DoD's $19.4M canned goods contract awarded to Conagra Foods for commissary resale

Contract Overview

Contract Amount: $19,375,637 ($19.4M)

Contractor: Conagra Foods Packaged Foods, LLC

Awarding Agency: Department of Defense

Start Date: 2012-04-01

End Date: 2012-06-30

Contract Duration: 90 days

Daily Burn Rate: $215.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RESALE - CAN BEANS AND CAN SAUSAGE

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 - CAN BEANS AND CAN SAUSAGE Key points: 1. Value for money assessed through comparison to similar food supply contracts. 2. Competition dynamics indicate a sole-source award, potentially impacting price discovery. 3. Risk indicators include reliance on a single supplier for essential goods. 4. Performance context is within the Defense Commissary Agency's mission to support military families. 5. Sector positioning is within the food wholesale and distribution industry serving government needs.

Value Assessment

Rating: fair

The contract value of $19.4 million for canned goods appears substantial. Benchmarking against similar food supply contracts for government agencies would be necessary to determine if this represents a fair price. Without comparative data on per-unit costs for items like canned beans and sausage, a definitive value-for-money assessment is challenging. The fixed-price nature of the contract offers some cost certainty, but the lack of competition raises questions about optimal pricing.

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 among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in specific emergency situations. The lack of competition means there was no opportunity for price negotiation or comparison against other market offerings, which could lead to less favorable pricing for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. The government did not leverage market forces to secure the best possible price for these essential food items.

Public Impact

Military families and personnel benefit from the availability of essential food items through commissaries. Services delivered include the supply of canned beans and sausage. Geographic impact is nationwide, supporting commissary operations across various military installations. Workforce implications are minimal for this specific contract, primarily affecting supply chain logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of transparency in the sole-source justification process.
Potential for vendor lock-in if similar contracts continue to be awarded non-competitively.

Positive Signals

Ensures a consistent supply of specific food items to commissary stores.
Fixed-price contract provides budget predictability for the Defense Commissary Agency.
Contract supports the morale and welfare of military personnel and their families.

Sector Analysis

The food wholesale and distribution sector is a critical component of the broader food industry, ensuring that goods reach consumers and institutions. Government contracts within this sector, particularly for agencies like the Defense Commissary Agency, are substantial. This contract for canned goods fits within the general line grocery merchant wholesalers category, serving a large customer base. Comparable spending benchmarks would involve analyzing other large-scale food procurement contracts for government entities.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no indication of subcontracting requirements for small businesses. The award to a large corporation like Conagra Foods suggests that small businesses were not a primary focus for this specific procurement, potentially limiting their opportunities to participate in this particular supply chain.

Oversight & Accountability

Oversight for this contract would fall under the Defense Commissary Agency (DECA) and potentially the Department of Defense's Inspector General. Accountability measures would include performance monitoring against delivery schedules and product quality standards. Transparency is limited due to the sole-source nature of the award, making it difficult for the public to scrutinize the justification and pricing.

Related Government Programs

Defense Commissary Agency Food Procurement
Department of Defense Food Services
General Line Grocery Merchant Wholesalers Contracts
Federal Food Supply Chain Management

Risk Flags

Sole-source award may indicate limited competition.
Lack of detailed pricing data hinders value assessment.
Contract duration is relatively short (90 days).

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.4 million to CONAGRA FOODS PACKAGED FOODS, LLC. RESALE - CAN BEANS AND CAN SAUSAGE

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: 2012-04-01. End: 2012-06-30.

What is the historical spending pattern for canned goods by the Defense Commissary Agency?

Analyzing historical spending data for canned goods by the Defense Commissary Agency (DECA) is crucial for understanding long-term trends and identifying potential cost efficiencies or escalations. Without access to DECA's specific historical procurement records for canned goods, a precise analysis is not possible. However, federal agencies like DECA typically procure a wide range of food products to support military personnel and their families. Spending patterns can be influenced by factors such as changes in military base populations, shifts in dietary preferences, global commodity prices, and the agency's contracting strategies. A consistent need for staple items like canned beans and sausage suggests a stable baseline expenditure, but fluctuations can occur due to bulk purchasing agreements, promotional sales, or the introduction of new product lines. Understanding these patterns helps in budgeting, forecasting, and negotiating future contracts.

How does the unit price of these canned goods compare to commercial market rates?

Comparing the unit price of canned goods under this Department of Defense contract to commercial market rates is essential for assessing value for money. However, the provided data does not include specific unit prices for the canned beans and sausage. To perform this comparison, one would need to obtain the detailed pricing breakdown from the contract award documents and then benchmark these prices against similar products sold in large retail chains or wholesale distributors serving the commercial sector. Factors such as volume discounts, delivery logistics, and specific product quality or formulation can influence price differences. Given that this was a sole-source award, there is a higher likelihood that the unit prices may not be as competitive as they would be in a fully open market scenario. A detailed analysis would require access to the contract's pricing details and current commercial pricing data.

What are the specific risks associated with a sole-source award for essential food supplies?

A sole-source award for essential food supplies, such as canned goods for military commissaries, carries several specific risks. Firstly, the lack of competition can lead to inflated prices, as the government does not benefit from the price discovery mechanisms inherent in a competitive bidding process. This means taxpayers may be overpaying for these goods. Secondly, there is a risk of vendor dependency or 'vendor lock-in,' where the government becomes reliant on a single supplier, potentially reducing flexibility and bargaining power in future procurements. Thirdly, a sole-source award might indicate a lack of adequate market research or planning by the procuring agency, or it could be a result of unique product requirements that only one vendor can meet, which itself can be a risk if that vendor faces production or supply chain issues. Finally, the absence of competition can sometimes correlate with reduced scrutiny of product quality or service delivery, although contract performance standards should mitigate this.

What is Conagra Foods' track record with government contracts, particularly for food supplies?

Conagra Foods, the contractor in this instance, is a major player in the food industry with a significant history of supplying products to various markets, including government entities. While specific details of their track record with the Defense Commissary Agency (DECA) or other federal agencies for similar food supplies are not provided in the abbreviated data, large food manufacturers commonly hold numerous government contracts. These contracts can range from supplying staples to commissaries, providing food services to military bases, or contributing to disaster relief efforts. Assessing Conagra's track record would involve reviewing their past performance ratings on federal contract databases, examining any history of contract disputes, quality issues, or delivery failures, and evaluating their capacity to meet large-scale government demands consistently. Generally, established companies like Conagra have the infrastructure to handle such requirements, but individual contract performance can vary.

How does this contract align with the Defense Commissary Agency's mission and strategic goals?

This contract directly aligns with the Defense Commissary Agency's (DECA) core mission, which is to provide quality military commissaries that deliver savings and support to service members, military families, retirees, and eligible veterans. By procuring essential food items like canned beans and sausage, DECA ensures that these staple goods are available to patrons at prices generally lower than those found in civilian supermarkets. The availability of such products contributes to the overall quality of life and financial well-being of the military community. Strategically, DECA aims to operate efficiently and provide value. While this specific contract's sole-source nature might raise questions about optimal value, the underlying goal of ensuring product availability supports DECA's strategic objective of serving its beneficiaries effectively. Future strategic considerations might involve exploring more competitive procurement methods for similar items to maximize savings.

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: $19,375,637

Exercised Options: $19,375,637

Current Obligation: $19,375,637

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDEC0110G4069

IDV Type: BOA

Timeline