DoD Awards $189M for Food Services to South Carolina Commission for the Blind
Contract Overview
Contract Amount: $189,049,054 ($189.0M)
Contractor: South Carolina Commission for Blind
Awarding Agency: Department of Defense
Start Date: 2003-02-06
End Date: 2009-12-31
Contract Duration: 2,520 days
Daily Burn Rate: $75.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Place of Performance
Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29207
Plain-Language Summary
Department of Defense obligated $189.0 million to SOUTH CAROLINA COMMISSION FOR BLIND for work described as: Key points: 1. Significant contract value of $189 million over 7 years. 2. Sole-source award raises questions about competition and potential cost savings. 3. Focus on food services for the Army, a critical operational support function. 4. Potential for higher costs due to lack of competitive bidding.
Value Assessment
Rating: questionable
The contract type is Cost Plus Award Fee, which can incentivize performance but may lead to higher costs if not managed tightly. Without competitive benchmarks, assessing the pricing's fairness is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competition. This limits price discovery and may result in the government paying more than it would under a competitive environment.
Taxpayer Impact: The absence of competition could lead to taxpayers bearing a higher cost for these food services than if multiple vendors had vied for the contract.
Public Impact
Ensures continued food services for Army personnel. Potential for reduced access to innovative food service solutions due to sole-source nature. Impact on local economy in South Carolina through the Commission for the Blind.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Award Fee contract type
- Long contract duration (7 years)
Positive Signals
- Ensures continuity of essential food services
- Potential for specialized services from the Commission for the Blind
Sector Analysis
Food service contracting is a common area of government spending, often subject to competitive bidding to ensure value. This contract's sole-source nature for a significant amount warrants scrutiny against typical sector benchmarks.
Small Business Impact
The awardee is the South Carolina Commission for the Blind, which may have a specific mission related to employing visually impaired individuals. Analysis is needed to determine if this aligns with small business set-aside goals or if it represents a unique partnership.
Oversight & Accountability
The sole-source nature of this large contract requires robust oversight to ensure the awardee is meeting performance expectations and that costs are reasonable and allocable.
Related Government Programs
- Food Service Contractors
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for inflated costs
- Limited incentive for innovation
- Long contract duration without re-competition
Tags
food-service-contractors, department-of-defense, sc, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $189.0 million to SOUTH CAROLINA COMMISSION FOR BLIND. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is SOUTH CAROLINA COMMISSION FOR BLIND.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $189.0 million.
What is the period of performance?
Start: 2003-02-06. End: 2009-12-31.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award is critical. Agencies typically pursue sole-source contracts when only one responsible source can satisfy the agency's needs. For this contract, understanding the specific capabilities or unique circumstances that led to the South Carolina Commission for the Blind being the only viable option is essential. Without this information, it's difficult to assess if competition was truly impossible or if it was simply not pursued.
How does the Cost Plus Award Fee structure impact overall cost-effectiveness compared to fixed-price contracts in food services?
Cost Plus Award Fee (CPAF) contracts allow the contractor to recover costs plus an award fee based on performance. While CPAF can incentivize high performance, it carries a risk of cost overruns if the award fee criteria are not strictly defined and monitored. For food services, fixed-price contracts often provide better cost certainty for the government. The effectiveness of CPAF here depends heavily on the clarity and rigor of the performance metrics used to determine the award fee.
What is the potential impact on service quality and innovation given the lack of competition over a 7-year period?
A sole-source, long-term contract can stifle innovation and potentially lead to complacency in service quality. Without the pressure of competing for future work or against other providers, the contractor may have less incentive to introduce new efficiencies or improve service offerings. Regular performance reviews and clear contract modifications would be crucial to mitigate these risks and ensure sustained quality and value.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: South Carolina, State of (UEI: 067006072)
Address: 1430 CONFEDERATE AVENUE, COLUMBIA, SC, 90
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2003-02-06
Current End Date: 2009-12-31
Potential End Date: 2009-12-31 00:00:00
Last Modified: 2010-08-25
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