OPM's $25.4M conference center services contract awarded to ARAMARK, a 5-year firm-fixed-price deal

Contract Overview

Contract Amount: $25,360,406 ($25.4M)

Contractor: Aramark Services, Inc

Awarding Agency: Office of Personnel Management

Start Date: 2013-03-01

End Date: 2018-02-28

Contract Duration: 1,825 days

Daily Burn Rate: $13.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EXECUTIVE LEVEL CONFERENCE CENTER SERVICES IGF::CT::IGF

Place of Performance

Location: CHARLOTTESVILLE, CHARLOTTESVILLE CITY County, VIRGINIA, 22903

State: Virginia Government Spending

Plain-Language Summary

Office of Personnel Management obligated $25.4 million to ARAMARK SERVICES, INC for work described as: EXECUTIVE LEVEL CONFERENCE CENTER SERVICES IGF::CT::IGF Key points: 1. The contract's value appears reasonable given the 5-year duration and the scope of facilities support services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The firm-fixed-price structure shifts cost risk to the contractor, which can be beneficial for the government. 4. Performance was rated 'satisfactory' by the agency, indicating a baseline level of service delivery. 5. This contract falls within the Facilities Support Services NAICS code, a common area for government contracting. 6. The contract was awarded to a single vendor, ARAMARK SERVICES, INC., for the entire period.

Value Assessment

Rating: good

The contract value of approximately $25.4 million over five years averages to about $5 million annually. This figure seems within a reasonable range for comprehensive conference center services, including facility management, catering, and support for executive-level events. Benchmarking against similar large-scale conference and event management contracts for federal agencies would provide a more precise value assessment, but the initial figure does not immediately raise significant concerns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this requirement. While more bidders could potentially drive prices lower, three offers generally provide a sufficient basis for price comparison and selection.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it encourages multiple companies to vie for the contract, which typically leads to more competitive pricing and better value for the government.

Public Impact

The primary beneficiaries are federal agencies, particularly the Office of Personnel Management (OPM), requiring executive conference and event facilities. Services delivered include comprehensive support for conferences, meetings, and events, encompassing venue management, catering, and logistical assistance. The geographic impact is centered in Virginia, where the conference center facilities are located. Workforce implications include employment opportunities for catering staff, event coordinators, facility managers, and support personnel employed by ARAMARK.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long-term, single-award nature of the contract.
Reliance on a single contractor for critical executive support services could pose a risk if performance degrades.
Limited visibility into the specific cost breakdown of services provided under the firm-fixed-price structure.

Positive Signals

Firm-fixed-price contract shifts cost overrun risk to the contractor.
Satisfactory performance rating indicates the contractor is meeting basic requirements.
Full and open competition suggests a robust initial selection process.

Sector Analysis

This contract falls under the Facilities Support Services sector, which encompasses a broad range of services related to the operation and maintenance of buildings and grounds. The market for these services is substantial, with numerous private sector companies offering specialized solutions. This specific contract appears to be a significant award for executive-level conference services, likely involving high-quality amenities and support, distinguishing it from standard building maintenance contracts.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and opportunities for small businesses would likely be through direct subcontracting by ARAMARK, if pursued.

Oversight & Accountability

The contract was awarded by the Office of Personnel Management (OPM), which has oversight responsibilities. Performance was rated as 'satisfactory,' implying ongoing monitoring by the agency. The firm-fixed-price nature of the contract means that financial oversight focuses on ensuring deliverables are met within the agreed price, rather than detailed cost auditing. Transparency is generally maintained through contract award databases and reporting.

Related Government Programs

Government conference facilities management
Executive event services
Facilities support contracts
Hospitality services for government
Office of Personnel Management contracts

Risk Flags

Long-term contract duration
Single award contract
Satisfactory performance rating

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $25.4 million to ARAMARK SERVICES, INC. EXECUTIVE LEVEL CONFERENCE CENTER SERVICES IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is ARAMARK SERVICES, INC.

Which agency awarded this contract?

Awarding agency: Office of Personnel Management (Office of Personnel Management).

What is the total obligated amount?

The obligated amount is $25.4 million.

What is the period of performance?

Start: 2013-03-01. End: 2018-02-28.

What is the track record of ARAMARK SERVICES, INC. in performing similar federal contracts?

ARAMARK SERVICES, INC. has a significant history of performing federal contracts, particularly in food services, facilities management, and hospitality. Their experience often includes large-scale operations for government agencies, correctional facilities, and educational institutions. While specific performance details for each contract vary, their extensive presence in the federal contracting space suggests a familiarity with government requirements and compliance standards. A deeper dive into their past performance ratings and any documented issues on similar contracts would provide a more comprehensive understanding of their reliability for this specific requirement.

How does the annual cost of this contract compare to industry benchmarks for similar executive conference center services?

The annual cost of approximately $5 million for this contract averages out to roughly $13,700 per day. This figure needs to be contextualized by the specific services included (e.g., venue size, catering quality, staffing levels, technological support). For high-end executive conference centers offering comprehensive services, this daily rate can be competitive, especially considering the premium associated with government contracts and the specific location. However, without detailed service level agreements and scope of work, a precise benchmark is difficult. Industry reports on corporate event venue and catering costs, adjusted for scale and government specificities, would be necessary for a robust comparison.

What are the primary risks associated with a long-term, single-award contract for essential support services?

The primary risks associated with a long-term, single-award contract like this include potential vendor complacency, reduced incentive for innovation, and difficulties in adapting to changing needs over the contract's duration. If the contractor's performance declines, the government has limited immediate recourse without incurring significant costs and disruption associated with re-competing the contract. Furthermore, reliance on a single vendor can create a critical dependency, making the agency vulnerable to service interruptions due to contractor issues. Price increases during option periods, if not carefully managed, can also become a concern.

How effective are firm-fixed-price contracts in ensuring value for money in service-based contracts?

Firm-fixed-price (FFP) contracts are generally considered effective in ensuring value for money when the scope of work is well-defined and unlikely to change significantly. They place the primary risk of cost overruns on the contractor, incentivizing them to manage costs efficiently. For the government, this means a predictable price. However, for complex service contracts where requirements might evolve, an FFP structure could lead to the contractor resisting necessary changes or providing only the minimum required service to maximize profit. In such cases, other contract types might offer better flexibility and value.

What is the historical spending trend for facilities support services by the Office of Personnel Management?

Analyzing historical spending trends for facilities support services by OPM would require access to detailed historical contract data beyond this single award. However, generally, agencies like OPM, which manage significant facilities and require support for executive functions, tend to have consistent or increasing spending in this category due to the ongoing need for operational support, maintenance, and event services. Factors like facility upgrades, increased event frequency, or changes in service scope can influence year-over-year spending. Without specific OPM historical data, it's presumed that spending in this area is relatively stable, reflecting the continuous operational demands.

What does the 'satisfactory' performance rating imply about the contractor's adherence to the contract terms?

A 'satisfactory' performance rating indicates that the contractor, ARAMARK SERVICES, INC., has met the minimum requirements and essential objectives outlined in the contract. It suggests that the services provided were adequate and generally in accordance with the contract terms and conditions. However, 'satisfactory' is not an exceptional rating; it implies that while there were no major failures or significant deficiencies, there may not have been outstanding performance or proactive problem-solving. It signifies compliance but does not necessarily indicate superior service delivery or exceeding expectations.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Aramark Uniform & Career Apparel, LLC (UEI: 791072197)

Address: 1101 MARKET ST, PHILADELPHIA, PA, 19107

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,360,406

Exercised Options: $25,360,406

Current Obligation: $25,360,406

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline