DoD awards $12.5M for Schriever AFB food services, with NRD Inc. securing the contract

Contract Overview

Contract Amount: $12,473,923 ($12.5M)

Contractor: Native Resource Development CO Inc

Awarding Agency: Department of Defense

Start Date: 2020-08-29

End Date: 2025-12-28

Contract Duration: 1,947 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FULL FOOD SERVICES AT SCHRIEVER AIR FORCE BASE

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $12.5 million to NATIVE RESOURCE DEVELOPMENT CO INC for work described as: FULL FOOD SERVICES AT SCHRIEVER AIR FORCE BASE Key points: 1. The contract value represents a significant investment in base support services. 2. Competition dynamics for this contract are crucial for ensuring fair pricing. 3. Performance risk is moderate, given the essential nature of food services. 4. This contract supports the operational readiness of Schriever Air Force Base personnel. 5. The food service sector is a common area for government contracting. 6. Fixed-price contracts aim to control costs for the government.

Value Assessment

Rating: good

The contract value of $12.5 million over its period of performance appears reasonable for providing full food services at a military installation. Benchmarking against similar contracts for base dining facilities would provide a clearer picture of value for money. The firm-fixed-price structure suggests an effort to lock in costs, which can be beneficial if the contractor's bid was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of 5 bidders suggests a healthy level of competition for this service. This broad competition is generally expected to drive down prices and encourage better service offerings as contractors vie for the award.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing the best possible price and quality for the required food services, preventing potential overspending.

Public Impact

Military personnel and their families stationed at Schriever Air Force Base benefit from consistent and reliable food services. The contract ensures the delivery of essential food and catering services, contributing to morale and operational readiness. The geographic impact is localized to Schriever Air Force Base in Colorado. The contract supports jobs within the food service industry, potentially including local hires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if competition diminishes.
Ensuring consistent food quality and service standards across the contract duration.
Managing potential supply chain disruptions affecting food availability.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm-fixed-price contract type helps to control costs and budget predictability.
Longer contract duration (over 3 years) can provide stability for the contractor and consistent service for the base.

Sector Analysis

The food service industry is a significant sector within government contracting, encompassing a wide range of support services for federal agencies and military installations. This contract falls under the broader category of base operations support. Comparable spending benchmarks for similar food service contracts at other military bases would provide context for the $12.5 million award, but generally, such contracts are substantial due to the scale of military populations.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, and the prime contractor, Native Resource Development Co Inc, is likely not a small business. There is no explicit information on subcontracting plans for small businesses within this award. Further analysis would be needed to determine if small business participation is mandated or encouraged through subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) at Schriever Air Force Base, who monitors performance and ensures compliance with contract terms. The Department of Defense and the Air Force have established procurement regulations and oversight bodies to ensure accountability. Transparency is generally maintained through contract award databases, though specific performance metrics may not always be publicly disclosed.

Related Government Programs

Military Base Support Services
Food and Hospitality Services
Schriever Air Force Base Operations
Department of Defense Food Procurement
Base Dining Facilities Management

Risk Flags

Potential for cost overruns if not managed effectively
Risk of service quality degradation if contractor underbids
Dependence on a single contractor for essential services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.5 million to NATIVE RESOURCE DEVELOPMENT CO INC. FULL FOOD SERVICES AT SCHRIEVER AIR FORCE BASE

Who is the contractor on this award?

The obligated recipient is NATIVE RESOURCE DEVELOPMENT CO INC.

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 $12.5 million.

What is the period of performance?

Start: 2020-08-29. End: 2025-12-28.

What is the historical spending pattern for food services at Schriever Air Force Base?

Analyzing historical spending data for food services at Schriever Air Force Base prior to this $12.5 million award would reveal trends in contract values, duration, and contractor performance. Understanding if this award represents an increase, decrease, or stable level of spending compared to previous contracts is crucial for assessing long-term budget implications. For instance, if previous contracts were significantly lower, it might indicate an expansion of services or inflation. Conversely, a decrease could suggest efficiency gains or reduced base population. Without prior data, it's difficult to establish a baseline for evaluating the current contract's financial trajectory and value proposition over time.

How does the per-unit cost of meals under this contract compare to industry benchmarks?

Determining the per-unit cost of meals requires dividing the total contract value by the estimated number of meals to be served over the contract period. This figure can then be compared to industry benchmarks for similar food service contracts, particularly those serving large institutional populations like military bases. If the per-unit cost is significantly higher than benchmarks, it could indicate potential issues with pricing or scope. Conversely, a cost below benchmarks might suggest a highly competitive bid or potential risks to service quality if the contractor underestimated costs. Accurate comparison requires detailed data on meal types and service levels.

What is the track record of Native Resource Development Co Inc in performing similar government contracts?

Native Resource Development Co Inc's track record in performing similar government contracts, especially those involving food services for military installations, is a key indicator of their capability and reliability. Reviewing past performance evaluations, contract history, and any reported disputes or awards can provide insight into their operational efficiency, quality of service, and adherence to contractual obligations. A history of successful contract completion suggests a lower risk for this current award. Conversely, a pattern of performance issues or contract terminations would raise concerns about their ability to meet the requirements of the Schriever AFB contract effectively.

What are the specific performance metrics and service level agreements (SLAs) included in this contract?

The specific performance metrics and Service Level Agreements (SLAs) are critical for evaluating the quality and effectiveness of the food services provided under this contract. These metrics typically cover aspects such as meal quality, nutritional standards, service timeliness, facility cleanliness, and customer satisfaction. The contract likely outlines acceptable performance thresholds and potential penalties for non-compliance. Assessing these SLAs provides a framework for the government to monitor contractor performance and ensure that the services delivered meet the needs of Schriever Air Force Base personnel, thereby safeguarding taxpayer investment.

What is the potential impact of this contract on small business participation in the food service sector?

While this contract was awarded under full and open competition and does not appear to be a small business set-aside, its impact on the small business ecosystem is still relevant. The prime contractor, Native Resource Development Co Inc, may be required to subcontract a portion of the work to small businesses. Analyzing their subcontracting plan, if available, would reveal the extent of small business involvement. Even without a formal set-aside, large contracts can sometimes create opportunities for small businesses as suppliers or service providers to the prime contractor, contributing indirectly to their growth and the overall health of the small business sector.

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

Solicitation ID: FA255020R0010

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 51 JEMEZ DAM RD STE 110, BERNALILLO, NM, 87004

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $12,515,415

Exercised Options: $12,515,415

Current Obligation: $12,473,923

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline