DoD awards $16.17M for Health & Beauty Products to Kimberly-Clark Corporation

Contract Overview

Contract Amount: $16,168,850 ($16.2M)

Contractor: Kimberly-Clark Corporation

Awarding Agency: Department of Defense

Start Date: 2010-01-01

End Date: 2010-03-31

Contract Duration: 89 days

Daily Burn Rate: $181.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RESALE - HEALTH AND BEAUTY PRODUCTS

Place of Performance

Location: NEENAH, WINNEBAGO County, WISCONSIN, 54956

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $16.2 million to KIMBERLY-CLARK CORPORATION for work described as: RESALE - HEALTH AND BEAUTY PRODUCTS Key points: 1. Significant award value for health and beauty products. 2. Sole supplier identified, raising questions about competition. 3. Fixed-price contract type offers some cost certainty. 4. Defense Commissary Agency is the contracting entity.

Value Assessment

Rating: fair

The total award value is $16.17 million. Without specific unit pricing or comparison data for similar health and beauty product contracts, a precise value assessment is difficult. However, the scale suggests a substantial procurement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if multiple vendors had been allowed to bid on the contract.

Public Impact

Ensures availability of essential health and beauty items for military personnel and families. Supports the Defense Commissary Agency's mission to provide quality goods at a savings. Potential for brand-specific product availability based on the sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award

Positive Signals

Firm fixed price contract
Ensures product availability

Sector Analysis

This procurement falls under wholesale trade of drugs and druggists' sundries. Spending in this sector can vary widely based on demand and specific product categories. Benchmarks are difficult without more granular data.

Small Business Impact

The data indicates no specific set-aside for small businesses, and the prime contractor is Kimberly-Clark Corporation, a large business. There is no indication of small business participation in this specific award.

Oversight & Accountability

The Defense Commissary Agency is responsible for this contract. Oversight would focus on contract performance, delivery, and adherence to the firm fixed price terms.

Related Government Programs

Drugs and Druggists' Sundries Merchant Wholesalers
Department of Defense Contracting
Defense Commissary Agency Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing due to lack of competition.
Limited product variety if only one manufacturer's goods are procured.
Contract duration is relatively short (89 days).

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.2 million to KIMBERLY-CLARK CORPORATION. RESALE - HEALTH AND BEAUTY PRODUCTS

Who is the contractor on this award?

The obligated recipient is KIMBERLY-CLARK CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.2 million.

What is the period of performance?

Start: 2010-01-01. End: 2010-03-31.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award is critical for understanding the value proposition. Without competition, the government relies on the awarded contractor's pricing being fair and reasonable. Further details on the specific reasons, such as unique product requirements or lack of alternatives, would be necessary to fully assess the situation.

How does the unit price of these health and beauty products compare to commercial market prices?

Comparing unit prices to the commercial market is essential for determining value. Given this is a sole-source award, direct comparison is challenging. However, the Defense Commissary Agency should have internal benchmarks or conduct market research to ensure the prices paid are reasonable, even without competitive bids.

What is the expected impact on service members and their families regarding product selection and availability?

The award ensures the availability of specific health and beauty products through the commissary system. As a sole-source award to Kimberly-Clark, the selection might be limited to their product lines. The impact is positive in terms of guaranteed availability, but potentially negative if preferred non-Kimberly-Clark brands are unavailable.

Industry Classification

NAICS: Wholesale Trade › Drugs and Druggists' Sundries Merchant Wholesalers › Drugs and Druggists' Sundries Merchant Wholesalers

Product/Service Code: MISCELLANEOUS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 401 N WAKE ST, NEENAH, WI, 54956

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,168,850

Exercised Options: $16,168,850

Current Obligation: $16,168,850

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDEC0109G3828

IDV Type: IDC

Timeline