DoD's $14.3M canned goods contract for pet food shows limited competition and fair value

Contract Overview

Contract Amount: $14,317,670 ($14.3M)

Contractor: BIG Heart PET Brands

Awarding Agency: Department of Defense

Start Date: 2009-01-01

End Date: 2009-03-31

Contract Duration: 89 days

Daily Burn Rate: $160.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Other

Official Description: RESALE - CANNED GOODS

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94105

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $14.3 million to BIG HEART PET BRANDS for work described as: RESALE - CANNED GOODS Key points: 1. Contract awarded for canned pet food, a niche but essential supply for military families. 2. Limited competition suggests potential for higher prices, though value appears fair. 3. Contract duration of 89 days is short, indicating a need for frequent re-competition. 4. Awarded by the Defense Commissary Agency, serving a specific military retail need. 5. Fixed-price contract type offers cost certainty for the government. 6. No small business set-aside, potentially limiting opportunities for smaller vendors.

Value Assessment

Rating: fair

The contract value of $14.3 million for 89 days of canned goods delivery appears reasonable given the specialized nature of pet food for military commissaries. Benchmarking against similar contracts is difficult due to the specific product and agency. However, the fixed-price nature of the award provides cost predictability. The per-unit cost is not explicitly detailed, making a precise value-for-money assessment challenging without further data on quantity and specific product types.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This significantly limits price discovery and competition. While the data indicates 'NOT AVAILABLE FOR COMPETITION,' the specific reasons for this designation are not provided. Typically, sole-source awards occur when only one responsible source can fulfill the requirement, or in urgent situations. The lack of competition here raises questions about whether alternative vendors could have been considered.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government lacks the leverage of competitive bidding to secure the best possible price.

Public Impact

Military families and their pets benefit from the availability of specialized pet food through commissaries. The Defense Commissary Agency ensures the provision of goods to support the morale and welfare of service members. The contract supports the supply chain for pet food, impacting the logistics and retail operations of the commissary system. Geographic impact is likely nationwide, as commissaries serve bases across the US and potentially overseas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated prices compared to a competitive environment.
Sole-source award limits transparency in the procurement process.
Short contract duration requires frequent re-procurement, increasing administrative burden.
Absence of small business participation could mean missed opportunities for economic inclusion.

Positive Signals

Fixed-price contract provides budget certainty for the government.
Award to a known entity (BIG HEART PET BRANDS) suggests a potentially reliable supplier.
Contract addresses a specific need for pet food within the military community.

Sector Analysis

The procurement of canned goods, including pet food, falls under the broader food and beverage manufacturing sector. This contract specifically addresses a niche within the Defense Commissary Agency's retail operations, which aims to provide goods and services to military personnel and their families. The market for pet food is substantial, with significant private sector spending. This federal contract represents a small, specialized segment focused on supporting the military community's needs.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. Consequently, there are no explicit subcontracting requirements mandated for small businesses within this award. The lack of a set-aside means that larger, established companies are likely the primary participants, potentially limiting the direct economic benefits to the small business ecosystem for this specific procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Commissary Agency (DECA) and the Department of Defense (DoD). DECA's internal procurement and financial management systems would monitor performance and payment. Given the fixed-price nature, financial oversight focuses on ensuring delivery according to terms. Transparency is limited by the sole-source award, but contract award data is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Commissary Agency Operations
Military Morale, Welfare, and Recreation Programs
Federal Food Procurement
Pet Food Manufacturing and Supply Chain

Risk Flags

Limited competition raises concerns about potential overpricing.
Sole-source award lacks transparency and robust price discovery.
Short contract duration necessitates frequent re-competition, increasing administrative effort.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.3 million to BIG HEART PET BRANDS. RESALE - CANNED GOODS

Who is the contractor on this award?

The obligated recipient is BIG HEART PET BRANDS.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.3 million.

What is the period of performance?

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

What is the specific product mix and quantity of canned goods procured under this contract?

The provided data identifies the contract as 'RESALE - CANNED GOODS' with a North American Industry Classification System (NAICS) code of '311421' for Fruit and Vegetable Canning. However, it does not specify the exact product mix (e.g., types of fruits, vegetables, or pet food varieties) or the precise quantities ordered. The total award amount is $14,317,670.32 over 89 days. Without detailed line-item information on quantities and specific product types, a granular analysis of unit costs and value for money is challenging. The 'RESALE' designation suggests these goods are intended for sale to commissary patrons rather than direct use by the agency.

What were the specific justifications for awarding this contract on a sole-source basis?

The data explicitly states the contract type as 'NOT AVAILABLE FOR COMPETITION,' which is often synonymous with a sole-source award. The specific justifications for this determination are not detailed in the provided data. Typically, sole-source procurements are justified under circumstances such as: only one responsible source exists with the unique capability to perform the work; an urgent and compelling need exists that cannot be met by other sources; or the acquisition is for a specific brand-name item for which only one source can provide it. Without further documentation from the Defense Commissary Agency, the precise rationale remains unknown, but it implies that competitive bidding was deemed impractical or impossible for this particular requirement.

How does the $14.3 million award compare to historical spending on similar canned goods for military commissaries?

Historical spending data for similar canned goods procurements by the Defense Commissary Agency (DECA) is not provided in this dataset. Therefore, a direct comparison to establish trends or identify significant deviations is not possible. The $14.3 million award covers a period of 89 days, suggesting a substantial volume or high-value specialized items. To assess historical spending patterns, one would need access to DECA's procurement history for canned goods, potentially broken down by product category and contract duration, over several fiscal years. This would allow for an analysis of average award values and spending fluctuations.

What are the performance risks associated with this fixed-price contract for canned goods?

For a fixed-price contract, the primary performance risks generally lie with the contractor, BIG HEART PET BRANDS. These risks include the potential for increased costs of raw materials, manufacturing, or transportation that are not passed on to the government, potentially reducing the contractor's profit margin. Conversely, the government's risk is primarily related to the quality and timely delivery of the canned goods. If the contractor fails to meet specifications or delivery schedules, the government may face shortages or need to procure replacements, potentially at a higher cost. Given the short duration (89 days), the risk of significant performance degradation is somewhat mitigated by the need for frequent re-competition.

What is the track record of BIG HEART PET BRANDS with the Defense Commissary Agency or similar federal entities?

The provided data indicates that BIG HEART PET BRANDS is the contractor for this specific $14.3 million award. However, it does not offer details on their broader contract history with the Defense Commissary Agency (DECA) or other federal agencies. To assess their track record, one would need to consult federal procurement databases (like FPDS or SAM.gov) to review past awards, performance evaluations, and any history of disputes or contract terminations. A positive track record with DECA would suggest reliability and competence in fulfilling commissary supply needs, while a negative history might indicate potential risks.

Industry Classification

NAICS: Manufacturing › Fruit and Vegetable Preserving and Specialty Food Manufacturing › Fruit and Vegetable Canning

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

Parent Company: DEL Monte Foods Company (UEI: 609305040)

Address: ONE MARKET ST, SAN FRANCISCO, CA, 94105

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

Financial Breakdown

Contract Ceiling: $14,317,670

Exercised Options: $14,317,670

Current Obligation: $14,317,670

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDEC0109G3704

IDV Type: IDC

Timeline