Air Force food services contract awarded for over $13.8 million, with limited competition

Contract Overview

Contract Amount: $13,821,729 ($13.8M)

Contractor: Occupational Training Center of Burlington County

Awarding Agency: Department of Defense

Start Date: 2003-10-01

End Date: 2009-03-31

Contract Duration: 2,008 days

Daily Burn Rate: $6.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200402!000026!5700!QA07 !305 CONS/LGC !FA448404F8801 !A!N! !N! ! !20031001!20080930!075484204!075484204!075484204!N!OCCUPATIONAL TRAINING CENTER A!130 HANCOCK LANE !WESTAMPTON !NJ!08060!42390!005!34!MCGUIRE AFB !BURLINGTON !NEW JERSEY!+000002701382!N!N!000000000000!S203!FOOD SERVICES !S1 !SERVICES !000 !* !722310!E! !8! ! ! ! ! !99990909!B! ! !N!Z!B!N!J!1!001!N!5A!Z!N!Z! ! !Y!D!N! ! ! ! ! !A!A!000!A!A!N! ! ! ! ! ! !0001! !

Place of Performance

Location: TRENTON, BURLINGTON County, NEW JERSEY, 08641

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $13.8 million to OCCUPATIONAL TRAINING CENTER OF BURLINGTON COUNTY for work described as: 200402!000026!5700!QA07 !305 CONS/LGC !FA448404F8801 !A!N! !N! ! !20031001!20080930!075484204!075484204!075484204!N!OCCUPATIONAL TRAINING CENTER A!130 HANCOCK LANE !WESTAMPTON !NJ!08060!42390!005!34!MCGUIRE AFB !BURL… Key points: 1. The contract was not competed, raising questions about potential value for money. 2. Limited competition suggests a higher risk of inflated pricing. 3. The contract duration of nearly six years warrants scrutiny of performance and cost-effectiveness. 4. Food services are a critical operational support function for military bases. 5. The award to a single entity for a significant duration may limit opportunities for innovation and cost savings through competition. 6. The contract's value places it in the mid-tier range for similar support services.

Value Assessment

Rating: questionable

The contract's value of over $13.8 million for food services over nearly six years appears substantial. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The lack of competition raises concerns that the government may not have secured the most cost-effective solution. Further analysis would be needed to determine if the price reflects fair market value for the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This significantly limits the number of potential bidders and removes the pressure of competitive pricing. While sole-source awards can be justified in specific circumstances, they often result in higher costs for the government compared to fully competed contracts. The absence of multiple bids means there is no direct comparison to assess the competitiveness of the awarded price.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competition, as the contractor did not have to compete on price. This also limits the government's ability to explore innovative or more cost-effective service delivery models that might have emerged from a broader bidding process.

Public Impact

Military personnel at McGuire Air Force Base benefit from essential food services. The contract ensures the provision of food services, a critical component of base operations and morale. The geographic impact is localized to McGuire AFB in New Jersey. The contract supports jobs within the food service industry, potentially including local hires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs.
Sole-source award limits opportunities for innovative solutions.
Contract duration could mask inefficiencies if not closely monitored.

Positive Signals

Ensures continuity of essential food services for military personnel.
Contract awarded to a known entity, potentially reducing initial onboarding risks.
Fixed-price contract provides cost certainty for the government.

Sector Analysis

The food services sector within government contracting is a significant market, encompassing a wide range of support functions for military bases, federal agencies, and other public institutions. This contract falls within the broader category of facilities support services. Comparable spending benchmarks for food services can vary widely based on the size of the installation, the type of services required (e.g., dining halls, catering, retail food), and the geographic location. The $13.8 million value over nearly six years suggests a substantial operation supporting a large population.

Small Business Impact

There is no indication that this contract included a small business set-aside. The sole-source nature of the award further suggests that opportunities for small business subcontracting may have been limited unless specifically mandated by the contracting agency. Without a competitive process, the proactive inclusion of small business participation goals is less likely.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and financial management divisions. The contract's performance would be monitored by the requiring activity at McGuire AFB. Inspector General (IG) jurisdiction could be invoked if allegations of fraud, waste, or abuse arise. Transparency is limited due to the sole-source nature, with fewer public details available compared to competed contracts.

Related Government Programs

Base Operations Support (BOS)
Food and Ration Services
Logistics and Support Services
Government Food Service Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 million to OCCUPATIONAL TRAINING CENTER OF BURLINGTON COUNTY. 200402!000026!5700!QA07 !305 CONS/LGC !FA448404F8801 !A!N! !N! ! !20031001!20080930!075484204!075484204!075484204!N!OCCUPATIONAL TRAINING CENTER A!130 HANCOCK LANE !WESTAMPTON !NJ!08060!42390!005!34!MCGUIRE AFB !BURLINGTON !NEW JERSEY!+000002701382!N!N!000000000000!S203!FOOD SERVICES !S1 !SERVICES !000 !* !722310!E! !8! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is OCCUPATIONAL TRAINING CENTER OF BURLINGTON COUNTY.

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 $13.8 million.

What is the period of performance?

Start: 2003-10-01. End: 2009-03-31.

What is the track record of the contractor, OCCUPATIONAL TRAINING CENTER OF BURLINGTON COUNTY, with federal contracts, particularly in food services?

Information regarding the specific track record of OCCUPATIONAL TRAINING CENTER OF BURLINGTON COUNTY with federal contracts, especially in food services, is not detailed in the provided data. A comprehensive review would require accessing contract databases like FPDS-NG to examine past performance, any reported issues, and the scope of previous awards. Without this historical data, it's difficult to assess their experience level and reliability for this specific $13.8 million contract. The sole-source nature of this award might imply a pre-existing relationship or a specific capability that the Air Force deemed necessary, but further investigation into their past performance is crucial for a complete assessment.

How does the awarded price of approximately $13.8 million compare to industry benchmarks for similar food service contracts at military installations of comparable size?

Benchmarking this $13.8 million contract against industry standards for similar food service contracts at comparable military installations is challenging without more specific data on the scope of services, the number of personnel served, and the geographic location's cost of living. However, a contract of this value over nearly six years suggests a significant operation. Typically, food service contracts for large bases can range from millions to tens of millions annually, depending on the services provided (e.g., dining facilities, troop feeding, catering). The lack of competition in this sole-source award makes a direct price comparison difficult, as there's no market-driven price discovery. A detailed cost analysis by the government would have been necessary to justify the price, but without public access to that analysis, external benchmarking remains speculative.

What are the primary risks associated with awarding a sole-source contract for essential services like food?

The primary risks associated with awarding a sole-source contract for essential services like food include potential overpayment due to lack of price competition, reduced incentive for the contractor to innovate or improve efficiency, and a lack of flexibility if service needs change. Taxpayers may bear a higher cost as the government doesn't benefit from competitive bidding. Furthermore, reliance on a single provider can create vulnerabilities if the contractor experiences performance issues, financial instability, or fails to meet contractual obligations. Without competition, the government has fewer options to pivot or seek alternative solutions quickly. This can also stifle market competition in the long run by discouraging other potential providers from developing capabilities.

What specific food services are included under this contract, and how are performance standards measured?

The provided data indicates the North American Industry Classification System (NAICS) code is 722310, which corresponds to 'Food Service Contractors.' This generally encompasses the preparation and serving of food at the contractor's facilities or on the customer's premises. Specific services could include operating dining halls, providing catering for events, managing retail food outlets, and potentially food preparation for troop rations. Performance standards are typically detailed in the contract's Performance Work Statement (PWS). These standards would outline requirements for food quality, safety, service timeliness, customer satisfaction, and sanitation. Measurement methods often involve inspections, customer surveys, and tracking key performance indicators (KPIs) related to service delivery.

What is the historical spending pattern for food services at McGuire AFB, and how does this contract compare?

Historical spending data for food services specifically at McGuire AFB is not provided in the current dataset. To analyze this, one would need to query federal procurement databases for past contracts related to food services at this installation. Comparing this $13.8 million contract, which spans from October 2003 to September 2008 (nearly six years), would involve looking at the total value of previous food service contracts awarded to McGuire AFB over similar periods. Understanding the historical spending context is crucial to determine if this contract represents an increase, decrease, or stable level of investment in food services, and whether the duration and value are consistent with past practices or indicate a shift in requirements or contracting strategy.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 130 HANCOCK LANE, WESTAMPTON, NJ, 03

Business Categories: AbilityOne Program Participant, Category Business, Not Designated a Small Business, Special Designations

Contract Characteristics

Cost or Pricing Data: NO

Timeline