Army Food Program Services Contract Awarded for $26.5M to Employment Source Inc
Contract Overview
Contract Amount: $26,473,466 ($26.5M)
Contractor: Employment Source Inc
Awarding Agency: Department of Defense
Start Date: 2009-09-23
End Date: 2013-04-30
Contract Duration: 1,315 days
Daily Burn Rate: $20.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: ARMY FOOD PROGRAM SERVICES - DINING FACILITY ATTENDANTS SERVICES
Place of Performance
Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310
Plain-Language Summary
Department of Defense obligated $26.5 million to EMPLOYMENT SOURCE INC for work described as: ARMY FOOD PROGRAM SERVICES - DINING FACILITY ATTENDANTS SERVICES Key points: 1. Contract awarded to Employment Source Inc. for dining facility attendant services. 2. Significant contract value of $26.5 million over its period of performance. 3. The contract was not available for competition, raising potential concerns about price discovery. 4. Services fall under the Food Service Contractors sector, with a North American Industry Classification System (NAICS) code of 722310.
Value Assessment
Rating: questionable
The contract type is Cost Plus Award Fee (CPAF), which can lead to higher costs if not managed carefully. Without a competitive bidding process, it's difficult to benchmark pricing against similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source selection. This lack of competition likely hindered effective price discovery and may have resulted in a higher cost to the government.
Taxpayer Impact: The absence of competition for a contract of this magnitude raises concerns about the efficient use of taxpayer funds.
Public Impact
Ensures essential dining facility services for Army personnel. Potential for increased costs due to non-competitive award. Impact on the food service contracting industry by limiting opportunities for other providers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Non-competitive award
- Cost Plus Award Fee contract type
- Lack of transparency in pricing
Positive Signals
- Ensures essential service delivery
- Long-term contract providing stability
Sector Analysis
This contract falls within the Food Service Contractors sector, which is a common area for government procurement. Benchmarking costs for such services can be challenging, especially when awarded non-competitively.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to assess small business participation.
Oversight & Accountability
The non-competitive nature of this award warrants close oversight to ensure the contractor is delivering services effectively and that costs are reasonable and allocable.
Related Government Programs
- Food Service Contractors
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited transparency in pricing
- Difficulty in performance evaluation without clear metrics
Tags
food-service-contractors, department-of-defense, nc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.5 million to EMPLOYMENT SOURCE INC. ARMY FOOD PROGRAM SERVICES - DINING FACILITY ATTENDANTS SERVICES
Who is the contractor on this award?
The obligated recipient is EMPLOYMENT SOURCE 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 $26.5 million.
What is the period of performance?
Start: 2009-09-23. End: 2013-04-30.
What was the justification for awarding this contract on a non-competitive basis?
The justification for a non-competitive award is not provided in the data. Typically, such awards are made under specific circumstances, such as urgent needs or the unavailability of other sources. A thorough review of the contract file would be necessary to understand the rationale and ensure it aligns with federal procurement regulations.
How were the award fees determined and what metrics were used?
The contract type is Cost Plus Award Fee (CPAF). The award fee structure is designed to incentivize contractor performance. Specific metrics and performance standards used to determine the award fee are not detailed in the provided data. Understanding these would be crucial for assessing contractor performance and the overall value received.
What is the estimated cost savings or loss due to the non-competitive award compared to a competitive process?
Quantifying the exact cost savings or loss from a non-competitive award is challenging without a benchmark. However, it is generally accepted that competitive bidding leads to lower prices. The absence of competition for a $26.5 million contract likely resulted in a higher cost to the government than if multiple bids had been solicited and evaluated.
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: W9124709R0012
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 600 AMES ST, FAYETTEVILLE, NC, 28301
Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $36,850,248
Exercised Options: $36,850,248
Current Obligation: $26,473,466
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-09-23
Current End Date: 2013-04-30
Potential End Date: 2013-04-30 00:00:00
Last Modified: 2017-03-02
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