DoD's $83M MRE Contract Awarded to Baxters North America Amidst Full and Open Competition
Contract Overview
Contract Amount: $83,025,760 ($83.0M)
Contractor: Baxters North America, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-10-26
End Date: 2023-08-31
Contract Duration: 309 days
Daily Burn Rate: $268.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 8509487235!MEAL, READY-TO-EAT, IND,
Place of Performance
Location: BLUE ASH, HAMILTON County, OHIO, 45242
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $83.0 million to BAXTERS NORTH AMERICA, INC. for work described as: 8509487235!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, suggesting a competitive market for these essential goods. 3. The contract's value and duration indicate a substantial commitment to providing ready-to-eat meals. 4. The firm fixed-price structure aims to control costs for taxpayers.
Value Assessment
Rating: good
The contract value of $83 million for MREs appears reasonable given the quantity and duration. Benchmarking against similar large-scale food procurement contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive bidding process for this substantial MRE contract is expected to yield favorable pricing, maximizing taxpayer value for essential supplies.
Public Impact
Ensures readiness and morale for military personnel by providing essential sustenance. Supports the Defense Logistics Agency's mission to deliver critical supplies efficiently. Contributes to the food manufacturing sector, particularly in fruit and vegetable canning.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for supply chain disruptions affecting delivery timelines.
- Fluctuations in raw material costs could impact long-term affordability.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Firm fixed-price contract provides cost certainty.
- Significant investment in essential military supplies.
Sector Analysis
This contract falls within the food manufacturing and defense logistics sectors. Spending benchmarks for similar large-scale food procurement for military use would be relevant for a deeper analysis.
Small Business Impact
While this specific award went to Baxters North America, the full and open competition process theoretically allows small businesses to participate if they meet the requirements or act as subcontractors.
Oversight & Accountability
The Defense Logistics Agency is responsible for overseeing this contract. Standard oversight procedures for large procurement contracts, including performance monitoring and quality control, would be in place.
Related Government Programs
- Fruit and Vegetable Canning
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Supply chain vulnerability
- Raw material price volatility
- Logistical challenges
- Potential for quality control issues
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 $83.0 million to BAXTERS NORTH AMERICA, INC.. 8509487235!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 $83.0 million.
What is the period of performance?
Start: 2022-10-26. End: 2023-08-31.
What is the historical cost per MRE unit under this contract, and how does it compare to previous procurements?
The provided data does not include the specific number of MRE units, making a direct per-unit cost calculation impossible. However, the total award of $83,025,759.99 over a period of 309 days suggests a significant volume. To assess value, a comparison with historical per-unit costs from similar DoD MRE contracts would be necessary.
What are the primary risks associated with the supply chain for these MREs, and how are they being mitigated?
Key risks include potential disruptions in the supply of raw ingredients (fruits, vegetables), manufacturing capacity limitations, and transportation logistics. Mitigation strategies likely involve diversified sourcing, robust inventory management, and contingency planning for transportation, though specific details are not provided in this data.
How effectively does this contract ensure the nutritional quality and shelf-life requirements for the MREs?
The contract specifies 'MEAL, READY-TO-EAT, IND,' implying adherence to strict military specifications for nutritional content, safety, and extended shelf-life. The Defense Logistics Agency's quality assurance processes and acceptance testing would be crucial in ensuring these requirements are met throughout the contract period.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wornick Company the
Address: 4700 CREEK RD, CINCINNATI, OH, 45242
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $83,025,760
Exercised Options: $83,025,760
Current Obligation: $83,025,760
Actual Outlays: $83,025,760
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE3S122DZ147
IDV Type: IDC
Timeline
Start Date: 2022-10-26
Current End Date: 2023-08-31
Potential End Date: 2023-08-31 00:00:00
Last Modified: 2023-08-15
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