DoD's $162M food service contract with SC Commission for the Blind shows fair competition but raises value questions

Contract Overview

Contract Amount: $162,120,040 ($162.1M)

Contractor: South Carolina Commission for Blind

Awarding Agency: Department of Defense

Start Date: 2013-01-31

End Date: 2018-06-30

Contract Duration: 1,976 days

Daily Burn Rate: $82.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FULL FOOD SERVICE

Place of Performance

Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29207

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $162.1 million to SOUTH CAROLINA COMMISSION FOR BLIND for work described as: FULL FOOD SERVICE Key points: 1. Contract value of $162M over 5 years suggests significant scale. 2. Full and open competition indicates a healthy bidding environment. 3. Firm fixed-price structure aims to control costs. 4. Contract duration of 5 years allows for stable service delivery. 5. Award to a state commission is unusual for a federal food service contract. 6. Lack of small business set-aside noted. 7. Geographic concentration in South Carolina.

Value Assessment

Rating: fair

The contract's total value of over $162 million for food services over approximately five years is substantial. Benchmarking this against similar large-scale federal food service contracts is challenging without more specific service details. However, the firm fixed-price nature suggests an attempt to manage cost overruns. The award to a state commission, rather than a traditional private sector food service provider, warrants further scrutiny regarding potential cost efficiencies or unique value propositions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of four bidders (no) suggests a reasonable level of competition for this significant food service requirement. This competitive process should theoretically lead to a fair market price, although the specific nature of the awardee (a state commission) might influence the typical competitive dynamics.

Taxpayer Impact: A competitive award process generally benefits taxpayers by driving down prices and encouraging efficiency among bidders. The full and open nature suggests that the government sought the best value from a wide range of potential providers.

Public Impact

Serves Department of the Army personnel through food services. Benefits military members and potentially civilian employees requiring food services. Geographic impact is concentrated in South Carolina. Workforce implications include employment opportunities for food service staff, potentially sourced through the South Carolina Commission for the Blind's programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Unusual awardee type (state commission) may present unique management or performance challenges compared to commercial providers.
Lack of specific performance metrics or quality standards in the provided data makes assessing service effectiveness difficult.
Potential for less innovation or flexibility compared to contracts with private sector specialists.
Concentration of services in one state could limit scalability or adaptability for broader DoD needs.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust bidding process.
Award to a state commission may align with specific social or economic objectives.
Long contract duration allows for stable service provision and potential for relationship building.

Sector Analysis

This contract falls within the broader food service industry, a significant sector supporting various government operations. Federal spending on food services is substantial, encompassing military bases, government facilities, and correctional institutions. The market includes large commercial food service providers, specialized catering companies, and, in this case, a state-run commission. The contract's value places it among larger federal service awards, requiring significant logistical and operational capacity.

Small Business Impact

The provided data indicates that this contract did not include a small business set-aside (sb=false) and there is no indication of specific small business subcontracting goals (ss=false). This means that small businesses were not specifically targeted for this award. Consequently, the direct impact on the small business ecosystem is likely minimal, unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are usually embedded within the contract's terms and conditions, including performance standards and payment schedules. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Food Service Contracts
Department of Defense Food Procurement
Military Base Support Services
State Commission Contracts
Firm Fixed Price Service Contracts

Risk Flags

Unusual awardee type
Potential performance variability
Lack of small business participation
Limited transparency on specific performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $162.1 million to SOUTH CAROLINA COMMISSION FOR BLIND. FULL FOOD SERVICE

Who is the contractor on this award?

The obligated recipient is SOUTH CAROLINA COMMISSION FOR BLIND.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $162.1 million.

What is the period of performance?

Start: 2013-01-31. End: 2018-06-30.

What is the track record of the South Carolina Commission for the Blind in managing large-scale federal food service contracts?

Information regarding the South Carolina Commission for the Blind's track record specifically with large-scale federal food service contracts is not readily available in standard federal procurement databases. While the commission's primary mission often involves employment for visually impaired individuals, its capacity and experience in managing a contract of this magnitude ($162M) for the Department of the Army warrants deeper investigation. Federal agencies typically vet contractors based on past performance, and the success of this contract would depend heavily on the commission's operational capabilities, management structure, and experience in meeting the stringent requirements of military food service.

How does the per-unit cost of food service under this contract compare to similar DoD contracts?

Determining a precise per-unit cost comparison is challenging without detailed breakdowns of services provided (e.g., meals per day, type of service, specific locations) and the contract's specific performance period. The total award of $162 million over approximately five years averages to roughly $32.4 million per year. If this contract supported a large military installation, the per-meal cost might be benchmarked against other base dining facilities. However, the unique nature of the awardee (a state commission) makes direct comparison to traditional commercial food service providers difficult, as their cost structures and overhead may differ significantly.

What are the primary risks associated with awarding a major food service contract to a state commission rather than a commercial entity?

Key risks include potential differences in operational efficiency, flexibility, and responsiveness compared to experienced commercial food service providers. State commissions may have different procurement rules, staffing models, and profit motives, which could impact service quality or cost-effectiveness. There's also a risk related to scalability and the ability to rapidly adapt to changing military needs or deployment schedules. Furthermore, ensuring consistent adherence to the high standards expected in military food service, including food safety and sanitation, requires robust oversight, especially if the commission lacks extensive prior experience in this specific domain.

How effective has this contract been in delivering food services to the Department of the Army, based on performance data?

Specific performance data and effectiveness metrics for this contract are not provided in the initial data. Effectiveness would typically be measured by factors such as food quality, service timeliness, customer satisfaction (e.g., from service members), adherence to dietary requirements, and compliance with health and safety regulations. Without access to performance reports, contractor performance evaluations (CPAKs), or user feedback, a definitive assessment of the contract's effectiveness is not possible. The firm fixed-price nature suggests a focus on cost control, but effectiveness hinges on the quality of execution.

What is the historical spending pattern for food services by the Department of the Army in South Carolina?

Analyzing historical spending patterns for food services by the Department of the Army specifically in South Carolina requires access to comprehensive procurement data over multiple fiscal years. This contract, awarded in 2013 and ending in 2018, represents a significant portion of spending during that period. However, to understand broader trends, one would need to examine spending on similar food service contracts across different Army installations and agencies within South Carolina over a longer timeframe, looking for patterns in contract types, awardees, and total expenditure to identify any shifts or consistencies.

Does the award to the South Carolina Commission for the Blind align with any specific socio-economic goals or initiatives of the Department of Defense?

While the primary driver for federal contracts is typically best value and mission requirements, the Department of Defense may have initiatives that encourage partnerships with state agencies or organizations that serve specific populations. Awarding a contract to a state commission, particularly one focused on employment for the visually impaired, could potentially align with broader socio-economic goals if it supports workforce development or provides unique social benefits. However, without explicit documentation or statements from the DoD regarding such alignment for this specific contract, it remains speculative. The 'full and open' competition suggests that mission needs and competitive pricing were paramount.

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: W9124C12R0011

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: South Carolina, State of (UEI: 067006072)

Address: 1430 CONFEDERATE AVE, COLUMBIA, SC, 29201

Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $249,637,128

Exercised Options: $231,798,063

Current Obligation: $162,120,040

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $30,720,762

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline