Air Force Food Service Contracts Total $72M, Awarded to State of New Jersey
Contract Overview
Contract Amount: $72,152,005 ($72.2M)
Contractor: State of NEW Jersey
Awarding Agency: Department of Defense
Start Date: 2008-07-10
End Date: 2014-01-31
Contract Duration: 2,031 days
Daily Burn Rate: $35.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: FOOD SERVICE BASE
Place of Performance
Location: FORT DIX, BURLINGTON County, NEW JERSEY, 08640
Plain-Language Summary
Department of Defense obligated $72.2 million to STATE OF NEW JERSEY for work described as: FOOD SERVICE BASE Key points: 1. Total contract value reached $72.2 million over six years. 2. Competition was full and open after exclusion of sources, indicating a structured procurement process. 3. The contract type, Cost Plus Award Fee, can lead to higher costs if not managed effectively. 4. The sector is Food Services, a common operational support function for military bases.
Value Assessment
Rating: fair
The contract utilized a Cost Plus Award Fee structure, which can incentivize performance but may also lead to higher overall costs compared to fixed-price contracts. Benchmarking against similar food service contracts is difficult without detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The procurement method was 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a competitive process that aimed to maximize participation while potentially addressing specific source requirements. This method generally supports better price discovery.
Taxpayer Impact: While competition was utilized, the Cost Plus Award Fee structure warrants scrutiny to ensure taxpayer funds were used efficiently and effectively for the services rendered.
Public Impact
Ensures essential food services for Air Force personnel, maintaining morale and operational readiness. Supports a state-level entity (State of New Jersey) in fulfilling federal contracts. The long duration (2008-2014) suggests a stable, ongoing need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can inflate costs.
- Lack of specific unit cost data hinders precise value assessment.
- Contract duration is lengthy, potentially missing opportunities for cost savings through re-competition.
Positive Signals
- Full and open competition was utilized.
- Contract awarded to a state entity, potentially fostering intergovernmental cooperation.
- Services provided are critical for base operations.
Sector Analysis
This contract falls within the Food Services sector, specifically catering to institutional needs. Spending benchmarks for food service contracts can vary widely based on location, scale of operations, and service level agreements. The $72.2 million over six years indicates a significant operational requirement.
Small Business Impact
The contract was awarded to the State of New Jersey, not directly to small businesses. There is no indication of small business subcontracting requirements or participation in this specific award.
Oversight & Accountability
The use of a Cost Plus Award Fee contract necessitates robust oversight to ensure performance targets are met and costs are reasonable. Monitoring award fee criteria and actual expenditures is crucial for accountability.
Related Government Programs
- Food Service Contractors
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Award Fee structure.
- Lengthy contract duration without clear re-competition points.
- Lack of transparency on specific performance metrics and award fee payouts.
- Potential for reduced competition due to 'exclusion of sources'.
Tags
food-service-contractors, department-of-defense, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $72.2 million to STATE OF NEW JERSEY. FOOD SERVICE BASE
Who is the contractor on this award?
The obligated recipient is STATE OF NEW JERSEY.
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 $72.2 million.
What is the period of performance?
Start: 2008-07-10. End: 2014-01-31.
What were the specific award fee criteria, and how effectively were they met to justify the 'award' portion of the contract cost?
The award fee criteria would typically relate to service quality, timeliness, customer satisfaction, and adherence to specifications. Without access to the contract's Statement of Work and the awarded fee documentation, it's impossible to assess how effectively these criteria were met. Effective oversight would involve rigorous evaluation of performance against these metrics to ensure the award fee represented genuine value and not just an automatic cost increase.
How did the 'exclusion of sources' in the full and open competition impact the final price and service quality compared to a purely unrestricted competition?
Excluding specific sources, even within a full and open framework, can limit the competitive pool. If the excluded sources were capable competitors, this limitation might have reduced downward price pressure. However, it could also ensure that only qualified vendors capable of meeting specific requirements participated, potentially leading to better service quality. The net impact on price and quality depends on the rationale for exclusion and the competitiveness of the remaining bidders.
What is the typical cost range for similar-sized food service contracts in comparable military installations to benchmark this $72.2 million expenditure?
Benchmarking requires detailed data on the scope of services, number of personnel served, geographic location, and contract type. However, a $72.2 million contract over six years averages over $12 million annually. This is a substantial amount, and comparisons would need to account for the specific base's size and operational tempo. Without granular data, it's difficult to definitively state if this falls within a typical range, but it represents a significant investment in base support services.
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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: NEW Jersey, State of (UEI: 067373258)
Address: 200 S WARREN ST, TRENTON, NJ, 08608
Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $77,673,886
Exercised Options: $77,673,886
Current Obligation: $72,152,005
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-07-10
Current End Date: 2014-01-31
Potential End Date: 2014-01-31 00:00:00
Last Modified: 2016-07-25
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