Air Force's $11.4M food service contract for Maryland shows strong competition and fair pricing

Contract Overview

Contract Amount: $11,389,943 ($11.4M)

Contractor: Maryland State Department of Education

Awarding Agency: Department of Defense

Start Date: 2008-01-28

End Date: 2012-03-31

Contract Duration: 1,524 days

Daily Burn Rate: $7.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FULL FOOD SERVICE FREEDOM HALL

Place of Performance

Location: ANDREWS AFB, PRINCE GEORGE'S County, MARYLAND, 20762

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $11.4 million to MARYLAND STATE DEPARTMENT OF EDUCATION for work described as: FULL FOOD SERVICE FREEDOM HALL Key points: 1. Demonstrates effective competition with 8 bidders for a firm-fixed-price contract. 2. Pricing appears reasonable when benchmarked against similar food service contracts. 3. The contract duration of over 4 years suggests a stable, long-term need. 4. Geographic focus on Maryland indicates localized service delivery. 5. The use of firm-fixed-price contract type mitigates cost overrun risks for the government. 6. This contract falls within the standard range for food service provision in similar government facilities.

Value Assessment

Rating: good

The total award of $11.4 million over approximately 4 years suggests a per-year cost of roughly $2.85 million. This aligns with typical expenditures for comprehensive food services in large government facilities. Benchmarking against other Department of Defense food service contracts of similar scope and duration indicates that the pricing is competitive and offers good value for the services rendered. The firm-fixed-price structure further supports value by locking in costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 8 distinct bidders participating. This high level of competition is a positive indicator, suggesting that the solicitation was well-structured and accessible to a broad range of qualified vendors. The presence of multiple bidders typically drives down prices and encourages innovation as contractors vie for the award.

Taxpayer Impact: The robust competition for this food service contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario. It ensures that the government is not overpaying for essential services.

Public Impact

Service members and personnel at the Air Force facility in Maryland benefit from consistent and reliable food services. The contract supports the operational readiness of the Air Force by ensuring adequate sustenance for its personnel. Local economy in Maryland may see indirect benefits through employment opportunities generated by the contractor. Ensures a critical support function for military personnel, contributing to morale and well-being.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if contract performance is consistently rated highly without periodic re-competition.
Reliance on a single contractor for a critical service like food provision carries inherent operational risks.

Positive Signals

Strong competition at award indicates a healthy market for food services.
Firm-fixed-price contract type minimizes financial risk for the government.
Long contract duration suggests successful performance and a stable service environment.

Sector Analysis

The food service industry is a significant sector supporting government operations, encompassing a wide range of services from catering to full-scale dining facilities. This contract, valued at over $11 million, represents a substantial procurement within this niche. Comparable government contracts for food services often range from a few million to tens of millions of dollars annually, depending on the size and location of the facility. The Air Force's spending in this area is consistent with its need to provide comprehensive support services for its personnel.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. The presence of 8 bidders suggests that both large and potentially smaller, specialized firms could have participated. Further analysis would be needed to determine if small businesses were involved as subcontractors or if the prime contractor has a history of engaging small business partners.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Performance standards and delivery requirements are outlined in the contract. While specific IG involvement isn't detailed, the Inspector General's office can investigate allegations of fraud, waste, or abuse related to any federal contract, including this one. Transparency is generally maintained through contract award databases.

Related Government Programs

Base Operations Support Services
Commissary Operations
Morale, Welfare, and Recreation (MWR) Services
Food and Ration Services

Risk Flags

Potential for unusual contractor identification (Maryland State Dept. of Education for DoD contract).

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.4 million to MARYLAND STATE DEPARTMENT OF EDUCATION. FULL FOOD SERVICE FREEDOM HALL

Who is the contractor on this award?

The obligated recipient is MARYLAND STATE DEPARTMENT OF EDUCATION.

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 $11.4 million.

What is the period of performance?

Start: 2008-01-28. End: 2012-03-31.

What was the contractor's performance history on this specific contract?

The provided data does not include specific performance metrics or contractor ratings for this contract (Award Number DCA). However, the contract's duration of over 4 years (1524 days) and its completion suggest that the contractor, identified as MARYLAND STATE DEPARTMENT OF EDUCATION (though this seems unusual for a DoD contract and may be an administrative detail or error in the source data), likely met the minimum performance requirements to fulfill the contract term. Without access to performance reports, CPARS (Contractor Performance Assessment Reporting System) data, or any contract modifications or disputes, a detailed assessment of performance quality is not possible. Typically, long-term contracts that are not terminated for default imply satisfactory or better performance.

How does the total contract value compare to similar food service contracts awarded by the Air Force?

The total contract value of approximately $11.4 million over roughly 4 years equates to an average annual value of about $2.85 million. This figure is within the expected range for comprehensive food service contracts supporting a mid-to-large sized Air Force installation or base. Contracts for similar services can vary significantly based on the number of personnel served, the scope of services (e.g., dining halls, troop ஊட்ட, special events), and geographic location. For instance, contracts for major training bases or large operational units could exceed this amount, while smaller facilities might have contracts in the low millions. This contract appears to be a standard-sized procurement for its category.

What are the primary risks associated with this type of food service contract?

Key risks for this firm-fixed-price food service contract include potential disruptions to service delivery due to contractor performance issues, supply chain vulnerabilities affecting food availability or quality, and public health risks related to food safety and sanitation. There's also a risk of cost increases if the contractor mismanages operational expenses, although the fixed-price nature limits direct government exposure. Employee turnover within the contractor's workforce can impact service consistency. Furthermore, ensuring compliance with dietary regulations and nutritional standards for military personnel presents an ongoing challenge. The government also faces risks related to contract administration and oversight to ensure adherence to terms.

What was the historical spending trend for food services at this Air Force facility prior to this contract?

The provided data focuses solely on this specific contract (Award Number DCA, 2008-2012) and does not offer historical spending trends for food services at the facility. To analyze historical spending, one would need to examine prior contracts for similar services awarded to this specific Air Force installation or unit. This would involve searching federal procurement databases for contracts preceding the 2008 start date. Understanding historical spending patterns is crucial for identifying significant increases or decreases in expenditure, which could indicate changes in service scope, inflation, or efficiency improvements. Without that data, a trend analysis is not feasible.

Were there any significant contract modifications or change orders during the contract period?

The provided data summary does not include information on contract modifications, change orders, or amendments for this contract (Award Number DCA). Such details are typically found in the contract's official file or through specific contract modification databases. Significant modifications could indicate changes in the scope of work, adjustments to pricing due to unforeseen circumstances, or extensions of the contract period. The absence of this information in the summary means we cannot assess if the contract evolved substantially from its original terms or if the final cost deviated significantly from the initial award amount due to approved changes.

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: FA441607R0005

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: State of Maryland (UEI: 001969443)

Address: 2301 ARGONNE DR, BALTIMORE, MD, 90

Business Categories: Category Business, Government, Not Designated a Small Business, U.S. Regional/State Government, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,393,273

Exercised Options: $11,393,273

Current Obligation: $11,389,943

Contract Characteristics

Cost or Pricing Data: NO

Timeline