DoD's $41M Nutrition Care Services Contract with Sodexo: A Deep Dive into Value and Competition

Contract Overview

Contract Amount: $41,047,986 ($41.0M)

Contractor: Sodexo Management Inc.

Awarding Agency: Department of Defense

Start Date: 2014-12-22

End Date: 2020-10-31

Contract Duration: 2,140 days

Daily Burn Rate: $19.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF NUTRITION CARE SERVICES AT MULTIPLE MTFS

Place of Performance

Location: FORT LEONARD WOOD, PULASKI County, MISSOURI, 65473

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $41.0 million to SODEXO MANAGEMENT INC. for work described as: IGF::OT::IGF NUTRITION CARE SERVICES AT MULTIPLE MTFS Key points: 1. The contract awarded to Sodexo Management Inc. for nutrition care services represents a significant investment by the Department of Defense. 2. Full and open competition was utilized, suggesting a robust process for selecting a vendor. 3. The contract's duration and fixed-price nature are key factors in assessing its overall risk and value. 4. Analysis of the per-unit cost against industry benchmarks is crucial for determining true value for taxpayers.

Value Assessment

Rating: fair

The contract's total value of $41 million over its term suggests a substantial commitment. Without specific per-unit data or comparable contracts, assessing the pricing fairness is challenging. Benchmarking against similar government or private sector nutrition service contracts would be necessary for a definitive evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition indicates that multiple vendors had the opportunity to bid, fostering a competitive environment. This method generally leads to better price discovery and potentially more favorable pricing for the government compared to limited or sole-source procurements.

Taxpayer Impact: The competitive bidding process aims to ensure taxpayer funds are used efficiently, though the final price is influenced by market conditions and contract specifics.

Public Impact

Ensures essential nutrition services for military personnel and their families. Supports the health and readiness of service members through proper dietary management. Impacts the food service industry and potential employment opportunities. Highlights the government's reliance on private contractors for specialized services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed per-unit cost data hinders precise value assessment.
Contract duration of over 5 years may introduce risks related to changing needs or inflation.
No indication of small business participation.

Positive Signals

Utilized full and open competition, promoting a competitive market.
Firm fixed-price contract provides cost certainty for the government.
Awarded by the Department of the Army, a major federal agency.

Sector Analysis

This contract falls within the Food Service Contractors sector, a critical support service for government operations, particularly in military settings. Spending benchmarks in this area are often influenced by the scale of operations, location, and specific service requirements, making direct comparisons complex without more granular data.

Small Business Impact

The data indicates that small business participation was not a factor in this contract (ss=false, sb=false). This suggests the contract was awarded to a large corporation, and there may be missed opportunities to engage smaller businesses in providing these essential nutrition care services.

Oversight & Accountability

The contract's extensive duration and value warrant robust oversight to ensure service quality, cost control, and adherence to contractual terms. Mechanisms for performance monitoring, dispute resolution, and regular reviews are essential for accountability.

Related Government Programs

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

Risk Flags

Lack of detailed cost breakdown.
No small business participation noted.
Long contract duration.
Potential for cost overruns if inflation is high.
Service quality dependent on contractor performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.0 million to SODEXO MANAGEMENT INC.. IGF::OT::IGF NUTRITION CARE SERVICES AT MULTIPLE MTFS

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 Army).

What is the total obligated amount?

The obligated amount is $41.0 million.

What is the period of performance?

Start: 2014-12-22. End: 2020-10-31.

What is the average per-unit cost for nutrition care services provided under similar government contracts?

Determining the average per-unit cost for similar government contracts requires access to a broader dataset of federal procurement information. Factors such as the type of facility (e.g., hospital, barracks), patient population served, and specific nutritional requirements significantly influence these costs. Benchmarking against contracts with similar scope and duration, particularly those awarded through full and open competition, would provide a more accurate comparison point.

What are the primary risks associated with a long-term (over 5 years) fixed-price contract for nutrition services?

Long-term fixed-price contracts for nutrition services carry risks such as potential cost escalation beyond the fixed price due to unforeseen inflation or increased operational expenses, which the contractor may absorb or seek to renegotiate. There's also a risk of service quality degradation if the contractor prioritizes cost savings over performance. Furthermore, evolving dietary needs or medical advancements might not be adequately addressed within the original contract scope without costly modifications.

How effectively does this contract ensure the health and readiness of service members?

The effectiveness of this contract in ensuring service member health and readiness hinges on the quality of services delivered by Sodexo Management Inc. and the government's oversight. While the contract's existence suggests a commitment to providing necessary nutrition, its true effectiveness depends on adherence to nutritional standards, patient satisfaction, and the contractor's ability to adapt to diverse dietary requirements. Robust performance metrics and regular evaluations are key to assessing this.

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: W81K0413R0010

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sodexo (UEI: 261190003)

Address: 9801 WASHINGTONIAN BLVD, GAITHERSBURG, MD, 20878

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $41,047,986

Exercised Options: $41,047,986

Current Obligation: $41,047,986

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline