Interior's $18.6M Food Service Contract Awarded to Sysco New Mexico, LLC

Contract Overview

Contract Amount: $18,579,990 ($18.6M)

Contractor: Sysco NEW Mexico, LLC

Awarding Agency: Department of the Interior

Start Date: 2007-09-13

End Date: 2009-02-23

Contract Duration: 529 days

Daily Burn Rate: $35.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FOOD SERVICE

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87104

State: New Mexico Government Spending

Plain-Language Summary

Department of the Interior obligated $18.6 million to SYSCO NEW MEXICO, LLC for work described as: FOOD SERVICE Key points: 1. The contract value is $18.6 million over approximately 1.5 years. 2. Sysco New Mexico, LLC is the sole awardee. 3. The contract was not competed under simplified acquisition procedures, raising potential competition concerns. 4. The sector is Food Service, with a specific NAICS code of 722310.

Value Assessment

Rating: questionable

The contract value of $18.6 million for a 529-day period is substantial. Without competitive bidding data, it's difficult to assess if this price is optimal compared to similar food service contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'NOT COMPETED UNDER SAP,' indicating it was likely awarded through a limited competition or sole-source justification. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of robust competition may result in taxpayers paying more than necessary for food services.

Public Impact

Ensures essential food services for Bureau of Indian Affairs and Bureau of Indian Education facilities. Potential for higher costs due to limited competition impacts budget allocation for other services. Supports a large food service provider, potentially impacting smaller local businesses if not managed inclusively.

Waste & Efficiency Indicators

Waste Risk Score: 30 / 10

Warning Flags

Lack of competition
Potential for overpricing
Limited transparency in award process

Positive Signals

Ensures service continuity
Utilizes established vendor

Sector Analysis

The Food Service sector (NAICS 722310) involves providing food for specific institutions. Spending benchmarks vary widely based on the scale and type of institution served.

Small Business Impact

The award to Sysco New Mexico, LLC, a large entity, does not appear to prioritize small business participation based on the provided data. Further analysis is needed to confirm if small business subcontracting goals were set or met.

Oversight & Accountability

The 'NOT COMPETED UNDER SAP' status warrants further oversight to ensure the justification for limited competition was sound and that taxpayer funds were used efficiently.

Related Government Programs

Food Service Contractors
Department of the Interior Contracting
Bureau of Indian Affairs and Bureau of Indian Education Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency in award justification
No clear indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $18.6 million to SYSCO NEW MEXICO, LLC. FOOD SERVICE

Who is the contractor on this award?

The obligated recipient is SYSCO NEW MEXICO, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).

What is the total obligated amount?

The obligated amount is $18.6 million.

What is the period of performance?

Start: 2007-09-13. End: 2009-02-23.

What was the specific justification for not competing this contract under SAP, and were alternative sources considered?

The data indicates the contract was 'NOT COMPETED UNDER SAP.' A thorough review of the contract file is necessary to determine the specific justification, such as urgency, sole-source necessity, or if it fell outside SAP thresholds. Understanding if other qualified vendors were considered or solicited, even informally, is crucial for assessing the fairness of the award process and potential value lost.

How does the per-unit cost or service cost compare to industry benchmarks for similar institutional food service contracts?

Without specific line-item costs or detailed service descriptions, a direct per-unit cost comparison is challenging. However, the total contract value of $18.6 million over 529 days suggests a significant daily expenditure. Benchmarking against similar contracts for educational institutions or government facilities of comparable size and scope would be necessary to identify potential cost efficiencies or overspending.

What mechanisms are in place to ensure the quality and timeliness of food services provided by Sysco New Mexico, LLC under this contract?

The contract type is 'FIRM FIXED PRICE,' which generally places the responsibility for performance on the contractor. However, the awarding agency (Bureau of Indian Affairs and Bureau of Indian Education) should have quality assurance surveillance plans (QASP) or similar oversight mechanisms to monitor service delivery, ensure compliance with specifications, and address any deficiencies promptly to guarantee the effectiveness of the food service.

Industry Classification

NAICS: Accommodation and Food Services › Special Food Services › Food Service Contractors

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sysco Corp (UEI: 051099661)

Address: 601 COMANCHE RD NE, ALBUQUERQUE, NM, 01

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $18,579,990

Exercised Options: $18,579,990

Current Obligation: $18,579,990

Timeline