Air Force awards $6.4M dining facility contract to Utah Department of Workforce Service for food services

Contract Overview

Contract Amount: $6,421,331 ($6.4M)

Contractor: Utah Department of Workforce Service

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2026-10-31

Contract Duration: 761 days

Daily Burn Rate: $8.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HILL AIR FORCE BASE DINING FACILITY (DFAC) FULL FOOD SERVICE

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $6.4 million to UTAH DEPARTMENT OF WORKFORCE SERVICE for work described as: HILL AIR FORCE BASE DINING FACILITY (DFAC) FULL FOOD SERVICE Key points: 1. The contract value of $6.4 million over approximately two years represents a significant investment in base support services. 2. The award was made on a non-competitive basis, raising questions about potential cost efficiencies and market alternatives. 3. Performance risk appears moderate, given the nature of food service operations, but requires diligent oversight. 4. This contract supports essential personnel at Hill Air Force Base, contributing to operational readiness. 5. The food service sector is characterized by established players and varying levels of service complexity. 6. The firm-fixed-price structure aims to provide cost certainty for the government.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the lack of competitive bids and specific service details. However, the per-diem cost for meals can be estimated by dividing the total contract value by the estimated number of meals served over the contract period. Without that data, a direct comparison to similar contracts is difficult. The firm-fixed-price nature suggests an attempt to control costs, but the absence of competition may have led to a higher price than a fully competed contract might yield.

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 approach is typically used when only one source is capable of meeting the requirement, or in specific circumstances where full and open competition is not feasible. The lack of multiple bidders limits the government's ability to leverage price competition to secure the best possible value.

Taxpayer Impact: Taxpayers may not have received the most competitive pricing due to the absence of a bidding process. This could result in a higher overall cost for the services provided compared to what might have been achieved through open competition.

Public Impact

Service members and civilian personnel at Hill Air Force Base will benefit from consistent and reliable food services. The contract ensures the provision of daily meals, contributing to the morale and well-being of base personnel. The geographic impact is localized to Hill Air Force Base in Utah. The contract supports jobs within the food service industry, potentially through the Utah Department of Workforce Service's employment programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Limited transparency into the justification for sole-source award.
Potential for cost overruns if scope creep occurs without adequate oversight.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Award to a state agency may indicate a focus on public service delivery.
Contract duration provides stability for service provision.

Sector Analysis

The food service industry is a significant sector within government contracting, encompassing a wide range of services from cafeteria operations to large-scale catering. This contract falls under the broader category of base support services, which are critical for maintaining military installations. Comparable spending benchmarks for dining facilities can vary widely based on location, size of the installation, and the level of service required. The North American Industry Classification System (NAICS) code 722310, Food Service Contractors, indicates a well-defined market segment.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have specific small business set-aside provisions. There is no explicit information regarding subcontracting plans for small businesses. The absence of small business participation in this specific award means that opportunities for small businesses within this particular contract are not being actively pursued or mandated.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer's representative (COR) within the Department of the Air Force. Accountability measures will be tied to the performance standards outlined in the contract. Transparency is limited due to the sole-source nature of the award, with details on the justification for this approach not publicly detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support Services
Food and Hospitality Services
Government Food Service Contracts
Military Dining Facilities

Risk Flags

Sole-source award may limit price competition.
Lack of detailed justification for non-competitive award.
Potential for higher costs compared to a competed contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.4 million to UTAH DEPARTMENT OF WORKFORCE SERVICE. HILL AIR FORCE BASE DINING FACILITY (DFAC) FULL FOOD SERVICE

Who is the contractor on this award?

The obligated recipient is UTAH DEPARTMENT OF WORKFORCE SERVICE.

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 $6.4 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-10-31.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, which is synonymous with a sole-source award. The specific justification for this determination is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source is available to satisfy the agency's needs, or when there is a compelling urgency, or when it's in the government's best interest due to unique capabilities or circumstances. Without further documentation from the awarding agency (Department of the Air Force), the precise reasons for bypassing full and open competition remain undisclosed. This lack of transparency can raise concerns about whether the government explored all viable options to ensure competitive pricing and maximize value for taxpayer dollars.

How does the contract's firm-fixed-price structure benefit the government?

A firm-fixed-price (FFP) contract is designed to provide the government with cost certainty. Under an FFP agreement, the contractor assumes the majority of the risk for cost overruns. This means the price is set and generally not subject to adjustment unless there are changes to the contract's scope of work. For the government, this structure helps in budgeting and financial planning, as the total cost of the service is known upfront. It incentivizes the contractor to manage their costs efficiently to maintain profitability. However, the benefit of cost certainty can be diminished if the initial price was not competitively determined, as could be the case with a sole-source award.

What are the potential risks associated with a sole-source award for food services?

The primary risk associated with a sole-source award for food services is the potential for inflated pricing. Without the pressure of competition, the awarded contractor may not have the same incentive to offer the most cost-effective solution. This can lead to taxpayers paying more than necessary for the services. Additionally, a sole-source award can limit the government's access to innovative solutions or specialized expertise that might be offered by other potential providers in the market. It also reduces transparency in the procurement process, making it harder to assess whether the selected vendor is truly the best value option available.

What is the expected performance period and how does it align with operational needs?

The contract has a stated start date of September 30, 2024, and an end date of October 31, 2026. This provides a performance period of approximately 2 years and 1 month (761 days). This duration is typical for contracts of this nature, providing sufficient time for the contractor to establish operations and deliver consistent service while allowing the government to plan for future requirements. For a dining facility, a multi-year contract offers stability and ensures continuous support for base personnel, aligning with the ongoing operational needs of Hill Air Force Base.

Are there any performance metrics or service level agreements (SLAs) associated with this contract?

The provided data does not explicitly detail the performance metrics or service level agreements (SLAs) for this contract. However, it is standard practice for government contracts, especially those for essential services like food provision, to include performance standards and quality requirements. These would typically cover aspects such as food quality, service timeliness, hygiene standards, and customer satisfaction. The contracting officer's representative (COR) would be responsible for monitoring the contractor's adherence to these standards. Failure to meet agreed-upon performance levels could result in contractual remedies, such as penalties or termination, depending on the severity of the non-compliance.

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: FA820124R0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 140 E BROADWAY, SALT LAKE CITY, UT, 84111

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

Financial Breakdown

Contract Ceiling: $19,410,793

Exercised Options: $7,010,050

Current Obligation: $6,421,331

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline