DoD awards $17M for Jams, Jellies, and Syrups to J.M. Smucker Company

Contract Overview

Contract Amount: $17,043,692 ($17.0M)

Contractor: THE J. M. Smucker Company

Awarding Agency: Department of Defense

Start Date: 2009-04-01

End Date: 2009-06-30

Contract Duration: 90 days

Daily Burn Rate: $189.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RESALE - JAM/JELLY/SYRUP

Place of Performance

Location: ORRVILLE, WAYNE County, OHIO, 44667

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $17.0 million to THE J. M. SMUCKER COMPANY for work described as: RESALE - JAM/JELLY/SYRUP Key points: 1. Significant contract value for food products. 2. Sole-source award limits competitive pricing. 3. Potential for higher costs due to lack of competition. 4. Food and beverage sector spending.

Value Assessment

Rating: questionable

The contract value of $17 million for jams, jellies, and syrups is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar bulk food contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, meaning only one vendor was considered. This significantly limits price discovery and may lead to less favorable terms for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure on pricing for these essential food items.

Public Impact

Ensures availability of essential food items for military personnel and their families. Supports a major food manufacturer, potentially impacting jobs and the supply chain. Raises questions about procurement efficiency for common consumer goods.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Ensures supply of needed goods

Sector Analysis

This contract falls within the food and beverage sector, specifically processed foods. Government spending in this area typically focuses on bulk purchasing for commissaries and food services, with benchmarks varying widely based on product type and volume.

Small Business Impact

The award went to a large corporation, The J. M. Smucker Company, with no indication of small business participation. This contract does not appear to support small business goals.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the government obtained fair value. Further review of the justification for sole-sourcing is recommended.

Related Government Programs

Soybean Processing
Department of Defense Contracting
Defense Commissary Agency Programs

Risk Flags

Sole-source justification
Lack of competitive pricing
Potential for inflated costs
No small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.0 million to THE J. M. SMUCKER COMPANY. RESALE - JAM/JELLY/SYRUP

Who is the contractor on this award?

The obligated recipient is THE J. M. SMUCKER COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.0 million.

What is the period of performance?

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

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 where competition is not feasible. Without specific documentation, the exact reason remains unclear.

What is the potential risk of overpaying due to the sole-source award?

The primary risk of a sole-source award is the potential for overpaying because the government lacks the leverage of competitive bidding. The awarded vendor may not feel pressured to offer the lowest possible price, leading to higher costs for taxpayers compared to what might have been achieved in an open competition.

How effective is this contract in meeting the Defense Commissary Agency's needs for these products?

Assuming The J. M. Smucker Company is a reliable supplier, the contract is likely effective in meeting the agency's needs for jams, jellies, and syrups. However, the effectiveness in terms of value for money is questionable due to the lack of competition.

Industry Classification

NAICS: Manufacturing › Grain and Oilseed Milling › Soybean Processing

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: ONE STRAWBERRY LANE, ORRVILLE, OH, 44667

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $17,043,692

Exercised Options: $17,043,692

Current Obligation: $17,043,692

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDEC0107G3563

IDV Type: IDC

Timeline