DoD awards $11.9M contract for food services at Robins AFB, raising questions about competition and value

Contract Overview

Contract Amount: $11,905,638 ($11.9M)

Contractor: Georgia Vocational Rehabilitation Agency

Awarding Agency: Department of Defense

Start Date: 2022-09-30

End Date: 2027-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $6.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FOOD SERVICE SUPPORT AT ROBINS AIR FORCE BASE DINING FACILITIES.

Place of Performance

Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31098

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $11.9 million to GEORGIA VOCATIONAL REHABILITATION AGENCY for work described as: FOOD SERVICE SUPPORT AT ROBINS AIR FORCE BASE DINING FACILITIES. Key points: 1. Contract awarded on a firm-fixed-price basis, providing cost certainty for the government. 2. The contract's duration of 5 years suggests a long-term need for these services. 3. Awarded to Georgia Vocational Rehabilitation Agency, a non-profit organization. 4. The base value of the contract is $6.5M, with potential for growth. 5. The contract was not competed, raising concerns about price discovery and potential overpayment. 6. The North American Industry Classification System (NAICS) code 722310 indicates food service contractors. 7. The contract is for food service support at dining facilities. 8. The contract is located in Georgia.

Value Assessment

Rating: fair

The contract's firm-fixed-price structure offers some cost predictability. However, without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The base value of $6.5M over five years, with a total potential of $11.9M, requires further analysis to determine if it represents a fair price for the services rendered. The lack of competition is a significant factor in assessing value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in specific circumstances like supporting small businesses or non-profit organizations. The lack of competition limits the government's ability to secure the best possible price through market forces.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This necessitates a thorough review of the pricing to ensure it aligns with fair market value.

Public Impact

Service members at Robins Air Force Base will receive food services. The contract supports the operational readiness of the Air Force base. The contract provides employment opportunities through the Georgia Vocational Rehabilitation Agency. The services are geographically concentrated at Robins Air Force Base in Georgia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
The sole-source nature of the award warrants scrutiny of the justification for non-competition.
Performance metrics and quality assurance details are not readily available for assessment.

Positive Signals

Award to a vocational rehabilitation agency may align with socio-economic goals.
Firm-fixed-price contract provides budget certainty.
Long-term contract indicates a stable and ongoing need for the service.

Sector Analysis

The food service industry is a significant sector within government contracting, encompassing a wide range of support services for military bases, federal agencies, and public institutions. This contract falls under the broader category of facility support services. While specific benchmarks for food service contracts at military installations can vary widely based on location, size, and scope of services, the total potential value of $11.9M over five years places it as a moderately sized contract within this domain.

Small Business Impact

While this contract was awarded to the Georgia Vocational Rehabilitation Agency, which is a non-profit organization, it is not explicitly a small business set-aside. The implications for small businesses are indirect; the award to a non-profit means that prime contract opportunities for small businesses within this specific food service requirement are limited. However, the non-profit may engage small businesses for subcontracting, though this is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and logistics commands at Robins Air Force Base. Accountability measures would be defined in the contract's performance work statement (PWS), including quality assurance surveillance plans (QASPs). Transparency is limited by the sole-source nature of the award, but contract award data is publicly available through federal procurement databases.

Related Government Programs

Food Services Contracts
Base Operations Support
Military Dining Facilities
Government Food Procurement

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for unbenchmarked pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.9 million to GEORGIA VOCATIONAL REHABILITATION AGENCY. FOOD SERVICE SUPPORT AT ROBINS AIR FORCE BASE DINING FACILITIES.

Who is the contractor on this award?

The obligated recipient is GEORGIA VOCATIONAL REHABILITATION AGENCY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $11.9 million.

What is the period of performance?

Start: 2022-09-30. End: 2027-09-29.

What is the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, which is synonymous with a sole-source award. The specific justification for this sole-source award is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source can satisfy the agency's needs, or in specific circumstances such as urgent requirements, follow-on work to a previous contract where only one source is capable, or when awarding to certain types of organizations like non-profits or small businesses under specific programs. Without the official justification document, it's impossible to definitively state why this contract was not competed. Further investigation into the contract file or agency procurement records would be necessary to ascertain the precise reason.

How does the potential value of $11.9M compare to similar food service contracts at other Air Force bases?

Benchmarking this $11.9M contract against similar food service contracts at other Air Force bases is challenging without more specific data points. Factors such as the number of personnel served, the scope of services (e.g., meal types, operating hours, special events), geographic location (affecting labor and supply costs), and contract duration significantly influence pricing. However, for a 5-year contract supporting a major Air Force base, $11.9M in potential value (averaging approximately $2.38M per year) is within a plausible range. Contracts for large-scale food services at major installations can range from a few million to tens of millions of dollars annually. The lack of competition here makes a direct value-for-money comparison difficult, as a competitive process would likely yield more transparent pricing data.

What are the specific performance standards and quality metrics for this food service contract?

The provided data does not include specific performance standards or quality metrics for this food service contract. These details are typically outlined in the Performance Work Statement (PWS) and Quality Assurance Surveillance Plan (QASP) associated with the contract. For food services, common performance metrics often include food quality and taste, timeliness of service, sanitation and hygiene standards, variety of menu options, customer satisfaction ratings from service members, and adherence to dietary guidelines. The Department of the Air Force would have established these metrics to ensure the contractor meets the required level of service. Without access to the PWS and QASP, a detailed assessment of the contractor's expected performance and the government's oversight mechanisms is not possible.

What is the track record of the Georgia Vocational Rehabilitation Agency as a government contractor, particularly in food services?

The provided data indicates the contractor is the Georgia Vocational Rehabilitation Agency (GVRA). GVRA is a state agency focused on helping Georgians with disabilities achieve employment and independence. While GVRA's primary mission is vocational rehabilitation, it may operate or manage food service operations as part of its employment programs or through partnerships. Information regarding GVRA's specific track record as a government contractor, especially in managing large-scale food service operations for the Department of Defense, is not detailed in the provided data. Government contract databases might contain historical award information, but assessing their performance history would require reviewing past contract performance reports (CPARs) or other evaluative data, which is not available here.

What are the potential risks associated with a sole-source food service contract of this duration?

The primary risk associated with a sole-source food service contract of this 5-year duration is the potential for inflated costs due to the lack of competitive bidding. Without market pressure, the contractor may not be incentivized to offer the most competitive pricing. Another risk is complacency; a sole-source provider might become less focused on innovation or service improvement over time, knowing their position is secured. Furthermore, if the contractor's performance falters, the process of finding and transitioning to a new provider could be complex and disruptive, especially given the essential nature of food services for base personnel. Ensuring robust oversight and clear performance standards becomes even more critical in sole-source scenarios.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5238 ROYAL WOODS PKWY, TUCKER, GA, 30084

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

Financial Breakdown

Contract Ceiling: $18,418,704

Exercised Options: $15,177,496

Current Obligation: $11,905,638

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline