DOT's $21.7M Food Service Contract for Merchant Marine Academy Awarded to Crystal Enterprises, Inc

Contract Overview

Contract Amount: $21,696,955 ($21.7M)

Contractor: Crystal Enterprises, Inc.

Awarding Agency: Department of Transportation

Start Date: 2013-09-03

End Date: 2020-01-31

Contract Duration: 2,341 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: IGF::OT::IGF PROVIDE FULL FOOD SERVICES FOR THE UNITED STATES MERCHANT MARINE ACADEMY, KINGS POINT, NEW YORK

Place of Performance

Location: GREAT NECK, NASSAU County, NEW YORK, 11024

State: New York Government Spending

Plain-Language Summary

Department of Transportation obligated $21.7 million to CRYSTAL ENTERPRISES, INC. for work described as: IGF::OT::IGF PROVIDE FULL FOOD SERVICES FOR THE UNITED STATES MERCHANT MARINE ACADEMY, KINGS POINT, NEW YORK Key points: 1. Contract value of $21.7 million over its period of performance. 2. Crystal Enterprises, Inc. secured the contract. 3. The contract was awarded under full and open competition after exclusion of sources. 4. The sector is primarily food services, falling under the broader 'Other' category for federal spending analysis.

Value Assessment

Rating: fair

The contract's fixed-price with economic price adjustment structure suggests an attempt to manage cost fluctuations. Benchmarking against similar food service contracts would be necessary to fully assess pricing fairness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 'full and open competition after exclusion of sources' indicates a competitive process was intended, though the specific exclusion might warrant further investigation. This method aims for best value and price discovery.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary services.

Public Impact

Ensures essential food services for cadets and staff at the U.S. Merchant Marine Academy. Supports the operational readiness and training environment of a key federal institution. Impacts the daily lives of academy personnel through provision of meals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause can lead to cost overruns if not carefully monitored.
Contract duration is substantial (2013-2020), potentially limiting agility for future needs.
Specifics of 'exclusion of sources' in competition method require clarification.

Positive Signals

Awarded through a competitive process, suggesting potential for value.
Contract addresses a core operational need for the academy.

Sector Analysis

This contract falls under the food service industry, a common area of government procurement. Benchmarks for similar contracts would focus on per-meal costs and service quality metrics.

Small Business Impact

The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The contract's duration and fixed-price nature with adjustments suggest a need for ongoing oversight to manage costs and ensure service quality meets expectations.

Related Government Programs

Food Service Contractors
Department of Transportation Contracting
Maritime Administration Programs

Risk Flags

Potential for cost escalation due to Economic Price Adjustment.
Long contract duration may not reflect current market conditions or needs.
Ambiguity in 'exclusion of sources' could indicate potential competition issues.
Lack of small business participation data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $21.7 million to CRYSTAL ENTERPRISES, INC.. IGF::OT::IGF PROVIDE FULL FOOD SERVICES FOR THE UNITED STATES MERCHANT MARINE ACADEMY, KINGS POINT, NEW YORK

Who is the contractor on this award?

The obligated recipient is CRYSTAL ENTERPRISES, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Maritime Administration).

What is the total obligated amount?

The obligated amount is $21.7 million.

What is the period of performance?

Start: 2013-09-03. End: 2020-01-31.

What was the rationale behind excluding specific sources in the 'full and open competition after exclusion of sources' method, and did this exclusion impact the final price or vendor pool?

The rationale for excluding sources typically relates to specific technical requirements, past performance issues, or unique capabilities. Understanding this exclusion is crucial to determine if it limited competition unfairly or was justified. If justified, it could still lead to competitive pricing if multiple qualified vendors remained. If not, it could inflate costs by reducing the vendor pool.

How did the economic price adjustment (EPA) clause function during the contract period, and what was its actual impact on the final cost compared to a fixed-price contract?

The EPA clause allows for adjustments to the contract price based on fluctuations in specific economic factors, such as labor or material costs. Analyzing the actual price changes triggered by the EPA during the contract's lifespan (2013-2020) is vital. This would reveal whether the clause protected the contractor from unforeseen cost increases or led to significant additional spending for the government, impacting overall value.

What performance metrics were used to evaluate Crystal Enterprises, Inc.'s service delivery, and how did the company perform against these metrics throughout the contract's duration?

Performance metrics for food service contracts typically include food quality, service timeliness, sanitation standards, and customer satisfaction. Evaluating the contractor's performance against these established metrics is essential to determine if the government received the expected value for its investment. Consistent high performance would justify the expenditure, while consistent issues might indicate a need for corrective actions or a review of the contract's effectiveness.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ALTERNATIVE SOURCES

Solicitation ID: DTMA-91-R-2012-0018

Offers Received: 4

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 10837 LANHAM-SEVERN RD, GLENN DALE, MD, 20769

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $26,048,055

Exercised Options: $26,048,055

Current Obligation: $21,696,955

Actual Outlays: $1,342,178

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline