DoD spent $27.6M on meeting hall services, awarded via full and open competition

Contract Overview

Contract Amount: $27,621,372 ($27.6M)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of Defense

Start Date: 2007-12-15

End Date: 2008-09-09

Contract Duration: 269 days

Daily Burn Rate: $102.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: {PIIN: W91GDW08M4000} MEETING HALL WITH TEA HALL AND LUNCH BREAK

Plain-Language Summary

Department of Defense obligated $27.6 million to MISCELLANEOUS FOREIGN AWARDEES for work described as: {PIIN: W91GDW08M4000} MEETING HALL WITH TEA HALL AND LUNCH BREAK Key points: 1. The contract was awarded for meeting hall services, including catering, indicating a need for event support. 2. Full and open competition suggests a broad market search, potentially leading to competitive pricing. 3. The contract duration of 269 days is relatively short, suggesting a specific event or series of events. 4. The award was made to miscellaneous foreign awardees, which may warrant further investigation into the specific entities and their capabilities. 5. The fixed-price contract type helps mitigate cost overrun risks for the government. 6. The absence of small business set-asides or subcontracting plans suggests this contract did not prioritize small business participation.

Value Assessment

Rating: fair

Benchmarking the value of meeting hall services is challenging without specific details on the scope and duration of the events. However, $27.6 million for approximately 9 months of service, including catering, appears substantial. Without comparable contracts for similar large-scale event support in foreign locations, it's difficult to definitively assess value for money. The fixed-price nature provides cost certainty, but the overall cost-effectiveness hinges on the quality and scale of the services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach generally fosters a competitive environment, encouraging multiple bidders to vie for the contract. The number of bidders is not specified, but the method itself suggests an effort to secure the best possible pricing and terms through market forces.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings through a wider pool of offerors and encourages innovation.

Public Impact

The Department of Defense benefits from the provision of essential meeting and event facilities. Services delivered include the provision of a meeting hall, tea hall, and lunch breaks, supporting official functions. The geographic impact is likely concentrated in the location where the meeting hall was provided, potentially overseas given the awardee type. Workforce implications are minimal for the government, with the primary workforce being provided by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the specific foreign awardees and their qualifications.
Potential for higher costs due to logistical complexities of foreign service provision.
Limited visibility into the detailed breakdown of costs for meeting hall, tea, and lunch services.

Positive Signals

Awarded through full and open competition, suggesting a robust vetting process for potential bidders.
Firm fixed-price contract type limits the government's exposure to cost overruns.
Contract duration is defined, providing clear expectations for service delivery.

Sector Analysis

This contract falls within the administrative and support services sector, specifically focusing on event management and facility provision. While not a direct technology or defense procurement, such services are crucial for enabling military operations and administrative functions, particularly when personnel are deployed or engaged in international activities. The market for large-scale meeting and catering services is diverse, ranging from specialized event companies to hospitality providers.

Small Business Impact

The contract details indicate that small business participation was not a specific consideration, as there is no mention of set-asides or subcontracting plans. This suggests that the primary focus was on securing the required services through the most competitive means available, without a specific mandate to involve small businesses in this particular procurement.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified services. Transparency is limited by the available public data; further details on performance and specific awardees would enhance oversight assessment.

Related Government Programs

Department of Defense Conference and Meeting Support Services
Foreign Military Support Contracts
Catering and Food Services Contracts
General Management Consulting Services

Risk Flags

Awardee Identification
Foreign Awardee Due Diligence
Scope Clarity for Services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.6 million to MISCELLANEOUS FOREIGN AWARDEES. {PIIN: W91GDW08M4000} MEETING HALL WITH TEA HALL AND LUNCH BREAK

Who is the contractor on this award?

The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.6 million.

What is the period of performance?

Start: 2007-12-15. End: 2008-09-09.

What specific event or series of events necessitated the procurement of a meeting hall with catering services for approximately nine months?

The provided data does not specify the exact event or series of events that led to this procurement. However, the nature of the services (meeting hall, tea, lunch) suggests support for ongoing operations, training, conferences, or diplomatic engagements conducted by the Department of the Army. The duration of 269 days implies a sustained requirement rather than a single, short-term event. Further investigation into the contract's statement of work or related documentation would be necessary to identify the specific operational need.

Can the $27.6 million expenditure be benchmarked against similar large-scale meeting and catering contracts awarded by the DoD or other federal agencies?

Benchmarking this $27.6 million expenditure is challenging without more granular data on the scope, location, duration, and specific services included. Large-scale event support contracts can vary significantly in cost based on factors like venue size, catering quality, duration, and geographic location (especially if overseas). While $27.6 million over 269 days is substantial, a direct comparison would require identifying contracts with similar parameters. Publicly available contract databases might offer some comparable data points, but the unique aspect of 'miscellaneous foreign awardees' could make direct comparisons difficult.

What are the potential risks associated with awarding a significant contract for services to 'miscellaneous foreign awardees'?

Awarding contracts to 'miscellaneous foreign awardees' can introduce several risks. These include potential challenges in vetting the contractors' reliability, financial stability, and compliance with U.S. regulations and ethical standards. Logistical complexities, such as payment processing, communication barriers, and ensuring adherence to quality standards, can also arise. Furthermore, there might be geopolitical considerations or security concerns depending on the countries of the awardees. The lack of specific identification for these awardees exacerbates these risks by reducing transparency and making oversight more difficult.

How does the firm fixed-price contract type mitigate financial risk for the government in this scenario?

The firm fixed-price (FFP) contract type is designed to provide the government with the greatest cost certainty. Under an FFP agreement, the contractor agrees to a set price for the specified goods or services, regardless of their actual costs incurred. This means the contractor bears the risk of cost overruns. For the government, this structure protects against unexpected increases in expenses related to the meeting hall and catering services, making the total expenditure predictable and easier to budget. It incentivizes the contractor to manage their own costs efficiently to maintain profitability.

What does the absence of small business set-asides or subcontracting requirements imply for small business participation in this contract?

The absence of small business set-asides or subcontracting requirements indicates that this contract was not specifically structured to promote or mandate the involvement of small businesses. The procurement likely focused on obtaining the best value through full and open competition, without imposing specific goals for small business participation. This means that while small businesses could have theoretically bid if they met the qualifications, there was no active effort to ensure they received a portion of the contract value through set-asides or mandatory subcontracting plans. Consequently, the direct economic benefit to the small business sector from this specific contract is likely minimal.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: MISCELLANEOUS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2011 CRYSTAL DR STE 911, ARLINGTON, VA, 08

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $27,621,372

Exercised Options: $27,621,372

Current Obligation: $27,621,372

Timeline