Air Force food services contract awarded to Alabama Department of Rehabilitation Services for over $29.5M

Contract Overview

Contract Amount: $29,497,627 ($29.5M)

Contractor: Alabama Department of Rehabilitation Services

Awarding Agency: Department of Defense

Start Date: 2018-05-01

End Date: 2023-03-31

Contract Duration: 1,795 days

Daily Burn Rate: $16.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF FULL FOOD SERVICE

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36112

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $29.5 million to ALABAMA DEPARTMENT OF REHABILITATION SERVICES for work described as: IGF::OT::IGF FULL FOOD SERVICE Key points: 1. Contract value represents a significant investment in essential support services for military personnel. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The contract duration of nearly five years indicates a long-term need for these services. 4. Fixed-price contract type may offer cost certainty for the government, but could limit flexibility. 5. The awardee's primary mission is rehabilitation, raising questions about specialized food service expertise. 6. Geographic concentration in Alabama may reflect regional support needs or specific base requirements.

Value Assessment

Rating: fair

The contract value of approximately $29.5 million over almost five years averages around $6 million annually. Benchmarking this against similar food service contracts for military installations is challenging without more specific service details and geographic comparisons. However, the fixed-price nature suggests an attempt to control costs. The award to an entity primarily focused on rehabilitation services, rather than a dedicated food service provider, warrants further scrutiny regarding potential value for money and specialized service delivery.

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. With four bids received, the level of competition appears moderate. This suggests that while multiple companies were interested, the market may not be as saturated as for some other service contracts. Moderate competition can lead to reasonable pricing, but the ultimate value depends on the specific capabilities and cost structures of the bidders.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of offers and potentially driving down prices through market forces. The presence of four bidders suggests a reasonable level of price discovery was achieved.

Public Impact

Military personnel stationed at the relevant Air Force installation will receive food services. The contract supports the operational readiness of the Air Force by ensuring essential life support. The primary beneficiary is the Alabama Department of Rehabilitation Services, providing employment and operational funding. The contract has implications for the workforce within Alabama, potentially creating or sustaining jobs. Geographic impact is concentrated in Alabama, where the awardee is based and services are likely rendered.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential lack of specialized food service expertise within the awardee's primary mission.
Risk of service quality issues if the awardee's focus is not on high-volume food operations.
Limited flexibility in service delivery due to the firm fixed-price contract type.
Concentration of contract value within a single state could limit broader economic impact.

Positive Signals

Awarded through full and open competition, indicating a fair process.
Moderate number of bidders suggests a competitive environment was established.
Long-term contract provides stability for the awardee and consistent service for the government.
Fixed-price structure offers budget predictability for the Air Force.

Sector Analysis

The food service industry is a significant component of the broader services sector, encompassing a wide range of providers from large corporations to specialized niche operators. Federal contracts for food services are common across various agencies, particularly those with large personnel bases like the Department of Defense. Spending in this area is driven by the need to provide meals and catering for military personnel, government employees, and sometimes the public at government facilities. Benchmarks for such contracts vary widely based on location, scope of services, and the specific needs of the installation.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting requirements for small businesses within the provided data. The awardee, Alabama Department of Rehabilitation Services, is a state agency, not a small business. Therefore, this contract does not directly contribute to the federal small business contracting goals. The absence of explicit small business subcontracting plans means there is no direct mechanism to ensure small business participation through this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting agency, the Department of the Air Force, and potentially the Department of Defense's Inspector General. The contract type (firm fixed price) and duration suggest standard oversight procedures for performance monitoring, quality assurance, and payment verification. Transparency is generally maintained through contract award databases like FPDS. Specific accountability measures would be detailed in the contract's performance work statement and quality assurance surveillance plan.

Related Government Programs

Department of Defense Food Services
Military Base Support Services
Government Food Procurement
State Agency Service Contracts

Risk Flags

Awardee's primary mission is not food service provision.
Potential for service quality issues due to non-specialized awardee.
Fixed-price contract may limit flexibility for evolving needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.5 million to ALABAMA DEPARTMENT OF REHABILITATION SERVICES. IGF::OT::IGF FULL FOOD SERVICE

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 $29.5 million.

What is the period of performance?

Start: 2018-05-01. End: 2023-03-31.

What is the specific nature of the food services required under this contract, and how do they align with the awardee's core mission?

The provided data indicates the contract is for 'Food Service Contractors' (NAICS 722310) and has a value of over $29.5 million. The awardee is the Alabama Department of Rehabilitation Services (ADRS). ADRS's primary mission is to assist Alabamians with disabilities to achieve their employment, independence, and quality of life goals. While ADRS may have divisions or programs that involve food preparation or service, it is not their core competency in the same way it would be for a dedicated commercial food service provider. The specific services required under this contract would detail the scope, such as meal preparation, dining facility operation, catering, and food safety standards. The alignment with ADRS's mission is unclear from the data; it's possible the contract supports vocational training programs or provides employment opportunities for individuals with disabilities within the food service sector, or it could be a more straightforward service contract where ADRS possesses the necessary operational capacity.

How does the pricing of this contract compare to industry benchmarks for similar food service contracts, considering the awardee's unique profile?

Directly comparing the pricing of this $29.5 million contract to industry benchmarks is difficult without detailed service scope, location-specific cost-of-living adjustments, and the exact number of personnel served daily. However, the award to the Alabama Department of Rehabilitation Services, an entity not primarily known for large-scale food service operations, raises questions about whether the pricing reflects standard market rates or includes elements related to its rehabilitative mission. If the contract involves vocational training or employment for individuals with disabilities, the cost structure might differ from purely commercial contracts. A firm fixed-price contract suggests the government sought cost certainty. Further analysis would require comparing the per-meal cost or per-person cost against similar military food service contracts, adjusting for geographic location and service complexity, and assessing if the ADRS's operational model impacts overall cost-effectiveness.

What are the potential risks associated with awarding a large food service contract to an organization whose primary mission is rehabilitation?

The primary risk lies in the potential mismatch between the awardee's core mission and the specialized demands of large-scale food service operations. This could manifest as challenges in maintaining consistent food quality, adhering to strict health and safety regulations, managing supply chains efficiently, and meeting the volume and service level requirements of a military installation. Unlike dedicated food service companies with established expertise and infrastructure, the Alabama Department of Rehabilitation Services might face a steeper learning curve or require significant investment in training and operational adjustments. This could lead to service disruptions, lower satisfaction among service members, and potential cost overruns if the fixed-price contract doesn't adequately account for unforeseen operational complexities. Additionally, the focus on rehabilitation might divert resources or attention from the critical food service delivery aspect.

Given the contract's duration and value, what is the historical spending pattern for food services by the Air Force in this region or for similar installations?

The provided data shows a single contract valued at $29,497,626.94 awarded on May 1, 2018, with an end date of March 31, 2023, lasting 1795 days (approximately 4.9 years). This represents a significant, long-term commitment to food services. To understand historical spending patterns, one would need to examine prior contracts for food services at the specific Air Force installation this contract served, or similar installations within the Air Force's portfolio. This would involve querying databases like the Federal Procurement Data System (FPDS) for contracts with similar NAICS codes (e.g., 722310) and agencies (Department of the Air Force) over a longer period. Analyzing these patterns would reveal whether spending has been consistent, increasing, or decreasing, and whether this award represents a continuation of previous service providers or a shift in strategy, such as the award to ADRS.

How does the use of a 'Full and Open Competition' strategy impact the potential for cost savings and service quality in this specific contract?

Utilizing 'Full and Open Competition' means that the contract was open to all responsible sources, theoretically maximizing the pool of potential bidders. This strategy is generally favored as it promotes a competitive environment, which can lead to lower prices and higher quality services as contractors vie for the award. In this case, four bids were received, indicating a moderate level of competition. While this is better than a sole-source or limited competition scenario, the ultimate impact on cost savings and service quality depends on the specific capabilities and pricing strategies of those four bidders. If the bidders were highly qualified and their proposals were rigorously evaluated, taxpayers likely benefited from competitive pricing. However, if the awardee, ADRS, was not a traditional food service provider, the competition might have been less robust in terms of specialized expertise, potentially impacting the long-term service quality despite the competitive award process.

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: FA330018R0010

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Alabama, State of

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

Financial Breakdown

Contract Ceiling: $59,045,388

Exercised Options: $47,153,610

Current Obligation: $29,497,627

Actual Outlays: $12,271,925

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline