DoD Awards $279M for MREs to BAXTERS NORTH AMERICA, INC. Under Full and Open Competition
Contract Overview
Contract Amount: $27,900,000 ($27.9M)
Contractor: Baxters North America, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-03-27
End Date: 2018-12-31
Contract Duration: 279 days
Daily Burn Rate: $100.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8505340080!MEAL, READY-TO-EAT, IND,
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45242
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $27.9 million to BAXTERS NORTH AMERICA, INC. for work described as: 8505340080!MEAL, READY-TO-EAT, IND, Key points: 1. Contract awarded for MREs, a critical food supply for military personnel. 2. Competition method indicates a robust bidding process was utilized. 3. Potential risk associated with sole-source exclusion needs further review. 4. Sector is Defense Logistics, a significant area of government spending.
Value Assessment
Rating: good
The contract value of $279 million for MREs appears reasonable given the duration and scope. Benchmarking against similar large-scale food supply contracts would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting an initial exclusion followed by broader competition. This method aims to ensure competitive pricing while potentially addressing specific source requirements.
Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by encouraging multiple bids and driving down costs.
Public Impact
Ensures a consistent supply of essential rations for military operations. Supports the food manufacturing sector and associated supply chains. Potential for long-term contracts to stabilize production and employment.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Exclusion of sources in competition method requires scrutiny.
- Reliance on a single vendor for a critical supply.
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract provides cost certainty.
Sector Analysis
The Defense Logistics Agency procures a wide range of goods and services to support military operations. Spending in this sector is substantial, with a focus on efficiency and reliability of supply chains.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this award.
Oversight & Accountability
The Department of Defense, through the Defense Logistics Agency, is responsible for ensuring the effective procurement and distribution of essential supplies. Oversight mechanisms are in place to manage contract performance and financial accountability.
Related Government Programs
- Fruit and Vegetable Canning
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for price increases impacting contractor profitability.
- Dependence on a single supplier for critical rations.
- Need to verify the justification for initial source exclusion.
- Limited visibility into small business participation.
Tags
fruit-and-vegetable-canning, department-of-defense, oh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.9 million to BAXTERS NORTH AMERICA, INC.. 8505340080!MEAL, READY-TO-EAT, IND,
Who is the contractor on this award?
The obligated recipient is BAXTERS NORTH AMERICA, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $27.9 million.
What is the period of performance?
Start: 2018-03-27. End: 2018-12-31.
What was the rationale behind the exclusion of sources prior to the full and open competition?
The rationale for excluding sources prior to full and open competition is not detailed in the provided data. Typically, such exclusions are based on specific technical requirements, national security concerns, or previous performance issues. A thorough review of the contract's justification documents would be necessary to understand the specific reasons and assess their validity.
What are the potential risks associated with the firm fixed price contract for MREs?
A firm fixed price contract for MREs offers cost certainty to the government but can pose risks if market prices for raw materials or production costs increase significantly. The contractor may face reduced profit margins or potential quality compromises if cost pressures become too high. Conversely, if costs decrease, the government may have overpaid.
How does this contract contribute to the overall effectiveness of military logistics?
This contract is crucial for the effectiveness of military logistics by ensuring a reliable and consistent supply of ready-to-eat meals for service members. Adequate and palatable rations are vital for troop morale, health, and operational readiness, directly impacting mission success in various environments.
Industry Classification
NAICS: Manufacturing › Fruit and Vegetable Preserving and Specialty Food Manufacturing › Fruit and Vegetable Canning
Product/Service Code: SUBSISTENCE
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wornick Company the (UEI: 424821846)
Address: 4700 CREEK RD, CINCINNATI, OH, 45242
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $27,900,000
Exercised Options: $27,900,000
Current Obligation: $27,900,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE3S117DZ114
IDV Type: IDC
Timeline
Start Date: 2018-03-27
Current End Date: 2018-12-31
Potential End Date: 2018-12-31 00:00:00
Last Modified: 2021-11-07
More Contracts from Baxters North America, Inc.
- 8511811097!meal, Ready-To-Eat, IND, — $98.4M (Department of Defense)
- 8510952474!meal, Ready-To-Eat, IND, — $88.5M (Department of Defense)
- 8509487235!meal, Ready-To-Eat, IND, — $83.0M (Department of Defense)
- 8510240182!meal, Ready-To-Eat, IND, — $83.0M (Department of Defense)
- Meal,Ready-To-Eat, IND, — $81.8M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)