DoD's $26M restaurant services contract for Air Force base awarded to Alabama agency with limited competition

Contract Overview

Contract Amount: $26,093,712 ($26.1M)

Contractor: Alabama Department of Rehabilitation Services

Awarding Agency: Department of Defense

Start Date: 2002-10-30

End Date: 2008-05-31

Contract Duration: 2,040 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COMBINATION (TWO OR MORE)

Sector: Other

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36112

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $26.1 million to ALABAMA DEPARTMENT OF REHABILITATION SERVICES for work described as: Key points: 1. Contract value of $26 million over 6 years suggests a significant investment in food services. 2. Award to a state rehabilitation agency raises questions about typical contracting channels for food services. 3. Limited competition indicated by the award process may have implications for cost-effectiveness. 4. The contract duration of 2040 days (approx. 5.6 years) is substantial for a service contract. 5. Performance context is crucial to understand if the services met the needs of the Air Force personnel. 6. Sector positioning is within the food services industry, supporting military personnel on base.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details and performance metrics. The $26 million total award over approximately 5.6 years averages around $4.6 million annually. This figure needs to be compared against the cost of similar food service contracts at other military installations or large institutional settings. The pricing structure and the specific services rendered (e.g., type of dining, operating hours, menu variety) are critical for a true value assessment. Without this granular data, it's difficult to definitively state if this represents excellent or questionable value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit bids. However, the data shows only 7 bids were received, which is a moderate level of competition for a contract of this size and duration. While full and open competition is the preferred method, a lower-than-expected number of bidders could suggest potential barriers to entry or a specialized market. Further analysis would be needed to understand why more potential bidders did not participate.

Taxpayer Impact: A moderate number of bidders in a full and open competition suggests that taxpayers likely received a reasonably competitive price, but there may have been opportunities for even greater savings with broader participation.

Public Impact

Air Force personnel stationed at the base benefit from the provision of full-service restaurant operations. The contract ensures a consistent and accessible food service option for military members and potentially their families. The geographic impact is localized to the specific Air Force base where the services are provided. Workforce implications include employment opportunities for individuals working in food service roles, potentially including those supported by the Alabama Department of Rehabilitation Services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if service scope expands beyond initial expectations.
Dependence on a single state agency for a critical base service could pose continuity risks.
Ensuring consistent quality and service levels over a long contract duration can be challenging.

Positive Signals

Award to a state rehabilitation agency aligns with potential social impact goals.
Long-term contract provides stability for the service provider and predictable service for the end-users.
Full and open competition, despite moderate bidder numbers, suggests a structured procurement process.

Sector Analysis

This contract falls within the Food Services industry, a segment of the broader hospitality and services sector. The market for institutional food services, particularly for government and military installations, is substantial. These contracts often involve complex logistical requirements and adherence to strict health and safety standards. Comparable spending benchmarks would involve analyzing the per-meal cost or annual service cost for similar food operations at other military bases or large federal facilities.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, the Alabama Department of Rehabilitation Services, is a state agency, not a small business. Any subcontracting would depend on the agency's internal policies and operational needs.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting activity (DCA) within the Department of the Air Force. Accountability measures would be defined in the contract's performance work statement (PWS), including service level agreements and quality control standards. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Base Food Services
Institutional Food Service Contracts
Government Food Supply Contracts
Department of Defense Food Procurement

Risk Flags

Moderate Competition Level
Potential Mission Creep for Awardee
Long Contract Duration Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.1 million to ALABAMA DEPARTMENT OF REHABILITATION SERVICES. See the official description on USAspending.

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 Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $26.1 million.

What is the period of performance?

Start: 2002-10-30. End: 2008-05-31.

What specific services are included under the 'Full-Service Restaurants' NAICS code for this contract?

The NAICS code 722110, 'Full-Service Restaurants,' typically encompasses establishments where patrons are served meals at tables, counter service, or by waitstaff. For this Department of Defense contract, it likely includes the operation of one or more dining facilities on the Air Force base, providing prepared meals to military personnel and potentially other authorized individuals. Specific services could range from daily meal preparation and service, menu planning, inventory management, sanitation, and potentially catering for special events. The exact scope would be detailed in the Performance Work Statement (PWS) of the contract, outlining operating hours, types of cuisine offered, and service standards.

How does the $26 million contract value compare to typical spending on food services at similar military installations?

Comparing the $26 million total award value for this 6-year contract requires context regarding the size and population of the Air Force base it serves. Annual spending averages approximately $4.6 million ($26M / 5.6 years). This figure needs to be benchmarked against per-meal costs or total annual food service budgets at comparable military bases. Factors such as the number of personnel served, operating hours, and the type of dining facilities (e.g., cafeterias, sit-down restaurants) significantly influence costs. Without data on these variables for other bases, a direct comparison is difficult, but $4.6 million annually for a large institutional food service operation is within a plausible range, though potentially on the higher side depending on the scale.

What are the potential risks associated with awarding a food service contract to a state rehabilitation agency?

Awarding a significant food service contract to a state rehabilitation agency, like the Alabama Department of Rehabilitation Services, presents unique considerations. A primary risk could be the agency's primary mission focus not being commercial food service operations, potentially leading to gaps in expertise or operational efficiency compared to specialized food service contractors. There might be challenges in rapid scaling or adapting to evolving military needs. Furthermore, ensuring consistent quality control and adherence to stringent military standards requires robust management oversight. The agency's structure and funding mechanisms, designed for rehabilitation services, might also differ from the profit-driven models of commercial food service providers, potentially impacting flexibility or responsiveness.

What does the 'Full and Open Competition' designation mean in the context of only 7 bids received?

The 'Full and Open Competition' designation signifies that the solicitation was advertised broadly, and any responsible business or entity was eligible to submit a proposal. Receiving only 7 bids, while not necessarily low, indicates a moderate level of interest for a contract of this magnitude. This could suggest several possibilities: the market for providing full-service restaurants on military bases might be concentrated among a few large players; the specific requirements or location may have deterred some potential bidders; or the solicitation itself might have had elements that limited broader appeal. It implies that while the process was open, the actual competitive landscape was somewhat constrained, potentially impacting the final price achieved.

How has historical spending on food services by the Department of the Air Force trended over the past decade?

Analyzing historical spending trends for food services by the Department of the Air Force (DAF) over the past decade would reveal patterns in procurement strategies, contract values, and the types of service providers utilized. Generally, military branches aim to provide quality food services to maintain morale and readiness. Spending levels can fluctuate based on budget allocations, force size, and strategic priorities. Over the last decade, there has been a trend towards optimizing costs through competitive bidding and performance-based contracts. However, specific data for the DAF's food service spending would be needed to identify precise trends, such as increases or decreases in overall expenditure, shifts towards different contract types (e.g., fixed-price vs. cost-reimbursement), or changes in the average contract duration and value.

Industry Classification

NAICS: Accommodation and Food Services › Full-Service Restaurants › Full-Service Restaurants

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Offers Received: 7

Pricing Type: COMBINATION (TWO OR MORE) (2)

Evaluated Preference: NONE

Contractor Details

Parent Company: Alabama, State of (UEI: 004027553)

Address: 2129 E SOUTH BLVD, MONTGOMERY, AL, 02

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

Financial Breakdown

Contract Ceiling: $19,343,218

Exercised Options: $19,343,218

Current Obligation: $26,093,712

Contract Characteristics

Cost or Pricing Data: NO

Timeline