DoD's $12M Food Service Contract for Kirtland AFB Awarded to New Mexico Commission for the Blind

Contract Overview

Contract Amount: $12,082,432 ($12.1M)

Contractor: THE NEW Mexico Commision for Blind

Awarding Agency: Department of Defense

Start Date: 2021-09-16

End Date: 2026-09-15

Contract Duration: 1,825 days

Daily Burn Rate: $6.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: KIRTLAND AIR FORCE BASE FULL FOOD SERVICES

Place of Performance

Location: KIRTLAND AFB, BERNALILLO County, NEW MEXICO, 87117

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $12.1 million to THE NEW MEXICO COMMISION FOR BLIND for work described as: KIRTLAND AIR FORCE BASE FULL FOOD SERVICES Key points: 1. This contract represents a significant investment in essential base support services. 2. The awardee, a state agency, suggests a focus on social impact alongside service delivery. 3. The long duration of the contract (5 years) indicates a need for stable, ongoing operations. 4. The firm-fixed-price structure shifts cost risk to the contractor. 5. The absence of a competitive bidding process warrants further examination of procurement rationale. 6. Performance will be key to ensuring quality and value for service members.

Value Assessment

Rating: fair

Benchmarking the value of this food service contract is challenging without comparable private sector contracts or detailed service level agreements. The total value of $12.08 million over five years averages to approximately $2.4 million annually. This figure needs to be assessed against the number of personnel served and the scope of services provided (e.g., dining facilities, catering, special events). Given the nature of the award, a direct price comparison to market rates is difficult, but the annual cost per service member should be a key metric for evaluating value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to The New Mexico Commission for the Blind. Sole-source awards typically occur when only one responsible source is available or when specific circumstances justify bypassing full and open competition, such as a requirement for specialized capabilities or a national interest determination. The justification for this sole-source award needs to be thoroughly reviewed to ensure it aligns with federal procurement regulations and that no viable competitive alternatives were overlooked.

Taxpayer Impact: Sole-source awards can potentially lead to higher prices for taxpayers if competition is forgone without adequate justification, as it limits the government's ability to leverage market forces to achieve the best possible price.

Public Impact

Service members stationed at Kirtland Air Force Base will receive essential food services, contributing to morale and well-being. The contract supports the mission of the Department of the Air Force by ensuring the provision of dining facilities. The New Mexico Commission for the Blind, as the awardee, will likely employ individuals with visual impairments, contributing to workforce inclusion and economic opportunities within New Mexico. The contract's geographic impact is localized to Kirtland Air Force Base in New Mexico.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced incentive for efficiency.
The sole-source nature of the award requires careful scrutiny to ensure proper justification and adherence to procurement regulations.
Performance monitoring will be critical to ensure the quality and adequacy of food services provided.

Positive Signals

Award to a state agency focused on employing individuals with visual impairments aligns with social and economic inclusion goals.
The firm-fixed-price contract structure provides cost certainty for the government.
The long-term nature of the contract offers stability for service delivery and workforce planning.

Sector Analysis

The food service industry is a large and diverse sector encompassing a wide range of providers, from large multinational corporations to specialized local caterers. Government contracts for food services are common across military bases, federal agencies, and other public institutions. These contracts often involve significant dollar values due to the scale of operations and the need to serve large populations. Benchmarking this contract's value would involve comparing its annual cost per meal or per person served against industry standards and similar government contracts, considering factors like location, service complexity, and quality requirements.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The awardee is a state commission, not a small business. While there is no direct subcontracting requirement for small businesses specified in the provided data, the scale of the operation might present opportunities for smaller food suppliers or service providers to engage with the prime contractor. The impact on the small business ecosystem would depend on the prime contractor's subcontracting practices.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Air Force's contracting and logistics commands at Kirtland Air Force Base. Performance standards and quality control measures will be defined in the contract's statement of work. Accountability will be managed through contract administration, including regular performance reviews and potential remedies for non-compliance. Transparency is generally maintained through contract award databases, though the justification for sole-source awards may have limited public detail.

Related Government Programs

Base Operations Support Contracts
Food and Ration Services
Government Dining Facility Management
Commissary and Food Services

Risk Flags

Sole-source award justification requires review.
Performance monitoring is critical due to lack of competition.
Potential for price creep over the contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.1 million to THE NEW MEXICO COMMISION FOR BLIND. KIRTLAND AIR FORCE BASE FULL FOOD SERVICES

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 Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $12.1 million.

What is the period of performance?

Start: 2021-09-16. End: 2026-09-15.

What is the track record of The New Mexico Commission for the Blind in managing large-scale food service contracts, particularly for government entities?

Information regarding the specific track record of The New Mexico Commission for the Blind in managing large-scale food service contracts, especially for government entities, is not readily available in the provided data. As a state commission, its primary mission may differ from that of a commercial food service provider. Further investigation would be required to ascertain their experience, past performance on similar contracts, and their capacity to meet the demanding requirements of a military installation like Kirtland Air Force Base. This would typically involve reviewing past performance evaluations, any debriefings from previous solicitations, and potentially contacting the agency directly for details on their operational capabilities and experience in large-scale food service provision.

How does the annual cost of this contract compare to similar food service contracts at other Air Force bases or military installations of comparable size?

Direct comparison of the annual cost of this $2.4 million contract (approximately) to similar food service contracts at other Air Force bases is difficult without more specific data on the scope of services, number of personnel served, and geographic cost variations. However, annual food service contracts for military installations can range from a few million dollars to tens of millions, depending on the base's size, mission, and the specific services included (e.g., dining halls, catering, troop field feeding). To benchmark effectively, one would need to analyze metrics such as cost per meal, cost per person per day, and the range of services provided. The firm-fixed-price nature of this contract suggests a defined scope, but the absence of competition makes a direct price-for-value assessment challenging without internal government cost estimates or detailed performance data.

What are the specific risks associated with awarding a long-term, sole-source contract for essential base services like food?

The primary risks associated with a long-term, sole-source contract for essential base services like food include potential price escalation over time if not adequately managed, reduced incentive for the contractor to innovate or improve service quality due to lack of competitive pressure, and a diminished ability for the government to adapt to changing needs or market conditions. For taxpayers, the risk is paying a premium compared to what might be achieved through competition. Furthermore, reliance on a single provider for a critical service like food can create vulnerabilities if the contractor experiences financial difficulties, operational failures, or fails to meet performance standards. Robust oversight, clear performance metrics, and well-defined contract modification procedures are crucial to mitigate these risks.

What are the performance metrics and quality assurance measures in place to ensure the effectiveness and quality of food services provided under this contract?

The provided data does not detail the specific performance metrics or quality assurance measures for this contract. However, for a food service contract of this nature, typical performance standards would likely include food safety and sanitation compliance (e.g., adherence to health codes), nutritional quality and variety of meals, timeliness of service, customer satisfaction (e.g., through surveys or feedback mechanisms), waste reduction, and adherence to dietary requirements for service members. Quality assurance would involve regular inspections by government representatives, performance reviews, and potentially financial incentives or penalties tied to meeting or failing to meet key performance indicators (KPIs). The contract's statement of work and performance work statement would outline these requirements in detail.

How does the historical spending on food services at Kirtland Air Force Base compare to the value of this new contract?

Historical spending data on food services at Kirtland Air Force Base is not provided in the current dataset. To assess this, one would need to examine previous contracts for food services at this installation, noting their duration, value, and whether they were competitively awarded or sole-source. Comparing the annual average of this new $12.08 million contract ($2.4 million/year) to historical spending would reveal whether costs have increased, decreased, or remained stable. It would also be important to understand if the scope of services has changed over time. A significant deviation from historical spending patterns, especially in a sole-source context, would warrant further investigation into the underlying cost drivers and justification.

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: 2905 RODEO PARK DR E BLDG 4 STE 100, 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: $12,172,155

Exercised Options: $12,172,155

Current Obligation: $12,082,432

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline