FEMA Awards $6.96M Contract for Dining Facilities and Food Service Management to Alabama Department of Rehabilitation Services

Contract Overview

Contract Amount: $6,960,818 ($7.0M)

Contractor: Alabama Department of Rehabilitation Services

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-01

End Date: 2026-08-31

Contract Duration: 729 days

Daily Burn Rate: $9.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CDP DINING FACILITIES & FOOD SERVICE MANAGEMENT

Place of Performance

Location: ANNISTON, CALHOUN County, ALABAMA, 36205

State: Alabama Government Spending

Plain-Language Summary

Department of Homeland Security obligated $7.0 million to ALABAMA DEPARTMENT OF REHABILITATION SERVICES for work described as: CDP DINING FACILITIES & FOOD SERVICE MANAGEMENT Key points: 1. Contract value of $6.96 million over two years. 2. Competition was not available for this contract. 3. Potential risk associated with sole-source procurement. 4. Sector is Food Service Contractors, NAICS 722310.

Value Assessment

Rating: questionable

The contract value of $6.96 million for two years of food service management is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning no other vendors were considered. This limits price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The lack of competition raises concerns about whether the government is receiving the best possible price for these essential services.

Public Impact

Ensures essential dining facilities and food services for a government agency. Supports the Alabama Department of Rehabilitation Services' operations. Potential for increased costs due to sole-source award. Limited transparency in the procurement process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competitive pricing data
Potential for cost overruns

Positive Signals

Ensures continuity of essential services
Supports a state-level rehabilitation agency

Sector Analysis

This contract falls within the Food Service Contractors sector (NAICS 722310). Government spending in this area typically focuses on providing meals and managing dining facilities for various agencies, correctional institutions, and healthcare settings.

Small Business Impact

This contract was not awarded to a small business. The sole-source nature of the award further limits opportunities for small businesses to compete for this type of government contract.

Oversight & Accountability

The sole-source award necessitates careful oversight to ensure the contractor delivers services as specified and that costs remain within the contracted amount. Transparency in performance reporting is crucial.

Related Government Programs

Food Service Contractors
Department of Homeland Security Contracting
Federal Emergency Management Agency Programs

Risk Flags

Sole-source procurement
Lack of competitive bidding
Potential for overpricing
Limited transparency in award justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $7.0 million to ALABAMA DEPARTMENT OF REHABILITATION SERVICES. CDP DINING FACILITIES & FOOD SERVICE MANAGEMENT

Who is the contractor on this award?

The obligated recipient is ALABAMA DEPARTMENT OF REHABILITATION SERVICES.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $7.0 million.

What is the period of performance?

Start: 2024-09-01. End: 2026-08-31.

What specific circumstances justified the sole-source award for these dining facilities and food services?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other responsible sources. Without further details, it's difficult to ascertain the precise reasons. A thorough review of the justification documentation is required to understand why competition was deemed impractical or impossible in this instance.

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

The primary risks include inflated pricing due to the absence of competitive pressure, potential for complacency in service quality, and a lack of innovation. Taxpayers may bear a higher cost than if the contract were competitively bid. Furthermore, the agency might be locked into a vendor that doesn't offer the best value over the long term.

How will the effectiveness and value of this sole-source contract be measured and ensured?

Effectiveness will be measured through performance metrics outlined in the contract, such as food quality, service timeliness, and adherence to health and safety standards. Value will be assessed by comparing actual costs against the budget and evaluating whether the services provided meet the agency's needs. Regular performance reviews and audits are essential to ensure accountability.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70FA2024R00000003

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 602 S LAWRENCE ST, MONTGOMERY, AL, 36104

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

Financial Breakdown

Contract Ceiling: $21,575,088

Exercised Options: $6,960,818

Current Obligation: $6,960,818

Actual Outlays: $2,118,135

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline