DoD's $14.5M grocery resale contract awarded to CONOPCO, INC. for commissary support

Contract Overview

Contract Amount: $14,501,206 ($14.5M)

Contractor: Conopco, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-10-01

End Date: 2008-12-31

Contract Duration: 91 days

Daily Burn Rate: $159.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Other

Official Description: RESALE - DRY GROCERY PRODUCTS

Place of Performance

Location: TRUMBULL, FAIRFIELD County, CONNECTICUT, 06611

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $14.5 million to CONOPCO, INC. for work described as: RESALE - DRY GROCERY PRODUCTS Key points: 1. Value for money assessed through comparison to similar wholesale grocery contracts. 2. Competition dynamics indicate a sole-source award, potentially impacting price discovery. 3. Risk indicators include the fixed-price contract type and limited competition. 4. Performance context relies on the Defense Commissary Agency's operational needs. 5. Sector positioning within wholesale grocery distribution for military families.

Value Assessment

Rating: fair

The contract value of $14.5 million for a 91-day period appears substantial for wholesale grocery products. Benchmarking against similar contracts for commissary resale would be necessary to determine true value for money. The fixed-price nature suggests the government accepted the contractor's pricing, but without competitive bids, it's difficult to ascertain if this represents optimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in specific circumstances outlined by procurement regulations. The lack of competition means there was no opportunity for price negotiation or comparison against other market offerings.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's ability to secure the best possible value.

Public Impact

Military families and personnel benefit from the availability of essential grocery products through commissaries. Services delivered include the wholesale distribution of dry grocery items. Geographic impact is primarily focused on supporting commissary operations within the specified region. Workforce implications are minimal for this specific contract, focusing on supply chain logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher prices for taxpayers.
Sole-source awards warrant scrutiny to ensure necessity and fair pricing.
Limited duration of the contract may indicate a stop-gap measure or specific need.

Positive Signals

Ensures continued availability of essential goods for military personnel.
Contract awarded to a known entity, potentially simplifying logistics.

Sector Analysis

The wholesale grocery distribution sector is characterized by large players managing complex supply chains. This contract fits within the Defense Commissary Agency's mission to provide high-quality groceries to military members and their families at cost-plus prices. Comparable spending benchmarks would involve analyzing other large-scale food distribution contracts within the federal government or the private sector.

Small Business Impact

There is no indication of small business set-asides or subcontracting requirements in the provided data. The award to CONOPCO, INC., a large entity, suggests this contract was not specifically aimed at fostering small business participation. The impact on the small business ecosystem is likely negligible for this particular award.

Oversight & Accountability

Oversight would typically be managed by the Defense Commissary Agency's contracting officers and program managers. Accountability measures would be tied to the terms of the fixed-price contract, focusing on delivery and product quality. Transparency is limited due to the sole-source nature of the award.

Related Government Programs

Defense Commissary Agency Operations
Military Resale Services
Wholesale Food Distribution Contracts

Risk Flags

Sole-source award requires justification.
Fixed-price contract type.
Limited contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.5 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 $14.5 million.

What is the period of performance?

Start: 2008-10-01. End: 2008-12-31.

What is CONOPCO, INC.'s track record with the federal government, particularly with the Defense Commissary Agency?

CONOPCO, INC., often recognized as a subsidiary of Unilever, has a history of supplying consumer goods, including food products, to various government entities. While specific contract details beyond this award are not provided, their presence in the market suggests experience in large-scale distribution. For the Defense Commissary Agency (DECA), this contract represents a direct engagement for commissary resale products. A deeper dive into historical contract awards, performance reviews, and any past issues or commendations related to CONOPCO, INC. by DECA or other federal agencies would be necessary for a comprehensive assessment of their track record.

How does the pricing of this contract compare to market rates for similar wholesale grocery products?

Directly comparing the pricing of this $14.5 million contract to market rates is challenging without access to the specific line-item pricing and the exact product mix. As a sole-source award, there was no competitive bidding process to establish a market-driven price. To assess value for money, one would need to benchmark against similar contracts awarded by DECA or other government agencies for comparable goods, considering factors like volume, delivery terms, and product specifications. Additionally, comparing against wholesale price indices for the specific grocery categories would provide some context, though it wouldn't account for the unique logistics and service requirements of military commissaries.

What are the primary risks associated with this sole-source contract for federal procurement?

The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competition. Without competing bids, taxpayers may be paying more than necessary for the grocery products. Another risk is the potential for reduced innovation or service quality, as the contractor faces less pressure to exceed expectations. Furthermore, sole-source awards can raise concerns about fairness and transparency in the procurement process, potentially leading to perceptions of favoritism or inefficiency if not adequately justified and managed. The fixed-price nature, while offering cost certainty, also means the government bears the risk if costs escalate beyond projections.

How effective is the Defense Commissary Agency in managing its supply chain and ensuring product availability through such contracts?

The effectiveness of the Defense Commissary Agency (DECA) in managing its supply chain and ensuring product availability is generally considered robust, given its long-standing mission. DECA aims to provide a wide selection of quality groceries at a savings to military members and their families. Contracts like this one are crucial components of that supply chain. Success is measured by factors such as product stock levels, customer satisfaction, and the efficiency of distribution. While this specific contract is for a short duration, DECA's overall performance relies on the successful execution of numerous such agreements and its ability to adapt to changing demands and logistical challenges.

What are the historical spending patterns for wholesale grocery products by the Defense Commissary Agency?

Historical spending patterns for wholesale grocery products by the Defense Commissary Agency (DECA) would likely show consistent, significant investment to support its network of commissaries worldwide. DECA's budget is substantial, reflecting the scale of its operations and the volume of goods required. Annual spending on grocery procurement would fluctuate based on factors such as the number of commissaries in operation, military population demographics, and economic conditions affecting consumer purchasing power. Analyzing past contract awards for similar goods, including their values and durations, would reveal trends in procurement strategies and vendor relationships over time.

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: 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: $14,501,206

Exercised Options: $14,501,206

Current Obligation: $14,501,206

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDEC0104G2949

IDV Type: IDC

Timeline