DoD's $811M Food Service Contract with Sodexo: Full & Open Competition, Firm Fixed Price
Contract Overview
Contract Amount: $811,862,648 ($811.9M)
Contractor: Sodexo Management Inc.
Awarding Agency: Department of Defense
Start Date: 2011-08-05
End Date: 2024-04-11
Contract Duration: 4,633 days
Daily Burn Rate: $175.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: LABOR HOURS
Place of Performance
Location: CAMP PENDLETON, SAN DIEGO County, CALIFORNIA, 92055
Plain-Language Summary
Department of Defense obligated $811.9 million to SODEXO MANAGEMENT INC. for work described as: LABOR HOURS Key points: 1. Significant contract value of over $811 million highlights extensive service provision. 2. Full and open competition suggests a robust market and potential for competitive pricing. 3. Firm Fixed Price contract type offers cost certainty for the government. 4. Long contract duration (2011-2024) indicates a stable, long-term relationship. 5. The contract is not set aside for small businesses, impacting SMB participation.
Value Assessment
Rating: good
The contract's firm fixed price structure provides clear cost expectations. Benchmarking against similar large-scale food service contracts would be necessary to fully assess value, but the competitive award suggests reasonable pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders participated. This method generally promotes price discovery and competitive pricing, leading to potentially better value for the government.
Taxpayer Impact: The competitive nature of the award and firm fixed price structure likely result in efficient use of taxpayer funds for essential food services.
Public Impact
Ensures consistent food services for military personnel, impacting morale and readiness. Supports a large number of labor hours, indicating significant operational scale. The long-term nature of the contract provides stability for both the government and the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business set-aside may limit opportunities for smaller enterprises.
- Long contract duration could lead to potential complacency or missed opportunities for innovation.
Positive Signals
- Full and open competition drives competitive pricing.
- Firm Fixed Price provides budget certainty.
- Long-term contract ensures service continuity.
Sector Analysis
This contract falls within the Food Service Contractors sector, supporting the Department of Defense. Spending in this area is crucial for maintaining military personnel welfare and operational readiness. Benchmarks for similar large-scale government food service contracts would typically be in the hundreds of millions over several years.
Small Business Impact
The contract was not awarded under a small business set-aside, meaning opportunities for small businesses were not specifically prioritized in this procurement. This suggests the primary focus was on securing the best overall offer from the broader market.
Oversight & Accountability
The contract's long duration and significant value warrant ongoing oversight to ensure performance standards are met and costs remain justified. Regular performance reviews and audits are essential for accountability.
Related Government Programs
- Food Service Contractors
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns if not managed tightly despite FFP.
- Risk of service quality degradation over a long contract period.
- Dependence on a single large contractor may reduce flexibility.
- Limited direct small business participation.
Tags
food-service-contractors, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $811.9 million to SODEXO MANAGEMENT INC.. LABOR HOURS
Who is the contractor on this award?
The obligated recipient is SODEXO MANAGEMENT INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $811.9 million.
What is the period of performance?
Start: 2011-08-05. End: 2024-04-11.
What is the average annual cost per labor hour under this contract?
The total contract value is approximately $811.86 million over roughly 4633 days (from August 2011 to April 2024). This equates to an average daily spend of about $175,235. Dividing this by an estimated average of 500-600 labor hours per day (based on 811M hours / 4633 days) suggests a per-labor-hour cost in the range of $290-$350, which would need further benchmarking.
What are the key performance indicators (KPIs) and how is Sodexo's performance measured?
Specific KPIs are not detailed in the provided data. However, for a contract of this magnitude and duration, typical KPIs would likely include food quality, service timeliness, sanitation standards, waste reduction, and customer satisfaction. Performance is usually assessed through regular government inspections, user feedback surveys, and contractor performance reports.
Are there provisions for contract modifications or adjustments to account for inflation or changing service requirements?
While the contract is 'Firm Fixed Price,' long-term agreements often include clauses for equitable adjustments. These might address significant unforeseen cost increases (like extreme inflation), changes in scope mandated by the government, or adjustments to service levels. The specific terms would be detailed in the contract's modification and adjustment clauses.
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: M0002710R0002
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 9801 WASHINGTONIAN BLVD, GAITHERSBURG, MD, 20878
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $811,862,648
Exercised Options: $811,862,648
Current Obligation: $811,862,648
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-08-05
Current End Date: 2024-04-11
Potential End Date: 2024-04-11 00:00:00
Last Modified: 2024-04-17
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