DoD awards $15.7M to Colorado Dept. of Labor for High Country Inn Dining Facility services

Contract Overview

Contract Amount: $15,730,375 ($15.7M)

Contractor: Colorado Department of Labor and Employment

Awarding Agency: Department of Defense

Start Date: 2022-03-01

End Date: 2027-02-28

Contract Duration: 1,825 days

Daily Burn Rate: $8.6K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONTRACT AWARD TO THE COLORADO DEPARTMENT OF LABOR & EMPLOYMENT FOR FULL SERVICE AT HIGH COUNTRY INN DINING FACILITY

Place of Performance

Location: USAF ACADEMY, EL PASO County, COLORADO, 80840

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $15.7 million to COLORADO DEPARTMENT OF LABOR AND EMPLOYMENT for work described as: CONTRACT AWARD TO THE COLORADO DEPARTMENT OF LABOR & EMPLOYMENT FOR FULL SERVICE AT HIGH COUNTRY INN DINING FACILITY Key points: 1. Contract awarded for comprehensive food services at a specific facility. 2. The award represents a significant investment in base support services. 3. Fixed-price contract type suggests defined scope and cost control. 4. Long duration of 5 years indicates a need for stable, ongoing operations. 5. The contract was competed under simplified acquisition procedures. 6. Awardee is a state government agency, not a traditional defense contractor. 7. The contract is not set aside for small businesses.

Value Assessment

Rating: fair

The contract value of $15.7 million over five years averages to approximately $3.14 million annually. Benchmarking this against similar food service contracts for military installations is challenging without more specific details on the scope of services, facility size, and number of personnel served. However, given the fixed-price nature, the Air Force has established a ceiling for these services. The award to a state agency may indicate unique circumstances or a lack of traditional commercial bidders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involve a less extensive competition process than full and open competition. The data indicates 9 bidders participated, suggesting a reasonable level of interest. However, SAP awards are generally for amounts under the federal micro-purchase threshold and the simplified threshold, and the specifics of how this was competed within SAP are not fully detailed. The number of bidders is positive, but the SAP context implies potential limitations on the breadth of competition.

Taxpayer Impact: The use of SAP suggests an effort to streamline the acquisition process for a moderate-value contract. While 9 bidders indicate some competition, taxpayers benefit most when the most competitive process possible is used to ensure the best value is achieved.

Public Impact

Service members and personnel at the High Country Inn Dining Facility will receive food services. The contract supports the operational readiness and morale of Air Force personnel. The geographic impact is localized to the facility where the dining services are provided. The contract may indirectly support local employment through the awardee's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for less robust competition due to SAP procedures compared to full and open.
Reliance on a state agency for a critical base support function may present unique logistical or responsiveness challenges.
Lack of specific performance metrics makes it difficult to assess service quality beyond contract compliance.

Positive Signals

Award to a state agency could indicate a cost-effective or specialized solution.
The fixed-price contract provides cost certainty for the government.
Multiple bidders (9) suggest a competitive process within the SAP framework.

Sector Analysis

The food service industry is a significant component of the broader facilities support services sector. For the Department of Defense, contracts for dining facilities are essential for maintaining troop morale and operational readiness. Spending in this area is consistent across various military branches and installations. While specific market size data for military dining facilities is not readily available, the overall food service industry is vast, with numerous commercial providers capable of fulfilling such requirements.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award, though the prime contractor's own procurement practices could still involve small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the relevant Air Force unit at the installation. The fixed-price nature of the contract provides a degree of financial oversight by locking in costs. Transparency is facilitated by the Federal Procurement Data System (FPDS), where contract awards are recorded. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support Services
Food and Hospitality Services
Defense Logistics Agency Contracts
Military Dining Facility Management

Risk Flags

Potential performance risk due to awardee's non-traditional role in food services.
Risk of suboptimal service quality if awardee lacks specialized operational experience.
Limited transparency on specific performance metrics and oversight mechanisms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.7 million to COLORADO DEPARTMENT OF LABOR AND EMPLOYMENT. CONTRACT AWARD TO THE COLORADO DEPARTMENT OF LABOR & EMPLOYMENT FOR FULL SERVICE AT HIGH COUNTRY INN DINING FACILITY

Who is the contractor on this award?

The obligated recipient is COLORADO DEPARTMENT OF LABOR AND EMPLOYMENT.

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 $15.7 million.

What is the period of performance?

Start: 2022-03-01. End: 2027-02-28.

What is the track record of the Colorado Department of Labor and Employment in providing services to the Department of Defense?

The provided data indicates this is a contract award to the Colorado Department of Labor and Employment (CDLE) for food services. Typically, state labor departments focus on workforce development, unemployment insurance, and related services. Their involvement in providing direct food services to a Department of Defense facility is unusual and suggests either a unique capability or a specific arrangement. Without further information on CDLE's past performance in similar contracts or their operational capacity for food service provision, it is difficult to assess their track record in this specific domain. Further investigation would be needed to understand if this is a pilot program, a partnership, or if CDLE is acting as an intermediary for other service providers.

How does the annual cost of this contract compare to similar military dining facility contracts?

The contract is valued at $15.7 million over five years, averaging approximately $3.14 million per year. Benchmarking this figure requires detailed comparison with contracts for similar-sized military installations, considering factors like the number of personnel served, the scope of dining options (e.g., multiple meals, grab-and-go), and the level of service required. Anecdotal evidence suggests that large-scale military dining facility contracts can range from a few million to tens of millions of dollars annually, depending on the installation's size and mission. The $3.14 million annual average appears to be within a plausible range for a significant dining facility, but a definitive value-for-money assessment would necessitate a deeper dive into comparable contract specifics and performance metrics.

What are the primary risks associated with awarding a food service contract to a state labor department?

The primary risks associated with awarding a food service contract to a state labor department, like the Colorado Department of Labor and Employment, stem from potential misalignment of core competencies and operational experience. Traditional food service providers possess established supply chains, culinary expertise, and experience in managing large-scale food operations within demanding environments. A labor department's primary mission is typically workforce development and unemployment services. Risks include potential deficiencies in food quality, safety compliance, supply chain management, and responsiveness to operational needs. Furthermore, the procurement process itself might have been influenced by factors other than pure best-value competition, potentially leading to suboptimal service delivery or higher long-term costs if performance issues arise.

What is the expected effectiveness of the food services provided under this contract?

The effectiveness of the food services will be measured by the contractor's ability to meet the performance standards outlined in the contract. As a Firm Fixed Price contract, the expectation is that the Colorado Department of Labor and Employment will deliver the specified food services within the agreed-upon budget. Key indicators of effectiveness will likely include food quality, nutritional standards, service timeliness, facility cleanliness, and customer satisfaction among the service members. The long duration (5 years) suggests an expectation of sustained performance. However, the effectiveness is contingent on the awardee's actual capabilities in food service operations, which may differ from their core mission.

How does the contract's duration impact the overall value and risk?

The 5-year duration (1825 days) of this contract provides stability for both the government and the contractor, ensuring continuity of essential dining services. For the government, a longer duration can reduce the administrative burden and costs associated with frequent re-procurement. It also allows the contractor to invest in specialized equipment and personnel, potentially leading to efficiencies. However, a long duration also increases the risk of the government being locked into a contract that may become suboptimal if market conditions change, service quality declines, or technology advances. The fixed-price nature mitigates some financial risk, but performance risk remains throughout the contract term.

What does the competition level (9 bidders under SAP) imply for price discovery and taxpayer value?

Having 9 bidders participate in a competition under Simplified Acquisition Procedures (SAP) suggests a healthy level of interest in the contract. A larger number of bidders generally leads to better price discovery, as competition drives down prices towards the lowest feasible cost for the required service. For taxpayers, this implies that the government likely received competitive pricing for the food services. However, SAP procedures are less rigorous than full and open competition, meaning the breadth and depth of this competition might not be as extensive as possible. While 9 bidders are positive, it's important to ensure that the SAP process was executed to maximize competitive pressure and achieve the best possible value for taxpayer funds.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 633 17TH ST STE 1100, DENVER, CO, 80202

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

Financial Breakdown

Contract Ceiling: $31,091,851

Exercised Options: $16,580,341

Current Obligation: $15,730,375

Actual Outlays: $2,810,784

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Timeline