DoD's $109.5M MRE Contract Awarded to SO-PAK-CO, Inc. Amidst Full and Open Competition
Contract Overview
Contract Amount: $109,535,827 ($109.5M)
Contractor: So-Pak-Co, Inc
Awarding Agency: Department of Defense
Start Date: 2021-12-08
End Date: 2022-12-31
Contract Duration: 388 days
Daily Burn Rate: $282.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MEAL, READY TO EAT, IND
Place of Performance
Location: MULLINS, MARION County, SOUTH CAROLINA, 29574
Plain-Language Summary
Department of Defense obligated $109.5 million to SO-PAK-CO, INC for work described as: MEAL, READY TO EAT, IND Key points: 1. The contract value of $109.5M for MREs is significant, indicating substantial demand. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract is for a duration of 388 days, with a delivery order issued. 4. The sector is Defense Logistics, a critical area for military readiness.
Value Assessment
Rating: good
The contract was awarded under a firm fixed price, which provides cost certainty. Benchmarking against similar MRE contracts would be necessary for a definitive value assessment.
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,' indicating a competitive process that aimed to maximize participation and achieve fair pricing.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the MREs procured.
Public Impact
Ensures the availability of essential sustenance for military personnel. Supports the Defense Logistics Agency's mission to provide logistical support. The award contributes to the food manufacturing and processing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for supply chain disruptions impacting delivery.
- Price fluctuations in raw materials could affect long-term cost-effectiveness.
Positive Signals
- Firm fixed price contract provides budget predictability.
- Competitive award process likely secured favorable pricing.
Sector Analysis
This contract falls within the Defense Logistics sector, specifically for subsistence items. Spending benchmarks for MREs can vary based on quantity, type, and specific nutritional requirements.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors in this award.
Oversight & Accountability
The award was made via a delivery order under a larger contract vehicle, implying prior oversight and established terms. Further review of the parent contract would be needed.
Related Government Programs
- Fruit and Vegetable Canning
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for supply chain vulnerabilities.
- Dependence on a single prime contractor for a critical item.
- Risk of price escalation if raw material costs increase significantly.
- Need to verify justification for 'exclusion of sources'.
Tags
fruit-and-vegetable-canning, department-of-defense, sc, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $109.5 million to SO-PAK-CO, INC. 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 $109.5 million.
What is the period of performance?
Start: 2021-12-08. End: 2022-12-31.
What is the historical cost per MRE unit under this contract and how does it compare to industry benchmarks?
The provided data does not include the per-unit cost. To assess value, the total award amount ($109,535,827) would need to be divided by the total number of MRE units procured. This figure should then be compared against historical data for similar MRE procurements by the DoD or other government agencies to determine if the pricing is competitive and reflects fair market value.
What are the specific risks associated with the 'exclusion of sources' clause in the competition method?
While 'full and open competition' is generally positive, the 'exclusion of sources' clause warrants scrutiny. It implies that certain potential bidders were disqualified or not considered, which could limit competition and potentially lead to higher prices or reduced innovation. Understanding the justification for excluding sources is crucial to ensure the exclusion was valid and did not unduly restrict the competitive landscape.
How effectively does this contract meet the nutritional and logistical requirements for deployed military personnel?
The effectiveness hinges on the specific MRE specifications outlined in the contract, which are not detailed here. Factors such as shelf-life, caloric content, variety of meals, and packaging durability are critical. The Defense Logistics Agency's satisfaction with the delivered product, based on feedback from end-users and adherence to specifications, would be the primary indicator of effectiveness.
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: $109,535,827
Exercised Options: $109,535,827
Current Obligation: $109,535,827
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE3S122DZ146
IDV Type: IDC
Timeline
Start Date: 2021-12-08
Current End Date: 2022-12-31
Potential End Date: 2022-12-31 00:00:00
Last Modified: 2022-11-23
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