Dod's $15.1M Food Service Contract With Alabama Department of Rehabilitation Services Lacked Competition

Contract Overview

Contract Amount: $15,135,391 ($15.1M)

Contractor: Alabama Department of Rehabilitation Services

Awarding Agency: Department of Defense

Start Date: 2004-10-06

End Date: 2011-09-30

Contract Duration: 2,550 days

Daily Burn Rate: $5.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35824, UNITED STATES OF AMERICA

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $15.1 million to ALABAMA DEPARTMENT OF REHABILITATION SERVICES for work described as: Key points: 1. Significant spending of $15.1M over 7 years on food services. 2. Contract awarded to a state agency, raising questions about typical contractor competition. 3. Lack of competition suggests potential for inflated pricing and reduced value. 4. Sector is food services, a common area for government contracting.

Value Assessment

Rating: questionable

The total award value of $15.1M over approximately 7 years averages to over $2M annually. Without competitive bids, it's difficult to assess if this pricing is reasonable compared to market rates for similar food service contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited source selection. This likely prevented price discovery through a competitive bidding process, potentially leading to a higher overall cost for the government.

Taxpayer Impact: Taxpayers may have overpaid due to the absence of competitive pressure to secure the most cost-effective service.

Public Impact

Government reliance on state agencies for services can bypass standard procurement efficiencies. Long contract duration (7 years) without competition limits opportunities for cost savings. Transparency in pricing and service delivery is reduced without a competitive market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Limited transparency
Potential for overpayment

Positive Signals

Awarded to a state rehabilitation service, potentially supporting a public good.

Sector Analysis

This contract falls within the food services sector, a common area for government procurement. Benchmarks for food service contracts vary widely based on scope, location, and specific services required.

Small Business Impact

The contract was awarded to a state agency, not a small business. There is no indication of small business participation or subcontracting opportunities within this award.

Oversight & Accountability

The limited competition and lack of a clear justification for not seeking bids raise oversight concerns. Accountability for the value received is diminished without a competitive benchmark.

Related Government Programs

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

Risk Flags

Lack of competition
Potential for inflated pricing
Limited transparency in award justification
No clear performance metrics provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.1 million to ALABAMA DEPARTMENT OF REHABILITATION SERVICES. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is ALABAMA DEPARTMENT OF REHABILITATION SERVICES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.1 million.

What is the period of performance?

Start: 2004-10-06. End: 2011-09-30.

What was the justification for awarding this contract without competition?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' but does not offer the specific justification. Typically, such awards require a documented rationale, such as a sole-source provider or urgent need, which is absent here. This lack of transparency hinders a full assessment of the award's legitimacy and value.

How does the pricing compare to similar food service contracts awarded competitively?

Without competitive bids for this specific contract, a direct comparison is challenging. However, government contracts awarded through full and open competition often yield lower prices due to market forces. The $15.1M award over seven years, without competitive pressure, raises concerns about potential overpayment compared to what could have been achieved through a competitive process.

What is the effectiveness of the food services provided by the Alabama Department of Rehabilitation Services?

The provided data focuses solely on the financial and contractual aspects of the award and does not include any information regarding the quality or effectiveness of the food services rendered. Assessing effectiveness would require performance reviews, client satisfaction data, and operational metrics, which are not available.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Alabama, State of (UEI: 004027553)

Address: 2129 EAST SOUTH BOULEVARD, MONTGOMERY, AL, 36116

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline