DoD's $9.9M Food Service Contract with Colorado State Business Enterprise Program Shows Long-Term Engagement
Contract Overview
Contract Amount: $9,914,524 ($9.9M)
Contractor: Colorado State Business Enterprise Program
Awarding Agency: Department of Defense
Start Date: 2005-11-01
End Date: 2011-03-14
Contract Duration: 1,959 days
Daily Burn Rate: $5.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Other
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $9.9 million to COLORADO STATE BUSINESS ENTERPRISE PROGRAM for work described as: Key points: 1. Contract duration of nearly 6 years suggests a stable, long-term relationship. 2. Full and open competition indicates a broad market search, potentially leading to better pricing. 3. The contract's value, while significant, needs benchmarking against similar food service contracts. 4. Performance context is crucial to understand if the contractor met service expectations over the contract's life. 5. Sector positioning in food services for government entities is a niche but essential area. 6. Risk indicators are moderate, with the primary risk being service delivery continuity and quality.
Value Assessment
Rating: fair
The contract's total value of approximately $9.9 million over almost six years averages to roughly $1.7 million annually. Without specific performance metrics or detailed cost breakdowns, it's challenging to definitively assess value for money. However, compared to commercial food service contracts of similar scale, this appears to be within a reasonable range, though government contracts often carry additional overhead and compliance costs. Benchmarking against other federal food service contracts would provide a clearer picture of its cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. With 6 bidders participating, this indicates a healthy level of interest and competition in the market for this type of service. This competitive process is generally expected to drive down prices and encourage innovation as contractors vie for the award.
Taxpayer Impact: A competitive bidding process like this is beneficial for taxpayers as it helps ensure that the government is not overpaying for the services rendered, promoting fiscal responsibility.
Public Impact
Military personnel and potentially other authorized individuals at the specified Air Force installation benefit from the food services provided. The contract delivers essential food preparation and service functions, contributing to the morale and well-being of service members. The geographic impact is localized to the Air Force facility where the services are performed. Workforce implications include the direct employment of individuals by the contractor to fulfill the food service requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for service quality degradation over a long contract term if not actively managed.
- Dependence on a single contractor for a critical support service like food provision.
- Risk of cost overruns if contract terms are not strictly adhered to or if unforeseen circumstances arise.
Positive Signals
- Awarded through full and open competition, suggesting a robust selection process.
- Long contract duration implies a successful past performance and a stable service provider.
- Contractor is a state-level business enterprise program, potentially indicating a focus on specific economic development goals.
Sector Analysis
The food service industry is a significant sector within the broader services market. Government contracts for food services are a notable segment, often awarded to specialized companies or through programs designed to support specific business types. This contract fits within the general government services procurement landscape, where consistent demand exists for operational support functions. Comparable spending benchmarks would involve looking at other large-scale food service contracts awarded by the Department of Defense or other federal agencies.
Small Business Impact
This contract was awarded to the Colorado State Business Enterprise Program, which is a state-level entity. While not a small business set-aside in the traditional federal sense, such programs often aim to support businesses that employ individuals with disabilities or meet other specific socio-economic criteria. The implications for subcontracting would depend on the specific structure of the Colorado State Business Enterprise Program and its own procurement practices.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Air Force contracting and program management offices. Accountability measures would be defined in the contract's performance work statement (PWS), with regular reviews and inspections to ensure compliance. Transparency is generally maintained through contract award databases, though detailed operational performance data may not always be publicly accessible.
Related Government Programs
- Military Food Service Contracts
- Government Food Supply Contracts
- Department of Defense Support Services
- Base Operations Support Contracts
Risk Flags
- Long contract duration may increase risk of service degradation if not managed.
- Dependence on a single provider for essential services.
- Potential for cost increases if contract terms are not tightly controlled.
Tags
defense, department-of-defense, department-of-the-air-force, food-service, services, full-and-open-competition, firm-fixed-price, colorado, long-term-contract, multi-million-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.9 million to COLORADO STATE BUSINESS ENTERPRISE PROGRAM. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is COLORADO STATE BUSINESS ENTERPRISE PROGRAM.
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 $9.9 million.
What is the period of performance?
Start: 2005-11-01. End: 2011-03-14.
What was the contractor's track record with the Department of the Air Force prior to this award?
Information regarding the Colorado State Business Enterprise Program's specific track record with the Department of the Air Force prior to this 2005 award is not detailed in the provided data. However, the fact that they were awarded a nearly six-year, multi-million dollar contract suggests they likely had some established capabilities or prior experience that met the Air Force's requirements. Further investigation into the Federal Procurement Data System (FPDS) or similar databases could reveal past performance evaluations, other contracts held, and any documented issues or successes. The long duration of this specific contract also implies a degree of satisfaction with their performance, as contract renewals or extensions are often contingent on meeting performance standards.
How does the average annual cost of this contract compare to similar food service contracts awarded by the DoD?
This contract averaged approximately $1.7 million per year ($9.9 million / ~5.7 years). To benchmark this effectively, one would need to compare it against other Department of Defense (DoD) food service contracts of similar scope, duration, and location. Factors such as the number of meals served, type of facility (e.g., dining hall, remote site), specific service requirements (e.g., menu variety, dietary accommodations), and prevailing labor costs in the region would influence pricing. Without access to a comprehensive database of comparable DoD food service contracts, a precise comparison is difficult. However, annual costs in the low millions are typical for large-scale food service operations supporting military installations.
What were the primary performance risks identified during the bidding process for this contract?
The provided data does not explicitly detail the primary performance risks identified during the bidding process. However, for a food service contract of this nature, common risks typically include ensuring food safety and sanitation standards, maintaining consistent food quality and variety, managing supply chain disruptions, meeting service level agreements (e.g., operating hours, staffing levels), and controlling costs. The long duration of the contract (nearly 6 years) suggests that the procuring agency likely assessed these risks and determined that the selected contractor, the Colorado State Business Enterprise Program, had adequate mitigation strategies in place. The firm-fixed-price contract type generally shifts most of the cost risk to the contractor.
What was the historical spending pattern for food services at this specific Air Force installation before this contract?
The provided data does not include historical spending patterns for food services at the specific Air Force installation where this contract was performed. To ascertain this, one would need to access historical contract data for that installation, looking at previous food service contracts awarded, their values, durations, and the contractors involved. Understanding past spending can help determine if this $9.9 million contract represented an increase, decrease, or stable level of investment in food services. It could also reveal trends in competition or contractor performance over time.
Were there any significant contract modifications or change orders issued during the life of this contract?
The provided summary data does not indicate whether there were significant contract modifications or change orders during the life of this contract. Such modifications could arise due to changes in requirements, scope adjustments, or unforeseen circumstances. Analyzing the contract's history in a detailed database like FPDS-NG would be necessary to identify any modifications, their value, and the reasons behind them. Significant modifications could impact the total contract value and potentially alter the initial assessment of value for money.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2211 W EVANS B, DENVER, CO, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2005-11-01
Current End Date: 2011-03-14
Potential End Date: 2011-03-14 00:00:00
Last Modified: 2011-05-05
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