Homeland Security's $12.7M food services contract for the Federal Law Enforcement Training Center awarded to The New Mexico Commission for the Blind

Contract Overview

Contract Amount: $12,760,870 ($12.8M)

Contractor: THE NEW Mexico Commision for Blind

Awarding Agency: Department of Homeland Security

Start Date: 2009-04-01

End Date: 2018-09-30

Contract Duration: 3,469 days

Daily Burn Rate: $3.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FOOD SERVICES

Place of Performance

Location: ARTESIA, EDDY County, NEW MEXICO, 88210

State: New Mexico Government Spending

Plain-Language Summary

Department of Homeland Security obligated $12.8 million to THE NEW MEXICO COMMISION FOR BLIND for work described as: FOOD SERVICES Key points: 1. The contract value of $12.7 million over its duration suggests a significant investment in essential support services. 2. Awarded to a single entity, the dynamics of competition for this contract warrant further examination. 3. The long duration of the contract (over 9 years) could indicate stability but also potential for price creep if not managed effectively. 4. The fixed-price nature of the contract provides cost certainty for the government, assuming the scope remained consistent. 5. The absence of a small business set-aside raises questions about opportunities for smaller enterprises in this service area. 6. The contract's performance context is tied to the critical operations of the Federal Law Enforcement Training Center.

Value Assessment

Rating: fair

The total value of $12.7 million spread over approximately 9 years averages to about $1.4 million annually. Without specific details on the volume of services provided (e.g., meals served per day, number of personnel supported), a direct comparison to similar contracts is challenging. However, for a federal training center of this nature, this annual spend appears within a reasonable range for comprehensive food services, assuming it covers all aspects from procurement to preparation and serving. The firm fixed-price structure suggests the government aimed for cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The reasons for this approach are not detailed in the provided data. Sole-source awards can sometimes lead to higher prices due to the lack of competitive pressure. Without information on the solicitation process or the number of potential bidders considered, it's difficult to assess the full impact on price discovery. The government may have justified this based on specific capabilities or circumstances not outlined here.

Taxpayer Impact: For taxpayers, a sole-source award means there was no opportunity to leverage competition to potentially drive down costs. This could result in a higher overall expenditure compared to a competitively bid contract.

Public Impact

Trainees and staff at the Federal Law Enforcement Training Center benefit from consistent and reliable food services. The contract ensures the provision of daily meals, supporting the operational readiness and well-being of personnel undergoing training. The primary geographic impact is at the Federal Law Enforcement Training Center location in New Mexico. The contract supports jobs within the food service industry, particularly in the New Mexico region, through the awarded contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to suboptimal pricing.
Long contract duration without clear performance metrics could mask inefficiencies.
Potential for vendor lock-in due to sole-source nature.

Positive Signals

Award to an organization focused on employing blind individuals aligns with social objectives.
Firm fixed-price contract provides budget certainty.
Consistent service delivery over a long period suggests reliability.

Sector Analysis

The food services sector for government contracts is a significant market, often characterized by large contracts supporting federal installations, military bases, and correctional facilities. While specific market size data for federal food services isn't provided, it's a perennial need. This contract fits within the broader category of facility support services, where reliable catering and meal provision are essential for maintaining operational capacity and morale. Benchmarking spending would require comparing per-meal costs or per-person costs against similar government or large institutional contracts.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any subcontracting requirements for small businesses. The award went to The New Mexico Commission for the Blind, which, while potentially employing individuals with disabilities, is not necessarily structured as a small business set-aside recipient in the traditional sense. This means opportunities for smaller, specialized food service providers to participate as prime contractors or subcontractors were likely limited for this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting agency, the Department of Homeland Security, and specifically the Federal Law Enforcement Training Center's administrative and procurement divisions. Accountability measures would be defined in the contract's terms and conditions, including performance standards and payment schedules. Transparency is limited by the sole-source nature and the lack of publicly available performance reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Food Service Contracts
Department of Homeland Security Support Services
Federal Law Enforcement Training Programs
Government Food Procurement

Risk Flags

Sole-source award limits competitive pricing.
Long contract duration may obscure performance issues.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $12.8 million to THE NEW MEXICO COMMISION FOR BLIND. 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 Homeland Security (Federal Law Enforcement Training Center).

What is the total obligated amount?

The obligated amount is $12.8 million.

What is the period of performance?

Start: 2009-04-01. End: 2018-09-30.

What specific services were included under this $12.7 million food services contract?

The provided data indicates the contract was for 'Food Service Contractors' (NAICS code 722310). This typically encompasses a range of services including the procurement of food supplies, preparation of meals (breakfast, lunch, dinner), serving of food to trainees and staff, and potentially the maintenance of dining facilities and equipment. Given the duration and value, it likely covered all aspects of food service operations for the Federal Law Enforcement Training Center, ensuring consistent catering for personnel throughout their training cycles. Specific details on the number of meals served daily or the exact scope of catering (e.g., special events) would further clarify the service level.

Why was this contract awarded on a sole-source basis instead of being competed?

The provided data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. Common justifications for sole-source contracts include situations where only one responsible source can provide the required supply or service, such as when a unique capability, proprietary technology, or urgent need exists that cannot be met by other vendors. Another possibility is if the contract was a follow-on to a previous sole-source award where transitioning to a new vendor would be impractical or excessively costly. Without further documentation from the agency, the specific rationale remains unknown, but it implies that competitive bidding was deemed either impossible or not in the government's best interest at the time of award.

How does the contract value compare to industry benchmarks for similar federal food service contracts?

Comparing the total contract value of $12.7 million over approximately 9 years (3469 days) requires context on the scale of operations at the Federal Law Enforcement Training Center. The average annual value is roughly $1.4 million. Benchmarking this would involve analyzing per-meal costs or per-person-per-day costs against similar contracts for large training facilities or government installations. For instance, if the center serves thousands of meals daily, $1.4 million annually might be reasonable. However, without data on meal volume, personnel numbers, or the specific inclusions (e.g., types of cuisine, service hours), a precise benchmark is difficult. Generally, firm fixed-price contracts aim for efficiency, but sole-source awards can sometimes inflate costs compared to competitive bids.

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

The provided data indicates The New Mexico Commission for the Blind (NM C.B.) was the contractor for this specific food services agreement. Information on their broader federal contracting history, past performance on similar contracts, or their success rate in competitive bids is not included in this dataset. However, the fact that they were awarded a significant, long-term contract by the Department of Homeland Security suggests they met the agency's requirements at the time of award. Further investigation into their contract history database (like FPDS or SAM.gov) would be needed to assess their overall track record, including any past issues or commendations.

What are the potential risks associated with a sole-source, long-duration contract like this?

A primary risk of a sole-source contract is the lack of competitive pressure, which can lead to higher prices than might be achieved through open competition. Over a long duration (nearly 9 years in this case), there's also a risk of complacency from the contractor, potentially leading to declining service quality if performance standards are not rigorously enforced. Price escalation clauses, even in fixed-price contracts, can sometimes be triggered over extended periods. Furthermore, the government may face challenges if the contractor's circumstances change significantly (e.g., financial instability, change in ownership) and there are no readily available alternatives due to the sole-source nature.

How does this contract align with the mission of the Federal Law Enforcement Training Center?

The Federal Law Enforcement Training Center (FLETC) is responsible for training law enforcement agents from various federal agencies. Providing essential support services, such as consistent and adequate food services, is crucial for maintaining the operational readiness and well-being of trainees and staff. This contract directly supports the FLETC's mission by ensuring that personnel have access to necessary sustenance, allowing them to focus on their demanding training programs. Without reliable food services, the effectiveness and efficiency of the training operations could be significantly hampered.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

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: $53,623,434

Exercised Options: $17,248,278

Current Obligation: $12,760,870

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline