DoD's Defense Commissary Agency Spends $13.9M on Soups from Campbell Soup Company

Contract Overview

Contract Amount: $13,966,910 ($14.0M)

Contractor: Campbell Soup Company

Awarding Agency: Department of Defense

Start Date: 2009-04-01

End Date: 2009-06-30

Contract Duration: 90 days

Daily Burn Rate: $155.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM 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 $14.0 million to CAMPBELL SOUP COMPANY for work described as: RESALE - SOUPS (SECTION A) Key points: 1. Significant spending on a single product category by a major government agency. 2. Sole-source procurement limits competitive pricing and potential cost savings. 3. High value contract for a common consumer good raises questions about procurement strategy. 4. Focus on food items highlights the logistical needs of military support services.

Value Assessment

Rating: questionable

The contract value of $13.9M for soups is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar bulk food purchases.

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 bypasses the competitive process, potentially leading to higher prices than if multiple vendors had bid.

Taxpayer Impact: Taxpayers may be overpaying due to the lack of competitive pressure on pricing for these soup products.

Public Impact

Ensures availability of essential food items for military personnel and their families. Potential for higher costs impacts the commissary's budget and overall value for consumers. Highlights the government's reliance on established brands for large-scale food procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Limited transparency in pricing justification

Positive Signals

Ensures supply of a specific product
Supports a known supplier

Sector Analysis

This spending falls within the broader 'General Line Grocery Merchant Wholesalers' sector, specifically focusing on food products. Government spending in this area supports the logistical needs of agencies like the Defense Commissary Agency, ensuring food availability for service members.

Small Business Impact

The data does not indicate any specific involvement or benefit to small businesses in this sole-source contract. The award went directly to a large corporation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Oversight should focus on the justification for non-competition and whether alternative procurement strategies could have yielded better value.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of competitive pricing
Potential for inflated costs
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.0 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 $14.0 million.

What is the period of performance?

Start: 2009-04-01. End: 2009-06-30.

What was the justification for awarding this contract as sole-source?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of adequate competition. Without further documentation, it's impossible to determine the specific reason, but it suggests that Campbell Soup Company was deemed the only viable option or that the procurement process did not adequately explore competitive alternatives.

What is the potential financial risk to taxpayers due to the lack of competition?

The primary financial risk is paying a premium price. Without competitive bids, the government may not be achieving the lowest possible cost for these soup products. This could amount to millions in overspending over the contract period, depending on the price difference compared to a competitive market.

How effective is this procurement in meeting the Defense Commissary Agency's needs?

While the contract ensures the supply of Campbell's soups, its effectiveness in terms of value for money is questionable due to the sole-source nature. If the agency's primary need is simply to stock these specific products, it may be effective. However, if cost-efficiency is a key metric, the lack of competition hinders overall effectiveness.

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: 1 CAMPBELL PLACE SW4, CAMDEN, NJ, 08103

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,966,910

Exercised Options: $13,966,910

Current Obligation: $13,966,910

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDEC0105G3271

IDV Type: IDC

Timeline