DoD's Defense Commissary Agency Spends $13.5M on Dry Grocery Resale from CONOPCO, Inc
Contract Overview
Contract Amount: $13,522,317 ($13.5M)
Contractor: Conopco, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-04-01
End Date: 2009-06-30
Contract Duration: 90 days
Daily Burn Rate: $150.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: RESALE - DRY GROCERY PRODUCTS
Place of Performance
Location: TRUMBULL, FAIRFIELD County, CONNECTICUT, 06611
Plain-Language Summary
Department of Defense obligated $13.5 million to CONOPCO, INC. for work described as: RESALE - DRY GROCERY PRODUCTS Key points: 1. Significant spending on essential grocery products highlights the Defense Commissary Agency's role in supporting military families. 2. The contract's fixed-price nature provides cost certainty for the government. 3. Lack of competition raises questions about potential overspending and missed savings opportunities. 4. The sector is characterized by stable demand for essential goods, but competition can drive down prices.
Value Assessment
Rating: questionable
The total award amount of $13.5M for a 90-day period is substantial. Without a competitive bidding process, it's difficult to assess if this price is optimal compared to market rates for similar wholesale grocery distribution services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a sole-source or limited source award. This limits price discovery and may prevent the government from securing the best possible pricing through a competitive process.
Taxpayer Impact: The lack of competition could lead to higher costs for taxpayers if the awarded price is not benchmarked against market alternatives.
Public Impact
Ensures availability of essential dry grocery products for military personnel and their families. Supports the morale and well-being of the armed forces by providing access to affordable goods. The sole-source nature of this award warrants scrutiny to ensure fair pricing and prevent potential waste.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Limited price discovery
- Potential for inflated pricing
Positive Signals
- Ensures availability of essential goods
- Fixed-price contract provides cost certainty
Sector Analysis
The Defense Commissary Agency operates within the retail and wholesale grocery sector, providing essential goods to military communities. Spending benchmarks in this sector are typically driven by volume, supply chain efficiency, and competitive market dynamics.
Small Business Impact
Analysis of small business participation is not available for this contract. Further investigation would be needed to determine if small businesses had an opportunity to compete or participate as subcontractors.
Oversight & Accountability
The limited competition aspect of this award suggests a need for robust oversight to ensure the government is receiving fair value. Auditing the pricing structure and justification for limited competition would be prudent.
Related Government Programs
- General Line Grocery Merchant Wholesalers
- Department of Defense Contracting
- Defense Commissary Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for non-competitive pricing
- Limited transparency in award justification
- No clear indication of small business participation
Tags
general-line-grocery-merchant-wholesaler, department-of-defense, ct, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.5 million to CONOPCO, INC.. RESALE - DRY GROCERY PRODUCTS
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 $13.5 million.
What is the period of performance?
Start: 2009-04-01. End: 2009-06-30.
What was the justification for limiting competition on this significant dry grocery contract?
The justification for limiting competition is crucial for understanding the value proposition. Without a competitive process, it's challenging to ascertain if CONOPCO, Inc. provided the most cost-effective solution. Further review of the contract file and any sole-source justifications is necessary to assess the rationale and ensure taxpayer funds were used efficiently.
How does the per-unit cost of these dry grocery products compare to similar wholesale contracts or commercial market prices?
Benchmarking the per-unit cost against similar wholesale contracts or commercial market prices is essential for evaluating value. Given the $13.5M award and lack of competition, a detailed cost analysis is warranted. Without this comparison, it's difficult to determine if the government overpaid or received a fair price for these essential goods.
What mechanisms are in place to ensure the effectiveness and quality of dry grocery products delivered under this contract?
Ensuring the effectiveness and quality of delivered products is paramount, especially for essential goods. While the contract type is fixed-price, quality assurance measures, inspection protocols, and performance metrics should be in place. The Defense Commissary Agency likely has procedures to monitor product quality and supplier performance to guarantee satisfaction and meet the needs of its customers.
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: Stichting Administratiekantoor Unilever N.V. (UEI: 386201268)
Address: 800 SYLVAN AVE, ENGLEWOOD CLIF, NY, 07632
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $13,522,317
Exercised Options: $13,522,317
Current Obligation: $13,522,317
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HDEC0104G2949
IDV Type: IDC
Timeline
Start Date: 2009-04-01
Current End Date: 2009-06-30
Potential End Date: 2009-06-30 00:00:00
Last Modified: 2019-06-07
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