Treasury's $17.4M food services contract with Global Connections to Employment, Inc. awarded non-competitively

Contract Overview

Contract Amount: $17,404,966 ($17.4M)

Contractor: Global Connections to Employment, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2021-10-01

End Date: 2026-06-30

Contract Duration: 1,733 days

Daily Burn Rate: $10.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FOOD SERVICES FOR AFRH-W CAMPUS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20011

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $17.4 million to GLOBAL CONNECTIONS TO EMPLOYMENT, INC. for work described as: FOOD SERVICES FOR AFRH-W CAMPUS Key points: 1. The contract value of $17.4 million over its potential duration represents a significant investment in campus food services. 2. The non-competitive award raises questions about the extent of market research and justification for excluding other potential vendors. 3. Performance risk appears moderate, given the nature of food services, but requires diligent oversight to ensure quality and compliance. 4. The contract's duration of nearly five years suggests a long-term need for these services at the AFRH-W campus. 5. This spending falls within the broader category of facility support services, a common area of government contracting. 6. The fixed-price contract type aims to provide cost certainty for the government, shifting performance risk to the contractor.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the scope of services and the number of individuals served at the AFRH-W campus. However, a $17.4 million contract for food services over approximately five years suggests a substantial per-meal cost. Comparing this to similar large-scale food service contracts for institutional settings, such as military bases or large federal agency cafeterias, would be necessary to determine if the pricing is competitive. The lack of competition in the award process further complicates a thorough value assessment, as there was no direct price comparison through a bidding process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. The justification for this type of award typically involves specific circumstances, such as the unique capabilities of the contractor or a lack of adequate competition. Without the specific justification documentation, it is difficult to assess the thoroughness of the government's market research or the validity of the sole-source determination. This approach limits the potential for price discovery through competitive bidding.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers if alternative, more cost-effective solutions were available but not explored through competition.

Public Impact

Residents and staff at the Armed Forces Retirement Home in Washington, D.C. (AFRH-W) are the primary beneficiaries, receiving essential daily meal services. The contract ensures the provision of food preparation and service, contributing to the overall quality of life and well-being at the facility. The geographic impact is localized to the AFRH-W campus in Washington, D.C. While not directly a workforce development contract, the contractor, Global Connections to Employment, Inc., may employ individuals in food service roles, potentially including those with barriers to employment, aligning with the organization's mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits opportunities for cost savings and innovation.
Potential for higher costs due to sole-source award.
Need for robust oversight to ensure service quality and contract compliance.
Contract duration may not align with evolving needs without review.

Positive Signals

Contract provides essential services to a specific population (AFRH-W residents).
Firm fixed-price structure offers budget predictability.
Contractor's name suggests a potential social mission alignment, which could be a positive factor if leveraged effectively.

Sector Analysis

The food services industry is a large and diverse sector, encompassing everything from institutional catering to restaurant operations. Government contracts for food services are common, supporting federal facilities, military installations, and public institutions. This specific contract falls under the broader umbrella of facility support services. Comparable spending benchmarks would typically involve analyzing per-meal costs or per-person-per-day costs for similar institutional food service contracts across various government agencies. The market size for government food service contracts is substantial, driven by the operational needs of numerous federal entities.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss': false indicates it is not a small business prime award. This means the primary contract was not specifically targeted to small businesses. There is no explicit information provided regarding subcontracting plans or requirements for small business participation. Therefore, the direct impact on the small business ecosystem from this specific prime contract is likely minimal, unless the prime contractor voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of the Fiscal Service within the Department of the Treasury. Accountability measures would be embedded in the contract's performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would typically extend to investigating potential fraud, waste, or abuse related to the contract, should any allegations arise.

Related Government Programs

Food Services
Facility Support Services
Institutional Catering
Government Cafeterias
Armed Forces Retirement Home Operations

Risk Flags

Sole-source award without clear justification.
Potential for uncompetitive pricing.
Lack of performance data in provided snippet.
Long contract duration without explicit review mechanisms.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $17.4 million to GLOBAL CONNECTIONS TO EMPLOYMENT, INC.. FOOD SERVICES FOR AFRH-W CAMPUS

Who is the contractor on this award?

The obligated recipient is GLOBAL CONNECTIONS TO EMPLOYMENT, INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $17.4 million.

What is the period of performance?

Start: 2021-10-01. End: 2026-06-30.

What is the specific justification for the sole-source award of this food services contract?

The provided data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for such an award typically requires the contracting agency to demonstrate that only one responsible source is capable of providing the supplies or services required at the fair and reasonable price, or that an exception to the general policy of full and open competition applies. Common justifications include unique capabilities, urgent needs, or situations where competition is not feasible or cost-effective. Without access to the agency's justification documentation (e.g., a Justification and Approval document), the precise reasons for bypassing a competitive bidding process remain unknown. This lack of transparency can raise concerns about whether the government obtained the best possible value.

How does the per-meal cost of this contract compare to industry benchmarks for institutional food services?

Determining the precise per-meal cost requires dividing the total contract value ($17.4 million) by the estimated number of meals served over the contract period (October 1, 2021, to June 30, 2026, approximately 1733 days). However, the number of meals is not provided. If we assume a constant daily service, we would need to know the number of residents and staff served daily. Without this crucial information, a direct per-meal cost calculation and comparison to industry benchmarks (e.g., per-meal costs for military dining facilities, university cafeterias, or other government institutions) is not possible. Benchmarking would also require understanding the scope of services included (e.g., meal types, dietary accommodations, service hours).

What is the track record of Global Connections to Employment, Inc. in performing similar federal contracts?

Information on Global Connections to Employment, Inc.'s track record with federal contracts is not detailed in the provided data snippet. While the contract award itself indicates they were selected for this $17.4 million food services agreement, it doesn't offer insight into their past performance history, quality of service, or compliance record on previous government contracts. A comprehensive assessment would require reviewing their performance evaluations on past contracts (e.g., Contractor Performance Assessment Reporting System - CPARS), any past disputes or contract terminations, and their overall experience in managing large-scale food service operations for federal entities. Their organizational name suggests a potential focus on employment for individuals with disabilities, which could influence their operational approach and performance metrics.

What are the potential risks associated with a long-duration, sole-source contract for essential services like food?

Long-duration, sole-source contracts for essential services present several risks. Firstly, the lack of competition can lead to complacency and potentially higher prices over time, as the contractor faces no market pressure to innovate or reduce costs. Secondly, the government may be locked into a relationship with a contractor whose performance could degrade, or whose services become less aligned with evolving needs, without an easy exit or alternative. Thirdly, without competitive benchmarking, it's difficult to ensure the government is consistently receiving fair market value. Finally, sole-source awards can create a perception of favoritism or missed opportunities for other capable vendors, potentially impacting broader market dynamics and government-wide cost efficiencies.

How does this contract fit within the broader spending patterns for facility support services at the Department of the Treasury?

This $17.4 million contract for food services at the AFRH-W campus represents a specific component of the Department of the Treasury's overall spending on facility support. Facility support services encompass a wide range of needs, including maintenance, custodial services, security, and food services. To understand how this contract fits within broader patterns, one would need to analyze the Treasury's total expenditure on facility support over several fiscal years, identify the proportion allocated to food services versus other categories, and compare the size and nature of this contract to other similar service contracts awarded by the Treasury or its bureaus. The fact that it's a sole-source award for a significant amount warrants scrutiny within the context of Treasury's procurement strategies for essential services.

Industry Classification

NAICS: Accommodation and Food Services › Special Food Services › Food Service Contractors

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: AFRH-FOODSERVICES

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1221 W LAKEVIEW AVE, PENSACOLA, FL, 32501

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,464,008

Exercised Options: $17,464,008

Current Obligation: $17,404,966

Actual Outlays: $15,745,344

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline