DoD Awards $109.8M for MREs to SO-PAK-CO, Inc. under Full and Open Competition
Contract Overview
Contract Amount: $109,804,438 ($109.8M)
Contractor: So-Pak-Co, Inc
Awarding Agency: Department of Defense
Start Date: 2022-10-26
End Date: 2024-01-09
Contract Duration: 440 days
Daily Burn Rate: $249.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 8509487233!MEAL, READY-TO-EAT, IND,
Place of Performance
Location: MULLINS, MARION County, SOUTH CAROLINA, 29574
Plain-Language Summary
Department of Defense obligated $109.8 million to SO-PAK-CO, INC for work described as: 8509487233!MEAL, READY-TO-EAT, IND, Key points: 1. Significant contract value for essential food supplies. 2. Competition method indicates a potentially competitive market. 3. Risk of supply chain disruptions for critical rations. 4. Defense sector reliance on specialized food production.
Value Assessment
Rating: good
The contract value of $109.8 million for MREs appears reasonable given the duration and nature of the product. Benchmarking against similar large-scale food procurement contracts would provide a more precise 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,' suggesting an initial limited approach that was later broadened. This method can impact price discovery, potentially leading to higher prices if the exclusion was not justified.
Taxpayer Impact: Taxpayer funds are being used for essential military provisions. The competitive nature of the award aims to ensure value for money, but the 'exclusion of sources' aspect warrants scrutiny.
Public Impact
Ensures readiness and morale for deployed military personnel. Supports the Defense Logistics Agency's mission to provide essential supplies. Potential economic impact on the food production and logistics sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for supply chain disruptions impacting delivery timelines.
- Reliance on a single awardee for a critical item.
- Limited visibility into the 'exclusion of sources' rationale.
Positive Signals
- Awarded under a competitive process, aiming for best value.
- Addresses a critical need for military rations.
- Firm fixed price contract provides cost certainty.
Sector Analysis
The procurement falls within the broader food and beverage manufacturing sector, with specific application to military logistics. Defense spending on subsistence items is a consistent requirement, with benchmarks varying based on item type and quantity.
Small Business Impact
Analysis of small business participation is not directly available from the provided data. However, large prime contracts often involve subcontracting opportunities for small businesses within the food supply chain.
Oversight & Accountability
The Defense Logistics Agency is responsible for this procurement. Oversight would typically involve contract management, performance monitoring, and ensuring compliance with federal acquisition regulations.
Related Government Programs
- Fruit and Vegetable Canning
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Supply chain vulnerability
- Potential for price inflation due to source exclusion
- Dependence on a single contractor for a critical item
- Lack of detailed cost breakdown for value assessment
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 $109.8 million to SO-PAK-CO, INC. 8509487233!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 $109.8 million.
What is the period of performance?
Start: 2022-10-26. End: 2024-01-09.
What was the specific justification for the initial exclusion of sources before opening to full competition?
The justification for excluding sources prior to opening to full and open competition is not detailed in the provided data. Understanding this rationale is crucial for assessing whether the initial limitation unnecessarily restricted competition and potentially impacted the final price achieved for the MREs.
How does the unit cost of these MREs compare to commercially available or similar government procurements?
Without specific unit cost data or comparable benchmarks, it's difficult to definitively assess value. However, the firm fixed price nature of the contract provides cost certainty for the government. A detailed cost analysis against industry standards and historical government purchases would be necessary for a thorough evaluation.
What are the contingency plans in place to mitigate supply chain risks for these essential rations?
Contingency plans for supply chain risks are not detailed here. Given the critical nature of MREs for military operations, the Defense Logistics Agency likely has established protocols for managing disruptions, such as identifying alternative suppliers or maintaining buffer stock. Further investigation into these plans would be warranted.
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: $109,804,438
Exercised Options: $109,804,438
Current Obligation: $109,804,438
Actual Outlays: $75,396,020
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE3S122DZ146
IDV Type: IDC
Timeline
Start Date: 2022-10-26
Current End Date: 2024-01-09
Potential End Date: 2024-01-09 00:00:00
Last Modified: 2023-12-21
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