DoD Awards $8.8M for Toaster Pastries to Sterling BV, Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $8,818,550 ($8.8M)
Contractor: Sterling BV, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-12-04
End Date: 2026-06-01
Contract Duration: 179 days
Daily Burn Rate: $49.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 8511790505!TOASTER PASTRY
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78216
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $8.8 million to STERLING BV, INC. for work described as: 8511790505!TOASTER PASTRY Key points: 1. Contract awarded for miscellaneous food manufacturing, specifically toaster pastries. 2. Sterling BV, Inc. secured the contract valued at $8.8 million. 3. Competition method was 'Full and Open', suggesting broad market engagement. 4. The contract duration is 179 days, ending June 1, 2026. 5. No small business participation was noted in this award.
Value Assessment
Rating: fair
The award amount of $8.8 million for toaster pastries over a 179-day period appears high. Benchmarking against similar food manufacturing contracts would be necessary to determine true value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of 'Full and Open Competition' is a positive indicator for price discovery. However, the specific nature of the product (toaster pastries) might limit the number of truly competitive bids.
Taxpayer Impact: Taxpayer funds are being used for food procurement. The efficiency of the procurement process and the final price paid will determine the overall taxpayer impact.
Public Impact
Ensures supply of essential food items for military personnel. Supports the food manufacturing sector through government contracts. Potential for price fluctuations based on market conditions for ingredients.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High per-unit cost potential for a seemingly simple food item.
- Lack of small business participation.
- Short contract duration may indicate urgent need or limited scope.
Positive Signals
- Full and open competition utilized.
- Clear contract end date and delivery period.
Sector Analysis
This contract falls under the Miscellaneous Food Manufacturing sector. Spending in this sector is generally stable, driven by demand for staple food products. Benchmarks for similar food items can vary widely based on ingredients and processing.
Small Business Impact
The award data indicates no small business participation (sb: false). This suggests that either no small businesses bid, or the prime contractor is not a small business and did not subcontract to any.
Oversight & Accountability
The Defense Logistics Agency (DLA) is responsible for this procurement. Oversight would involve ensuring delivery specifications are met and payments are processed correctly according to the firm fixed price contract.
Related Government Programs
- All Other Miscellaneous Food Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for high unit cost.
- Lack of small business involvement.
- Short contract duration may indicate limited scope or urgent need.
- Dependence on a single supplier for a specific food item.
Tags
all-other-miscellaneous-food-manufacturi, department-of-defense, tx, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.8 million to STERLING BV, INC.. 8511790505!TOASTER PASTRY
Who is the contractor on this award?
The obligated recipient is STERLING BV, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $8.8 million.
What is the period of performance?
Start: 2025-12-04. End: 2026-06-01.
What is the estimated per-unit cost of these toaster pastries, and how does it compare to commercial equivalents or other government food contracts?
Without specific quantity details, calculating the per-unit cost is impossible. However, given the $8.8 million award for a 179-day period, the unit cost could be substantial. A thorough analysis would require the total quantity ordered to benchmark against commercial prices and other DLA food contracts to ensure fair pricing and prevent potential overspending.
What are the specific risks associated with procuring a high volume of toaster pastries through a single delivery order?
Risks include potential supply chain disruptions affecting Sterling BV, Inc., leading to delivery delays. If the pastries are for a specific operational need, delays could impact morale or readiness. Furthermore, a single large order might not capture the best possible price compared to staggered orders or longer-term agreements, especially if ingredient costs fluctuate significantly.
How effective is the 'Full and Open Competition' strategy for a niche food product like toaster pastries in achieving optimal value?
While 'Full and Open Competition' is generally the most effective method for achieving value, its success for niche products depends on the actual number of capable suppliers. If only a few manufacturers can produce these specific pastries to the required specifications, the competition might be limited in practice, potentially impacting the final price achieved compared to a broader market.
Industry Classification
NAICS: Manufacturing › Other Food Manufacturing › All Other Miscellaneous Food Manufacturing
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
Address: 1075 ARION PKWY, SAN ANTONIO, TX, 78216
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $8,818,550
Exercised Options: $8,818,550
Current Obligation: $8,818,550
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE3S123DZ260
IDV Type: IDC
Timeline
Start Date: 2025-12-04
Current End Date: 2026-06-01
Potential End Date: 2026-06-01 00:00:00
Last Modified: 2026-01-09
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