DoD Awards $67.1M for MREs to Baxters North America, Inc

Contract Overview

Contract Amount: $67,185,000 ($67.2M)

Contractor: Baxters North America, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-12-19

End Date: 2025-11-30

Contract Duration: 346 days

Daily Burn Rate: $194.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 8511090123!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 $67.2 million to BAXTERS NORTH AMERICA, INC. for work described as: 8511090123!MEAL, READY-TO-EAT, IND, Key points: 1. Significant contract value for essential food supplies. 2. Competition method indicates potential for competitive pricing. 3. Risk of supply chain disruption for critical rations. 4. Sector focus on food production and logistics.

Value Assessment

Rating: good

The contract value of $67.1 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, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.

Taxpayer Impact: The competitive award process is expected to yield good value for taxpayer dollars by ensuring fair market pricing for these essential supplies.

Public Impact

Ensures continued supply of essential rations for military personnel. Supports a key segment of the food manufacturing industry. Potential impact on food prices if supply chain issues arise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Supply chain vulnerability for perishable goods.
Potential for price fluctuations in raw materials.

Positive Signals

Awarded under full and open competition.
Long-term contract provides supply stability.

Sector Analysis

This contract falls within the food manufacturing and logistics sector, a critical area for government supply chains. Spending benchmarks for similar large-scale food procurements are generally in the tens to hundreds of millions.

Small Business Impact

While the primary awardee is Baxters North America, Inc., the contract's full and open competition may have allowed for subcontracts to small businesses in the food supply chain, though this is not explicitly detailed.

Oversight & Accountability

The Department of Defense, through the Defense Logistics Agency, is responsible for overseeing this contract. Standard oversight mechanisms for procurement and delivery should be in place.

Related Government Programs

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

Risk Flags

Supply chain disruption risk
Ingredient price volatility
Logistical challenges for delivery
Quality control of perishable goods

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $67.2 million to BAXTERS NORTH AMERICA, INC.. 8511090123!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 $67.2 million.

What is the period of performance?

Start: 2024-12-19. End: 2025-11-30.

What is the historical cost per MRE unit under this contract compared to previous awards?

Without specific historical data for this contract or comparable MRE procurements, it's difficult to provide a precise comparison. However, the firm fixed-price structure suggests an effort to lock in costs. Further analysis would require access to historical pricing data and details on the specific MRE components.

What are the primary risks associated with the supply chain for these MREs?

Key risks include potential disruptions in the availability of raw ingredients (fruits, vegetables), manufacturing capacity constraints, transportation delays, and geopolitical events impacting global supply chains. The shelf-life of the product also necessitates careful inventory management to avoid spoilage.

How effectively does this contract ensure the nutritional and operational readiness of deployed personnel?

This contract is crucial for ensuring the consistent availability of nutritionally adequate and ready-to-eat meals for military personnel in various operational environments. The firm fixed-price structure aims to guarantee supply at a predetermined cost, supporting logistical planning and operational readiness.

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: W.A. Baxter & Sons (holdings) Limited

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: $67,185,000

Exercised Options: $67,185,000

Current Obligation: $67,185,000

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