DoD's Defense Commissary Agency Spends $20.5M on Soup Resale Contract with Campbell Soup Company

Contract Overview

Contract Amount: $20,531,956 ($20.5M)

Contractor: Campbell Soup Company

Awarding Agency: Department of Defense

Start Date: 2008-10-01

End Date: 2008-12-31

Contract Duration: 91 days

Daily Burn Rate: $225.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Other

Official Description: RESALE - SOUPS (SECTION A)

Place of Performance

Location: CAMDEN, CAMDEN County, NEW JERSEY, 08103

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $20.5 million to CAMPBELL SOUP COMPANY for work described as: RESALE - SOUPS (SECTION A) Key points: 1. The contract awarded to Campbell Soup Company for soup resale is valued at $20.5 million. 2. Competition for this contract was not available, raising questions about price discovery. 3. The primary risk lies in the lack of competitive bidding potentially leading to inflated prices. 4. This spending falls within the broader 'General Line Grocery Merchant Wholesalers' sector.

Value Assessment

Rating: questionable

The contract value of $20.5 million for soup resale is difficult to benchmark without comparable contracts. The lack of competition makes a direct pricing assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was listed as 'NOT AVAILABLE FOR COMPETITION', indicating a limited or sole-source procurement. This significantly restricts price discovery and competitive pressure.

Taxpayer Impact: Without competitive bidding, taxpayers may be paying a premium for these soup products, as there was no mechanism to ensure the lowest possible price.

Public Impact

Military families and personnel will have access to Campbell's soup products through commissaries. The significant expenditure highlights the cost of providing a wide range of grocery items to the military community. The procurement method raises concerns about the efficient use of taxpayer funds for commissary goods.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Potential for Overpricing
Limited Transparency

Positive Signals

Ensures availability of a specific brand
Supports established supplier relationship

Sector Analysis

This contract falls under the 'General Line Grocery Merchant Wholesalers' sector, specifically for food products. Spending benchmarks for commissary resales are typically tied to overall grocery market trends and military support budgets.

Small Business Impact

The data does not indicate any specific provisions or analysis related to small business participation in this contract.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' status suggests potential gaps in oversight regarding procurement strategies. Further review would be needed to assess accountability for this sole-source award.

Related Government Programs

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

Risk Flags

Sole-source procurement
Lack of price competition
Potential for non-competitive pricing
Limited justification for competition restriction

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.5 million to CAMPBELL SOUP COMPANY. RESALE - SOUPS (SECTION A)

Who is the contractor on this award?

The obligated recipient is CAMPBELL SOUP COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.5 million.

What is the period of performance?

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

What was the justification for limiting competition on this soup resale contract?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION'. A detailed justification would typically be documented by the agency, potentially citing reasons like the unique nature of the product, existing sole-source agreements, or urgent needs that precluded a competitive process. Without this documentation, the rationale remains unclear.

What is the potential financial risk to taxpayers due to the lack of competition?

The primary financial risk is the potential for overpayment. When competition is absent, the supplier faces less pressure to offer the lowest possible price. This can lead to prices that are higher than what would be achieved in a competitive bidding environment, directly impacting taxpayer funds allocated to the Defense Commissary Agency.

How effective is this contract in meeting the needs of the Defense Commissary Agency?

The contract appears effective in ensuring the availability of Campbell's soup products for resale, fulfilling a specific product requirement. However, its overall effectiveness in terms of value for money is questionable due to the lack of competition, which limits the agency's ability to secure the best possible pricing.

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

Address: 1 CAMPBELL PLACE SW4, CAMDEN, NJ, 08103

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,531,956

Exercised Options: $20,531,956

Current Obligation: $20,531,956

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDEC0105G3271

IDV Type: IDC

Timeline