DoD's Defense Commissary Agency Spends $19.4M on Grocery Wholesaling from Conagra Foods

Contract Overview

Contract Amount: $19,374,289 ($19.4M)

Contractor: Conagra Foods Packaged Foods, LLC

Awarding Agency: Department of Defense

Start Date: 2010-10-01

End Date: 2010-12-31

Contract Duration: 91 days

Daily Burn Rate: $212.9K/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 $19.4 million to CONAGRA FOODS PACKAGED FOODS, LLC for work described as: RESALE - MISCELLANEOUS GROCERY Key points: 1. Significant spending on a single vendor for general line grocery. 2. Lack of competition raises questions about price discovery and value. 3. Potential risk of overpaying due to sole-source nature. 4. Focus on a specific sector (grocery) within defense support.

Value Assessment

Rating: questionable

The contract value of $19.4M for a 91-day period is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar wholesale grocery services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

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

Taxpayer Impact: The lack of competition suggests taxpayers may not be receiving the best possible price for these grocery provisions.

Public Impact

Impacts military families and personnel relying on commissary services. Highlights potential inefficiencies in defense supply chain management for non-tactical goods. Raises questions about the procurement process for essential commissary items.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Limited competition
High contract value for short duration

Positive Signals

Ensures provision of essential grocery items
Supports military personnel and families

Sector Analysis

The Defense Commissary Agency procures a wide range of goods to support military communities. Spending benchmarks for wholesale grocery services can vary significantly based on volume, product mix, and delivery logistics.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. The award to a large corporation suggests limited direct impact on small business participation.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure fair pricing and prevent waste. The Defense Commissary Agency's procurement processes should be regularly reviewed for competitive opportunities.

Related Government Programs

General Line Grocery Merchant Wholesalers
Department of Defense Contracting
Defense Commissary Agency Programs

Risk Flags

Lack of competition
Potential for inflated pricing
Limited transparency
High dollar value for a short period

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.4 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 $19.4 million.

What is the period of performance?

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

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

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources meeting specific requirements. Without further documentation, it's impossible to determine the precise reason, but it significantly impacts the agency's ability to secure competitive pricing and potentially limits value for taxpayer dollars.

How does the per-unit cost of these groceries compare to commercial retail prices?

Direct comparison is challenging without detailed line-item data. However, sole-source contracts often lack the price pressures of competition, suggesting that the per-unit costs might be higher than what could be achieved through competitive bidding or bulk purchasing on the open market.

What measures are in place to ensure accountability and value in sole-source defense commissary contracts?

Accountability in sole-source contracts relies heavily on robust internal oversight, independent cost analysis, and clear performance metrics. The Defense Commissary Agency should have established procedures for validating pricing and ensuring the contractor meets all delivery and quality standards to mitigate risks associated with non-competitive awards.

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: $19,374,289

Exercised Options: $19,374,289

Current Obligation: $19,374,289

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDEC0110G4069

IDV Type: BOA

Timeline