DOJ awards $38M food service contract to ServiceSource Inc. for FBI and DEA facilities

Contract Overview

Contract Amount: $37,958,590 ($38.0M)

Contractor: Servicesource Inc

Awarding Agency: Department of Justice

Start Date: 2022-02-01

End Date: 2025-08-13

Contract Duration: 1,289 days

Daily Burn Rate: $29.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONTRACT FOR FBI & DEA FOOD SERVICE

Place of Performance

Location: OAKTON, FAIRFAX County, VIRGINIA, 22124

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $38.0 million to SERVICESOURCE INC for work described as: CONTRACT FOR FBI & DEA FOOD SERVICE Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. The contract's duration of over three years suggests a significant, ongoing need for these services. 3. ServiceSource Inc. has a history of providing services to government agencies, indicating established capabilities. 4. The fixed-price contract type provides cost certainty for the government, but may limit flexibility. 5. The lack of a small business set-aside or subcontracting plan warrants further investigation into small business participation. 6. The contract is managed by the FBI and DEA, highlighting its importance to law enforcement operations.

Value Assessment

Rating: fair

Benchmarking the value of this food service contract is challenging without detailed service level agreements and comparable contract data. However, the $38 million award over approximately three and a half years suggests a substantial operational cost. Given the sole-source nature, it's difficult to assess if this represents competitive pricing. Further analysis would require comparing the per-meal cost or cost per person served against industry standards and other government food service contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required services, often due to unique capabilities, existing infrastructure, or specific security requirements. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs for the government compared to a competed contract.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, potentially resulting in a higher overall expenditure for these essential food services.

Public Impact

Federal law enforcement personnel at FBI and DEA facilities will receive food services. The contract supports the daily operations and morale of agents and staff within these agencies. The primary geographic impact is likely concentrated around the facilities where ServiceSource Inc. is providing these services. The contract may involve a workforce of food service professionals, contributing to employment in the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings for taxpayers.
Lack of transparency regarding the justification for sole-source award.
Absence of small business subcontracting requirements could limit opportunities for small businesses.
Contract duration of over three years may indicate a lack of agility in adapting to changing needs or market conditions.

Positive Signals

ServiceSource Inc. has experience providing services to government entities.
Firm fixed-price contract provides budget certainty for the Department of Justice.
Contract supports essential services for critical law enforcement agencies.

Sector Analysis

The food service industry is a significant sector within the broader services market. Government contracts for food services are common, supporting various agencies, military bases, and correctional facilities. This contract falls within the 'Food Service Contractors' industry code (NAICS 722310). While specific market size data for federal food service contracts is not readily available, it represents a substantial portion of the overall government services spending. Benchmarking against similar contracts would involve analyzing per-meal costs, service scope, and facility size.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in providing these food services are limited. The absence of a small business subcontracting plan could result in a missed opportunity to foster small business growth and participation within the federal contracting ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice, specifically the Federal Bureau of Investigation and the Drug Enforcement Administration. The contract's performance would be monitored by contracting officers and program managers within these agencies. Transparency is dependent on the public availability of contract details and performance reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Justice Food Services
FBI Support Services
DEA Operational Support
Federal Food Service Contracts

Risk Flags

Sole-source award may limit cost savings.
Lack of small business subcontracting opportunities.
Performance metrics not publicly detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $38.0 million to SERVICESOURCE INC. CONTRACT FOR FBI & DEA FOOD SERVICE

Who is the contractor on this award?

The obligated recipient is SERVICESOURCE INC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $38.0 million.

What is the period of performance?

Start: 2022-02-01. End: 2025-08-13.

What is the specific justification for awarding this food service contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT COMPETED,' which typically signifies a sole-source or limited-source justification. For a sole-source award, the government must demonstrate that only one responsible source can provide the supplies or services. This could be due to unique capabilities, proprietary technology, urgent needs where no other vendor can respond in time, or specific security requirements that only one contractor can meet. Without further documentation from the Department of Justice, the precise reason for bypassing full and open competition remains unclear. This lack of competition can limit price discovery and potentially lead to higher costs for taxpayers.

How does the cost of this contract compare to similar food service contracts for federal law enforcement agencies?

Direct comparison of this $38 million contract to similar food service contracts is difficult without detailed service scope, number of personnel served, and geographic locations. However, the average annual cost is approximately $10.8 million ($38M / 3.5 years). To benchmark effectively, one would need to analyze per-meal costs, cost per person per day, or cost per square foot of dining facilities for comparable FBI or DEA facilities, or similar agencies like the Secret Service or ATF. The sole-source nature of this award also complicates direct value-for-money assessments, as competitive bidding often drives down prices.

What are the potential risks associated with a sole-source food service contract of this magnitude?

The primary risk of a sole-source contract is the potential for inflated costs due to the absence of competitive pressure. Without multiple bidders vying for the contract, the awarded vendor may not be incentivized to offer the most competitive pricing. Another risk is vendor lock-in, where the government becomes dependent on a single provider, making it difficult and costly to switch even if performance issues arise or better alternatives become available. Furthermore, a lack of competition can sometimes lead to complacency in service quality or innovation. The justification for sole-source awards needs to be robust to mitigate these risks.

What is ServiceSource Inc.'s track record in providing food services to federal agencies?

ServiceSource Inc. has a history of providing various services to government agencies. While the provided data does not detail their specific experience in food services for law enforcement agencies like the FBI and DEA, their presence as a contractor suggests they possess the necessary operational capacity and understanding of federal procurement processes. A deeper dive into their past performance reviews, contract history, and client testimonials for similar food service contracts would provide a more comprehensive assessment of their capabilities and reliability in this specific domain.

What are the implications of the firm fixed-price contract type for the government and the contractor?

A firm fixed-price (FFP) contract is generally advantageous for the government as it provides cost certainty. The contractor assumes the risk of cost overruns, meaning the government pays the agreed-upon price regardless of the contractor's actual costs. This helps in budget planning. For the contractor, an FFP contract offers the potential for higher profit margins if they can manage their costs efficiently. However, it also means they bear the full financial risk if costs exceed estimates. This contract type is suitable for well-defined requirements where cost and performance can be clearly specified.

Are there any specific performance metrics or service level agreements (SLAs) associated with this contract?

The provided summary data does not include details on specific performance metrics or Service Level Agreements (SLAs) for this food service contract. Typically, such contracts would outline requirements for food quality, service timeliness, hygiene standards, menu variety, and customer satisfaction. The effectiveness of the contract and the value received by the government are heavily dependent on these unstated performance standards and the mechanisms for monitoring and enforcing them. Without this information, a thorough assessment of ServiceSource Inc.'s performance and the overall success of the contract is limited.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10467 WHITE GRANITE DRIVE, OAKTON, VA, 22124

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $59,681,181

Exercised Options: $49,095,357

Current Obligation: $37,958,590

Actual Outlays: $38,012,798

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: SERVICES PURSUANT TO FAR 12.102(G)

Cost or Pricing Data: NO

Timeline