DoD's $16.5M contract for health and beauty products awarded to Kimberly-Clark Corporation

Contract Overview

Contract Amount: $16,495,571 ($16.5M)

Contractor: Kimberly-Clark Corporation

Awarding Agency: Department of Defense

Start Date: 2010-04-01

End Date: 2010-06-30

Contract Duration: 90 days

Daily Burn Rate: $183.3K/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 $16.5 million to KIMBERLY-CLARK CORPORATION for work described as: RESALE - HEALTH AND BEAUTY PRODUCTS Key points: 1. Value for money appears fair given the fixed-price nature of the contract. 2. Competition dynamics were limited, with the contract being a delivery order. 3. Risk indicators are low due to the nature of the goods procured. 4. Performance context shows a short duration, suggesting a specific need. 5. Sector positioning is within the Defense Commissary Agency's retail operations.

Value Assessment

Rating: fair

The contract value of approximately $16.5 million for health and beauty products is difficult to benchmark without more specific details on the items procured and quantities. However, as a firm fixed-price delivery order, the pricing structure is established upfront. The benchmark of $18.3 million for similar contracts suggests this award was within a reasonable range, though further analysis of the specific product mix and quantities would be needed for a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was issued as a delivery order under an existing contract, and the data indicates it was 'NOT AVAILABLE FOR COMPETITION'. This suggests that the procurement likely leveraged a pre-existing agreement or was awarded under specific circumstances that limited open competition. The lack of a competitive bidding process means that price discovery through market forces was not fully utilized for this specific award.

Taxpayer Impact: The limited competition for this delivery order means taxpayers may not have benefited from the lowest possible prices that could have been achieved through a broader bidding process.

Public Impact

Military personnel and their families stationed in Wisconsin benefit from access to essential health and beauty products. The contract ensures the availability of a range of sundries and personal care items at commissary stores. Geographic impact is focused on commissary locations within Wisconsin. Workforce implications are minimal, primarily related to the stocking and sale of goods within the commissary system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of open competition for this delivery order limits price discovery.
Potential for higher costs due to non-competitive award.

Positive Signals

Firm fixed-price contract provides cost certainty.
Procurement of essential goods for military families.

Sector Analysis

This contract falls within the retail sector, specifically the wholesale distribution of drugs and druggists' sundries. The Defense Commissary Agency (DeCA) operates a retail network providing groceries and household goods to military personnel and their families. Spending in this category is consistent with the operational needs of such an agency, ensuring the availability of essential consumer products.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. Furthermore, there is no information regarding subcontracting opportunities for small businesses. The award to a large corporation like Kimberly-Clark suggests that small businesses were likely not primary participants in this specific procurement.

Oversight & Accountability

As a delivery order, oversight would typically be managed by the contracting officer at the Defense Commissary Agency. Accountability measures would be tied to the terms of the base contract under which this delivery order was issued. Transparency for this specific award is limited due to its non-competitive nature and the short duration.

Related Government Programs

Defense Commissary Agency Operations
Retail Goods Procurement
Health and Beauty Product Supply Chains

Risk Flags

Limited Competition
Non-Competitive Award Justification Unclear

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.5 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 $16.5 million.

What is the period of performance?

Start: 2010-04-01. End: 2010-06-30.

What specific health and beauty products were included in this $16.5 million delivery order?

The provided data classifies the procurement under NAICS code 424210 (Drugs and Druggists' Sundries Merchant Wholesalers) and describes the goods as 'RESALE - HEALTH AND BEAUTY PRODUCTS'. However, the specific list of products, quantities, and individual item pricing is not detailed in the available information. This level of detail is crucial for a comprehensive value assessment and understanding the exact nature of the goods purchased for resale through the Defense Commissary Agency.

Why was this delivery order 'NOT AVAILABLE FOR COMPETITION'?

The designation 'NOT AVAILABLE FOR COMPETITION' for this delivery order suggests that it was likely awarded under specific exceptions to full and open competition. Common reasons include the existence of a prior contract with the same vendor that allowed for follow-on orders, a sole-source justification based on unique capabilities or urgent needs, or a simplified acquisition procedure where competition was deemed impractical. Without further documentation, the precise justification remains unclear, but it implies that a competitive bidding process was bypassed for this particular award.

How does the $16.5 million award compare to typical annual spending on health and beauty products by the Defense Commissary Agency?

The provided data indicates a total award of $16,495,570.74 for this specific delivery order, which had a duration of 90 days (April 1, 2010, to June 30, 2010). To compare this to typical annual spending, one would need to analyze historical DeCA procurement data for similar product categories over multiple fiscal years. If this $16.5 million represented a significant portion of DeCA's annual budget for these items, it might suggest a large-scale purchase or a period of increased demand. Conversely, if DeCA's annual spending is substantially higher, this award could represent a smaller, specific procurement event.

What is the track record of Kimberly-Clark Corporation with the Defense Commissary Agency for similar procurements?

Kimberly-Clark Corporation is a major manufacturer and distributor of consumer products, including health and beauty items. While this specific data point shows a $16.5 million delivery order, a comprehensive analysis of Kimberly-Clark's track record with the Defense Commissary Agency would require examining their contract history over several years. This would involve looking at the number of contracts awarded, their values, performance ratings, and whether they have consistently supplied similar product categories. Their established presence in the consumer goods market suggests a likely history of supplying government agencies, including DeCA.

What are the potential risks associated with awarding a delivery order of this magnitude without open competition?

The primary risk associated with awarding a delivery order of this magnitude without open competition is the potential for paying a higher price than could have been achieved through a competitive process. Without multiple bids, there is less market pressure to ensure the most cost-effective solution for taxpayers. Additionally, a non-competitive award might limit opportunities for innovative solutions or new vendors to enter the market. However, if the award was based on a pre-negotiated contract with favorable terms or addressed an urgent need, the risks might be mitigated.

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: $16,495,571

Exercised Options: $16,495,571

Current Obligation: $16,495,571

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDEC0109G3828

IDV Type: IDC

Timeline