DoD Awards $15.4M Firm Fixed Price Contract for Galley/Mess Services to ICAN RESOURCES INC

Contract Overview

Contract Amount: $15,425,892 ($15.4M)

Contractor: Ican Resources Inc

Awarding Agency: Department of Defense

Start Date: 2020-04-01

End Date: 2025-10-03

Contract Duration: 2,011 days

Daily Burn Rate: $7.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GALLEY/MESS SERVICES

Place of Performance

Location: SANTA RITA, GUAM County, GUAM, 96915

Plain-Language Summary

Department of Defense obligated $15.4 million to ICAN RESOURCES INC for work described as: GALLEY/MESS SERVICES Key points: 1. Contract awarded to ICAN RESOURCES INC for galley/mess services. 2. The contract is valued at $15.4 million and runs until October 2025. 3. This is a definitive contract with a firm fixed price. 4. The contract was not available for competition, raising potential concerns about price discovery.

Value Assessment

Rating: fair

The contract value of $15.4 million for galley/mess services over approximately 5 years needs comparison to similar contracts. Without benchmarks for food service contractors in Guam, assessing if this price is competitive is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited competition approach. This lack of competition may have impacted the government's ability to secure the best possible price.

Taxpayer Impact: The absence of robust competition could lead to taxpayers potentially overpaying for these essential services.

Public Impact

Ensures essential food services for military personnel in Guam. Potential for higher costs due to limited competition. Long-term contract may offer stability for service provider and consistent service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of price benchmark data

Positive Signals

Definitive contract provides clear terms
Firm fixed price limits cost overruns for the government

Sector Analysis

This contract falls under food service contracting, a common but often complex sector within government procurement. Benchmarks for similar services in the specific geographic location of Guam are crucial for evaluating cost-effectiveness.

Small Business Impact

The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis is needed to determine small business participation.

Oversight & Accountability

Oversight will be critical to ensure ICAN RESOURCES INC meets the service requirements and that the firm fixed price remains fair throughout the contract duration, especially given the limited competition.

Related Government Programs

Food Service Contractors
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Limited competition
Potential for inflated pricing
Lack of publicly available cost benchmarks
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.4 million to ICAN RESOURCES INC. GALLEY/MESS SERVICES

Who is the contractor on this award?

The obligated recipient is ICAN RESOURCES 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 $15.4 million.

What is the period of performance?

Start: 2020-04-01. End: 2025-10-03.

What is the typical cost for galley and mess services for a similar number of personnel in comparable geographic locations?

Determining the typical cost for galley and mess services requires detailed analysis of contracts for similar scope and scale, adjusted for geographic location and inflation. Benchmarking against contracts in other military installations in the Pacific region or similar island environments would provide a more accurate comparison. Without this data, assessing the $15.4 million award's value is speculative.

What factors led to this contract being 'not available for competition'?

Contracts are typically not available for competition due to specific circumstances such as urgent needs, sole-source capabilities of a particular vendor, or consolidation of requirements. Understanding the justification for this limitation is crucial to assess if alternative, more competitive methods could have been employed or if the chosen method was indeed the most appropriate under the circumstances.

How effectively will the firm fixed price structure protect taxpayer interests given the limited competition?

A firm fixed price contract generally protects taxpayers by establishing a ceiling on costs. However, with limited competition, the initial price might not reflect the most competitive market rate. Effective oversight is needed to ensure the contractor delivers quality services at the agreed-upon price without compromising standards, and to monitor if the price remains reasonable over the contract's life.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0060419R4007

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 520 CHORITO BLVD STE 201, ASAN, GU, 96910

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,800,982

Exercised Options: $15,425,892

Current Obligation: $15,425,892

Actual Outlays: $232,720

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline