DoD's $13.8M grocery resale contract awarded to CONOPCO, INC. for home and personal care items

Contract Overview

Contract Amount: $13,850,480 ($13.9M)

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: $152.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Other

Official Description: RESALE - HOME & PERSONAL CARE

Place of Performance

Location: CLINTON, MIDDLESEX County, CONNECTICUT, 06413

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $13.9 million to CONOPCO, INC. for work described as: RESALE - HOME & PERSONAL CARE Key points: 1. Contract awarded on a non-competitive basis, raising questions about potential cost savings through competition. 2. The contract covers a broad range of home and personal care items, suggesting a significant scope of services. 3. Limited competition may lead to higher prices for goods compared to a more open bidding process. 4. The short duration of the delivery order (91 days) indicates a need for immediate fulfillment. 5. The contract's value is substantial, requiring careful oversight to ensure taxpayer funds are used efficiently. 6. The absence of small business participation warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: fair

The contract value of $13.8 million for a 91-day period is substantial. Without comparable contract data or detailed pricing breakdowns, it is difficult to definitively assess value for money. The non-competitive nature of the award suggests that pricing may not have been subjected to the full force of market competition, potentially leading to less favorable terms for the government. Benchmarking against similar large-scale grocery wholesale contracts would be necessary for a more robust evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, indicating that a full and open competition was not conducted. The specific reasons for this sole-source award are not detailed in the provided data. A sole-source award limits the number of potential bidders to one, which can reduce price discovery and potentially lead to higher costs for the government compared to contracts awarded through competitive processes.

Taxpayer Impact: Taxpayers may be paying a premium for goods and services due to the lack of competitive bidding, as the government did not leverage multiple offers to secure the best possible price.

Public Impact

Military personnel and their families stationed in Connecticut will benefit from the availability of home and personal care items. The contract ensures the supply of essential goods through the Defense Commissary Agency. The geographic impact is focused on Connecticut, serving the needs of the military community in that region. The contract supports the operational readiness of military families by providing access to necessary household and personal items.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher unit costs for goods.
Limited transparency into the sole-source justification.
Potential missed opportunities for small business engagement.
Short contract duration could indicate reactive procurement rather than strategic planning.

Positive Signals

Ensures availability of essential home and personal care items for military families.
Awarded to a single, established vendor, potentially ensuring reliable supply chain.
Supports the Defense Commissary Agency's mission to provide goods to service members.

Sector Analysis

This contract falls within the wholesale trade sector, specifically for general line grocery merchant wholesalers. The market for such goods is vast, encompassing numerous suppliers and distributors. The Defense Commissary Agency (DeCA) operates as a significant buyer within this sector, procuring a wide array of products to serve the military community. Benchmarking this contract's value against other large-scale wholesale agreements within the federal government or the private sector would provide context on its relative size and efficiency.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements. The sole-source nature of the award further limits the likelihood of small business participation. This suggests a potential missed opportunity to engage small businesses and foster their growth within the federal supply chain for these types of goods.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Commissary Agency (DeCA) and potentially the Department of Defense's Inspector General. Given the sole-source award, scrutiny on the justification and pricing is particularly important. Transparency regarding the specific needs met by this contract and the vendor's performance metrics would be key accountability measures.

Related Government Programs

Defense Commissary Agency Operations
Wholesale Grocery Procurement
Military Family Support Services
Home and Personal Care Goods Supply

Risk Flags

Sole-source award raises concerns about price competition.
Lack of small business participation noted.
Short contract duration may indicate urgent need or limited planning.
No performance metrics or detailed pricing provided for value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.9 million to CONOPCO, INC.. RESALE - HOME & PERSONAL CARE

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 $13.9 million.

What is the period of performance?

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

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

The provided data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' which is a designation for sole-source procurements. However, the specific justification document or rationale is not included. Typically, sole-source awards are made when only one responsible source is available, or in cases of urgent and compelling need. Without access to the justification, it's impossible to verify the necessity of bypassing a competitive process. This lack of transparency can raise concerns about whether the government obtained the best possible value and if alternative solutions were adequately explored.

How does the unit cost of items under this contract compare to market rates for similar home and personal care products?

The provided data does not include specific item-level pricing or unit costs, making a direct comparison to market rates impossible. The total award amount of $13.8 million is for a broad category of goods over a 91-day period. To assess value for money, detailed pricing information for individual products or product categories would be required. Benchmarking against prices offered by other large retailers or wholesale distributors for comparable items would be necessary. The non-competitive nature of the award suggests that such a comparison might reveal higher-than-market prices.

What is the track record of CONOPCO, INC. in fulfilling federal contracts, particularly those with the Defense Commissary Agency?

The provided data does not include information on CONOPCO, INC.'s past performance or track record with federal contracts. To assess their reliability and capability, a review of their contract history, including any past awards, performance evaluations, and any instances of contract disputes or terminations, would be necessary. Information from sources like the Federal Procurement Data System (FPDS) or contractor performance databases could shed light on their experience and success in fulfilling similar government requirements.

What is the historical spending pattern for home and personal care items by the Defense Commissary Agency?

The provided data only pertains to a single delivery order from 2008. To understand historical spending patterns, data from previous years and other contracts awarded by the Defense Commissary Agency for similar goods would be needed. Analyzing trends in spending volume, contract types (competitive vs. sole-source), and average award values over time would reveal patterns. This analysis could help determine if this $13.8 million award is typical, an outlier, or indicative of a changing procurement strategy for these essential items.

What are the potential risks associated with a sole-source award for essential goods like home and personal care items?

The primary risks associated with a sole-source award for essential goods include inflated pricing due to lack of competition, potential for reduced quality if the contractor faces no pressure to innovate or improve, and limited flexibility in adapting to changing needs or market conditions. Taxpayers may bear the cost of these risks through higher prices. Furthermore, sole-source awards can create barriers for new or smaller businesses seeking to enter the market, potentially stifling competition in the long run. Ensuring robust oversight and justification is critical to mitigate these risks.

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: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Stichting Administratiekantoor Unilever N.V. (UEI: 386201268)

Address: 1 JOHN ST, CLINTON, CT, 06413

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,850,480

Exercised Options: $13,850,480

Current Obligation: $13,850,480

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDEC0104G2951

IDV Type: IDC

Timeline