DoD's $14.8M Pet Food Contract Awarded to Nestle Purina, Lacking Competition

Contract Overview

Contract Amount: $14,882,613 ($14.9M)

Contractor: Nestle Purina Petcare CO

Awarding Agency: Department of Defense

Start Date: 2009-07-01

End Date: 2009-09-30

Contract Duration: 91 days

Daily Burn Rate: $163.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RESALE - PET FOOD

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS CITY County, MISSOURI, 63164

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $14.9 million to NESTLE PURINA PETCARE CO for work described as: RESALE - PET FOOD Key points: 1. Significant spending on pet food by the Defense Commissary Agency. 2. Sole-source award to Nestle Purina PetCare Co. raises competition concerns. 3. Contract duration of 91 days suggests a short-term need. 4. The lack of competition may lead to suboptimal pricing.

Value Assessment

Rating: questionable

The contract value of $14.8M for a 91-day period is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar bulk pet food purchases.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating no competition was sought. This method limits price discovery and potentially increases costs for taxpayers.

Taxpayer Impact: The absence of competition for a significant purchase of pet food means taxpayers may not be receiving the best possible price.

Public Impact

Military families and their pets benefit from commissary services, including access to pet food. The contract ensures a supply of pet food for a specific period, supporting the well-being of pets within the military community. Reliance on a single supplier could impact product variety and availability if issues arise with Nestle Purina.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Potential for overpricing

Positive Signals

Ensures pet food availability for military families

Sector Analysis

The Defense Commissary Agency procures a wide range of goods, including groceries, to support military personnel and their families. Spending on pet food falls within the general grocery retail sector.

Small Business Impact

This contract was awarded to a large corporation, Nestle Purina PetCare Co., and there is no indication of small business participation.

Oversight & Accountability

The award details do not provide information on specific oversight mechanisms. The sole-source nature warrants scrutiny to ensure the government received fair value.

Related Government Programs

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

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing due to lack of competition.
Short contract duration may indicate an ad-hoc need rather than strategic planning.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.9 million to NESTLE PURINA PETCARE CO. RESALE - PET FOOD

Who is the contractor on this award?

The obligated recipient is NESTLE PURINA PETCARE CO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.9 million.

What is the period of performance?

Start: 2009-07-01. End: 2009-09-30.

What was the justification for the sole-source award, and were any alternatives considered?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a specific justification was made, likely related to urgency or unique supplier capabilities. However, the exact reason and exploration of alternatives are not detailed, making it difficult to fully assess the necessity of bypassing competitive processes.

How does the per-unit cost of this pet food compare to commercially available prices or other government contracts?

Without specific unit details (e.g., price per pound or per bag) and a breakdown of the product types, a direct per-unit cost comparison is impossible. Benchmarking against commercial prices or other government contracts would require more granular data on the items purchased and their quantities.

What is the long-term strategy for pet food procurement to ensure competitive pricing and availability?

This contract appears to be a short-term delivery order (91 days). A long-term strategy would likely involve market research, soliciting bids from multiple vendors, and potentially establishing longer-term agreements with provisions for competitive pricing adjustments to ensure sustained value and availability.

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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: CHECKERBOARD SQUARE, SAINT LOUIS, MO, 63164

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,882,613

Exercised Options: $14,882,613

Current Obligation: $14,882,613

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDEC0105G3169

IDV Type: IDC

Timeline