DoD awards $24.8M contract for DFAC food services in Georgia, highlighting potential value in regional support

Contract Overview

Contract Amount: $24,813,454 ($24.8M)

Contractor: Georgia Vocational Rehabilitation Agency

Awarding Agency: Department of Defense

Start Date: 2024-02-01

End Date: 2025-01-31

Contract Duration: 365 days

Daily Burn Rate: $68.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FULL FOOD SERVICE AT DFAC BLDG 29704

Place of Performance

Location: AUGUSTA, RICHMOND County, GEORGIA, 30905

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $24.8 million to GEORGIA VOCATIONAL REHABILITATION AGENCY for work described as: FULL FOOD SERVICE AT DFAC BLDG 29704 Key points: 1. Contract value appears reasonable for a year-long, full-service food operation. 2. Full and open competition suggests a healthy market for food service providers. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Performance period aligns with typical annual operational needs. 5. Contract is positioned within the broader Defense logistics and base support sector. 6. Geographic concentration in Georgia may indicate regional operational focus.

Value Assessment

Rating: good

The $24.8 million contract for full food service at DFAC Bldg 29704 represents a significant investment in base support. Benchmarking against similar large-scale food service contracts for military installations, this price appears competitive, especially considering the firm-fixed-price structure which caps government liability. The value proposition hinges on the quality and reliability of the food services provided over the 365-day period, aiming to maintain troop morale and readiness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and allowed to bid. The presence of a competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government. The specific number of bidders is not provided, but the category suggests a robust market response.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it drives down costs and ensures the government receives the best possible value for its investment in essential services.

Public Impact

Service members stationed at DFAC Bldg 29704 will receive consistent and potentially high-quality food services. The contract supports the operational readiness of the Department of the Army by ensuring essential life support. The geographic impact is localized to the specific military installation in Georgia where the DFAC is located. This contract supports jobs within the food service industry, potentially benefiting local economies in Georgia through employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if contractor faces staffing or supply chain issues.
Ensuring consistent food quality and safety standards requires diligent oversight.
Dependence on a single contractor for a critical service like food provision.

Positive Signals

Firm-fixed-price contract limits cost escalation risks.
Full and open competition suggests a competitive market and potential for good value.
Clear performance period (365 days) provides defined operational scope.

Sector Analysis

This contract falls within the broader Food Service Contractors (NAICS 722310) sector, which is a critical component of logistics and base support services for government agencies, particularly the Department of Defense. The market for these services is substantial, with numerous companies specializing in large-scale catering and food management for institutional clients. Spending in this area is often driven by the need to maintain morale and operational efficiency at military installations, with contracts typically awarded on an annual or multi-year basis.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor is not identified as a small business, there is potential for subcontracting opportunities within the food service industry, which could benefit small businesses if the prime contractor actively seeks them out. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) or a designated government representative at the installation level. Accountability measures are embedded within the firm-fixed-price contract terms, requiring the contractor to meet specific service level agreements. Transparency is generally maintained through contract databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support Services
Military Dining Facility Management
Government Food Procurement
Logistics and Supply Chain Management

Risk Flags

Contractor identity and primary mission mismatch with contract type.
Potential lack of demonstrated experience in large-scale federal food service operations.
Risk of operational disruption due to contractor's non-specialized nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.8 million to GEORGIA VOCATIONAL REHABILITATION AGENCY. FULL FOOD SERVICE AT DFAC BLDG 29704

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 $24.8 million.

What is the period of performance?

Start: 2024-02-01. End: 2025-01-31.

What is the historical spending pattern for food services at this specific DFAC or similar facilities within the Department of the Army?

Analyzing historical spending for food services at DFAC Bldg 29704 or comparable Army facilities requires access to detailed procurement data over several fiscal years. Generally, spending in this category fluctuates based on troop levels, contract renewals, and inflation. Contracts are often re-competed annually or every few years. A trend of increasing costs could indicate inflation or expanded service requirements, while stable or decreasing costs might suggest successful competition or efficiency gains. Without specific historical data for this DFAC, we can infer that similar installations likely have annual food service contracts ranging from several million to tens of millions of dollars, depending on size and scope. The current $24.8 million award for a 365-day period suggests a substantial operation, consistent with large military bases.

How does the awarded price per meal compare to industry benchmarks for military or institutional food services?

Determining the precise price per meal requires knowing the estimated number of meals to be served over the contract period. If we assume a typical daily meal count for a large DFAC (e.g., 1,000-3,000 personnel served three meals a day), the cost per meal can be estimated. Military food service benchmarks often aim for costs between $5-$15 per meal, varying significantly by location, service level, and type of cuisine. Given the $24.8 million contract value over 365 days, and assuming roughly 2,000 personnel served three meals daily (2,000 * 3 * 365 = 2,190,000 meals), the estimated cost per meal would be approximately $11.32. This falls within the expected range for military DFAC operations, especially when considering overhead, staffing, and compliance costs.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

Key performance indicators and service level agreements for a contract of this nature typically focus on food quality, safety, timeliness of service, variety of menu options, and customer satisfaction. Specific KPIs might include adherence to nutritional standards, compliance with health codes (e.g., zero major health violations), meeting service window times, and maintaining a certain level of positive feedback from service members. SLAs would define the expected standards for these areas, with potential penalties or incentives tied to performance outcomes. While the contract document itself would contain the precise KPIs and SLAs, common metrics involve food temperature checks, waste reduction targets, and responsiveness to dietary restrictions or special requests.

What is the track record of the awarded contractor (Georgia Vocational Rehabilitation Agency) in performing similar large-scale food service contracts for the DoD or other federal agencies?

The provided data identifies the 'Georgia Vocational Rehabilitation Agency' as the contractor. It is unusual for a state vocational rehabilitation agency to be the prime contractor for a large federal food service contract. Typically, such contracts are awarded to private sector companies specializing in food management and logistics. This raises a significant flag regarding the contractor's primary mission and potential capacity to execute such a complex service. A standard federal contractor would have a documented history of performance on similar contracts, often assessed through past performance evaluations in systems like the Contractor Performance Assessment Reporting System (CPARS). Further investigation into the nature of this award and the contractor's capabilities is warranted.

Are there any identified risks related to the contractor's financial stability or operational capacity to fulfill this contract?

Without specific financial disclosures or performance history, assessing the contractor's financial stability and operational capacity is challenging, especially given the unusual nature of the identified contractor. For large federal contracts, agencies typically conduct due diligence, which may include reviewing financial health and past performance. However, if the Georgia Vocational Rehabilitation Agency is indeed the prime, its primary mission is rehabilitation services, not large-scale food service operations. This could imply a higher risk of operational challenges, potential understaffing, supply chain issues, or difficulties meeting the demanding requirements of a military DFAC. The firm-fixed-price nature of the contract means the contractor bears the financial risk, but operational failures could still disrupt essential services.

What is the potential impact of this contract on small businesses, either as subcontractors or through competition?

As this contract was awarded under full and open competition, it suggests that the primary bidding pool was likely diverse. However, the specific contractor, the Georgia Vocational Rehabilitation Agency, is not typically associated with small business subcontracting in the food service sector. If this agency were to subcontract, it would be crucial to ensure that small businesses, including those owned by disadvantaged individuals, women, or veterans, are considered. The lack of a specific small business set-aside or subcontracting plan mentioned in the summary data implies that small business participation might be incidental rather than mandated, potentially limiting opportunities for the small business ecosystem in this specific award.

Industry Classification

NAICS: Accommodation and Food Services › Special Food Services › Food Service Contractors

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

Solicitation ID: W9124J19R0025

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5238 ROYAL WOODS, TUCKER, GA, 30084

Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $24,851,744

Exercised Options: $24,851,744

Current Obligation: $24,813,454

Actual Outlays: $6,385,756

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9124J20D0003

IDV Type: IDC

Timeline