DoD's $77M MRE Contract Awarded to SO-PAK-CO, Inc. with Full and Open Competition

Contract Overview

Contract Amount: $77,237,764 ($77.2M)

Contractor: So-Pak-Co, Inc

Awarding Agency: Department of Defense

Start Date: 2019-10-23

End Date: 2021-01-31

Contract Duration: 466 days

Daily Burn Rate: $165.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8506929253!MEAL, READY-TO-EAT, IND,

Place of Performance

Location: MULLINS, MARION County, SOUTH CAROLINA, 29574

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $77.2 million to SO-PAK-CO, INC for work described as: 8506929253!MEAL, READY-TO-EAT, IND, Key points: 1. The contract is for Individual Meal, Ready-to-Eat (MRE) supplies. 2. SO-PAK-CO, INC is the sole awardee. 3. The contract was awarded under full and open competition after exclusion of sources. 4. The total value of the contract is $77,237,764.01. 5. The contract period spans from October 23, 2019, to January 31, 2021.

Value Assessment

Rating: good

The contract value of $77.2 million for MREs appears reasonable given the duration and quantity typically associated with such procurements. Benchmarking against similar large-scale food service contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition after exclusion of sources, indicating a competitive process was intended to achieve the best value. This method generally promotes price discovery and ensures a broad range of potential offerors are considered.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair market value for the MREs procured.

Public Impact

Ensures readiness and morale for deployed military personnel by providing essential sustenance. Supports the Defense Logistics Agency's mission to provide logistical support to the U.S. Armed Forces. The procurement contributes to the food manufacturing and packaging sector. Timely delivery of MREs is critical for operational effectiveness in various environments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Quality control and consistency of MRE components are crucial.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Long-term contract provides supply chain stability for essential rations.
Supports a specific industry sector within the U.S. economy.

Sector Analysis

This contract falls within the food and beverage manufacturing sector, specifically catering to military rations. Spending benchmarks for similar large-scale food service contracts for government agencies can vary significantly based on quantity, type of goods, and delivery requirements.

Small Business Impact

While the awardee is SO-PAK-CO, INC, the data does not indicate whether small businesses were involved as subcontractors or if the awardee itself is a small business. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The contract was awarded by the Defense Logistics Agency, a component of the Department of Defense, which has established oversight mechanisms for procurement. The 'Delivery Order' type suggests it's part of a larger framework, potentially subject to ongoing review.

Related Government Programs

Fruit and Vegetable Canning
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Potential for supply chain disruptions.
Dependence on a single awardee (SO-PAK-CO, INC).
Quality control of perishable and non-perishable components.
Ensuring timely delivery to various operational locations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $77.2 million to SO-PAK-CO, INC. 8506929253!MEAL, READY-TO-EAT, IND,

Who is the contractor on this award?

The obligated recipient is SO-PAK-CO, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $77.2 million.

What is the period of performance?

Start: 2019-10-23. End: 2021-01-31.

What is the typical cost per MRE unit for similar government contracts, and how does this contract's pricing compare?

Without specific unit pricing data for this contract, a direct comparison is difficult. However, industry benchmarks for MREs can range from $8 to $15 per unit, depending on the specific components, packaging, and contract volume. The total contract value of $77.2 million over approximately 1.5 years suggests a substantial number of units were procured, and further analysis of the awarded unit prices against this benchmark would be necessary to assess value.

What are the primary risks associated with the supply chain for these MREs, and what mitigation strategies are in place?

Key risks include potential disruptions in the supply of raw ingredients (like fruits and vegetables), manufacturing delays, and transportation issues, especially given the contract's duration. Mitigation strategies likely involve robust supplier vetting by SO-PAK-CO, INC, contingency planning for ingredient sourcing, and adherence to strict delivery schedules mandated by the Defense Logistics Agency. The 'exclusion of sources' clause might also imply specific supplier qualifications were required.

How effectively does this contract ensure the nutritional quality and shelf-life requirements for MREs used by service members?

The effectiveness hinges on the Defense Logistics Agency's stringent quality assurance protocols and the contractor's adherence to specifications. MREs are designed for long shelf-life and specific nutritional content to sustain personnel in austere conditions. Compliance with these requirements is typically verified through inspections and testing throughout the production and delivery process, ensuring that service members receive safe and adequate rations.

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: Unaka Company, Incorporated

Address: 118 S CYPRESS ST, MULLINS, SC, 29574

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $77,237,764

Exercised Options: $77,237,764

Current Obligation: $77,237,764

Actual Outlays: $25,384,462

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE3S117DZ112

IDV Type: IDC

Timeline