DoD's $14.2M Home & Personal Care Contract with CONOPCO, Inc. Lacks Competition

Contract Overview

Contract Amount: $14,219,415 ($14.2M)

Contractor: Conopco, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-01-01

End Date: 2009-03-31

Contract Duration: 89 days

Daily Burn Rate: $159.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Other

Official Description: RESALE - HOME & PERSONAL CARE

Place of Performance

Location: CLINTON, MIDDLESEX County, CONNECTICUT, 06413

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $14.2 million to CONOPCO, INC. for work described as: RESALE - HOME & PERSONAL CARE Key points: 1. Significant spending on essential home and personal care items. 2. Sole-source award raises concerns about price discovery and value. 3. Limited contract duration may indicate a need for re-evaluation. 4. Defense Commissary Agency is the primary customer. 5. No small business participation noted.

Value Assessment

Rating: questionable

The contract value of $14.2M for a 3-month period is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar wholesale contracts for personal care and grocery items.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, meaning no competition was sought. This limits price discovery and potentially leads to higher costs for taxpayers as the vendor faces no market pressure to offer competitive pricing.

Taxpayer Impact: The lack of competition on this $14.2M contract means taxpayers may be overpaying for essential goods due to the absence of market-driven price reductions.

Public Impact

Ensures availability of essential home and personal care items for military personnel and their families. Potential for higher costs impacts the commissary's ability to offer goods at discounted prices. Lack of transparency in pricing due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
No small business participation

Positive Signals

Provides essential goods
Supports military families

Sector Analysis

This contract falls under wholesale trade for general merchandise, specifically home and personal care items. Benchmarks for this sector are difficult to ascertain without competitive data, but large sole-source awards warrant scrutiny.

Small Business Impact

The contract explicitly states no small business participation (sb: false). This indicates a missed opportunity to support small businesses within the supply chain for these essential goods.

Oversight & Accountability

The sole-source nature of this award suggests potential weaknesses in procurement oversight, as competitive processes are generally preferred to ensure best value and taxpayer protection.

Related Government Programs

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

Risk Flags

Lack of competition
Potential for overpricing
No small business inclusion
Limited contract duration
Unclear justification for sole-source award

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.2 million to CONOPCO, INC.. RESALE - HOME & PERSONAL CARE

Who is the contractor on this award?

The obligated recipient is CONOPCO, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.2 million.

What is the period of performance?

Start: 2009-01-01. End: 2009-03-31.

What was the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for the sole-source award is not provided in the data. Typically, sole-source awards are granted when only one responsible source can satisfy the agency's needs. However, for general line grocery merchant wholesaling, it is unusual not to have multiple potential bidders, raising questions about the thoroughness of the market research and the justification process.

How does the pricing of this sole-source contract compare to market rates for similar goods purchased competitively?

Without competitive data, a direct price comparison is impossible. However, the absence of competition inherently removes the downward pressure on pricing that typically occurs in a bidding environment. It is highly probable that the pricing is not as favorable as it could be if multiple vendors were competing for the contract.

What is the long-term strategy for procuring these essential goods, and will future procurements include competitive solicitations?

The contract duration is short (89 days), suggesting this may be a short-term solution or a single delivery order. The strategy for future procurements is unclear from this data. However, given the nature of the goods, it would be prudent for the Defense Commissary Agency to explore competitive solicitations to ensure cost-effectiveness and value for taxpayer dollars in the long run.

Industry Classification

NAICS: Wholesale Trade › Grocery and Related Product Merchant Wholesalers › General Line Grocery Merchant Wholesalers

Product/Service Code: MISCELLANEOUS

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

Parent Company: Stichting Administratiekantoor Unilever N.V. (UEI: 386201268)

Address: 1 JOHN ST, CLINTON, CT, 06413

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,219,415

Exercised Options: $14,219,415

Current Obligation: $14,219,415

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDEC0104G2951

IDV Type: IDC

Timeline