million to SO-PAK-CO, INC for work described as: TAS::97 4930::TAS Key points: 1. The contract demonstrates a competitive landscape with three bidders, suggesting a reasonable price discovery process. 2. While the contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' the presence of multiple bidders is a positive indicator. 3. The firm-fixed-price structure helps mitigate cost overrun risks for the government. 4. Performance is situated in South Carolina, potentially impacting local workforce and economy. 5. The specialty canning sector is niche, and this contract addresses a specific defense logistics need. 6. The contract duration of 460 days is standard for this type of procurement.

Value Assessment

Rating: good

The contract's value appears reasonable given the firm-fixed-price structure and the competitive bidding process involving three offers. Benchmarking against similar specialty canning contracts is challenging due to the niche nature of the service. However, the awarded amount of $76.7 million for a period of approximately 15 months suggests a consistent, albeit high, expenditure for specialized food preservation services for the military. The government's ability to secure multiple bids indicates a degree of market interest and potential for price negotiation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was open, certain sources were excluded prior to the final solicitation. Three bidders participated in this competition. The presence of multiple bidders is a positive sign for price discovery, suggesting that the government received competitive offers. However, the 'exclusion of sources' aspect warrants further investigation to understand if it limited the overall competitive pool and potentially impacted the final price.

Taxpayer Impact: The competition level, while not fully open, resulted in multiple bids, which generally benefits taxpayers by fostering price competition and preventing single-source price inflation.

Public Impact

Military personnel and potentially deployed forces benefit from the provision of preserved food supplies. The services delivered include specialty canning, crucial for long-term food storage and operational readiness. The geographic impact is primarily in South Carolina, where the contractor is based, potentially creating or sustaining local jobs. Workforce implications include employment opportunities in food processing, packaging, and logistics within the contractor's facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'exclusion of sources' clause.
Lack of detailed performance metrics makes it difficult to assess efficiency beyond price.
Reliance on a single contractor for a specific niche service could pose supply chain risks if not managed proactively.

Positive Signals

Firm-fixed-price contract structure provides cost certainty.
Multiple bidders participated, indicating market interest and some level of competition.
Contract awarded to a single entity suggests consolidation of specialized capabilities.

Sector Analysis

The specialty canning industry is a niche segment within the broader food processing sector, focused on preservation techniques for extended shelf life. This contract falls under defense logistics and supply chain management, where preserved foods are critical for military operations, especially in remote or deployed environments. Comparable spending benchmarks are difficult to establish due to the specialized nature and specific military requirements, but the overall defense food service budget runs into billions annually.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed in the provided data. Without specific subcontracting plans or goals, it is difficult to assess the extent to which small businesses will participate in fulfilling this contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Logistics Agency (DLA), responsible for ensuring timely delivery and adherence to specifications. Accountability measures are embedded in the firm-fixed-price contract, penalizing the contractor for non-performance or deviations. Transparency is facilitated through contract award databases, though detailed operational oversight reports are not publicly available.

Related Government Programs

Defense Food Service
Military Rations
Food Supply Chain Management
Logistics and Transportation Services

Risk Flags

Potential for limited competition due to source exclusion.
Lack of detailed performance metrics for value assessment.
Dependence on a single contractor for specialized goods.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $76.7 million to SO-PAK-CO, INC. TAS::97 4930::TAS

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 $76.7 million.

What is the period of performance?

Start: 2010-10-28. End: 2012-01-31.

What is the track record of SO-PAK-CO, INC. with federal contracts, particularly within the Department of Defense?

SO-PAK-CO, INC. has a history of securing federal contracts, primarily with the Department of Defense, as indicated by this award. While the provided data focuses on a single large contract, a comprehensive analysis would require examining their entire federal contracting history. This would involve looking at past performance ratings, any contract disputes or terminations, and the types of goods or services they have previously supplied. Understanding their historical performance, especially in delivering specialized food products under firm-fixed-price agreements, is crucial for assessing their reliability and capability in fulfilling current and future requirements. A review of their past performance on similar contracts would provide valuable insights into their ability to meet quality standards and delivery schedules.

How does the awarded price of $76.7 million compare to market rates for similar specialty canning services?

Benchmarking the $76.7 million award against market rates for specialty canning is challenging due to the niche nature of the service and the specific requirements of military-grade preserved foods. Unlike common commercial canning, military specifications often involve stringent quality control, extended shelf-life testing, and specialized packaging to withstand harsh conditions. The presence of three bidders suggests some level of market competition, implying the price was not exorbitant. However, without access to detailed cost breakdowns or data on comparable commercial contracts with similar specifications, a precise value-for-money assessment relative to the broader market is difficult. The firm-fixed-price nature, however, caps the government's financial exposure.

What are the specific risks associated with a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' contract type?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (FOUCAES) contract type presents a unique risk profile. While it aims for broad competition, the 'exclusion of sources' clause means that certain potential bidders were identified and deliberately excluded before the solicitation was released. This exclusion could be based on various factors, such as past performance, security concerns, or specific technical capabilities. The primary risk is that this exclusion might have inadvertently narrowed the competitive pool, potentially leading to a higher price than if all capable sources had been allowed to bid. It also raises questions about the fairness and transparency of the pre-solicitation process. Ensuring that the exclusions were justified and documented is critical for mitigating this risk.

What is the expected effectiveness of this contract in meeting the Department of Defense's food supply needs?

The effectiveness of this contract hinges on SO-PAK-CO, INC.'s ability to consistently deliver high-quality specialty canned goods that meet the stringent requirements of the Department of Defense (DoD). The firm-fixed-price structure incentivizes the contractor to meet specifications efficiently. The contract's duration of 460 days suggests a planned supply chain integration for a specific period. Its effectiveness will be measured by the reliability of supply, the quality and shelf-life of the canned products, and their suitability for military consumption in various operational environments. Successful execution contributes directly to troop readiness and morale by ensuring access to necessary sustenance.

How has historical spending in the specialty canning sector by the Department of Defense evolved prior to this contract?

Analyzing historical spending patterns in the specialty canning sector by the Department of Defense prior to this $76.7 million award would provide crucial context. This involves examining the volume and value of similar contracts awarded over the past several years, identifying key contractors, and noting any trends in pricing or procurement strategies. Understanding whether this contract represents an increase, decrease, or stable level of spending in this niche area is important. For instance, a significant increase might signal growing demand or a shift in operational requirements, while a decrease could indicate changes in food technology or supply chain strategies. Without historical data, it's difficult to ascertain if this award is an anomaly or part of a consistent procurement pattern.

Industry Classification

NAICS: Manufacturing › Fruit and Vegetable Preserving and Specialty Food Manufacturing › Specialty 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, 07

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $76,715,316

Exercised Options: $76,715,316

Current Obligation: $76,715,316

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPM3S106DZ104

IDV Type: IDC

Timeline