DoD awards $43.4M food service contract to SC Commission for the Blind, exceeding benchmark by 15%

Contract Overview

Contract Amount: $43,362,900 ($43.4M)

Contractor: South Carolina Commission for Blind

Awarding Agency: Department of Defense

Start Date: 2022-04-01

End Date: 2023-03-31

Contract Duration: 364 days

Daily Burn Rate: $119.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BLDG. 5455 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 $43.4 million to SOUTH CAROLINA COMMISSION FOR BLIND for work described as: BLDG. 5455 FULL FOOD SERVICE Key points: 1. Contract value appears high relative to the benchmark, suggesting potential overpayment. 2. Full and open competition was utilized, which typically fosters competitive pricing. 3. The contract's duration of 364 days is standard for this type of service. 4. The fixed-price structure shifts performance risk to the contractor. 5. This contract falls within the broader category of facility support services. 6. The award to a state commission is unusual for a federal food service contract.

Value Assessment

Rating: questionable

The contract's total value of $43.4 million for a one-year food service operation is significantly higher than the benchmark of $37.7 million, representing a 15% cost overrun. This substantial difference raises concerns about the pricing strategy and whether the government secured the best possible value. While fixed-price contracts are intended to control costs, the initial award price appears inflated when compared to the established benchmark. Further analysis into the specific services provided and the cost breakdown would be necessary to fully understand this discrepancy.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and allowed to bid. This method is generally preferred as it maximizes the pool of potential offerors and promotes a competitive environment, which should theoretically lead to more favorable pricing for the government. The specific number of bids received is not provided, but the use of this procurement method suggests a deliberate effort to ensure a fair and competitive process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive bids, potentially driving down costs and ensuring the government obtains services at a fair market price.

Public Impact

Military personnel and civilian staff at the specified DoD facility will receive food services. The contract supports the operational readiness of the Department of the Army by ensuring essential services are met. The primary geographic impact is within South Carolina, where the contractor is based. The contract likely supports jobs within the food service industry in South Carolina.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The contract value significantly exceeds the benchmark, indicating a potential lack of cost-effectiveness.
The award to a state commission for a federal food service contract is an unusual arrangement that warrants further scrutiny.
Lack of detailed performance metrics or quality assurance information in the provided data.
The specific services included in 'FULL FOOD SERVICE' are not clearly defined, leading to potential scope creep or unmet needs.

Positive Signals

The contract was awarded through full and open competition, suggesting a robust bidding process.
The use of a firm fixed-price contract shifts financial risk to the contractor.
The contractor is a state commission, which may have specific social or economic objectives aligned with government goals.

Sector Analysis

This contract falls within the broader 'Other Services' category, specifically focusing on food services for government facilities. The North American Industry Classification System (NAICS) code 722310, 'Food Service Contractors,' indicates a market segment that provides prepared food and beverage services for specific locations or events. Comparable spending benchmarks for such contracts can vary widely based on the size of the facility, the number of personnel served, and the geographic location. The total contract value of $43.4 million for a year of service suggests a large-scale operation.

Small Business Impact

There is no indication that this contract included a small business set-aside. The contractor, the South Carolina Commission for the Blind, is a state entity and not typically classified as a small business. Therefore, the direct impact on the small business ecosystem through this specific award is likely minimal, and there is no information provided regarding subcontracting opportunities for small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the relevant Department of the Army contracting command. Performance monitoring and quality assurance would be key oversight mechanisms. Transparency is facilitated by the contract's public availability, but detailed performance reports or Inspector General involvement are not specified in the provided data. Accountability would be enforced through the terms of the firm fixed-price contract.

Related Government Programs

Department of Defense Food Service Contracts
Facility Support Services
Government Food Procurement
State Commission Contracts

Risk Flags

Value Exceeds Benchmark
Unusual Contractor Type
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.4 million to SOUTH CAROLINA COMMISSION FOR BLIND. BLDG. 5455 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 $43.4 million.

What is the period of performance?

Start: 2022-04-01. End: 2023-03-31.

What specific services are included under 'FULL FOOD SERVICE' for this contract?

The provided data offers a high-level description of 'BLDG. 5455 FULL FOOD SERVICE' but lacks granular detail on the specific services encompassed. Typically, 'full food service' in a federal contract context can include menu planning, food procurement, preparation, serving, and cleanup for dining facilities. It may also encompass catering for events, special dietary accommodations, and waste management related to food services. Without the full contract statement of work, it is difficult to ascertain the exact scope, potential for scope creep, or if all necessary components for comprehensive food service are adequately addressed to meet the needs of the facility's occupants.

How does the $43.4 million award compare to historical spending for similar food service contracts at DoD facilities?

The $43.4 million award for a one-year food service contract is substantial. To assess its comparability, one would need to examine historical data for similar contracts within the Department of the Army or across the DoD. Key comparison points would include the number of personnel served, the type of facility (e.g., barracks, hospital, training center), the geographic location, and the duration of the contract. The provided benchmark of $37.7 million suggests that this award is already considered high. A broader historical analysis would reveal if this contract represents an outlier, a consistent trend of increasing costs in this sector, or if the specific demands of this facility justify the higher expenditure compared to other DoD installations.

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

The South Carolina Commission for the Blind (SCCB) is primarily focused on providing services and employment opportunities for visually impaired individuals within the state. Its experience in managing large-scale federal service contracts, particularly in the food service sector, is not immediately apparent from its core mission. While state agencies can and do contract with the federal government, the SCCB's specific expertise in operating complex food service operations for a military installation warrants further investigation. It is crucial to understand if they have prior experience with similar contracts, possess the necessary logistical capabilities, and have a proven history of successful performance in federal contracting to ensure this significant award is managed effectively.

What are the potential risks associated with awarding a food service contract to a state commission rather than a traditional private sector contractor?

Awarding a food service contract to a state commission like the South Carolina Commission for the Blind introduces unique potential risks compared to contracting with established private food service companies. These risks could include less flexibility in staffing and operations due to state regulations, potentially slower response times to issues, and a lack of specialized experience in large-scale federal food service logistics. Furthermore, the commission's primary mission is serving the blind community, and diverting significant resources and management focus to a large federal contract might impact its core operations. Ensuring adequate performance, quality control, and adherence to strict federal standards requires robust oversight and clear performance expectations, especially if the commission lacks extensive prior experience in this specific domain.

How does the firm fixed-price contract type mitigate or introduce financial risks for the government in this food service contract?

A firm fixed-price (FFP) contract type is generally advantageous for the government as it shifts the majority of financial risk to the contractor. Under an FFP agreement, the contractor is obligated to provide the specified goods or services for a predetermined price, regardless of their actual costs. This means that if the contractor's expenses increase due to inflation, supply chain issues, or inefficient operations, their profit margin will decrease, but the government's cost remains fixed. Conversely, if the contractor is highly efficient, they may realize a higher profit. The primary risk for the government with an FFP contract lies in the initial price negotiation; if the price is set too high from the outset, as suggested by the benchmark comparison, the government may overpay for the services throughout the contract term.

Industry Classification

NAICS: Accommodation and Food Services › Special Food Services › Food Service Contractors

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9124J17R0054

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: South Carolina, State of

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

Financial Breakdown

Contract Ceiling: $43,362,900

Exercised Options: $43,362,900

Current Obligation: $43,362,900

Actual Outlays: $9,435,579

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W9124J19D0008

IDV Type: IDC

Timeline