DoD's $19.5M grocery contract awarded to Conagra Foods for miscellaneous items

Contract Overview

Contract Amount: $19,497,500 ($19.5M)

Contractor: Conagra Foods Packaged Foods, LLC

Awarding Agency: Department of Defense

Start Date: 2011-04-01

End Date: 2011-06-30

Contract Duration: 90 days

Daily Burn Rate: $216.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RESALE - MISCELLANEOUS GROCERY

Place of Performance

Location: OMAHA, DOUGLAS County, NEBRASKA, 68122

State: Nebraska Government Spending

Plain-Language Summary

Department of Defense obligated $19.5 million to CONAGRA FOODS PACKAGED FOODS, LLC for work described as: RESALE - MISCELLANEOUS GROCERY Key points: 1. Value for money assessed against market rates for wholesale grocery distribution. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery. 3. Risk indicators include the sole-source nature and a short performance period. 4. Performance context is a single delivery order for a specific grocery category. 5. Sector positioning within Defense Commissary Agency's supply chain for food items.

Value Assessment

Rating: fair

The contract value of $19.5 million for a 90-day period is difficult to benchmark without specific product details and market conditions. However, the price per day is approximately $216,639. Given the sole-source nature, a direct comparison to competitively bid contracts is not feasible. Further analysis would require understanding the specific mix of miscellaneous grocery items and their wholesale market prices during the contract period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The data indicates only one bidder, Conagra Foods Packaged Foods, LLC, was considered. This lack of competition means there was no opportunity for multiple vendors to offer bids, which can limit the government's ability to secure the lowest possible prices through market forces.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as competitive pressure is absent, allowing the awarded contractor to set the price without direct market comparison.

Public Impact

Military personnel and their families stationed in Nebraska benefit from access to miscellaneous grocery items. The contract ensures the availability of essential food supplies through the Defense Commissary Agency. Geographic impact is localized to the area served by the Defense Commissary Agency in Nebraska. Workforce implications are minimal, primarily related to the logistics and distribution of goods by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and taxpayer value.
Lack of detailed product mix makes value assessment challenging.
Short performance period may indicate urgent or specific need rather than long-term planning.

Positive Signals

Ensures availability of specific grocery items for military families.
Award to an established supplier like Conagra Foods may indicate reliability.

Sector Analysis

The grocery wholesale industry is a significant sector supporting retail and institutional food sales. This contract falls within the broader food and beverage supply chain, specifically serving the Defense Commissary Agency. Comparable spending benchmarks for wholesale grocery distribution to federal agencies can vary widely based on volume, product mix, and geographic location. The market is generally characterized by established distributors and manufacturers.

Small Business Impact

This contract does not appear to have a small business set-aside. As a sole-source award to a large corporation, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus is on fulfilling the primary contract requirement directly.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Commissary Agency's contracting officers and program managers. Accountability measures would involve ensuring delivery of specified goods according to the contract terms. Transparency is limited due to the sole-source nature and the lack of publicly available detailed performance metrics.

Related Government Programs

Defense Commissary Agency Operations
Federal Food Procurement
Wholesale Grocery Distribution Contracts

Risk Flags

Sole-source award lacks competitive justification.
Limited transparency on specific items procured.
Potential for non-competitive pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.5 million to CONAGRA FOODS PACKAGED FOODS, LLC. RESALE - MISCELLANEOUS GROCERY

Who is the contractor on this award?

The obligated recipient is CONAGRA FOODS PACKAGED FOODS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.5 million.

What is the period of performance?

Start: 2011-04-01. End: 2011-06-30.

What specific types of 'miscellaneous grocery' items were included in this contract?

The provided data does not specify the exact 'miscellaneous grocery' items covered under this contract. The description 'RESALE - MISCELLANEOUS GROCERY' is broad and could encompass a wide range of non-perishable food items beyond standard categories. Without a detailed product list or statement of work, it is difficult to ascertain the precise nature of the goods procured. This lack of specificity hinders a granular analysis of the value and appropriateness of the pricing. For a comprehensive understanding, one would need to consult the original contract documentation or procurement request.

How does the contract value compare to similar sole-source grocery awards by the Defense Commissary Agency?

Direct comparison of this $19.5 million contract to similar sole-source awards is challenging due to the limited data available and the specific nature of 'miscellaneous grocery' items. Sole-source awards inherently lack the competitive benchmarking that allows for robust price-to-price comparisons. To assess value, one would need to analyze historical sole-source contracts for similar product categories or quantities awarded by the Defense Commissary Agency, considering factors like inflation, contract duration, and specific item inclusions. Without such comparative data, it's difficult to definitively state if this award represents good or fair value relative to other sole-source procurements.

What is the risk associated with a sole-source award for essential grocery supplies?

The primary risk associated with a sole-source award for essential grocery supplies is the potential for inflated pricing due to the absence of competition. Taxpayers may end up paying more than they would if multiple vendors had bid on the contract. Additionally, reliance on a single supplier can create vulnerabilities in the supply chain; if the contractor faces production issues, logistical problems, or decides to terminate the contract, the Defense Commissary Agency might struggle to find an immediate alternative, potentially disrupting the availability of goods for military personnel and their families. The short 90-day duration might mitigate some long-term supply chain risks but still points to a potentially urgent or specific need.

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

The provided data indicates the contract type as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. However, the specific justification for this determination is not included in the abbreviated data. Typically, sole-source awards are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need where competition is not feasible. Without the official justification document, the rationale remains unknown, making it difficult to assess the appropriateness of bypassing the competitive bidding process.

What is the historical spending pattern for 'RESALE - MISCELLANEOUS GROCERY' by the Defense Commissary Agency?

The provided data only pertains to a single delivery order valued at $19,497,499.75, with a start date of April 1, 2011, and an end date of June 30, 2011. This represents a 90-day period. To understand the historical spending pattern for 'RESALE - MISCELLANEOUS GROCERY,' one would need to examine procurement data over multiple fiscal years. This would involve searching for all contracts and delivery orders categorized under this description issued by the Defense Commissary Agency. Analyzing this broader dataset would reveal trends in spending volume, frequency of awards, and whether these procurements have historically been competed or awarded sole-source.

Industry Classification

NAICS: Wholesale Trade › Grocery and Related Product Merchant Wholesalers › General Line Grocery Merchant Wholesalers

Product/Service Code: SUBSISTENCE

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: 7350 WORLD COMMUNICATIONS DR, OMAHA, NE, 68122

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,497,500

Exercised Options: $19,497,500

Current Obligation: $19,497,500

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDEC0110G4069

IDV Type: BOA

Timeline