Defense Commissary Agency awards $18M contract for jams, jellies, and syrups to The J. M. Smucker Company

Contract Overview

Contract Amount: $18,039,192 ($18.0M)

Contractor: THE J. M. Smucker Company

Awarding Agency: Department of Defense

Start Date: 2009-07-01

End Date: 2009-09-30

Contract Duration: 91 days

Daily Burn Rate: $198.2K/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 $18.0 million to THE J. M. SMUCKER COMPANY for work described as: RESALE - JAM/JELLY/SYRUP Key points: 1. Contract awarded on a non-competitive basis, raising questions about potential value for money. 2. The J. M. Smucker Company, a large established food manufacturer, is the sole awardee. 3. Limited competition may lead to higher prices than if the contract were openly competed. 4. The contract duration is short (91 days), suggesting a specific, immediate need. 5. The product category is standard food items, typically available from multiple suppliers. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor.

Value Assessment

Rating: questionable

The contract value of $18 million for a 91-day period for jams, jellies, and syrups appears high, especially given the lack of competition. Without comparable contract data or market benchmarks for this specific procurement, it is difficult to definitively assess value for money. However, the non-competitive nature suggests that the government may not have achieved the most favorable pricing possible.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, indicating that the Defense Commissary Agency did not solicit bids from multiple vendors. This sole-source award limits price discovery and may prevent the government from benefiting from competitive market forces. The reasons for this sole-source award are not detailed in the provided data.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, potentially leading to less efficient use of appropriated funds for these essential food items.

Public Impact

Military personnel and their families stationed at various locations will benefit from the availability of these food staples. The contract ensures the supply of jams, jellies, and syrups to commissaries, supporting morale and quality of life for service members. The geographic impact is likely widespread, covering commissaries where these products are distributed. The contract supports the food manufacturing sector, specifically The J. M. Smucker Company's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits price discovery and potential savings.
High contract value for a short duration raises questions about efficiency.
Lack of transparency regarding the justification for sole-source award.

Positive Signals

Firm Fixed Price contract shifts cost risk to the contractor.
Ensures supply of essential food items to military families.
Award to a well-established manufacturer suggests product availability and quality.

Sector Analysis

This contract falls within the food manufacturing and wholesale distribution sector. The market for jams, jellies, and syrups is mature, with numerous domestic and international suppliers. Federal spending in this category typically supports commissaries and other food service operations for government personnel. Benchmarking this specific award is challenging without more context on the volume and specific product types, but the value suggests a significant quantity.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the sole-source award to a large corporation. The primary beneficiary is the large prime contractor, The J. M. Smucker Company.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Commissary Agency's contracting and financial management divisions. As a delivery order under a larger contract vehicle (though not specified here), oversight might also be managed by the issuing agency. Transparency is limited due to the non-competitive nature of the award, and specific accountability measures beyond the contract terms are not detailed.

Related Government Programs

Defense Commissary Agency Food Procurement
Commissary Operations Support
Food and Beverage Supply Contracts
Department of Defense Food Services

Risk Flags

Sole-source award lacks competitive pricing.
Limited transparency on award justification.
Potential for above-market pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.0 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 $18.0 million.

What is the period of performance?

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

What was the specific justification for awarding this contract on a sole-source basis?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' which is the designation for a sole-source award. However, the specific justification or rationale behind this determination is not included. Typically, sole-source awards are justified under circumstances such as urgent and compelling needs, unique capabilities of a single source, or when only one responsible source exists. Without further documentation from the Defense Commissary Agency, the precise reason for bypassing competitive procedures remains unknown. This lack of transparency can hinder a full assessment of the procurement's fairness and efficiency.

How does the unit price of these products compare to commercial market rates?

The provided data does not include specific unit pricing for the jams, jellies, and syrups. The total award amount is $18,039,191.96 for a 91-day period. To compare unit prices, we would need to know the exact quantities of each item procured (e.g., number of jars of jelly, gallons of syrup). Without this detailed breakdown, a direct comparison to commercial market rates is not feasible. Given the sole-source nature of the award, it is plausible that the unit prices may be higher than what could be achieved through a competitive bidding process.

What is the track record of The J. M. Smucker Company with the Defense Commissary Agency or similar government contracts?

The J. M. Smucker Company is a large, established food manufacturer with a significant presence in the commercial market. While the provided data focuses on this specific contract, it is highly probable that a company of this size has prior experience with government contracts, including those with the Defense Commissary Agency or other branches of the Department of Defense. Their long-standing commercial operations suggest a capacity to meet quality and delivery standards. However, a comprehensive assessment would require reviewing their historical performance on federal contracts, including any past issues or commendations.

What is the typical spending pattern for jams, jellies, and syrups by the Defense Commissary Agency?

The provided data represents a single delivery order with a value of approximately $18 million over 91 days. This suggests a substantial procurement, potentially covering a large number of commissaries or a significant demand period. Without historical data on similar procurements by the Defense Commissary Agency for these specific items, it is difficult to establish a typical spending pattern. Annual or multi-year spending trends would be needed to determine if this $18 million award is an anomaly, a regular occurrence, or indicative of a larger program.

What are the potential risks associated with a sole-source award for food products?

The primary risk associated with a sole-source award for food products is the potential for inflated pricing due to the lack of competition. The government may not be getting the best possible value for its money. Other risks include potential quality issues if the sole provider's standards decline without competitive pressure, and supply chain disruptions if the single provider faces unforeseen operational problems. Furthermore, sole-source awards can create an appearance of impropriety or favoritism, even if legally justified, potentially undermining public trust.

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: $18,039,192

Exercised Options: $18,039,192

Current Obligation: $18,039,192

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDEC0107G3563

IDV Type: IDC

Timeline