DoD Awards $15M Food Service Contract to Austin & Associates, Lacking Competition
Contract Overview
Contract Amount: $14,986,324 ($15.0M)
Contractor: Austin & Associates
Awarding Agency: Department of Defense
Start Date: 2007-12-12
End Date: 2009-12-31
Contract Duration: 750 days
Daily Burn Rate: $20.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FULL FOOD SERVICE
Place of Performance
Location: FORT MCCOY, MONROE County, WISCONSIN, 54656
Plain-Language Summary
Department of Defense obligated $15.0 million to AUSTIN & ASSOCIATES for work described as: FULL FOOD SERVICE Key points: 1. Contract value of $14.99M for food services. 2. Sole-source award indicates limited competition. 3. Risk of inflated pricing due to lack of competition. 4. Sector: Services (Food Contractors).
Value Assessment
Rating: questionable
The contract value of $14.99M for food services over two years is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar contracts for food service providers.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor was considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for food services.
Public Impact
Taxpayers may be overpaying for essential food services due to a lack of competitive bidding. The Department of Defense relies on contractors for critical support functions like food service. Limited competition can stifle innovation and service quality improvements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- Potential for cost overruns
Positive Signals
- Contract awarded to a specific firm
- Fixed price contract type
Sector Analysis
This contract falls within the professional and administrative services sector, specifically food service contractors. Benchmarks for similar contracts are difficult to establish without competitive data.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and adequate performance. The contracting agency should have robust internal controls to justify the sole-source decision and monitor contract execution.
Related Government Programs
- Food Service Contractors
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Potential for overpayment due to lack of price discovery.
- No clear indication of small business participation.
- Contract duration is significant (2 years).
Tags
food-service-contractors, department-of-defense, wi, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.0 million to AUSTIN & ASSOCIATES. FULL FOOD SERVICE
Who is the contractor on this award?
The obligated recipient is AUSTIN & ASSOCIATES.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $15.0 million.
What is the period of performance?
Start: 2007-12-12. End: 2009-12-31.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, urgent needs, or specific government property requirements. Without further details, it's impossible to confirm the validity of the justification for this particular food service contract.
What is the risk associated with a sole-source food service contract?
The primary risk of a sole-source food service contract is the potential for inflated pricing due to the absence of competitive pressure. The contractor may not have an incentive to offer the best possible price or service quality. Additionally, it limits the government's ability to explore innovative solutions or alternative providers that might offer better value.
How effective is a sole-source contract in ensuring value for taxpayer money in food services?
Sole-source contracts are generally less effective in ensuring value for taxpayer money compared to competitively awarded contracts. The lack of competition removes the primary mechanism for driving down prices and encouraging efficiency. While a fixed-price contract offers some cost control, the initial price may not be optimal without competitive benchmarking.
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: W911SA08R0001
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 9022 HIGHWAY 22 S, MICHIE, TN, 08
Business Categories: 8(a) Program Participant, Category Business, HUBZone Firm, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $17,127,994
Exercised Options: $17,127,994
Current Obligation: $14,986,324
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-12-12
Current End Date: 2009-12-31
Potential End Date: 2009-12-31 00:00:00
Last Modified: 2010-03-10
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