DoD's $23.87M Meat Resale Contract with Kraft Foods Faces Scrutiny for Limited Competition

Contract Overview

Contract Amount: $23,869,748 ($23.9M)

Contractor: Kraft Foods Global, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-01-01

End Date: 2012-03-31

Contract Duration: 90 days

Daily Burn Rate: $265.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RESALE - MEAT

Place of Performance

Location: NORTHFIELD, COOK County, ILLINOIS, 60093

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $23.9 million to KRAFT FOODS GLOBAL, INC. for work described as: RESALE - MEAT Key points: 1. Significant spending on meat resale, totaling $23.87 million. 2. Kraft Foods Global, Inc. is the sole awardee, raising competition concerns. 3. The contract was not available for competition, indicating potential limitations. 4. The Defense Commissary Agency managed this procurement for general line grocery wholesale.

Value Assessment

Rating: questionable

The contract value of $23.87 million for a 90-day period is substantial. Without a competitive benchmark or detailed cost breakdown, assessing its value for money is difficult, especially given the lack of competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was explicitly stated as 'NOT AVAILABLE FOR COMPETITION'. This suggests a sole-source or limited competition scenario, which can lead to higher prices and reduced innovation compared to open competition.

Taxpayer Impact: The lack of competitive bidding likely resulted in taxpayers paying a premium for these meat resale services.

Public Impact

Military families and personnel rely on commissary services for groceries, including meat. The efficiency and cost-effectiveness of this contract directly impact the commissary's ability to provide value. Limited competition can affect the variety and quality of goods available to service members.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Limited vendor options

Positive Signals

Essential service provision
Established vendor relationship

Sector Analysis

This contract falls under the wholesale distribution of groceries, specifically meat, for military commissaries. Spending benchmarks in this sector are highly variable based on volume, location, and specific product mix.

Small Business Impact

The data does not indicate any specific provisions or considerations for small businesses in this contract award. The focus appears to be on a large, established supplier.

Oversight & Accountability

The Defense Commissary Agency is responsible for overseeing this contract. The 'NOT AVAILABLE FOR COMPETITION' status warrants further review to ensure proper justification and adherence to procurement regulations.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of price competition
Potential for inflated costs
Limited vendor diversity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.9 million to KRAFT FOODS GLOBAL, INC.. RESALE - MEAT

Who is the contractor on this award?

The obligated recipient is KRAFT FOODS GLOBAL, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.9 million.

What is the period of performance?

Start: 2012-01-01. End: 2012-03-31.

What was the justification for awarding this contract without competition, and was it adequately documented?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION'. A thorough review of the contract file would be necessary to determine the specific justification (e.g., sole-source necessity, urgent need) and confirm if it met federal procurement standards for limited competition.

How does the per-unit cost of meat under this contract compare to market rates or similar government contracts?

Without specific per-unit pricing data or comparable contract information, it is impossible to benchmark the cost-effectiveness. The lack of competition makes it difficult to ascertain if taxpayers received fair market value for the meat procured.

What is the long-term impact of relying on a single vendor for essential commissary goods like meat?

Long-term reliance on a single vendor, especially without competition, can lead to price escalation, reduced service quality, and a lack of flexibility to adapt to changing market conditions or consumer demands. It also limits opportunities for other suppliers.

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

Parent Company: Kraft Foods Inc. (UEI: 877147228)

Address: THREE LAKE DR, NORTHFIELD, IL, 60093

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,869,748

Exercised Options: $23,869,748

Current Obligation: $23,869,748

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDEC0109G3750

IDV Type: IDC

Timeline