DoD's Defense Commissary Agency Spends $15.2M on Health & Beauty Aids from Johnson & Johnson
Contract Overview
Contract Amount: $15,238,102 ($15.2M)
Contractor: Johnson & Johnson Consumer COM
Awarding Agency: Department of Defense
Start Date: 2009-10-01
End Date: 2009-12-31
Contract Duration: 91 days
Daily Burn Rate: $167.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: RESALE - HEALTH & BEAUTY AIDES
Place of Performance
Location: SKILLMAN, SOMERSET County, NEW JERSEY, 08558
Plain-Language Summary
Department of Defense obligated $15.2 million to JOHNSON & JOHNSON CONSUMER COM for work described as: RESALE - HEALTH & BEAUTY AIDES Key points: 1. Significant spending on consumer goods highlights the commissary's role in supporting military families. 2. Sole-source nature raises questions about potential price inefficiencies and lack of competitive pressure. 3. The contract's short duration (91 days) suggests it might be a bridge or for immediate needs. 4. Focus on health and beauty products indicates a specific category of essential or desired items for the demographic.
Value Assessment
Rating: questionable
The contract value of $15.2M for a 91-day period is substantial. Without comparable contract data or unit pricing, it's difficult to assess if this represents fair market value. The lack of competition is a primary driver for this assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for the government and taxpayers.
Taxpayer Impact: The sole-source award prevents competitive bidding, which could have resulted in lower prices and saved taxpayer money.
Public Impact
Military families benefit from the availability of health and beauty products through the commissary system. The large expenditure on these items reflects consumer demand within the military community. Potential for higher prices due to lack of competition impacts the overall value proposition for commissary shoppers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of transparency in pricing
- Potential for overpayment
Positive Signals
- Provides essential goods to military families
- Supports a known supplier
Sector Analysis
The Defense Commissary Agency (DeCA) operates within the broader retail sector, specifically serving the military community. Spending benchmarks for health and beauty aids in the general retail market are not directly comparable due to DeCA's unique operational model and customer base.
Small Business Impact
There is no indication that small businesses were involved in this specific contract, as it was awarded to a large corporation on a sole-source basis.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Oversight should focus on ensuring the necessity of the sole-source justification and exploring opportunities for future competition to ensure best value.
Related Government Programs
- General Line Grocery Merchant Wholesalers
- Department of Defense Contracting
- Defense Commissary Agency Programs
Risk Flags
- Sole-source award limits competition
- Potential for non-competitive pricing
- Lack of detailed cost breakdown
- Short contract duration may indicate a stopgap measure
Tags
general-line-grocery-merchant-wholesaler, department-of-defense, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.2 million to JOHNSON & JOHNSON CONSUMER COM. RESALE - HEALTH & BEAUTY AIDES
Who is the contractor on this award?
The obligated recipient is JOHNSON & JOHNSON CONSUMER COM.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Commissary Agency).
What is the total obligated amount?
The obligated amount is $15.2 million.
What is the period of performance?
Start: 2009-10-01. End: 2009-12-31.
What was the justification for awarding this contract on a sole-source basis, and were alternative sourcing strategies considered?
The provided data indicates a sole-source award, meaning competition was not sought. A thorough review would require access to the contract file to understand the specific justification, such as a lack of available sources, urgent and compelling needs, or specific government requirements that only one vendor could meet. Without this documentation, it's impossible to confirm if alternatives were adequately explored.
How does the per-unit cost of these health and beauty aids compare to similar products purchased through competitive contracts or available in the commercial market?
Direct comparison is challenging without specific unit cost data and detailed product information. However, the sole-source nature inherently suggests a risk of inflated pricing compared to competitive markets. A benchmark analysis against commercial retail prices or other government contracts for similar items would be necessary to quantify any potential overpricing.
What is the long-term strategy for procuring health and beauty aids to ensure cost-effectiveness and adequate supply for military personnel and their families?
The current sole-source award for a short duration (91 days) suggests a potential need for a more strategic procurement approach. Future strategies should prioritize exploring competitive bidding processes to leverage market forces for better pricing and ensure a stable, cost-effective supply chain for these essential consumer goods.
Industry Classification
NAICS: Wholesale Trade › Grocery and Related Product Merchant Wholesalers › General Line Grocery 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: US ROUTE 1 AND AARON ROAD, NORTH BRUNSWIC, NJ, 08902
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $15,238,102
Exercised Options: $15,238,102
Current Obligation: $15,238,102
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HDEC0105G3260
IDV Type: IDC
Timeline
Start Date: 2009-10-01
Current End Date: 2009-12-31
Potential End Date: 2009-12-31 00:00:00
Last Modified: 2019-06-07
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