DoD Awards $129M for MREs to SO-PAK-CO, Inc. under Full and Open Competition
Contract Overview
Contract Amount: $129,247,415 ($129.2M)
Contractor: So-Pak-Co, Inc
Awarding Agency: Department of Defense
Start Date: 2024-10-15
End Date: 2025-09-30
Contract Duration: 350 days
Daily Burn Rate: $369.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8510952558!MEAL, READY-TO-EAT, IND,
Place of Performance
Location: MULLINS, MARION County, SOUTH CAROLINA, 29574
Plain-Language Summary
Department of Defense obligated $129.2 million to SO-PAK-CO, INC for work described as: 8510952558!MEAL, READY-TO-EAT, IND, Key points: 1. Significant contract value for essential military rations. 2. SO-PAK-CO, Inc. is the sole awardee, indicating specialized capabilities or a competitive process that led to this outcome. 3. Risk appears moderate given the established nature of MRE production and a fixed-price contract. 4. Spending falls within the broader Defense Logistics Agency's procurement of subsistence items.
Value Assessment
Rating: good
The contract value of $129.2 million for MREs appears reasonable for a multi-year supply agreement. Benchmarking against similar large-scale food service contracts for the military 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 a competitive process was initiated but potentially narrowed. This method aims for best value while ensuring a broad initial search.
Taxpayer Impact: The competitive nature of the award is intended to secure favorable pricing for taxpayers, although the specific impact depends on the number and competitiveness of bids received.
Public Impact
Ensures continued supply of essential MREs for military personnel. Supports the Defense Logistics Agency's mission to provide logistical support to the armed forces. Potential economic impact on the awarded contractor and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for supply chain disruptions affecting delivery timelines.
- Ensuring consistent quality and nutritional value of MREs over the contract period.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract limits cost escalation risks.
- Long-term contract provides supply stability.
Sector Analysis
This contract falls under the Defense Logistics Agency's procurement of subsistence, specifically focusing on individual MREs. Spending benchmarks for similar food service contracts within the DoD are typically in the tens to hundreds of millions of dollars annually.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors. The primary awardee, SO-PAK-CO, Inc., is not explicitly identified as a small business in this context.
Oversight & Accountability
The Defense Logistics Agency is responsible for overseeing this contract. Standard oversight mechanisms for delivery orders under a larger contract would apply, including performance monitoring and quality assurance.
Related Government Programs
- Fruit and Vegetable Canning
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for supply chain vulnerabilities.
- Ensuring consistent quality and nutritional standards.
- Dependence on a single contractor for a critical supply item.
- Risk of price increases in future contract renewals.
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 $129.2 million to SO-PAK-CO, INC. 8510952558!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 $129.2 million.
What is the period of performance?
Start: 2024-10-15. End: 2025-09-30.
What was the specific reason for excluding other sources after the initial full and open competition phase?
The exclusion of sources after an initial 'full and open' phase typically occurs when only a limited number of offerors meet specific, stringent requirements, or if a particular solution is deemed uniquely capable. This could be due to specialized manufacturing processes, specific certifications, or prior performance history that makes them the most advantageous choice despite broader initial solicitation.
How does the unit cost of these MREs compare to historical averages or similar procurements?
Without historical data or benchmarks for comparable MRE procurements, a direct comparison of unit cost is not possible. Factors like inflation, specific MRE components, packaging innovations, and the scale of the order significantly influence pricing. A detailed cost analysis would require access to historical contract data and market research on ration costs.
What are the key performance indicators (KPIs) for ensuring the effectiveness and timely delivery of these MREs?
Key performance indicators would likely include on-time delivery rates, adherence to quality specifications (e.g., nutritional content, shelf-life, defect rates), and contractor responsiveness to any issues. The Defense Logistics Agency would monitor these KPIs to ensure the MREs meet operational readiness requirements and are delivered to designated locations without compromising troop welfare.
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
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: $129,247,415
Exercised Options: $129,247,415
Current Obligation: $129,247,415
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: 2024-10-15
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-04-24
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