DoD's $98.4M MRE Contract Awarded to Baxters North America Amidst Full and Open Competition
Contract Overview
Contract Amount: $98,390,000 ($98.4M)
Contractor: Baxters North America, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-12-12
End Date: 2026-10-31
Contract Duration: 323 days
Daily Burn Rate: $304.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 8511811097!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 $98.4 million to BAXTERS NORTH AMERICA, INC. for work described as: 8511811097!MEAL, READY-TO-EAT, IND, Key points: 1. Significant contract value for MREs, indicating substantial demand. 2. Full and open competition suggests a healthy market for these supplies. 3. Potential risk related to supply chain disruptions for perishable goods. 4. Defense sector spending on essential rations remains a critical area.
Value Assessment
Rating: good
The contract value of $98.4M for MREs appears reasonable given the duration and scope. Benchmarking against similar large-scale food service contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive sign for price discovery. It allows multiple qualified vendors to bid, driving competitive pricing.
Taxpayer Impact: Competitive bidding in this award is expected to yield fair pricing, maximizing taxpayer value for essential military rations.
Public Impact
Ensures a consistent supply of essential rations for military personnel. Supports the food manufacturing industry and associated supply chains. Contributes to military readiness and operational effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price fluctuations in raw ingredients.
- Dependence on a single awardee for a critical supply.
- Logistical challenges in distribution to various military locations.
Positive Signals
- Awarded through full and open competition.
- Long-term contract provides supply stability.
- Fixed-price contract limits cost overruns.
Sector Analysis
This contract falls within the food and beverage manufacturing sector, specifically supporting the defense industry's need for ready-to-eat meals. Spending in this area is consistent with historical defense procurement for troop sustenance.
Small Business Impact
While the awardee is Baxters North America, Inc., the contract was awarded under full and open competition. Further analysis would be needed to determine if small businesses were involved as subcontractors.
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
- Potential for ingredient price volatility.
- Supply chain disruptions impacting delivery.
- Ensuring adequate shelf-life and storage conditions.
- Dependence on a single supplier for a critical need.
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 $98.4 million to BAXTERS NORTH AMERICA, INC.. 8511811097!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 $98.4 million.
What is the period of performance?
Start: 2025-12-12. End: 2026-10-31.
What is the historical pricing trend for MREs awarded under similar competitive conditions?
Analyzing historical data for MRE contracts awarded through full and open competition would reveal pricing trends. This includes examining the average price per unit, the number of bids received, and the variance between the winning bid and other competitive offers. Such an analysis would help determine if the current $98.4M award represents a fair market price or if there are opportunities for cost savings in future solicitations.
What are the specific risks associated with the shelf-life and storage of these MREs for the DoD?
The primary risks associated with MRE shelf-life and storage involve potential spoilage, degradation of nutritional value, and the need for specialized climate-controlled warehousing. Improper storage can lead to significant financial losses due to discarded product and compromise troop health and morale. The DoD must have robust inventory management systems and strict adherence to storage guidelines to mitigate these risks effectively.
How does the performance of Baxters North America on previous contracts influence the effectiveness of this award?
The effectiveness of this award is influenced by Baxters North America's past performance. A review of their track record, including on-time delivery rates, product quality, and responsiveness to issues on prior DoD contracts, is crucial. Positive past performance suggests a higher likelihood of successful contract execution, while negative performance could indicate potential risks to supply chain reliability and overall mission support.
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: $98,390,000
Exercised Options: $98,390,000
Current Obligation: $98,390,000
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
Start Date: 2025-12-12
Current End Date: 2026-10-31
Potential End Date: 2026-10-31 00:00:00
Last Modified: 2025-12-22
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