DHS awards $28.6M food services contract to New Mexico Commission for the Blind for 8 years

Contract Overview

Contract Amount: $28,647,054 ($28.6M)

Contractor: THE NEW Mexico Commision for Blind

Awarding Agency: Department of Homeland Security

Start Date: 2023-10-01

End Date: 2031-09-30

Contract Duration: 2,921 days

Daily Burn Rate: $9.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FOOD SERVICES, ARTESIA, NEW MEXICO

Place of Performance

Location: ARTESIA, EDDY County, NEW MEXICO, 88210

State: New Mexico Government Spending

Plain-Language Summary

Department of Homeland Security obligated $28.6 million to THE NEW MEXICO COMMISION FOR BLIND for work described as: FOOD SERVICES, ARTESIA, NEW MEXICO Key points: 1. Contract value represents a significant investment in essential facility support services. 2. Sole-source award raises questions about potential missed opportunities for competitive pricing. 3. Long contract duration (8 years) may limit flexibility and ability to adapt to changing needs. 4. Performance context is critical given the essential nature of food services for training center operations. 5. Sector positioning: Food services are a common support function across many government facilities. 6. Risk indicators include potential for cost overruns due to long-term fixed pricing and lack of competition.

Value Assessment

Rating: fair

The contract value of $28.6 million over eight years averages approximately $3.57 million annually. Benchmarking this against similar food service contracts for federal training facilities is challenging without more specific data on scope and location. However, the lack of competitive bidding in this sole-source award suggests that a thorough price reasonableness analysis may not have been conducted, potentially leading to a less favorable value for the government compared to a competed contract.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. The justification for this approach is not provided in the available data. Sole-source awards can sometimes be appropriate for specialized services or when only one vendor can meet the requirement, but they typically result in less competitive pricing and may indicate a lack of market research or a pre-existing relationship.

Taxpayer Impact: Taxpayers may be paying a premium for these food services due to the absence of competitive pressure. Without a competitive process, there is less assurance that the government secured the best possible price and value.

Public Impact

Federal Law Enforcement Training Center personnel and trainees will receive food services. The contract directly supports the operational readiness of a key federal training facility. Geographic impact is concentrated in Artesia, New Mexico, where the training center is located. Workforce implications include employment opportunities for individuals involved in food service provision, potentially benefiting the New Mexico Commission for the Blind's mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Long contract duration could result in suboptimal service delivery if needs evolve.
Sole-source awards can reduce transparency and accountability in procurement.
Fixed-price contract may not adequately account for unforeseen cost fluctuations in food supplies.

Positive Signals

Contract supports a specific mission-critical function for a federal agency.
Awarding to the New Mexico Commission for the Blind aligns with potential socio-economic goals.
Long-term nature provides stability for service delivery and contractor planning.

Sector Analysis

The food service industry is a significant sector within government contracting, encompassing a wide range of support services for federal agencies. This contract falls under the broader category of facility support services. While specific market size data for federal food service contracts is not readily available, it represents a consistent area of government expenditure. Comparable spending benchmarks would typically involve analyzing other large-scale food service contracts awarded to similar types of organizations or for comparable facilities.

Small Business Impact

The contract data indicates that small business participation is not a primary focus, as the awardee is the New Mexico Commission for the Blind, and there is no indication of small business set-aside or subcontracting requirements. While the awardee may employ individuals with disabilities, which aligns with certain socio-economic objectives, it does not directly benefit the broader small business ecosystem through set-aside provisions.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and the Federal Law Enforcement Training Center (FLETC). Accountability measures would be defined in the contract terms and conditions, including performance standards and reporting requirements. Transparency is limited by the sole-source nature of the award. Inspector General jurisdiction would apply to any investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Law Enforcement Training Center Operations
Department of Homeland Security Support Services
Food and Food Service Contracts
Services for Individuals with Disabilities

Risk Flags

Sole-source award lacks competitive justification.
Long contract duration may not reflect evolving needs or market conditions.
Fixed-price contract may not account for significant cost fluctuations.
Limited transparency due to non-competitive nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $28.6 million to THE NEW MEXICO COMMISION FOR BLIND. FOOD SERVICES, ARTESIA, NEW MEXICO

Who is the contractor on this award?

The obligated recipient is THE NEW MEXICO COMMISION FOR BLIND.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Law Enforcement Training Center).

What is the total obligated amount?

The obligated amount is $28.6 million.

What is the period of performance?

Start: 2023-10-01. End: 2031-09-30.

What is the track record of the New Mexico Commission for the Blind in providing food services to federal agencies?

Information regarding the specific track record of the New Mexico Commission for the Blind in providing food services to federal agencies is not detailed in the provided data. However, as a commission focused on employment for the blind, their mission suggests a capacity for service provision. Further investigation would be needed to ascertain their experience with large-scale federal contracts, client satisfaction, and performance history, particularly concerning contracts of this duration and value. Understanding their past performance on similar contracts would be crucial for assessing the risk associated with this award.

How does the annual cost of this contract compare to similar food service contracts at federal training facilities?

The annual cost of this contract averages approximately $3.57 million ($28.6 million / 8 years). Direct comparison to similar food service contracts at federal training facilities is difficult without more granular data on the scope of services, number of personnel served, geographic location, and specific contract terms. However, sole-source awards often carry a risk of being less cost-effective than competitively bid contracts. A thorough benchmark analysis against publicly available data for comparable contracts, if accessible, would be necessary to definitively assess value for money.

What are the primary risks associated with a sole-source, long-term fixed-price contract for food services?

The primary risks associated with this sole-source, long-term fixed-price contract include potential for inflated costs due to the lack of competition, reduced incentive for the contractor to innovate or improve efficiency over the eight-year period, and the risk of the fixed price becoming unrepresentative of market conditions or actual costs (e.g., food price volatility) over time. Furthermore, the sole-source nature limits the government's ability to leverage market dynamics to secure better pricing or service levels. The long duration also poses a risk if the government's needs or the facility's operational requirements change significantly.

What is the expected effectiveness of the food services provided under this contract for the Federal Law Enforcement Training Center?

The expected effectiveness of the food services hinges on the contractor's ability to consistently provide adequate, nutritious, and timely meals to the personnel and trainees at the Federal Law Enforcement Training Center. Given the essential nature of these services for maintaining morale, health, and operational readiness, effectiveness will be measured by factors such as food quality, variety, adherence to dietary requirements, service punctuality, and overall client satisfaction. The long-term nature of the contract suggests an expectation of sustained, reliable service delivery, though performance monitoring will be key to ensuring effectiveness throughout the contract term.

How does this contract's total value compare to historical federal spending on food services at similar facilities?

The total value of $28.6 million over eight years is a substantial commitment. Historical federal spending on food services at similar facilities can vary widely based on the size of the installation, the number of personnel, and the specific services included. Without access to a comprehensive database of historical federal food service contracts, a precise comparison is challenging. However, this contract's value suggests a significant operational requirement for food services at the Federal Law Enforcement Training Center. Analyzing trends in federal food service procurement, including average contract values and durations, would provide context for this specific award.

What are the implications of the 'NOT AVAILABLE FOR COMPETITION' status for taxpayer value?

The 'NOT AVAILABLE FOR COMPETITION' status, indicating a sole-source award, has significant implications for taxpayer value. When a contract is not competed, the government foregoes the benefits of market forces that typically drive down prices and encourage innovation. This means taxpayers may be paying a higher price than they would if multiple vendors had competed for the contract. It also raises questions about whether the government conducted adequate market research to ensure that no other capable vendors could fulfill the requirement or offer a more competitive bid. This lack of competition can reduce transparency and accountability in the procurement process.

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: 70LART23RPFB00003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2905 RODEO PARK DR E, SANTA FE, NM, 87505

Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $55,816,996

Exercised Options: $28,647,054

Current Obligation: $28,647,054

Actual Outlays: $14,394,161

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Timeline