DoD's $17.7M contract for frozen soup specialty food manufacturing awarded to Campbell Soup Company

Contract Overview

Contract Amount: $17,705,161 ($17.7M)

Contractor: Campbell Soup Company

Awarding Agency: Department of Defense

Start Date: 2010-10-01

End Date: 2010-12-31

Contract Duration: 91 days

Daily Burn Rate: $194.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RESALE-SOUPS-GROCERY ITEMS

Place of Performance

Location: CAMDEN, CAMDEN County, NEW JERSEY, 08103

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $17.7 million to CAMPBELL SOUP COMPANY for work described as: RESALE-SOUPS-GROCERY ITEMS Key points: 1. The contract value is $17.7 million. 2. Campbell Soup Company is the sole awardee. 3. The contract falls under Frozen Specialty Food Manufacturing. 4. The award was a delivery order under a larger contract. 5. The contract duration was 91 days.

Value Assessment

Rating: questionable

Pricing information is not available for this specific delivery order. The contract type is Firm Fixed Price, which typically offers price certainty but doesn't inherently guarantee value without competitive benchmarking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The award was a delivery order, and the data indicates it was 'NOT AVAILABLE FOR COMPETITION'. This suggests a limited competition scenario, potentially due to existing agreements or specific requirements, which may impact price discovery.

Taxpayer Impact: Without competitive pricing, it's difficult to assess the optimal taxpayer impact. The lack of competition raises questions about whether the government secured the best possible price.

Public Impact

Consumers of commissary grocery items will have access to Campbell's soup products. The short duration suggests a specific, immediate need for these items. The award to a single, well-known brand may indicate a preference for established products within the commissary system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Limited pricing transparency

Positive Signals

Award to a known brand
Specific delivery order for immediate needs

Sector Analysis

This contract falls within the Food Manufacturing sector, specifically Frozen Specialty Food Manufacturing. Spending benchmarks for this niche are not readily available, but large government contracts for food items are common.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had opportunities to bid on this specific delivery order.

Oversight & Accountability

The Defense Commissary Agency (DECA) is responsible for this award. Oversight would involve ensuring the delivered goods meet specifications and that the pricing, even if not competitively bid, is reasonable.

Related Government Programs

Frozen Specialty Food Manufacturing
Department of Defense Contracting
Defense Commissary Agency Programs

Risk Flags

Lack of competitive bidding
Limited price justification
Potential for non-optimal pricing
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.7 million to CAMPBELL SOUP COMPANY. RESALE-SOUPS-GROCERY ITEMS

Who is the contractor on this award?

The obligated recipient is CAMPBELL SOUP COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.7 million.

What is the period of performance?

Start: 2010-10-01. End: 2010-12-31.

What was the justification for not competing this delivery order?

The provided data states 'NOT AVAILABLE FOR COMPETITION'. This could be due to several reasons, such as the delivery order being part of a pre-existing contract with Campbell Soup Company that allowed for such orders, or specific requirements that only Campbell could meet within the timeframe. Further investigation into the parent contract would be necessary.

How was the price determined if not through competition?

As the contract is 'NOT AVAILABLE FOR COMPETITION' and is a Firm Fixed Price type, the price was likely negotiated directly with Campbell Soup Company. Without competitive bids, the government relies on its negotiation power and market research to ensure the price is fair and reasonable, though transparency on this process is limited in the provided data.

What is the typical market price for similar frozen specialty soup products?

Determining a precise market price benchmark for 'Frozen Specialty Food Manufacturing' without more specific product details is challenging. However, general grocery retail prices for premium or specialty soups can range significantly. Government procurement often aims for prices below retail, but the lack of competition here makes direct comparison difficult.

Industry Classification

NAICS: Manufacturing › Fruit and Vegetable Preserving and Specialty Food Manufacturing › Frozen Specialty Food Manufacturing

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: 1 CAMPBELL PLACE SW4, CAMDEN, NJ, 08103

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

Financial Breakdown

Contract Ceiling: $17,705,161

Exercised Options: $17,705,161

Current Obligation: $17,705,161

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDEC0110G4014

IDV Type: BOA

Timeline