Coast Guard Food Services Contract Awarded to ARAMARK for $31.9M, Spanning 5 Years
Contract Overview
Contract Amount: $31,931,881 ($31.9M)
Contractor: Aramark Services, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2016-09-16
End Date: 2021-08-31
Contract Duration: 1,810 days
Daily Burn Rate: $17.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: IGF::OT::IGF FULL FOOD SERVICES IN ACCORDANCE WITH THE SCHEDULE OF SERVICES ON PAGES 5 THROUGH 9 AT USCG ACADEMY, NEW LONDON, CT FOR A BASE PERIOD OF SEPTEMBER 16, 2016 THROUGH MARCH 31, 2017 AND FOUR OPTION PERIODS (IF EXERCISED BY THE GOVERNMENT).
Place of Performance
Location: NEW LONDON, NEW LONDON County, CONNECTICUT, 06320
Plain-Language Summary
Department of Homeland Security obligated $31.9 million to ARAMARK SERVICES, INC. for work described as: IGF::OT::IGF FULL FOOD SERVICES IN ACCORDANCE WITH THE SCHEDULE OF SERVICES ON PAGES 5 THROUGH 9 AT USCG ACADEMY, NEW LONDON, CT FOR A BASE PERIOD OF SEPTEMBER 16, 2016 THROUGH MARCH 31, 2017 AND FOUR OPTION PERIODS (IF EXERCISED BY THE GOVERNMENT). Key points: 1. Contract value of $31.9M over nearly 5 years. 2. Awarded via full and open competition. 3. Potential for economic price adjustments. 4. Serves the U.S. Coast Guard Academy in Connecticut.
Value Assessment
Rating: good
The contract's fixed price with economic price adjustment structure is common for long-term service contracts. Benchmarking against similar food service contracts would be needed for a precise value assessment, but the price appears reasonable for the duration and scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing as multiple vendors can bid.
Taxpayer Impact: The competitive award process is expected to yield fair pricing, minimizing unnecessary taxpayer expenditure for essential food services.
Public Impact
Ensures food services for U.S. Coast Guard Academy personnel. Supports operational readiness by providing essential services. ARAMARK, a large food service provider, is the contractor. Contract duration of nearly five years provides stability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment clause could increase final cost.
- Contract duration may limit flexibility for future service needs.
Positive Signals
- Awarded through full and open competition.
- Clear scope of services defined.
- Contract provides long-term service stability.
Sector Analysis
This contract falls under the Food Service Contractors sector, specifically NAICS code 722310. Spending in this sector is generally driven by government facilities, military bases, and institutions requiring catering and food provision services.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to ARAMARK, a large corporation. There is no indication of small business participation in this specific award.
Oversight & Accountability
The contract was awarded by the Department of Homeland Security to the U.S. Coast Guard. Standard oversight mechanisms for federal contracts would apply, including performance monitoring and financial reviews.
Related Government Programs
- Food Service Contractors
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Potential for cost increases due to economic price adjustments.
- Long contract duration may not reflect evolving service needs.
- Lack of small business participation noted.
- Specific performance metrics not detailed in provided data.
Tags
food-service-contractors, department-of-homeland-security, ct, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $31.9 million to ARAMARK SERVICES, INC.. IGF::OT::IGF FULL FOOD SERVICES IN ACCORDANCE WITH THE SCHEDULE OF SERVICES ON PAGES 5 THROUGH 9 AT USCG ACADEMY, NEW LONDON, CT FOR A BASE PERIOD OF SEPTEMBER 16, 2016 THROUGH MARCH 31, 2017 AND FOUR OPTION PERIODS (IF EXERCISED BY THE GOVERNMENT).
Who is the contractor on this award?
The obligated recipient is ARAMARK SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Coast Guard).
What is the total obligated amount?
The obligated amount is $31.9 million.
What is the period of performance?
Start: 2016-09-16. End: 2021-08-31.
What is the potential impact of the economic price adjustment clause on the total contract cost?
The economic price adjustment (EPA) clause allows for modifications to the contract price based on fluctuations in specific economic factors, such as labor costs or material prices. While intended to protect contractors from unforeseen cost increases, it introduces uncertainty for the government regarding the final expenditure. The actual impact depends on the specific indices used, the frequency of adjustments, and the volatility of the underlying economic factors during the contract period.
How does the full and open competition impact the risk of overpaying for food services?
Full and open competition significantly reduces the risk of overpaying. By allowing all responsible sources to submit bids, the government benefits from a competitive marketplace where multiple vendors vie for the contract. This process typically drives prices down to a more market-based level, as contractors are incentivized to offer their best pricing to win the award, thereby enhancing value for taxpayer money.
What is the effectiveness of using a fixed-price contract with economic price adjustment for long-term food services?
This contract type aims to balance cost certainty with flexibility. The fixed-price component provides a baseline cost, while the EPA accounts for potential economic shifts over the contract's nearly five-year term. This structure can be effective in ensuring service continuity and contractor willingness to perform by mitigating risks associated with long-term inflation or cost volatility, though it requires careful monitoring of the adjustment factors.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HSCG8415RAA1441
Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: Aramark Services Inc.
Address: 15 MOHEGAN AVE, NEW LONDON, CT, 06320
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,036,726
Exercised Options: $32,036,726
Current Obligation: $31,931,881
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2016-09-16
Current End Date: 2021-08-31
Potential End Date: 2021-08-31 00:00:00
Last Modified: 2025-06-24
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