DoD's $918M Marine Corps Mess Hall Contract Awarded to Sodexo Management Inc. for Food Services

Contract Overview

Contract Amount: $917,821,319 ($917.8M)

Contractor: Sodexo Management Inc.

Awarding Agency: Department of Defense

Start Date: 2018-10-01

End Date: 2026-09-30

Contract Duration: 2,921 days

Daily Burn Rate: $314.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MANAGEMENT AND OPERATION OF USMC GARRISON MESS HALLS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20350

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $917.8 million to SODEXO MANAGEMENT INC. for work described as: MANAGEMENT AND OPERATION OF USMC GARRISON MESS HALLS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract's duration of nearly 8 years indicates a long-term commitment to food services. 3. The firm-fixed-price structure aims to control costs for the government. 4. Sodexo Management Inc. is the sole awardee, highlighting their significant role in this service area. 5. The contract is managed by the Department of the Navy, a key component of the DoD. 6. The North American Industry Classification System (NAICS) code 722310 identifies the primary industry as Food Service Contractors.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed cost breakdowns. However, the total value of over $917 million over nearly eight years suggests a substantial investment in food services for the Marine Corps. The firm-fixed-price contract type is generally favorable for cost control, but the ultimate value for money depends on the quality and efficiency of the services provided by Sodexo. Comparisons to similar large-scale food service contracts within the DoD or other federal agencies would be necessary for a more precise assessment of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that there were four bids received suggests a reasonable level of competition for this significant food service contract. While the specific details of the bidding process and the evaluation criteria are not provided, a competitive process generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers by encouraging multiple vendors to offer their best terms. This process helps ensure that the government is not overpaying for essential services like mess hall operations.

Public Impact

Marine Corps personnel across various garrisons will benefit from consistent food services. The contract ensures the provision of food preparation and service operations. The geographic impact is concentrated within the areas served by the USMC garrisons where Sodexo operates. This contract supports jobs within the food service industry, both directly with Sodexo and indirectly through its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service quality variations across different garrison mess halls.
Long-term contracts can sometimes lead to complacency if not actively managed and overseen.
Dependence on a single contractor for a critical service like food provision carries inherent risks.

Positive Signals

Firm-fixed-price contract helps in budget predictability and cost control.
Full and open competition suggests a robust selection process.
The contract duration allows for potential economies of scale and operational efficiencies.

Sector Analysis

The food service industry is a significant sector within the broader services market. This contract falls under the Food Service Contractors (NAICS 722310) category. Large-scale government contracts for food services are common, supporting military bases, federal agencies, and public institutions. The market is characterized by both large multinational corporations like Sodexo and smaller, specialized providers. Benchmarking this contract's value against other large federal food service contracts would provide context on pricing and scope.

Small Business Impact

There is no indication that this contract included small business set-asides. Sodexo Management Inc. is a large corporation, and it is unlikely that this specific contract was directly awarded to a small business. However, Sodexo may engage small businesses as subcontractors for various aspects of its operations, such as local food suppliers or specialized maintenance services. The extent of small business subcontracting would need further investigation to assess its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy, with specific contracting officers and program managers responsible for monitoring Sodexo's performance against contract requirements. Transparency is generally maintained through contract award databases and reporting requirements. Accountability measures would be tied to performance metrics, service level agreements, and potential penalties for non-compliance. The Inspector General for the Department of Defense may also have jurisdiction for audits or investigations if issues arise.

Related Government Programs

DoD Food Service Contracts
Military Base Support Services
Government Food Supply Contracts
Garrison Operations Contracts

Risk Flags

Long-term contract duration may reduce flexibility.
Sole awardee could limit future competition and innovation.
Dependence on a single contractor for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $917.8 million to SODEXO MANAGEMENT INC.. MANAGEMENT AND OPERATION OF USMC GARRISON MESS HALLS

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 $917.8 million.

What is the period of performance?

Start: 2018-10-01. End: 2026-09-30.

What is Sodexo Management Inc.'s track record with similar large-scale government food service contracts?

Sodexo Management Inc. has a long and extensive history of managing large-scale food service contracts for government entities, including military branches and federal agencies. They are a major global player in the food services and facilities management industry. Their experience includes providing catering, dining, and related support services to military installations worldwide. While specific performance details for each contract are not publicly available, their continued success in winning and retaining such contracts suggests a generally positive track record. However, like any large contractor, they may have faced performance issues or disputes on specific contracts, which would typically be detailed in contract performance reports or agency-specific evaluations not readily accessible to the public.

How does the per-meal cost under this contract compare to industry benchmarks or other military installations?

Determining the precise per-meal cost under this contract is not possible with the provided data, as the total contract value and duration do not directly translate to a per-meal figure without knowing the exact number of meals served or the specific service levels. However, government contracts for mess hall services often aim for cost-effectiveness through bulk purchasing and standardized operations. Benchmarking would require access to detailed cost breakdowns and meal counts, as well as comparative data from other military installations or large institutional food service providers. Generally, large fixed-price contracts are negotiated to be competitive, but the actual value depends heavily on the volume and specific requirements outlined in the contract.

What are the key performance indicators (KPIs) and service level agreements (SLAs) for this contract?

The specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for this contract are not detailed in the provided data. However, typical KPIs for mess hall operations would likely include food quality and safety standards (e.g., adherence to health codes, temperature controls), service timeliness (e.g., minimizing wait times during peak hours), customer satisfaction (e.g., through surveys or feedback mechanisms), menu variety and nutritional content, and operational efficiency (e.g., waste reduction, inventory management). SLAs would define the expected standards for these KPIs, including response times for issues, required staffing levels, and reporting frequencies. Failure to meet these KPIs and SLAs could result in penalties or corrective actions as stipulated in the contract.

What is the historical spending trend for USMC garrison mess hall operations over the past decade?

Analyzing the historical spending trend for USMC garrison mess hall operations over the past decade requires access to historical contract data and budget allocations. This specific contract, valued at approximately $918 million over nearly 8 years (starting in 2018), represents a significant portion of recent spending. Without prior contract details, it's difficult to establish a precise trend. However, it's reasonable to assume that spending in this area would fluctuate based on troop levels, operational tempo, and changes in contracting strategies (e.g., shifts between in-house services and contracted services). The current contract's value suggests a sustained and substantial investment in outsourced food services for the Marine Corps.

Are there any known performance issues or contract disputes associated with Sodexo Management Inc. on this specific contract or similar DoD contracts?

Information regarding specific performance issues or contract disputes related to Sodexo Management Inc. on this particular contract (DoD, USMC Garrison Mess Halls) is not publicly available in the provided data. While Sodexo is a large contractor with a broad portfolio, any significant performance problems or disputes would typically be documented within agency performance reports (like CPARS - Contractor Performance Assessment Reporting System) or through legal filings, which are not accessible here. Agencies generally have mechanisms to address contractor underperformance, ranging from cure notices to contract termination. Without access to these specific records, it's impossible to definitively state whether issues have arisen.

Industry Classification

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

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: M9549418R0002

Offers Received: 4

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: $1,006,207,434

Exercised Options: $1,004,283,798

Current Obligation: $917,821,319

Actual Outlays: $389,878,670

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline