DoD's $28M Maxwell AFB food services contract awarded to Alabama agency shows fair value, but limited competition

Contract Overview

Contract Amount: $28,009,612 ($28.0M)

Contractor: Alabama Department of Rehabilitation Services

Awarding Agency: Department of Defense

Start Date: 2013-01-01

End Date: 2018-04-30

Contract Duration: 1,945 days

Daily Burn Rate: $14.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FULL FOOD SERVICES AT MAXWELL AFB, AL

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36112

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $28.0 million to ALABAMA DEPARTMENT OF REHABILITATION SERVICES for work described as: FULL FOOD SERVICES AT MAXWELL AFB, AL Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Competition was limited, raising questions about optimal price discovery. 3. Performance risk seems low due to the established nature of food services. 4. This contract represents a significant portion of spending for food service contractors in the region. 5. The agency's role suggests a unique public service delivery model for military support.

Value Assessment

Rating: good

The contract's total value of approximately $28 million over five years for full food services at Maxwell AFB suggests a benchmark of roughly $5.6 million annually. This aligns with typical costs for large-scale food service operations supporting military installations. While specific cost breakdowns are unavailable, the firm-fixed-price structure indicates that the contractor assumed the risk for cost overruns, which is a positive sign for value. Benchmarking against similar contracts for base-wide food services would provide a more precise assessment, but the overall expenditure appears within a reasonable range for the services rendered.

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 offers. However, the data shows only one award was made, and the number of bidders is not explicitly stated beyond the awardee. This suggests that while the competition was open, the pool of qualified bidders or the number of actual participants may have been limited. A low number of bids, even under full and open competition, can sometimes lead to less aggressive pricing.

Taxpayer Impact: While the competition was open, the limited number of actual bidders could mean taxpayers did not benefit from the most competitive pricing possible. Further analysis of the bid count would clarify the extent of this potential issue.

Public Impact

Service members stationed at Maxwell AFB benefit from consistent and reliable food services. The contract supports the operational readiness of the Air Force installation. The geographic impact is localized to Maxwell AFB in Alabama. The contract likely supports local employment within the food service industry at the base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to limited competitive pressure.
Lack of detailed performance metrics makes assessing efficiency difficult.
Dependence on a single provider for essential base services.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Awarded under full and open competition, ensuring a fair process.
Long-term contract provides stability for service delivery.

Sector Analysis

This contract falls within the broader food service industry, a sector characterized by high volume, relatively low margins, and significant labor requirements. For federal spending, food services are a common requirement for military bases, correctional facilities, and government agencies. The market size for government food service contracts is substantial, with numerous providers ranging from large corporations to specialized regional companies. This specific contract represents a significant expenditure for food service contractors operating within the defense sector, highlighting the importance of such agreements for maintaining military base operations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the awardee is the Alabama Department of Rehabilitation Services, a state agency, not a typical small business. Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The focus is on the primary service provider fulfilling the contract requirements.

Oversight & Accountability

The contract is managed by the Department of the Air Force, a component of the Department of Defense. Oversight would typically involve contract officers, financial managers, and base personnel responsible for ensuring service delivery meets the specified requirements. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Base Operations Support Services
Military Food Service Contracts
Government Food Supply Contracts
Defense Logistics Agency Contracts

Risk Flags

Limited competition despite 'full and open' designation.
Awardee's primary mission may not align with large-scale food services.
Lack of detailed performance metrics for value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.0 million to ALABAMA DEPARTMENT OF REHABILITATION SERVICES. FULL FOOD SERVICES AT MAXWELL AFB, AL

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 $28.0 million.

What is the period of performance?

Start: 2013-01-01. End: 2018-04-30.

What is the track record of the Alabama Department of Rehabilitation Services in managing large-scale food service contracts, particularly for federal installations?

The Alabama Department of Rehabilitation Services (ADRS) is primarily focused on providing vocational rehabilitation services to individuals with disabilities. While they may have experience managing internal food services for their own facilities or programs, their track record in managing extensive, full-service food operations for a large federal installation like Maxwell AFB is not their core mission. Information regarding their specific experience with contracts of this magnitude and nature is limited in public databases. This suggests that while they were awarded the contract, their expertise might lie in a different area, and the operational execution of the food services may have been handled through their own staff or potentially subcontractors with relevant experience. Further investigation into ADRS's operational structure for this contract would be necessary to fully assess their capabilities.

How does the annual cost of this contract compare to similar food service contracts at other Air Force bases of comparable size?

Benchmarking this contract's annual cost of approximately $5.6 million against similar food service contracts at other Air Force bases requires detailed comparative data that is not readily available. Factors such as base population, troop strength, dining facility types (e.g., traditional dining halls, smaller cafes), service level agreements, and geographic location significantly influence costs. However, for a large installation like Maxwell AFB, supporting a substantial number of personnel, this annual figure appears to be within a reasonable range. Contracts for similar services at other bases can vary widely, but a $5-7 million annual expenditure is not uncommon for comprehensive food service operations at major military installations. A precise comparison would necessitate analyzing contracts with identical scope and service levels.

What are the primary risks associated with this contract, and how were they mitigated?

The primary risks associated with this contract include potential disruptions in food service delivery, quality control issues, and cost overruns if the contract were not firm-fixed-price. Given that it is a firm-fixed-price contract, the financial risk of cost overruns is largely borne by the contractor, which is a significant mitigation factor. Service delivery disruptions could arise from staffing shortages or supply chain issues, risks that are inherent in the food service industry. Mitigation for these would typically involve performance standards, contingency planning requirements within the contract, and the possibility of penalties for non-performance. The Alabama Department of Rehabilitation Services' suitability as a contractor for this specific type of service also presents a potential risk if their core competencies do not align with large-scale food operations, though the contract's duration suggests a level of satisfactory performance was achieved.

What was the total federal spending on food services at Maxwell AFB over the contract period (2013-2018)?

The provided data indicates a single definitive contract for "FULL FOOD SERVICES AT MAXWELL AFB, AL" with a total award value of $28,009,611.55, spanning from January 1, 2013, to April 30, 2018. This period covers approximately 5 years and 4 months (1945 days). Assuming this was the primary contract for comprehensive food services during that timeframe, the total federal spending on these specific services at Maxwell AFB would be approximately $28 million. It is possible that other smaller, separate contracts for specific food-related needs (e.g., catering for events, specialized dietary services) may have existed, but this figure represents the main expenditure for base-wide food services as captured by this award.

What does the 'full and open competition' designation mean in the context of this contract, given the awardee?

The 'full and open competition' designation means that the solicitation was advertised publicly, and any responsible source was permitted to submit a bid. This process is designed to maximize competition and ensure the government receives the best value. In this specific case, the Alabama Department of Rehabilitation Services was awarded the contract. While they are a state agency and not a typical for-profit defense contractor, they were eligible to compete under the 'full and open' umbrella. The fact that they won suggests they met the technical, performance, and cost requirements outlined in the solicitation, potentially offering a unique value proposition or a competitive price. However, the number of bidders who actually submitted offers under this open competition is crucial for assessing the true level of market engagement and price discovery.

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: FA330012R0018

Offers Received: 15

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,009,612

Exercised Options: $28,009,612

Current Obligation: $28,009,612

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline