DoD's $22.2M Food Service Contract Awarded to Professional Contract Services, Inc. Lacked Competition

Contract Overview

Contract Amount: $22,229,089 ($22.2M)

Contractor: Professional Contract Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-10-24

End Date: 2009-11-30

Contract Duration: 402 days

Daily Burn Rate: $55.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FULL FOOD SERVICE (FFS)

Place of Performance

Location: FORT HOOD, BELL County, TEXAS, 76544

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $22.2 million to PROFESSIONAL CONTRACT SERVICES, INC. for work described as: FULL FOOD SERVICE (FFS) Key points: 1. The contract awarded to Professional Contract Services, Inc. for food services represents a significant expenditure. 2. Lack of competition raises concerns about potential overpricing and reduced value for taxpayer money. 3. The sector is Food Service, with a specific NAICS code of 722310. 4. The contract duration was 402 days, indicating a medium-term commitment.

Value Assessment

Rating: questionable

Without competitive bidding, it's difficult to assess if the $22.2 million price reflects fair market value. Benchmarking against similar food service contracts would be necessary to determine if the pricing is reasonable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition award. This significantly limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The absence of competition likely resulted in taxpayers paying more than necessary for these food services.

Public Impact

Taxpayers may have overpaid due to the lack of competitive bidding. The Department of the Army received food services without exploring potentially more cost-effective options. Reliance on a single vendor without competition can impact service quality and innovation over time.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Potential Overpricing
Limited Vendor Options

Positive Signals

Contract Awarded
Specific Service Provided

Sector Analysis

The Food Service Contractors sector (NAICS 722310) involves providing food services to institutions. Spending in this sector can vary widely based on the scale and duration of contracts, but competitive bidding is crucial for cost efficiency.

Small Business Impact

There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors. The lack of competition suggests limited opportunities for small business participation.

Oversight & Accountability

The 'NOT COMPETED' status suggests potential weaknesses in the procurement process oversight. Further review would be needed to understand why this contract was not competed and if proper justifications were documented.

Related Government Programs

Food Service Contractors
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Oversight Indicated
No Small Business Set-Aside Identified

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.2 million to PROFESSIONAL CONTRACT SERVICES, INC.. FULL FOOD SERVICE (FFS)

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 $22.2 million.

What is the period of performance?

Start: 2008-10-24. End: 2009-11-30.

What was the justification for not competing this $22.2 million food service contract?

The provided data states the contract was 'NOT COMPETED' but does not offer a specific justification. Typically, sole-source awards require detailed documentation explaining why full and open competition was not feasible, such as urgent need, unique capabilities, or specific government requirements that only one vendor could meet.

How does the $22.2 million contract value compare to industry benchmarks for similar food service contracts?

Without specific details on the scope of services, location, and duration, a direct comparison is difficult. However, a $22.2 million expenditure over approximately 13 months for food services warrants a thorough review against industry benchmarks to ensure cost-effectiveness, especially given the lack of competition.

What is the potential risk to service quality when a large contract is awarded without competition?

Awarding a large contract without competition can reduce the incentive for the vendor to maintain or improve service quality, as there is no immediate threat of losing the contract to a competitor. This can lead to complacency and potentially lower standards over time.

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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5700 MOPAC EXPRESS SOUTH B, AUSTIN, TX, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $22,347,679

Exercised Options: $22,347,679

Current Obligation: $22,229,089

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9115104D0020

IDV Type: IDC

Timeline