DoD Awards $7.5M Contract for Commissary Operations at Offutt AFB to Black Hills Works Inc
Contract Overview
Contract Amount: $7,502,156 ($7.5M)
Contractor: Black Hills Works Inc
Awarding Agency: Department of Defense
Start Date: 2021-10-01
End Date: 2026-09-30
Contract Duration: 1,825 days
Daily Burn Rate: $4.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SHELF STOCKING, RECEIVING/STORAGE/HOLDING AREA, CUSTODIAL, AND CLICK2GO OPERATIONS AT THE OFFUTT AFB COMMISSARY
Place of Performance
Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113
State: Nebraska Government Spending
Plain-Language Summary
Department of Defense obligated $7.5 million to BLACK HILLS WORKS INC for work described as: SHELF STOCKING, RECEIVING/STORAGE/HOLDING AREA, CUSTODIAL, AND CLICK2GO OPERATIONS AT THE OFFUTT AFB COMMISSARY Key points: 1. Contract awarded to Black Hills Works Inc. for essential commissary support services. 2. The contract is for a base period of 1825 days, ending September 30, 2026. 3. Services include shelf stocking, receiving, custodial, and Click2Go operations. 4. The contract type is Firm Fixed Price, indicating a set cost for services. 5. This contract was not available for competition.
Value Assessment
Rating: fair
The contract value of $7.5M over five years suggests a moderate annual spend. Without specific benchmarks for similar commissary support contracts, a direct pricing comparison is difficult. However, the firm fixed-price structure aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source selection. This limits price discovery and potentially reduces competitive pressure to achieve the lowest possible price for the government.
Taxpayer Impact: Taxpayer funds are being used for essential commissary operations. The lack of competition may lead to a higher cost than if multiple vendors had bid.
Public Impact
Ensures continued operation of essential commissary services for military personnel and families. Supports the functioning of the Offutt AFB commissary, a key benefit for service members. Provides employment opportunities through the awarded contractor, Black Hills Works Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for higher costs due to limited bidding
Positive Signals
- Ensures essential services are provided
- Firm Fixed Price contract type
Sector Analysis
This contract falls under support services for defense commissaries. Spending in this area is crucial for maintaining morale and quality of life for military communities. Benchmarks are difficult without more specific service details.
Small Business Impact
The contract was awarded to Black Hills Works Inc. Information on whether this is a small business is not provided, nor is the extent of small business subcontracting.
Oversight & Accountability
The contract is a definitive contract, suggesting a clear scope and terms. Oversight would focus on performance delivery and adherence to the firm fixed-price agreement.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- Defense Commissary Agency Programs
Risk Flags
- Limited competition
- Potential for cost overruns if performance is poor
- Lack of transparency on small business participation
- Absence of detailed performance metrics in public data
Tags
all-other-support-services, department-of-defense, ne, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.5 million to BLACK HILLS WORKS INC. SHELF STOCKING, RECEIVING/STORAGE/HOLDING AREA, CUSTODIAL, AND CLICK2GO OPERATIONS AT THE OFFUTT AFB COMMISSARY
Who is the contractor on this award?
The obligated recipient is BLACK HILLS WORKS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Commissary Agency).
What is the total obligated amount?
The obligated amount is $7.5 million.
What is the period of performance?
Start: 2021-10-01. End: 2026-09-30.
What is the justification for limiting competition on this essential commissary support contract?
The justification for limiting competition is not explicitly stated in the provided data. Typically, such limitations might be due to specific capabilities, existing infrastructure, or unique requirements that only one vendor can meet. Further investigation into the contract's justification documentation would be needed to understand the rationale.
How does the annual cost of this contract compare to similar commissary support contracts at other bases?
Direct comparison is challenging without access to a database of similar contracts and their specific service scopes. The annual cost of approximately $1.5M needs to be evaluated against the size and operational complexity of the Offutt AFB commissary and the specific services rendered. Benchmarking against peer facilities would be the next step.
What performance metrics are in place to ensure the quality of shelf stocking, receiving, and custodial services?
The provided data does not detail specific performance metrics. However, as a definitive contract with a firm fixed-price structure, the Department of Defense likely has established performance standards and inspection protocols. Monitoring contractor performance against these standards would be crucial for ensuring service quality and taxpayer value.
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: 3650 RANGE RD, RAPID CITY, SD, 57702
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: $11,187,238
Exercised Options: $11,187,238
Current Obligation: $7,502,156
Actual Outlays: $4,265,537
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-01-05
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