DoD awards $6.5M contract for commissary support services at Fort Hood, with limited competition

Contract Overview

Contract Amount: $6,534,893 ($6.5M)

Contractor: Challenge Unlimited, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-01

End Date: 2026-08-31

Contract Duration: 1,460 days

Daily Burn Rate: $4.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SHELF STOCKING, CUSTODIAL, AND RSHA SERVICES AT THE FORT HOOD I COMMISSARY.

Place of Performance

Location: FORT HOOD, BELL County, TEXAS, 76544

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $6.5 million to CHALLENGE UNLIMITED, INC. for work described as: SHELF STOCKING, CUSTODIAL, AND RSHA SERVICES AT THE FORT HOOD I COMMISSARY. Key points: 1. Contract awarded to Challenge Unlimited, Inc. for shelf stocking, custodial, and RSHA services. 2. The contract duration is 4 years, from September 2022 to August 2026. 3. The contract type is Firm Fixed Price, indicating predictable costs for the government. 4. The award was not available for competition, raising questions about market exploration. 5. Services are to be performed at the Fort Hood I Commissary in Texas. 6. The total contract value is approximately $6.5 million over its term.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed service level agreements and performance metrics. The firm fixed-price structure provides cost certainty, but the lack of competition may have led to a higher price than a fully competed contract. Further analysis would require comparing the per-unit costs of specific services (e.g., custodial hours, stocking rates) against industry standards or similar contracts at other military installations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'not available for competition' basis, indicating that a full and open competition was not conducted. This suggests that either a specific justification was made for a sole-source award, or it falls under a category where competition is inherently limited. The lack of multiple bidders means that the government did not benefit from a competitive bidding process to drive down costs or encourage innovation.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without a competitive process, there is less assurance that the price reflects the best possible value for the government.

Public Impact

Military personnel and their families at Fort Hood will benefit from well-maintained commissary facilities and stocked shelves. The contract ensures the continuous operation and upkeep of essential services at the Fort Hood I Commissary. Services are geographically focused on Fort Hood, Texas, impacting the local military community. The contract supports the operational needs of the Defense Commissary Agency (DECA).

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Limited transparency into the justification for sole-source award.
Performance metrics and quality assurance details are not publicly available.

Positive Signals

Contract ensures essential services for military families.
Firm fixed-price contract provides cost predictability.
Long-term contract (4 years) offers stability for service provision.

Sector Analysis

This contract falls within the broader 'Support Services' sector, specifically focusing on facility maintenance and operational support for a retail environment (the commissary). The Defense Commissary Agency (DECA) operates commissaries worldwide, providing groceries to military personnel and their families at prices generally below civilian supermarkets. Contracts like this are crucial for maintaining the operational efficiency and customer experience within these facilities. Comparable spending benchmarks would involve looking at other DECA contracts for similar services at different installations or contracts for large-scale retail facility management.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the sole-source nature of the award, it is unlikely that subcontracting opportunities for small businesses were a primary consideration or requirement. Further investigation would be needed to determine if Challenge Unlimited, Inc. has any small business subcontracting plans in place.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Commissary Agency (DECA) at Fort Hood. Accountability measures would be defined in the contract's performance work statement, with potential for penalties or remedies if services are not met. Transparency is limited due to the sole-source nature and the lack of publicly detailed performance reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Commissary Agency Operations
Military Base Support Services
Facility Maintenance Contracts
Retail Operations Support

Risk Flags

Lack of Competition
Sole-Source Award Justification Unclear
Potential for Above-Market Pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.5 million to CHALLENGE UNLIMITED, INC.. SHELF STOCKING, CUSTODIAL, AND RSHA SERVICES AT THE FORT HOOD I COMMISSARY.

Who is the contractor on this award?

The obligated recipient is CHALLENGE UNLIMITED, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Commissary Agency).

What is the total obligated amount?

The obligated amount is $6.5 million.

What is the period of performance?

Start: 2022-09-01. End: 2026-08-31.

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

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' which is a classification often used for sole-source awards. The specific justification would typically be documented by the agency in a Justification and Approval (J&A) document, which is required by federal acquisition regulations when full and open competition is not feasible. Reasons can include the existence of only one responsible source, urgent and compelling needs, or specific national security requirements. Without access to the J&A, the precise reason remains unknown, but it implies that a competitive process was deemed inappropriate or impossible for this particular procurement.

How does the awarded price compare to similar contracts for commissary support services?

Direct comparison of the total contract value ($6.5 million over 4 years) to similar contracts is difficult without knowing the exact scope of services, service levels, and geographic specifics of other contracts. However, the lack of competition suggests that the price may not have been optimized through market forces. To perform a robust comparison, one would need to analyze the per-unit costs for specific tasks (e.g., cost per square foot for custodial services, cost per hour for stocking) against industry benchmarks or historical data for similar DECA contracts at other installations. The absence of competition is a primary risk factor for potentially paying above market rates.

What are the key performance indicators (KPIs) for this contract, and how is performance being monitored?

The provided data does not specify the key performance indicators (KPIs) or the detailed monitoring mechanisms for this contract. Typically, a Performance Work Statement (PWS) within the contract would outline the required services, quality standards, and metrics for success. For shelf stocking, KPIs might include on-shelf availability rates or stocking frequency. For custodial services, metrics could relate to cleanliness standards or response times for issues. Oversight would likely involve a Contracting Officer's Representative (COR) at Fort Hood responsible for monitoring service delivery and ensuring compliance with the PWS. Without the PWS, the specifics of performance monitoring remain unclear.

What is the track record of Challenge Unlimited, Inc. in performing similar government contracts?

Information regarding the specific track record of Challenge Unlimited, Inc. in performing similar government contracts is not provided in the data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous federal awards. Agencies typically maintain past performance information that is considered during source selection. For a sole-source award, the agency would have had to determine that Challenge Unlimited, Inc. was capable of meeting the contract requirements, but the details of that assessment are not publicly available here.

What is the potential impact of this sole-source award on future competition for similar services?

A sole-source award, especially if it becomes a pattern, can potentially stifle future competition. If other companies perceive that opportunities are consistently awarded without competition, they may be less inclined to invest resources in developing capabilities or bidding on future solicitations. Conversely, if the justification for this sole-source award was highly specific and temporary, it might not significantly impact future competition. However, the general principle is that regular competitive processes are essential for a healthy and dynamic government contracting market, ensuring fair pricing and innovation.

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: 4 EMMIE L KAUS LN, ALTON, IL, 62002

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: $11,707,327

Exercised Options: $9,869,935

Current Obligation: $6,534,893

Actual Outlays: $1,669,684

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline