DoD Spent $81M on Food Services via Cost Plus Award Fee Contract with Georgia Vocational Rehabilitation Agency
Contract Overview
Contract Amount: $81,097,368 ($81.1M)
Contractor: Georgia Vocational Rehabilitation Agency
Awarding Agency: Department of Defense
Start Date: 2006-09-01
End Date: 2012-08-31
Contract Duration: 2,191 days
Daily Burn Rate: $37.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: FULL FOOD SERVICES
Place of Performance
Location: FORT GORDON, RICHMOND County, GEORGIA, 30905
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $81.1 million to GEORGIA VOCATIONAL REHABILITATION AGENCY for work described as: FULL FOOD SERVICES Key points: 1. Significant spending of $81M on food services highlights the scale of government catering needs. 2. The contract was awarded to Georgia Vocational Rehabilitation Agency, a non-profit, raising questions about typical contractor profiles. 3. A Cost Plus Award Fee (CPAF) structure can incentivize performance but may lead to higher costs if not managed tightly. 4. The long duration (2006-2012) suggests a stable, long-term requirement for these services.
Value Assessment
Rating: fair
The Cost Plus Award Fee (CPAF) structure, while offering flexibility, can be less cost-effective than fixed-price contracts if performance incentives are not well-defined or if costs escalate significantly. Benchmarking against similar food service contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific awardee (Georgia Vocational Rehabilitation Agency) might indicate a specialized or unique capability that influenced the selection, potentially impacting price discovery.
Taxpayer Impact: Taxpayer funds were used for this contract. The CPAF structure means costs were reimbursed plus an award fee, making the final taxpayer impact dependent on contractor performance and cost management.
Public Impact
Ensures essential food services for military personnel or government facilities. Supports a non-profit organization's mission through government contracting. Potential for cost overruns inherent in CPAF contracts. Long-term contract stability provides predictable service delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can lead to higher costs.
- Lack of detailed cost breakdown makes precise value assessment difficult.
- Awardee is a non-profit, which may have different cost structures than for-profit entities.
Positive Signals
- Awarded under full and open competition.
- Long contract duration indicates sustained need and service reliability.
- Contractor is a vocational rehabilitation agency, potentially aligning with social good objectives.
Sector Analysis
Food services are a common government expenditure, often contracted out to ensure efficient and cost-effective provision of meals. Benchmarks for food service contracts vary widely based on scope, location, and service level, but $81M over six years represents a substantial investment.
Small Business Impact
The data does not indicate any specific subcontracting or set-asides for small businesses. The primary awardee is a vocational rehabilitation agency, not typically categorized as a small business in the traditional sense.
Oversight & Accountability
The use of a Cost Plus Award Fee contract requires robust oversight to ensure costs are reasonable and award fees are justified. The long duration suggests ongoing monitoring by the Department of the Army.
Related Government Programs
- Food Service Contractors
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Award Fee structure.
- Lack of detailed cost breakdown.
- Long contract duration.
- Awardee is a non-profit organization.
Tags
food-service-contractors, department-of-defense, ga, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $81.1 million to GEORGIA VOCATIONAL REHABILITATION AGENCY. FULL FOOD SERVICES
Who is the contractor on this award?
The obligated recipient is GEORGIA VOCATIONAL REHABILITATION AGENCY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $81.1 million.
What is the period of performance?
Start: 2006-09-01. End: 2012-08-31.
What was the specific scope of 'FULL FOOD SERVICES' and how did the award fee structure incentivize performance?
The scope likely encompassed all aspects of food preparation, service, and potentially supply chain management for a specific military installation or government facility. The award fee structure would have tied a portion of the contractor's profit to meeting predefined performance metrics, such as food quality, timeliness, customer satisfaction, and cost control. Effective oversight is crucial to ensure the fee genuinely reflects superior performance and doesn't simply inflate costs.
How did the non-profit status of the Georgia Vocational Rehabilitation Agency influence the cost structure and pricing compared to for-profit food service contractors?
Non-profit organizations may have different overhead structures and profit motives compared to for-profit entities. While they are still expected to operate efficiently, their primary mission is often service-oriented. This could potentially lead to lower profit margins or different cost allocations. However, without detailed financial data, it's difficult to definitively state whether this resulted in lower or higher overall costs for the government compared to a for-profit competitor.
What mechanisms were in place to ensure cost reasonableness and prevent potential overspending under the Cost Plus Award Fee contract?
Effective oversight by the Department of the Army would have been critical. This likely involved regular audits of incurred costs, review of supporting documentation, and monitoring of performance against award fee criteria. Establishing clear, objective, and measurable performance standards is key to ensuring that award fees are earned legitimately and that the overall cost remains within reasonable bounds for the services rendered.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W911SE05R0013
Offers Received: 5
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: State of Georgia (UEI: 069230183)
Address: 5238 ROYAL WOODS, TUCKER, GA, 30084
Business Categories: Category Business, Government, Nonprofit Organization, Not Designated a Small Business, U.S. Regional/State Government
Financial Breakdown
Contract Ceiling: $82,640,381
Exercised Options: $82,640,381
Current Obligation: $81,097,368
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2006-09-01
Current End Date: 2012-08-31
Potential End Date: 2012-08-31 00:00:00
Last Modified: 2017-09-13
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