Expiration of Statewide Contract for Cereal 
Statewide Contract #SWC 50388

The statewide contract for cereal expired on February 29, 2012. KACO Supply Company, representing General Mills and Malt-O-Meals cereals, has agreed to extend the previous pricing through March 31, 2012. Kellogg's, the other supplier on the contract, representing Kellogg's cereal, has elected not to extend its pricing through February 29, 2012. Moving forward, after March 31, 2012, the cereal contract will not be replaced by another statewide contract.

State Purchasing has elected not to issue a new contract for cereal because our recent attempt to conduct a solicitation resulted in non-competitive pricing from respondents. A thorough review of the market revealed that prices in this industry are driven by delivery location and volume. Unfortunately, those two data elements could not be obtained on a statewide level for all potential users of a new contract, but could be provided by individual state entities and/or agencies. Furthermore, our research indicates that individual entity solicitations that can provide delivery locations and volume tend to yield more competitive pricing.

Therefore, any state entity or authorized user is encouraged to conduct its own solicitation for cereal, or to partner with other state entities for piggybacking and/or joint solicitations. State Purchasing has already coordinated with the primary users of the contract and each user has agreed to conduct its own solicitation for cereal going forward. State Purchasing is available to assist in the coordination of state entity piggybacking and/or joint procurements, if needed.
 

Please share this information with other procurement professionals in your organization. If you have questions, contact:

Contact's Name: Billy R. Gilbert

Contact's Title: Associate Category Manager

Phone Number: 404-657-4277

Email: billy.gilbert@doas.ga.gov