DoD's $40.5M Food Services Contract for Fort Eustis Faces Scrutiny Over Competition and Value

Contract Overview

Contract Amount: $40,472,007 ($40.5M)

Contractor: Blind and Vision Impaired, Virginia Department for the

Awarding Agency: Department of Defense

Start Date: 2018-04-01

End Date: 2024-09-30

Contract Duration: 2,374 days

Daily Burn Rate: $17.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FT. EUSTIS FULL FOOD SERVICES

Place of Performance

Location: FORT EUSTIS, NEWPORT NEWS CITY County, VIRGINIA, 23604

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $40.5 million to BLIND AND VISION IMPAIRED, VIRGINIA DEPARTMENT FOR THE for work described as: FT. EUSTIS FULL FOOD SERVICES Key points: 1. The contract awarded to the Virginia Department for the Blind and Vision Impaired represents a significant expenditure. 2. Lack of competition raises concerns about potential overpricing and limited market engagement. 3. The firm-fixed-price structure offers some cost certainty but may not incentivize efficiency. 4. Analysis of similar food service contracts is needed to benchmark pricing and value.

Value Assessment

Rating: questionable

The contract's total value of $40.5 million over six years warrants a thorough price assessment. Without competitive bidding, it's difficult to determine if this price reflects fair market value compared to similar food service contracts in the federal sector.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under a limited competition framework, specifically to the Virginia Department for the Blind and Vision Impaired. While this approach supports specific social objectives, it bypasses full and open competition, potentially limiting price discovery and the opportunity for other qualified vendors to offer competitive bids.

Taxpayer Impact: The limited competition may result in a higher cost to taxpayers than a fully competed contract, as the benefits of market forces are not fully leveraged.

Public Impact

Taxpayers may be paying more for food services due to the lack of competitive bidding. The contract's duration and value could impact the availability of resources for other critical defense needs. The specific social mission of the awardee is a key factor, but its impact on cost-effectiveness needs evaluation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of full and open competition
Potential for inflated pricing due to limited market engagement
Long contract duration without clear performance benchmarks

Positive Signals

Supports a specific social program for the blind and vision impaired
Firm-fixed-price contract provides cost certainty

Sector Analysis

The food service sector is generally competitive, with numerous private contractors capable of providing these services. Federal spending benchmarks for food services vary widely based on location, scale, and specific requirements, but typically involve competitive solicitations to ensure value.

Small Business Impact

The contract was not awarded to a small business. The awarding agency, Virginia Department for the Blind and Vision Impaired, is a state agency, not a small business entity. This contract does not appear to directly support small business participation.

Oversight & Accountability

Oversight is crucial to ensure the contractor meets all performance requirements and that the pricing remains justified throughout the contract's life, especially given the limited competition. Regular performance reviews and cost audits would be advisable.

Related Government Programs

Food Service Contractors
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Limited competition may lead to higher costs.
Potential for reduced service quality due to lack of market pressure.
Contract duration is long, increasing exposure to price changes.
Lack of transparency in the selection process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.5 million to BLIND AND VISION IMPAIRED, VIRGINIA DEPARTMENT FOR THE. FT. EUSTIS FULL FOOD SERVICES

Who is the contractor on this award?

The obligated recipient is BLIND AND VISION IMPAIRED, VIRGINIA DEPARTMENT FOR THE.

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 $40.5 million.

What is the period of performance?

Start: 2018-04-01. End: 2024-09-30.

What is the benchmark cost for similar food service contracts of this scale and duration within the Department of Defense?

Determining a precise benchmark requires detailed analysis of contract scope, service levels, geographic location, and prevailing market rates. However, contracts of this magnitude ($40.5M over 6 years) typically undergo rigorous competitive bidding processes. Without such a process, it's challenging to ascertain if the current pricing is optimal. Industry averages for large-scale food services can range significantly, but a lack of competition often leads to prices 10-30% higher than market rates.

What are the specific risks associated with awarding food services to an agency focused on employment for the visually impaired, beyond the lack of competition?

While supporting the visually impaired is a laudable goal, risks can include potential limitations in operational capacity or specialized expertise required for large-scale food service management compared to dedicated commercial providers. There's also a risk that the agency may not have the same level of experience in navigating complex federal procurement regulations or managing supply chains efficiently, potentially impacting service quality or leading to unforeseen cost escalations.

How effective is the current contract in ensuring high-quality food services for Fort Eustis personnel given the procurement method?

The effectiveness in delivering high-quality food services is difficult to assess solely based on the contract details. The firm-fixed-price structure provides some incentive for the contractor to deliver services within budget. However, the absence of robust competition means there's less market pressure to continuously improve service quality or innovate. Performance metrics and user feedback will be critical indicators of actual effectiveness.

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

Solicitation ID: FA480017R0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Virginia Commonwealth of

Address: 397 AZALEA AVE, RICHMOND, VA, 23227

Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $83,301,212

Exercised Options: $60,513,816

Current Obligation: $40,472,007

Actual Outlays: $6,313,952

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline