DoD's $65M MRE Contract Awarded to Baxters North America Amidst Full and Open Competition

Contract Overview

Contract Amount: $65,214,609 ($65.2M)

Contractor: Baxters North America, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-10-23

End Date: 2020-09-30

Contract Duration: 343 days

Daily Burn Rate: $190.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 8506929256!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 $65.2 million to BAXTERS NORTH AMERICA, INC. for work described as: 8506929256!MEAL, READY-TO-EAT, IND, Key points: 1. The Department of Defense awarded a significant contract for MREs, highlighting the importance of sustained food supply. 2. Baxters North America secured the contract through full and open competition, indicating a competitive market for these essential supplies. 3. The contract duration of 343 days suggests a need for consistent and reliable provisioning of MREs. 4. The 'Fruit and Vegetable Canning' PSC code indicates a focus on specific components within the MREs, potentially impacting nutritional variety.

Value Assessment

Rating: good

The contract value of $65.2 million for MREs appears reasonable given the quantity and duration. Benchmarking against similar DoD 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 a robust bidding process. This method typically drives competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario.

Public Impact

Ensures readiness for military personnel by providing essential sustenance in various operational environments. Supports the agricultural sector through procurement of canned fruits and vegetables. Demonstrates the government's commitment to maintaining a stable supply chain for critical food items. The contract's success relies on Baxters North America's ability to meet quality and delivery standards for MREs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Quality control of MRE components to ensure nutritional value and palatability.
Dependence on a single supplier for a critical logistical item.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Clear contract period with defined start and end dates.
Established supplier with experience in food production.

Sector Analysis

The defense sector relies heavily on logistical support contracts like this one for operational readiness. Spending benchmarks for food and ration contracts vary widely based on quantity, type, and duration, but $65 million for MREs over approximately one year is a substantial commitment.

Small Business Impact

While Baxters North America is the prime contractor, the extent of small business subcontracting is not detailed in this data. Further analysis would be needed to determine if small businesses are significantly involved in fulfilling this contract.

Oversight & Accountability

The Department of Defense, through the Defense Logistics Agency, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms are expected to be in place to ensure compliance and performance.

Related Government Programs

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

Risk Flags

Potential for supply chain vulnerabilities impacting delivery.
Ensuring consistent quality and nutritional value of MRE components.
Dependence on a single contractor for a critical supply.
Logistical challenges in distributing MREs to diverse operational theaters.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.2 million to BAXTERS NORTH AMERICA, INC.. 8506929256!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 $65.2 million.

What is the period of performance?

Start: 2019-10-23. End: 2020-09-30.

What is the specific breakdown of MRE components procured under this contract, and how does it align with nutritional requirements for deployed personnel?

The contract specifies 'Fruit and Vegetable Canning' under the PSC code, indicating a focus on these particular MRE components. A detailed breakdown of the specific fruits and vegetables, their nutritional content, and how they meet the caloric and dietary needs of service members during deployment would be necessary for a full assessment. This information is crucial for ensuring operational effectiveness and troop well-being.

What are the key performance indicators (KPIs) for Baxters North America to ensure the quality and timely delivery of these MREs, and what are the penalties for non-compliance?

Key performance indicators would likely include adherence to strict quality control standards for food safety, nutritional content, and shelf-life, as well as on-time delivery metrics to various military installations. Penalties for non-compliance could range from contract deductions to termination, depending on the severity of the breach. Specific KPIs and penalty clauses are typically detailed within the contract's statement of work and terms and conditions.

How does the pricing of these MREs compare to historical contracts or industry benchmarks for similar food rations, and what factors contributed to the final negotiated price?

The final negotiated price is a result of the full and open competition process. Benchmarking against previous MRE contracts or similar food ration procurements would reveal if this $65.2 million award represents a cost-effective solution. Factors influencing the price could include raw material costs, manufacturing complexity, transportation logistics, and the specific requirements outlined in the solicitation, such as packaging and shelf-life.

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: $65,214,609

Exercised Options: $65,214,609

Current Obligation: $65,214,609

Actual Outlays: $29,110,114

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE3S117DZ114

IDV Type: IDC

Timeline