DoD's $9.5M Contract for Fort Lee Commissary Support Services Awarded to CW Resources, Inc
Contract Overview
Contract Amount: $9,537,012 ($9.5M)
Contractor: CW Resources, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-02-01
End Date: 2026-07-31
Contract Duration: 2,006 days
Daily Burn Rate: $4.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SHELF STOCKIG, RECEIVING/STORAGE/HOLDING AREA, AND CUSTODIAL OPERATIONS AT THE FORT LEE COMMISSARY.
Place of Performance
Location: FORT LEE, PRINCE GEORGE County, VIRGINIA, 23801
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $9.5 million to CW RESOURCES, INC. for work described as: SHELF STOCKIG, RECEIVING/STORAGE/HOLDING AREA, AND CUSTODIAL OPERATIONS AT THE FORT LEE COMMISSARY. Key points: 1. Contract awarded to CW Resources, Inc. for commissary support services at Fort Lee. 2. The contract is for shelf stocking, receiving/storage/holding area, and custodial operations. 3. The contract type is Firm Fixed Price, with a duration of over 2000 days. 4. The contract was not available for competition, raising questions about price discovery. 5. The total award amount is $9,537,012.34.
Value Assessment
Rating: questionable
The contract's pricing is not benchmarked against similar contracts due to its non-competitive nature. Without competitive bids, it's difficult to assess if the $9.5M price represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not available for competition, indicating a limited competition approach. This lack of competition may have hindered effective price discovery and potentially led to a higher price than if multiple vendors had bid.
Taxpayer Impact: The absence of competition raises concerns about whether taxpayers received the best possible value for these essential commissary support services.
Public Impact
Commissary operations are vital for military personnel and their families, providing access to goods at discounted prices. Efficient shelf stocking and custodial services directly impact the shopping experience and availability of products. The contract's duration suggests a long-term reliance on the awarded vendor for these critical functions. Potential for higher costs due to limited competition could impact the overall budget allocated for commissary operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of price benchmark
- Long contract duration
Positive Signals
- Essential services for military families
- Definitive contract award
Sector Analysis
This contract falls under 'All Other Support Services' within the Defense Commissary Agency. Benchmarking spending in this specific niche is challenging without more granular data on similar support service contracts.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had the opportunity to compete.
Oversight & Accountability
The non-competitive nature of this award warrants further oversight to ensure the pricing is justified and that future similar requirements are opened to competition where feasible.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- Defense Commissary Agency Programs
Risk Flags
- Limited competition may result in higher costs.
- Lack of a competitive benchmark makes value assessment difficult.
- Potential for reduced contractor incentive for cost savings.
- Long contract duration without competition raises long-term value concerns.
Tags
all-other-support-services, department-of-defense, va, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.5 million to CW RESOURCES, INC.. SHELF STOCKIG, RECEIVING/STORAGE/HOLDING AREA, AND CUSTODIAL OPERATIONS AT THE FORT LEE COMMISSARY.
Who is the contractor on this award?
The obligated recipient is CW RESOURCES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Commissary Agency).
What is the total obligated amount?
The obligated amount is $9.5 million.
What is the period of performance?
Start: 2021-02-01. End: 2026-07-31.
What specific factors prevented this contract from being competed, and were alternative procurement strategies considered?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION.' Without further details, it's unclear if this was due to a sole-source justification, a specific set-aside, or other procurement limitations. Agencies typically explore competitive options first; a non-competitive award suggests unique circumstances or a lack of available bidders meeting requirements.
How does the $9.5M price compare to the cost of similar services at other commissary locations or over the contract's 5-year duration?
Direct comparison is difficult as the contract was not competed, lacking a clear benchmark. However, a $9.5M price over five years for support services averages $1.9M annually. This figure needs to be assessed against the scope of services and local labor costs to determine if it's reasonable, especially given the absence of competitive pressure.
What is the potential impact on service quality and cost-effectiveness given the lack of competition for these essential commissary operations?
The lack of competition can reduce the incentive for the contractor to innovate or offer cost savings, potentially leading to stagnant service quality or inflated prices over the contract's life. While the contractor is obligated to perform, the absence of competitive pressure means the government relies heavily on contract monitoring to ensure value and effectiveness.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services
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: 200 MYRTLE ST, NEW BRITAIN, CT, 06053
Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $10,023,823
Exercised Options: $10,023,823
Current Obligation: $9,537,012
Actual Outlays: $4,065,797
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-02-01
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2025-12-10
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