DoD's $12.6M Yogurt Purchase from General Mills Inc. Lacked Competition

Contract Overview

Contract Amount: $12,612,386 ($12.6M)

Contractor: General Mills Inc

Awarding Agency: Department of Defense

Start Date: 2009-01-01

End Date: 2009-03-31

Contract Duration: 89 days

Daily Burn Rate: $141.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Other

Official Description: RESALE - YOGURT

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55426

State: Minnesota Government Spending

Plain-Language Summary

Department of Defense obligated $12.6 million to GENERAL MILLS INC for work described as: RESALE - YOGURT Key points: 1. Significant spending on a common grocery item, yogurt. 2. Sole-source award to General Mills Inc. raises competition concerns. 3. Limited contract duration (89 days) may indicate urgent need or short-term planning. 4. Lack of detailed pricing data hinders thorough value assessment.

Value Assessment

Rating: questionable

Pricing information is not available, making it impossible to assess if the $12.6 million spent on yogurt was a fair market price. Without benchmarks or detailed cost breakdowns, value for money is uncertain.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition in this procurement may have resulted in a higher price than could have been achieved through a competitive bidding process, impacting taxpayer funds.

Public Impact

Taxpayers funded a substantial purchase of a common consumer good. The Defense Commissary Agency's procurement practices are highlighted, specifically regarding competitive sourcing. This spending decision raises questions about efficiency and cost-effectiveness in government food procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Limited Transparency on Pricing
Sole-Source Award

Positive Signals

Procurement for Commissary Services
Potential for Bulk Purchasing Discounts (though not evident)

Sector Analysis

This purchase falls under general grocery wholesale, a sector characterized by high volume and often competitive pricing. Government spending in this area should ideally reflect market efficiencies.

Small Business Impact

There is no indication that small businesses were involved in this procurement, as it was a sole-source award to a large corporation.

Oversight & Accountability

The limited contract duration and sole-source nature warrant further oversight to ensure accountability and explore opportunities for future competitive sourcing.

Related Government Programs

General Line Grocery Merchant Wholesalers
Department of Defense Contracting
Defense Commissary Agency Programs

Risk Flags

Lack of Competition
Sole-Source Award
No Pricing Data Available
Limited Contract Duration
Potential for Overpayment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.6 million to GENERAL MILLS INC. RESALE - YOGURT

Who is the contractor on this award?

The obligated recipient is GENERAL MILLS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Commissary Agency).

What is the total obligated amount?

The obligated amount is $12.6 million.

What is the period of performance?

Start: 2009-01-01. End: 2009-03-31.

What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source justification was applied. However, the specific reasons for this determination and whether other competitive avenues were explored are not detailed. Further investigation would be needed to understand the rationale behind bypassing the standard competitive bidding process for this significant purchase.

How does the unit cost of this yogurt purchase compare to similar government or commercial contracts, given the lack of available pricing data?

Without specific pricing details such as unit cost, quantity per unit, or type of yogurt, a direct comparison is impossible. The total award amount of $12.6 million for an 89-day delivery order provides no basis for per-unit cost analysis. Benchmarking is therefore not feasible with the current data.

What is the strategic value of procuring this specific quantity of yogurt through the Defense Commissary Agency, and does it align with broader food security or operational readiness goals?

The strategic value is primarily in supporting the Defense Commissary Agency's mission to provide groceries to military personnel and their families at a cost savings. While essential for morale and welfare, the specific quantity and sole-source nature of this $12.6 million purchase raise questions about whether it represents the most cost-effective method to meet these needs or if it aligns with broader food security objectives.

Industry Classification

NAICS: Wholesale Trade › Grocery and Related Product Merchant Wholesalers › General Line Grocery Merchant Wholesalers

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 GENERAL MILLS BLVD, MINNEAPOLIS, MN, 55426

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,612,386

Exercised Options: $12,612,386

Current Obligation: $12,612,386

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDEC0104G3050

IDV Type: IDC

Timeline