Former DeCA official consulted with contract winner
Former DeCA official consulted with contract winner
For a produce industry that was already generally opposed to single-source produce buying for the Defense Commissary Agency, word that Carroll Allred has been a consultant to at least one company that bid on military business may not be well received.
Mr. Allred was the category manager for produce before retiring from DeCA in Fort Lee, VA, at the end of 2005. In recent weeks, DeCA has announced that a handful of companies have won military contracts worth tens of millions of dollars.
Two contracts still have not been announced, but DeCA anticipates awarding contracts for both Areas 4 and 6 prior to Sept. 30 (see related this page). Among the contract winners on Aug. 22 was Four Seasons Produce Inc. in Ephrata, PA. Four Seasons received the contract to serve military commissaries in Area 3, both Groups 1 and 2.
On Aug. 29, Ronald Carkoski, president and chief executive officer of Four Seasons, made no apologies in saying that Mr. Allred had been working as a paid consultant for his company. Mr. Allred consulted with Four Seasons in helping it prepare its DeCA bid, which was due in May. Mr. Carkoski said that Mr. Allred will have a role helping Four Seasons merchandise to commissaries served in the new contract "if we are looking for help."
Mr. Carkoski said, "He was minimally involved with us. He certainly is not with the company and was not involved any way, shape or form except in an advisory manner. I think he's working with other groups trying to capture the business."
(Calls to Mr. Allred at his home in Virginia were not returned by press time for the Sept. 4 issue of The Produce News. Kevin Robinson, who heads media relations and corporate communications for DeCA, said that Mr. Allred asked the Agency Ethics Office for advice concerning what post-employment restrictions he might have before he retired.
"In Mr. Allred's case, those restrictions would prevent him from using insider information in the pursuit of any activity with a future employer," said Mr. Robinson. "Other post-employment restrictions were not applicable to Mr. Allred. At the time this advice was sought and given, Mr. Allred did not reveal whether he had any potential offers of employment from anyone.
"The critical factor in evaluating post-employment restrictions under government ethics rules are the specific duties the individual performed for the government," Mr. Robinson continued. "The applicable restrictions come into play when an individual is personally and substantially involved with the development or operation of an acquisition strategy or plan, or the matter was under his official responsibility. In Mr. Allred's case, he was neither involved in the development or operation of the acquisition plan, nor was he a procurement official with responsibilities for the produce contracts. Mr. Allred did not participate in drafting the solicitation or the source selection plan. In fact, he retired from government service before we finalized our acquisition plans for the produce initiative. Thus, the government's post- employment restrictions would not prevent him from being employed by anyone. His only restriction was on the use of non-public information.
"Using insider information is considered a conflict of interest and would subject both a former employee and the user of such information to criminal and civil penalties," added Mr. Robinson. "In addition, the procurement integrity rules, if violated, could result in the termination of a contract and potential debarment of that company and/or its officers from bidding on or receiving other government contracts."
Mr. Carkoski said that the bidding process to capture the commissary business by Four Seasons "was all done internally with our staff here. Did [Mr. Allred] advise or talk to us about some of the things that were crucial to be in the response? Sure he did. Was he involved directly? None whatsoever. None, zero, whatsoever."
Mr. Carkoski noted that Mr. Allred was involved with all bidders through roundtable discussions during the bidding process. Thus, Mr. Carkoski said, all the bidders "had the opportunities to work within and hear his thoughts." Mr. Robinson indicated to The Produce News that DeCA was not aware of any DeCA people who have left the agency to work for any of the companies that have received a contract as part of the produce initiative.
"Like all government agencies, DeCA employees leaving government service are bound by the standards of conduct applicable to employees of the executive branch of the government," said Mr. Robinson. "These rules are administered by the United States Office of Government Ethics. The post- employment restrictions discussed [above] in conjunction with question one come from those rules."
Pat Davis, president of North American Perishable Agricultural Receivers in Washington, DC, said that he recently concluded a six-year service as facilitator for the Industry Committee on Produce Procurement for Military Commissaries.
"During most of that time, Carroll [Allred] represented DeCA on the committee," Mr. Davis told The Produce News Aug. 30. "He was very straightforward and forthcoming. We always relied on him for the right story. I can see how he would provide a valuable resource for a company looking for insight and instruction on how to deal with DeCA in submitting the proper paperwork and so forth. I would hope that Carroll cleared his consultancy with the legal department at DeCA before venturing out on his own."
Mr. Davis said that Mr. Allred had, in advance, told Mr. Davis of his plans to be a consultant. "He saw no conflict of interest whatsoever."
The Defense Supply Center-Philadelphia is the agency which is losing its produce buying jurisdiction to DeCA. The Produce News asked Lorraine Netzko, who handles corporate communications for the organization, about her group's timing and view of the changes. She offered that "DSC-P will support DeCA commissaries up to the point when their contractor starts performance. Those timelines are being coordinated between DeCA and DSCP."
As to other comments on the change, Ms. Netzko said, "These questions are targeted toward DeCA's produce contracts and implementation, and should be forwarded to and answered by DeCA."
An Aug. 28 press release from Four Seasons said that the firm had been awarded an "indefinite delivery contract [by DeCA] to provide fresh fruits and vegetables to select commissary stores located in the Midwest and East Coast regions of the United States. The contract will commence September 22, 2006, and will continue for two years, with two subsequent one-year options to renew. Four Seasons Produce Inc. was chosen from among 91 firms solicited by DeCA for this contract. Four Seasons will handle all aspects of the order process and will partner with Caito Foods Service Inc. in Indianapolis, IN, to provide purchasing, merchandising and distribution services for 41 commissaries."
In the press release, Mr. Carkoski is quoted as saying Four Seasons "is honored to be the recipient of this prestigious contract and feels that their alliance with Caito Foods has created a powerful partnership."
It added, "We are so proud to be able to support the government and the armed forces patrons through their use of our products and services. Our alliance with Caito Foods puts us in a great position to provide superior service and top-quality products for DeCA."
Also in the release, Caito Foods Executive Director Fred Caito said, "The new (DeCA) initiative has united two regional produce distributors to create a greater savings, improved selection and quality, and, ultimately, a better cost of goods for DeCA."
The eastern Ohio border will serve as the dividing line of service between the two produce companies. Caito Foods will service commissaries located in Illinois, Indiana, Kentucky, Michigan, Ohio and Wisconsin. Four Seasons Produce will service commissaries located in Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Virginia.
On Aug. 29, Mr. Carkoski told The Produce News that Four Seasons would be "up and running by the September 22 contract date," but he added, "I believe there is some leeway here. With the operation we have here and our facilities, we are capable of bringing that kind of business on board. We are all working hard to do right. We should be able to accommodate the September 22 start date."
Mr. Allred was the category manager for produce before retiring from DeCA in Fort Lee, VA, at the end of 2005. In recent weeks, DeCA has announced that a handful of companies have won military contracts worth tens of millions of dollars.
Two contracts still have not been announced, but DeCA anticipates awarding contracts for both Areas 4 and 6 prior to Sept. 30 (see related this page). Among the contract winners on Aug. 22 was Four Seasons Produce Inc. in Ephrata, PA. Four Seasons received the contract to serve military commissaries in Area 3, both Groups 1 and 2.
On Aug. 29, Ronald Carkoski, president and chief executive officer of Four Seasons, made no apologies in saying that Mr. Allred had been working as a paid consultant for his company. Mr. Allred consulted with Four Seasons in helping it prepare its DeCA bid, which was due in May. Mr. Carkoski said that Mr. Allred will have a role helping Four Seasons merchandise to commissaries served in the new contract "if we are looking for help."
Mr. Carkoski said, "He was minimally involved with us. He certainly is not with the company and was not involved any way, shape or form except in an advisory manner. I think he's working with other groups trying to capture the business."
(Calls to Mr. Allred at his home in Virginia were not returned by press time for the Sept. 4 issue of The Produce News. Kevin Robinson, who heads media relations and corporate communications for DeCA, said that Mr. Allred asked the Agency Ethics Office for advice concerning what post-employment restrictions he might have before he retired.
"In Mr. Allred's case, those restrictions would prevent him from using insider information in the pursuit of any activity with a future employer," said Mr. Robinson. "Other post-employment restrictions were not applicable to Mr. Allred. At the time this advice was sought and given, Mr. Allred did not reveal whether he had any potential offers of employment from anyone.
"The critical factor in evaluating post-employment restrictions under government ethics rules are the specific duties the individual performed for the government," Mr. Robinson continued. "The applicable restrictions come into play when an individual is personally and substantially involved with the development or operation of an acquisition strategy or plan, or the matter was under his official responsibility. In Mr. Allred's case, he was neither involved in the development or operation of the acquisition plan, nor was he a procurement official with responsibilities for the produce contracts. Mr. Allred did not participate in drafting the solicitation or the source selection plan. In fact, he retired from government service before we finalized our acquisition plans for the produce initiative. Thus, the government's post- employment restrictions would not prevent him from being employed by anyone. His only restriction was on the use of non-public information.
"Using insider information is considered a conflict of interest and would subject both a former employee and the user of such information to criminal and civil penalties," added Mr. Robinson. "In addition, the procurement integrity rules, if violated, could result in the termination of a contract and potential debarment of that company and/or its officers from bidding on or receiving other government contracts."
Mr. Carkoski said that the bidding process to capture the commissary business by Four Seasons "was all done internally with our staff here. Did [Mr. Allred] advise or talk to us about some of the things that were crucial to be in the response? Sure he did. Was he involved directly? None whatsoever. None, zero, whatsoever."
Mr. Carkoski noted that Mr. Allred was involved with all bidders through roundtable discussions during the bidding process. Thus, Mr. Carkoski said, all the bidders "had the opportunities to work within and hear his thoughts." Mr. Robinson indicated to The Produce News that DeCA was not aware of any DeCA people who have left the agency to work for any of the companies that have received a contract as part of the produce initiative.
"Like all government agencies, DeCA employees leaving government service are bound by the standards of conduct applicable to employees of the executive branch of the government," said Mr. Robinson. "These rules are administered by the United States Office of Government Ethics. The post- employment restrictions discussed [above] in conjunction with question one come from those rules."
Pat Davis, president of North American Perishable Agricultural Receivers in Washington, DC, said that he recently concluded a six-year service as facilitator for the Industry Committee on Produce Procurement for Military Commissaries.
"During most of that time, Carroll [Allred] represented DeCA on the committee," Mr. Davis told The Produce News Aug. 30. "He was very straightforward and forthcoming. We always relied on him for the right story. I can see how he would provide a valuable resource for a company looking for insight and instruction on how to deal with DeCA in submitting the proper paperwork and so forth. I would hope that Carroll cleared his consultancy with the legal department at DeCA before venturing out on his own."
Mr. Davis said that Mr. Allred had, in advance, told Mr. Davis of his plans to be a consultant. "He saw no conflict of interest whatsoever."
The Defense Supply Center-Philadelphia is the agency which is losing its produce buying jurisdiction to DeCA. The Produce News asked Lorraine Netzko, who handles corporate communications for the organization, about her group's timing and view of the changes. She offered that "DSC-P will support DeCA commissaries up to the point when their contractor starts performance. Those timelines are being coordinated between DeCA and DSCP."
As to other comments on the change, Ms. Netzko said, "These questions are targeted toward DeCA's produce contracts and implementation, and should be forwarded to and answered by DeCA."
An Aug. 28 press release from Four Seasons said that the firm had been awarded an "indefinite delivery contract [by DeCA] to provide fresh fruits and vegetables to select commissary stores located in the Midwest and East Coast regions of the United States. The contract will commence September 22, 2006, and will continue for two years, with two subsequent one-year options to renew. Four Seasons Produce Inc. was chosen from among 91 firms solicited by DeCA for this contract. Four Seasons will handle all aspects of the order process and will partner with Caito Foods Service Inc. in Indianapolis, IN, to provide purchasing, merchandising and distribution services for 41 commissaries."
In the press release, Mr. Carkoski is quoted as saying Four Seasons "is honored to be the recipient of this prestigious contract and feels that their alliance with Caito Foods has created a powerful partnership."
It added, "We are so proud to be able to support the government and the armed forces patrons through their use of our products and services. Our alliance with Caito Foods puts us in a great position to provide superior service and top-quality products for DeCA."
Also in the release, Caito Foods Executive Director Fred Caito said, "The new (DeCA) initiative has united two regional produce distributors to create a greater savings, improved selection and quality, and, ultimately, a better cost of goods for DeCA."
The eastern Ohio border will serve as the dividing line of service between the two produce companies. Caito Foods will service commissaries located in Illinois, Indiana, Kentucky, Michigan, Ohio and Wisconsin. Four Seasons Produce will service commissaries located in Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Virginia.
On Aug. 29, Mr. Carkoski told The Produce News that Four Seasons would be "up and running by the September 22 contract date," but he added, "I believe there is some leeway here. With the operation we have here and our facilities, we are capable of bringing that kind of business on board. We are all working hard to do right. We should be able to accommodate the September 22 start date."
