DHS awarded $23.4M for food services to The New Mexico Commission for the Blind, a sole-source contract

Contract Overview

Contract Amount: $23,359,719 ($23.4M)

Contractor: THE NEW Mexico Commision for Blind

Awarding Agency: Department of Homeland Security

Start Date: 2004-09-20

End Date: 2009-03-31

Contract Duration: 1,653 days

Daily Burn Rate: $14.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FOOD SERVICE

Place of Performance

Location: ARTESIA, EDDY County, NEW MEXICO, 88210

State: New Mexico Government Spending

Plain-Language Summary

Department of Homeland Security obligated $23.4 million to THE NEW MEXICO COMMISION FOR BLIND for work described as: FOOD SERVICE Key points: 1. Contract value of $23.4 million over its duration. 2. Sole-source award indicates limited competition. 3. Contract duration of over 4 years. 4. Services provided by The New Mexico Commission for the Blind. 5. Awarded by the Department of Homeland Security. 6. Fixed-price contract type suggests cost certainty for the government.

Value Assessment

Rating: fair

The contract value of $23.4 million for food services over approximately 4.5 years needs further benchmarking against similar contracts for federal food service provision. Without comparable data, assessing value for money is challenging. The fixed-price nature provides some cost predictability, but the lack of competition raises concerns about whether the government secured the best possible pricing. The specific services and quality standards would be key to a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was considered. This significantly limits competition and may prevent the government from obtaining the most competitive pricing or innovative solutions. The rationale for a sole-source award, such as a unique capability or a specific requirement tied to the vendor, is not detailed here but is crucial for understanding the procurement strategy.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as competitive pressures are absent. This limits the government's ability to leverage market dynamics to drive down prices.

Public Impact

Provides essential food services to personnel at the Federal Law Enforcement Training Center. Supports the operational readiness of federal law enforcement training. Benefits individuals employed by The New Mexico Commission for the Blind through contract work. Impacts the New Mexico region through the provision of services by a state-level commission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source award requires strong justification to ensure taxpayer value.
Contract duration of over 4 years limits flexibility for future procurements.

Positive Signals

Contract awarded to The New Mexico Commission for the Blind, potentially supporting a specific mission.
Fixed-price contract type offers cost predictability.
Long-term award provides stability for service delivery.

Sector Analysis

The food service industry within the federal sector is a significant market, encompassing a wide range of requirements from basic catering to specialized meal preparation. Federal agencies rely heavily on contractors to provide these essential services across numerous installations and training centers. This contract for the Federal Law Enforcement Training Center falls within this broad category, highlighting the government's ongoing need for reliable food service providers to support its personnel and operations.

Small Business Impact

This contract was awarded to The New Mexico Commission for the Blind, which is not typically categorized as a small business. The data does not indicate any small business set-aside provisions or subcontracting requirements. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award, though the prime contractor's own employment practices could indirectly involve small businesses as suppliers.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. The Federal Law Enforcement Training Center likely has internal quality assurance and performance monitoring processes. The fixed-price nature of the contract provides a degree of financial oversight by locking in costs, but performance monitoring is still critical to ensure service delivery meets requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Food Service Contracts
Department of Homeland Security Contracts
Training Center Support Services

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $23.4 million to THE NEW MEXICO COMMISION FOR BLIND. FOOD SERVICE

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 $23.4 million.

What is the period of performance?

Start: 2004-09-20. End: 2009-03-31.

What is the specific justification for awarding this food service contract on a sole-source basis to The New Mexico Commission for the Blind?

The provided data does not specify the justification for the sole-source award. Typically, sole-source procurements are justified when only one responsible source is available or capable of meeting the agency's needs. This could be due to unique capabilities, proprietary technology, urgent and compelling circumstances, or specific statutory authority. For this contract, the rationale would need to be documented by the Department of Homeland Security, likely detailing why other potential vendors could not fulfill the requirements for food services at the Federal Law Enforcement Training Center. Without this documentation, it is difficult to assess if the sole-source decision was appropriate and served the government's best interest.

How does the contract value of approximately $23.4 million compare to similar federal food service contracts?

Benchmarking this $23.4 million contract against similar federal food service contracts requires access to a broader dataset of comparable awards. Factors such as the location of the facility, the number of personnel served, the scope of services (e.g., cafeteria operations, catering, specific dietary needs), and the contract duration significantly influence pricing. A contract of this value over roughly 4.5 years suggests a substantial operation. Without specific details on the volume of meals or service level agreements, a direct comparison is difficult. However, federal food service contracts can range from hundreds of thousands to tens of millions of dollars annually, depending on the scale of the requirement.

What are the potential risks associated with a sole-source award for essential services like food provision?

Sole-source awards carry several risks, primarily related to cost and innovation. Without competition, the government may pay a premium for the services, as the vendor faces no pressure to offer the lowest possible price. There's also a reduced incentive for the contractor to innovate or improve service quality beyond the minimum contractual requirements, as there is no threat of losing the contract to a competitor. Furthermore, sole-source awards can limit opportunities for new or smaller businesses to enter the federal market and demonstrate their capabilities. For essential services like food provision, a lack of competitive pressure could also impact the reliability and quality of the service over the long term.

What is the track record of The New Mexico Commission for the Blind as a federal contractor, particularly for food services?

The provided data indicates that The New Mexico Commission for the Blind (NMCB) was the recipient of this specific federal contract. NMCB is a state agency focused on assisting blind individuals in New Mexico. While their mission aligns with providing employment opportunities, their track record as a federal contractor, especially for large-scale food services at a federal training center, is not detailed here. Further investigation would be needed to ascertain their experience in managing similar contracts, their performance history with federal agencies, and their capacity to deliver consistent, high-quality food services meeting federal standards.

How does the fixed-price contract type (PT: FIRM FIXED PRICE) impact the financial risk for both the government and the contractor?

A Firm Fixed Price (FFP) contract type generally places the majority of the financial risk on the contractor. The contractor agrees to a set price for the defined scope of work, and they are responsible for managing their costs to remain profitable. For the government, this offers significant cost certainty, as the total price is established upfront and is not subject to increases due to contractor cost overruns. The primary risk for the government under an FFP contract is that the contractor might cut corners on quality or service to protect their profit margin if costs escalate unexpectedly. However, for services like food provision where performance standards can be clearly defined and monitored, FFP is often preferred for its predictability.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: NM ST Department of Human Services (UEI: 007111818)

Address: 2905 RODEO PARK DR E, BLDG 4, SUITE, SANTA FE, NM, 03

Business Categories: Category Business, Government, Minority Owned Business, Nonprofit Organization, Other Minority Owned Business, Not Designated a Small Business, U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $23,359,719

Exercised Options: $23,359,719

Current Obligation: $23,359,719

Timeline