Defense Food Services Contract Exceeds $141M, Awarded to MC Resource Management
Contract Overview
Contract Amount: $13,694,412 ($13.7M)
Contractor: M.C. Resource Management
Awarding Agency: Department of Defense
Start Date: 2004-07-01
End Date: 2010-09-30
Contract Duration: 2,282 days
Daily Burn Rate: $6.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200410!000155!5700!RD03 !3 CONS/LGC MGMT ANL & SUPT FLGHT!FA500004C0010 !A!N! !Y! ! !20040701!20040930!141413877!141413877!141413877!N!MC RESOURCE MANAGEMENT INC !611 FAIRBANKS STREET !ANCHORAGE !AK!99501!22690!020!02!ELMENDORF AFB !ANCHORAGE !ALASKA !+000000534713!N!N!000016357685!S203!FOOD SERVICES !S1 !SERVICES !000 !* !722310!E! !3! ! ! ! ! !99990909!B! ! !A! !B!N!J!1!001!N!5A!C!N!Z! ! !Y!D!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: ELMENDORF AFB, ANCHORAGE County, ALASKA, 99506
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $13.7 million to M.C. RESOURCE MANAGEMENT for work described as: 200410!000155!5700!RD03 !3 CONS/LGC MGMT ANL & SUPT FLGHT!FA500004C0010 !A!N! !Y! ! !20040701!20040930!141413877!141413877!141413877!N!MC RESOURCE MANAGEMENT INC !611 FAIRBANKS STREET !ANCHORAGE !AK!99501!22690!020!02!ELMENDORF AFB !ANCH… Key points: 1. The contract value is substantial at over $141 million, indicating a significant investment in food services. 2. MC Resource Management, the sole awardee, faces no direct competition for this specific contract. 3. The 'NOT AVAILABLE FOR COMPETITION' status raises questions about the procurement process and potential for better pricing. 4. This contract falls within the Food Services sector, crucial for military base operations and personnel well-being.
Value Assessment
Rating: questionable
The contract value of $141,413,877 over 8 years suggests a high per-unit cost, especially given the lack of competition. Benchmarking against similar food service contracts for military bases is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, meaning there was no open competition. This limits price discovery and may result in higher costs for taxpayers compared to a competitive bidding process.
Taxpayer Impact: The lack of competition for a contract of this magnitude likely results in a higher cost to taxpayers than if multiple vendors had competed.
Public Impact
Ensures essential food services for personnel at Elmendorf AFB. Supports the operational readiness of the Department of the Air Force. Provides employment opportunities through MC Resource Management Inc.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- Sole-source award limits price competition.
- Long contract duration (8 years) may not reflect current market prices.
- Lack of detailed cost data hinders value assessment.
Positive Signals
- Ensures continuity of essential food services.
- MC Resource Management has a history with this contract.
- Firm Fixed Price contract provides cost certainty for the government.
Sector Analysis
This contract is for food services, a critical support function for military installations. Spending in this sector is generally stable, driven by base population and operational needs. Benchmarks for food service contracts vary widely based on location, service level, and contract type.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or partners in this contract. Further investigation would be needed to determine any small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. While sometimes necessary, it reduces transparency and competitive pressure. Oversight should focus on ensuring fair pricing and performance standards are met throughout the contract's duration.
Related Government Programs
- Food Service Contractors
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- Long contract duration may not reflect current market conditions.
- Limited transparency in the procurement process.
- Need for robust government oversight to ensure value and quality.
Tags
food-service-contractors, department-of-defense, ak, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.7 million to M.C. RESOURCE MANAGEMENT. 200410!000155!5700!RD03 !3 CONS/LGC MGMT ANL & SUPT FLGHT!FA500004C0010 !A!N! !Y! ! !20040701!20040930!141413877!141413877!141413877!N!MC RESOURCE MANAGEMENT INC !611 FAIRBANKS STREET !ANCHORAGE !AK!99501!22690!020!02!ELMENDORF AFB !ANCHORAGE !ALASKA !+000000534713!N!N!000016357685!S203!FOOD SERVICES !S1 !SERVICES !000 !* !722310!E! !3! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is M.C. RESOURCE MANAGEMENT.
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 $13.7 million.
What is the period of performance?
Start: 2004-07-01. End: 2010-09-30.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award is not provided in the data. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. This could be due to unique capabilities, urgent needs, or specific program requirements. Without further documentation, it's impossible to assess if competitive strategies were adequately explored or if this was the most cost-effective approach for the government.
How does the per-unit cost of food services under this contract compare to similar contracts at other Air Force bases, considering the long duration?
Direct comparison of per-unit costs is challenging without detailed service level agreements and volume data. However, a contract valued at over $141 million spanning 8 years suggests a significant average annual expenditure. The lack of competition raises concerns that the per-unit cost might be higher than what could be achieved through a competitive process, especially if market prices for food and labor have decreased over the contract's lifespan.
What mechanisms are in place to ensure the quality and effectiveness of food services provided by MC Resource Management, given the sole-source award?
The contract is Firm Fixed Price, which provides some cost certainty. However, quality and effectiveness rely heavily on the government's contract administration and performance monitoring. Mechanisms likely include regular inspections, performance metrics, customer satisfaction surveys, and defined service level agreements. The Air Force must actively manage the contract to ensure MC Resource Management meets all specified requirements and delivers high-quality food services.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 611 FAIRBANKS STREET, ANCHORAGE, AK, 00
Business Categories: AbilityOne Program Participant, Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-07-01
Current End Date: 2010-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2011-07-02
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