DoD awards $2.7M for dining facility services at Joint Base Elmendorf-Richardson, with limited competition
Contract Overview
Contract Amount: $2,724,953 ($2.7M)
Contractor: Assets Inc.
Awarding Agency: Department of Defense
Start Date: 2025-04-01
End Date: 2026-09-30
Contract Duration: 547 days
Daily Burn Rate: $5.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CONTRACTOR WILL PROVIDE ALL PERSONNEL, SUPERVISION, EQUIPMENT, SUPPLIES AND ANY ITEMS NECESSARY TO PERFORM DINING FACILITY SERVICES AND EQUIPMENT MAINTENANCE AND REPAIR AT JOINT BASE ELMENDORF-RICHARDSON AS DEFINED IN THE PERFORMANCE WORK STATEMENT.
Place of Performance
Location: JBER, ANCHORAGE County, ALASKA, 99506
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $2.7 million to ASSETS INC. for work described as: CONTRACTOR WILL PROVIDE ALL PERSONNEL, SUPERVISION, EQUIPMENT, SUPPLIES AND ANY ITEMS NECESSARY TO PERFORM DINING FACILITY SERVICES AND EQUIPMENT MAINTENANCE AND REPAIR AT JOINT BASE ELMENDORF-RICHARDSON AS DEFINED IN THE PERFORMANCE WORK STATEMENT. Key points: 1. Contract value of $2.7M over 18 months for essential base support services. 2. Limited competition raises questions about price discovery and potential cost efficiencies. 3. Performance period of 18 months allows for assessment of service quality. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Contractor Assets Inc. will provide comprehensive dining and equipment maintenance. 6. Geographic focus on Alaska highlights the logistical considerations for remote bases.
Value Assessment
Rating: fair
The contract value of $2.7M for 18 months of dining facility services appears reasonable for a military installation. However, without specific benchmarks for per-person costs or comparable contracts at similar bases, a definitive value-for-money assessment is challenging. The fixed-price nature of the contract provides cost certainty but relies on the contractor's efficiency to ensure optimal value. Further analysis would require comparing this contract's unit costs to industry standards or other government contracts for similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded under a 'not available for competition' basis, indicating limited competition. While the specific reasons for this limitation are not detailed, it suggests that only one or a few sources were considered capable or available to fulfill the requirement. This limited competition may result in less aggressive pricing compared to a fully open and competitive procurement, potentially impacting the overall value for the government.
Taxpayer Impact: Limited competition can lead to higher prices for taxpayers as the lack of multiple bidders reduces the incentive for aggressive cost-cutting and innovation by the contractor.
Public Impact
Service members stationed at Joint Base Elmendorf-Richardson will benefit from consistent and reliable dining services. The contract ensures the maintenance and repair of essential dining equipment, preventing disruptions. The geographic impact is concentrated at the base in Alaska, supporting military operations in the region. The contract supports jobs within the food service and equipment maintenance sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to suboptimal pricing.
- Lack of transparency regarding the 'not available for competition' justification.
- Reliance on a single contractor for essential base services.
Positive Signals
- Fixed-price contract shifts risk to the contractor.
- Contractor Assets Inc. is responsible for all aspects of service delivery.
- Clear performance period allows for evaluation.
Sector Analysis
The food service contracting sector is a significant component of government support services, particularly for military installations. This contract falls under the broader category of facility support services. The market for these services is competitive, but specific requirements like those at remote or specialized bases can sometimes lead to limited sourcing. Benchmarking this contract would involve comparing its cost per meal or per service member to similar contracts at other Department of Defense installations.
Small Business Impact
This contract does not appear to have a small business set-aside. Given the nature of the services and the potential for limited competition, it is unlikely that significant subcontracting opportunities for small businesses will be mandated. Further investigation into the contractor's subcontracting plan would be necessary to determine any impact on the small business ecosystem.
Oversight & Accountability
Oversight of this contract will likely be managed by the contracting officer and the contracting officer's representative (COR) at Joint Base Elmendorf-Richardson. Performance standards outlined in the Performance Work Statement (PWS) will be key to monitoring service delivery. Transparency regarding the justification for limited competition and performance metrics would enhance accountability.
Related Government Programs
- Base Operations Support Services
- Food Services Contracts
- Military Dining Facilities
- Equipment Maintenance Contracts
Risk Flags
- Limited competition justification unclear
- Potential for price inflation due to lack of robust competition
Tags
defense, department-of-defense, department-of-the-air-force, joint-base-elmendorf-richardson, alaska, food-service-contractors, definitive-contract, firm-fixed-price, limited-competition, base-operations-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.7 million to ASSETS INC.. CONTRACTOR WILL PROVIDE ALL PERSONNEL, SUPERVISION, EQUIPMENT, SUPPLIES AND ANY ITEMS NECESSARY TO PERFORM DINING FACILITY SERVICES AND EQUIPMENT MAINTENANCE AND REPAIR AT JOINT BASE ELMENDORF-RICHARDSON AS DEFINED IN THE PERFORMANCE WORK STATEMENT.
Who is the contractor on this award?
The obligated recipient is ASSETS INC..
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 $2.7 million.
What is the period of performance?
Start: 2025-04-01. End: 2026-09-30.
What is the track record of Assets Inc. in providing similar dining facility services to the federal government?
Information regarding the specific track record of Assets Inc. in providing dining facility services to the federal government is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes with similar government contracts. Understanding their experience with large-scale food service operations and equipment maintenance, particularly in remote or challenging environments, is crucial for evaluating their capability to meet the requirements at Joint Base Elmendorf-Richardson.
How does the cost per meal or per service member for this contract compare to industry benchmarks or similar military contracts?
The provided data does not include specific cost breakdowns such as cost per meal or per service member, making a direct comparison to industry benchmarks or similar military contracts impossible. The total contract value of $2.7M over 18 months for an unspecified number of service members does not allow for a precise per-unit cost calculation. To perform this comparison, data on the average daily population served and the contract's detailed pricing structure would be necessary. Benchmarking would then involve analyzing the cost per meal against established government or commercial food service rates.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks associated with this contract include potential service disruptions due to contractor performance issues, cost overruns if the fixed-price model is not managed effectively by the contractor, and the risk of inadequate competition leading to inflated prices. Mitigation strategies are inherent in the contract structure: the fixed-price type shifts financial risk to Assets Inc., and the defined performance work statement sets clear expectations. However, robust government oversight, regular performance reviews, and clear communication channels are essential to proactively identify and address any emerging issues and ensure service continuity.
What is the expected effectiveness of the dining services provided under this contract in supporting military readiness?
The effectiveness of the dining services is expected to be high, as they are critical for maintaining troop morale and operational readiness at Joint Base Elmendorf-Richardson. Reliable and quality food service directly impacts the well-being and performance of military personnel. The contract's focus on both service provision and equipment maintenance aims to ensure consistent delivery. The effectiveness will ultimately be measured by the contractor's adherence to the performance work statement, user satisfaction, and the absence of disruptions to the base's dining operations.
What are the historical spending patterns for dining facility services at Joint Base Elmendorf-Richardson or similar installations?
Historical spending patterns for dining facility services at Joint Base Elmendorf-Richardson or similar installations are not provided in the current data. To establish such patterns, one would need to analyze past contracts for these services at the specific base or comparable military installations over several fiscal years. This analysis would reveal trends in contract values, durations, competition levels, and pricing, providing context for the current $2.7M award and identifying any significant deviations or escalations in spending.
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
Solicitation ID: FA500024R0009
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2330 NICHOLS ST, ANCHORAGE, AK, 99508
Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $18,323,713
Exercised Options: $5,169,598
Current Obligation: $2,724,953
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-04-01
Current End Date: 2026-09-30
Potential End Date: 2029-09-30 00:00:00
Last Modified: 2026-01-14
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