DoD's Defense Commissary Agency Spends $11.9M on Soups from Campbell Soup Company

Contract Overview

Contract Amount: $11,900,918 ($11.9M)

Contractor: Campbell Soup Company

Awarding Agency: Department of Defense

Start Date: 2008-02-01

End Date: 2008-03-31

Contract Duration: 59 days

Daily Burn Rate: $201.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Other

Official Description: RESALE - SOUPS (SECTION A)

Place of Performance

Location: CAMDEN, CAMDEN County, NEW JERSEY, 08103

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $11.9 million to CAMPBELL SOUP COMPANY for work described as: RESALE - SOUPS (SECTION A) Key points: 1. Significant spending on a single product category (soups) from one vendor. 2. Limited competition indicated by 'NOT AVAILABLE FOR COMPETITION' status. 3. Potential for higher prices due to lack of competitive bidding. 4. Focus on food procurement within the Defense Commissary Agency's operations.

Value Assessment

Rating: fair

The contract value of $11.9 million for soups is substantial. Without comparable contract data for similar bulk soup purchases, it's difficult to definitively assess pricing against market benchmarks. The 'NOT AVAILABLE FOR COMPETITION' status suggests potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not available for competition, indicating a sole-source award. This method limits price discovery and may lead to less favorable pricing for the government compared to a competitive process.

Taxpayer Impact: Taxpayers may be bearing a higher cost for these soup supplies due to the absence of competitive bidding.

Public Impact

Commissary shoppers receive a consistent supply of Campbell's soups. Defense personnel and their families benefit from commissary services. Potential for taxpayer funds to be used less efficiently due to sole-source procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for inflated pricing
Limited transparency in award process

Positive Signals

Ensures supply of a specific brand
Supports commissary operations

Sector Analysis

This procurement falls under the wholesale trade of groceries, specifically canned goods. Spending benchmarks for similar sole-source food contracts are difficult to establish without more data, but large single-vendor awards warrant scrutiny.

Small Business Impact

The data does not indicate any involvement of small businesses in this specific contract. The award was made directly to Campbell Soup Company.

Oversight & Accountability

The sole-source nature of this award raises questions about the oversight applied to justify the lack of competition and ensure fair pricing. Further review of the justification for sole-sourcing is recommended.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for price inflation
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.9 million to CAMPBELL SOUP COMPANY. RESALE - SOUPS (SECTION A)

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 $11.9 million.

What is the period of performance?

Start: 2008-02-01. End: 2008-03-31.

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

The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. Without access to the specific justification document, it's impossible to determine the exact reasoning behind awarding this soup contract without competition.

How does the unit price of these soups compare to commercially available prices?

Direct comparison of unit prices is challenging without knowing the specific soup varieties, quantities, and any associated delivery or handling fees. However, sole-source contracts generally lack the price pressure inherent in competitive bidding, suggesting that the unit price may be higher than what could be achieved through an open market solicitation.

What is the long-term impact of relying on sole-source contracts for essential commissary items?

Long-term reliance on sole-source contracts can lead to vendor complacency, reduced innovation, and potentially higher costs for taxpayers. It also limits opportunities for other suppliers, including small businesses, to compete for government contracts, potentially stifling market competition and efficiency in the long run.

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: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 CAMPBELL PLACE SW4, CAMDEN, NJ, 08103

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,000,000

Exercised Options: $11,900,918

Current Obligation: $11,900,918

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDEC0105G3271

IDV Type: IDC

Timeline