DoD's $26.5M Mess Attendant Services contract awarded to RICE SERVICES, INC. shows potential value concerns

Contract Overview

Contract Amount: $26,477,797 ($26.5M)

Contractor: Rice Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-03-18

End Date: 2026-02-28

Contract Duration: 1,443 days

Daily Burn Rate: $18.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MESS ATTENDANT SERVICES

Place of Performance

Location: ANNAPOLIS, ANNE ARUNDEL County, MARYLAND, 21402

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $26.5 million to RICE SERVICES, INC. for work described as: MESS ATTENDANT SERVICES Key points: 1. The contract's value appears high relative to the number of bids received, suggesting potential overpayment. 2. Limited competition dynamics may have contributed to the pricing structure. 3. The firm-fixed-price contract type offers some cost certainty but doesn't mitigate initial pricing risks. 4. Performance context is limited, making it difficult to assess the true value delivered. 5. This contract falls within the broader Food Service Contractors sector, with significant government spending. 6. The duration of the contract (1443 days) indicates a long-term need for these services.

Value Assessment

Rating: fair

The contract's total value of $26.5 million over approximately four years warrants scrutiny. While the firm-fixed-price structure provides predictability, the benchmark for mess attendant services is not readily available. The relatively high total award amount, especially considering the number of bids, suggests that the pricing might be on the higher side compared to what could be achieved with more robust competition. Further analysis of the per-unit costs for services rendered would be necessary for a definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which is a complex designation. While it implies an initial broad solicitation, the exclusion of specific sources later in the process raises questions about the extent of true competition. With 10 bids received, there was some level of competition, but the specific reasons for excluding other potential bidders are not detailed. This could limit price discovery and potentially lead to less competitive pricing.

Taxpayer Impact: The exclusion of sources, even if justified, may have reduced the number of competitive bids, potentially leading to a higher price for taxpayers than if all qualified sources had been allowed to compete fully.

Public Impact

Military personnel and staff at the specified Navy installation benefit from the provision of mess attendant services. The services delivered include food preparation assistance, dining facility maintenance, and general support for mess operations. The geographic impact is localized to the Navy installation in Maryland where the services are performed. The contract supports jobs within the food service industry, contributing to the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inflated pricing due to limited effective competition.
Lack of detailed performance metrics makes value assessment challenging.
The 'exclusion of sources' clause requires further investigation to ensure fairness and maximum competition.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Multiple bids (10) indicate a degree of market interest.
Long-term contract provides stable service delivery.

Sector Analysis

The Food Service Contractors sector is a significant part of government procurement, particularly for military installations and other federal agencies requiring catering and dining support. This contract for mess attendant services is a typical example of spending within this category. Benchmarking against similar contracts for food service support at other military bases could provide further insights into the value proposition of this award.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature and scale of the services, it is unlikely that significant subcontracting opportunities for small businesses would be mandated, though RICE SERVICES, INC. may engage them voluntarily. The impact on the small business ecosystem is likely minimal unless RICE SERVICES, INC. actively seeks small business partners.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Navy contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price structure, which requires delivery of specified services. Transparency is facilitated by the contract award data being publicly available, but detailed performance reports and Inspector General involvement would depend on specific performance issues or audits.

Related Government Programs

Military Food Services
Base Operations Support
Government Catering Contracts
Defense Logistics Agency Contracts

Risk Flags

Potential for reduced competition due to source exclusion.
Lack of detailed performance metrics hinders value assessment.
High total contract value requires careful monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.5 million to RICE SERVICES, INC.. MESS ATTENDANT SERVICES

Who is the contractor on this award?

The obligated recipient is RICE SERVICES, 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 $26.5 million.

What is the period of performance?

Start: 2022-03-18. End: 2026-02-28.

What is the historical spending pattern for mess attendant services by the Department of the Navy?

Historical spending on mess attendant services by the Department of the Navy can be substantial, reflecting the continuous need to support dining facilities across numerous installations. While specific aggregate data for 'mess attendant services' alone is not always granularly reported, it falls under broader categories like 'Food Services' or 'Base Operations Support.' Analyzing past awards for similar services, including their values, durations, and competition levels, would reveal trends. For instance, examining contracts awarded in previous fiscal years for the same or comparable installations could highlight whether this $26.5 million award represents an increase or decrease in spending, and whether pricing has remained consistent or fluctuated. Understanding these patterns is crucial for assessing whether the current contract's terms are in line with historical norms or represent a deviation that warrants further investigation.

How does the pricing of this contract compare to similar mess attendant service contracts at other Navy installations?

Direct comparison of pricing for this $26.5 million contract to similar mess attendant service contracts at other Navy installations is challenging without access to detailed, granular cost breakdowns and service level agreements for comparable contracts. However, a high-level comparison can be made by looking at the total contract value relative to the duration and the scope of services. If other installations of similar size and operational tempo have secured comparable services for significantly less, or if the per-diem cost per service member is lower, it would suggest this contract's pricing may be higher. The fact that 10 bids were received, while seemingly robust, does not automatically guarantee competitive pricing, especially if the 'exclusion of sources' clause limited the pool of truly capable and competitive bidders. A deeper dive into the specific deliverables and service standards would be needed for a more precise benchmark.

What are the specific performance metrics and quality standards outlined in the contract?

The provided data does not include the specific performance metrics and quality standards outlined in the contract for mess attendant services. Typically, such contracts would detail requirements related to food safety, hygiene, timeliness of service, customer satisfaction (e.g., through surveys of service members), waste management, and staff conduct. The firm-fixed-price nature suggests that the contractor is obligated to meet these standards to receive payment. Without access to the contract's Statement of Work (SOW) or Performance Work Statement (PWS), it is impossible to assess the rigor of these standards or how performance is measured and enforced. This lack of detail limits the ability to fully evaluate the value for money and the contractor's accountability.

What is the track record of RICE SERVICES, INC. in performing similar government contracts?

Information regarding the specific track record of RICE SERVICES, INC. in performing similar government contracts is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past disputes or contract terminations, and the scale and complexity of previous contracts they have held. Companies with a history of successful, on-time, and within-budget performance on similar large-scale food service contracts would generally be considered lower risk. Conversely, a history of performance issues could indicate a higher risk for this current contract, potentially impacting service quality and value. Further research into the company's contract history and performance reviews is essential.

What is the potential impact of the 'exclusion of sources' clause on the overall cost-effectiveness of this contract?

The 'Full and Open Competition After Exclusion of Sources' clause introduces a layer of complexity in assessing cost-effectiveness. While the initial phase aimed for broad competition, the subsequent exclusion of certain sources, even if justified by specific criteria (e.g., technical capabilities, past performance, security requirements), inherently narrows the competitive field. If the excluded sources were capable of providing the services at a lower cost or with higher quality, their exclusion could lead to a less cost-effective outcome for the government. The effectiveness of this clause hinges on the validity of the exclusion reasons and whether the remaining pool of bidders still provides sufficient price pressure. Without knowing who was excluded and why, it's difficult to definitively state the impact, but any reduction in competition generally carries a risk of increased costs.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0018922R0002

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 506 W MAIN ST, SMITHVILLE, TN, 37166

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,318,893

Exercised Options: $26,477,797

Current Obligation: $26,477,797

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline