DoD's $21.3M food service contract awarded to Professional Contract Services, Inc. in Texas

Contract Overview

Contract Amount: $21,306,727 ($21.3M)

Contractor: Professional Contract Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-10-01

End Date: 2008-09-30

Contract Duration: 365 days

Daily Burn Rate: $58.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Other

Official Description: FOOD SERVICE

Place of Performance

Location: FORT HOOD, BELL County, TEXAS, 76544

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $21.3 million to PROFESSIONAL CONTRACT SERVICES, INC. for work described as: FOOD SERVICE Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential for overpayment. 2. Limited competition suggests potential risks to achieving best value for taxpayer dollars. 3. The fixed-price contract type offers some cost certainty but may limit flexibility for unforeseen issues. 4. Performance period of one year provides a reasonable timeframe to assess contractor capabilities. 5. The contract falls under the Food Service Contractors NAICS code, indicating a specific service niche. 6. Awarded as a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or contract.

Value Assessment

Rating: questionable

Benchmarking the value of this $21.3 million food service contract is challenging without comparable sole-source awards or detailed cost breakdowns. The lack of competition inherently limits the ability to assess if the pricing reflects market rates or if a more competitive process could have yielded better value. Given the sole-source nature, it's difficult to definitively state if this represents excellent or fair value without further justification from the awarding agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one contractor was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified under specific circumstances (e.g., urgency, unique capabilities), they generally lead to less price discovery and potentially higher costs for the government compared to full and open competition.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that typically arise from competitive bidding, potentially leading to less efficient use of public funds.

Public Impact

Service members and personnel at the Texas facility benefit from the provision of food services. The contract ensures the continuous operation of essential dining and catering services. Geographic impact is concentrated in Texas, where the services are delivered. The contract supports jobs within the food service industry, potentially including both direct hires by the contractor and indirect employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits oversight on pricing and value.
Sole-source award raises concerns about potential lack of transparency.
Fixed-price contract may not account for all potential cost fluctuations.

Positive Signals

Contract awarded to a single entity, potentially simplifying management.
Fixed-price contract provides some cost predictability.
Specific NAICS code indicates a focused service requirement.

Sector Analysis

The food service industry is a significant sector within the broader professional services market. Government contracts for food services are common, supporting military bases, federal agencies, and public institutions. This $21.3 million contract represents a substantial investment in maintaining operational readiness and personnel welfare within the Department of Defense. Comparable spending benchmarks would typically involve analyzing other large-scale food service contracts awarded by federal agencies, considering factors like the number of personnel served and the scope of services.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not provided in the data. As this was a sole-source award, it is less likely to have been specifically set aside for small businesses. The impact on the small business ecosystem is therefore unclear without further details on the contractor's subcontracting practices.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of the Army's contracting officers and potentially the Inspector General's office. Accountability measures would be tied to the performance standards outlined in the contract. Transparency is limited due to the sole-source nature of the award; details regarding the justification for sole-sourcing and the evaluation process would be crucial for a full assessment.

Related Government Programs

Department of Defense Food Services
Military Base Support Services
Federal Food Procurement
Professional Contract Services

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.3 million to PROFESSIONAL CONTRACT SERVICES, INC.. FOOD SERVICE

Who is the contractor on this award?

The obligated recipient is PROFESSIONAL CONTRACT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $21.3 million.

What is the period of performance?

Start: 2007-10-01. End: 2008-09-30.

What is the track record of Professional Contract Services, Inc. with federal contracts, particularly in food services?

Analyzing the track record of Professional Contract Services, Inc. (PCS) requires access to a broader contract database. Without specific data on PCS's past performance, it's difficult to assess their reliability and quality of service. Federal agencies typically maintain performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) which would provide insights into their history. A review of past contracts, including their value, duration, and any reported issues or commendations, would be essential to understand their capabilities and suitability for this significant food service contract.

How does the $21.3 million cost compare to similar food service contracts awarded by the Department of Defense?

Direct comparison of the $21.3 million cost is challenging without knowing the specific scope of services, the number of personnel served, and the duration of the contract. However, for context, large military bases can require food service contracts in the tens of millions of dollars annually. The fact that this is a sole-source award means that a competitive benchmark for price is absent. To properly assess value, one would need to compare this contract's cost per meal or cost per person served against similar contracts awarded competitively, adjusting for regional cost differences and service complexity.

What are the primary risks associated with awarding a sole-source contract of this magnitude?

The primary risks associated with a sole-source award of this magnitude include a lack of price competition, which can lead to inflated costs for taxpayers. There's also a reduced incentive for the contractor to innovate or provide exceptional service, as there are no competing firms to attract future business. Furthermore, the absence of a competitive process can obscure potential inefficiencies or quality issues that might be identified during a bid evaluation. Transparency and justification for the sole-source decision are critical to mitigate these risks and ensure public trust.

What specific food services are covered under this $21.3 million contract?

The data provided indicates the contract is for 'Food Service Contractors' under NAICS code 722310. This typically encompasses a broad range of services including preparing and serving meals, catering, and potentially managing dining facilities. For a $21.3 million contract, it likely involves providing daily meals for a significant population, such as military personnel on a base, and may include specialized services like event catering or retail food operations within the facility. A detailed statement of work (SOW) would specify the exact services, quality standards, and operational requirements.

What is the historical spending pattern for food services at this specific Department of the Army location or for similar units?

To determine historical spending patterns, one would need to access historical contract data for the specific Army installation or unit this contract serves. This would involve looking at previous food service contracts awarded to the same or different vendors over several fiscal years. Analyzing these patterns would reveal trends in spending, identify any significant increases or decreases in contract value, and potentially highlight the frequency of sole-source awards versus competitive procurements for these services. Understanding this history provides context for the current $21.3 million award.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W9115104R0005

Offers Received: 1

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5700 MOPAC EXPRESS SOUTH B, AUSTIN, TX, 78749

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $22,306,372

Exercised Options: $22,306,372

Current Obligation: $21,306,727

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9115104D0020

IDV Type: IDC

Timeline