DoD's $16.6M hospitality services contract with The Ravens Group, Inc. awarded in 2008, ran for nearly 4 years

Contract Overview

Contract Amount: $16,570,323 ($16.6M)

Contractor: THE Ravens Group, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-12-01

End Date: 2012-06-30

Contract Duration: 1,307 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HOSPITALITY SERVICES

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.6 million to THE RAVENS GROUP, INC. for work described as: HOSPITALITY SERVICES Key points: 1. The contract's value of $16.6 million over its lifespan suggests a significant investment in hospitality services. 2. Awarded under full and open competition, the contract aimed to leverage market forces for best value. 3. The firm-fixed-price contract type indicates that the contractor bore the risk of cost overruns. 4. The duration of over 3 years implies a sustained need for these services by the Department of the Army. 5. The absence of small business set-aside suggests the competition was not specifically targeted to encourage small business participation. 6. The contract's performance period spanned a significant economic downturn, potentially influencing pricing and resource availability.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details and comparable market data for hospitality services within the Department of Defense. The total award of $16.6 million over approximately 3.5 years averages to about $4.7 million annually. This figure needs to be assessed against the scope and quality of services provided. Without more granular data on the specific services rendered (e.g., catering, lodging, event management) and the number of personnel or events supported, a definitive value-for-money assessment is difficult. However, the firm-fixed-price structure generally promotes cost control by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The data does not specify the number of bidders, which is crucial for understanding the intensity of the competition. A robust competition with multiple bidders typically leads to better pricing and service offerings for the government. The fact that it was competed openly suggests the agency sought to maximize its options and secure the most advantageous terms.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve service quality, ensuring that government funds are used efficiently.

Public Impact

Military personnel and their families likely benefited from enhanced hospitality services, potentially improving morale and quality of life. The services delivered supported the operational readiness and logistical needs of the Department of the Army. The geographic impact is primarily within Virginia, where the contract was administered, potentially supporting local economies through contractor employment. The contract supported jobs within the hospitality sector, contributing to the workforce in the region where services were rendered.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the quality and effectiveness of the hospitality services provided.
The total contract value is substantial, raising questions about whether more cost-effective alternatives were explored or if the scope was appropriately defined.
Without knowing the number of bidders, it's hard to confirm if the 'full and open competition' truly resulted in optimal price discovery.
The contract type (firm fixed price) can sometimes lead to contractors cutting corners on quality if not rigorously overseen, though this is not explicitly indicated here.
The specific nature of 'hospitality services' is broad and could encompass a wide range of activities, making it difficult to evaluate without further detail.

Positive Signals

Awarded through full and open competition, suggesting an effort to obtain the best value from the market.
The firm-fixed-price contract type shifts cost risk to the contractor, potentially protecting the government from unexpected price increases.
The contract was administered by the Department of the Army, a major federal agency with established procurement processes.
The contract was awarded to a single entity, The Ravens Group, Inc., indicating a clear point of accountability for service delivery.
The contract duration of over three years suggests a stable and ongoing requirement, implying a level of satisfaction or necessity for the services.

Sector Analysis

The hospitality services sector is diverse, encompassing lodging, food services, event planning, and recreation. Federal contracts in this area often support military bases, government facilities, and official events. The market size for government hospitality services is significant, driven by the needs of agencies like the Department of Defense. This contract fits within the broader category of personal services and facility support, where competition can vary widely depending on specialization. Comparable spending benchmarks are difficult to establish without knowing the precise services rendered, but large-scale contracts often involve millions of dollars annually.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that the competition was open to businesses of all sizes, and there was no specific requirement for the prime contractor to be a small business or to subcontract a certain percentage to small businesses. While this allows for a wider pool of potential bidders, it may limit direct opportunities for small businesses to secure prime contracts in this area. The absence of a small business set-aside does not preclude the prime contractor from voluntarily subcontracting with small businesses, but it is not a mandated component of the contract.

Oversight & Accountability

Oversight for this contract would have been the responsibility of the contracting officer and the administrative contracting officer within the Department of the Army. As a definitive contract awarded under full and open competition, it would be subject to standard federal procurement regulations and oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS. Accountability rests with The Ravens Group, Inc. to fulfill the contract terms and with the Army to monitor performance and ensure compliance. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Base Support Services
Lodging and Food Services Contracts
Government Facility Management
Personal Services Contracts
Department of Defense Procurement

Risk Flags

Lack of detailed service description
Number of bidders not specified
Performance metrics not available

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.6 million to THE RAVENS GROUP, INC.. HOSPITALITY SERVICES

Who is the contractor on this award?

The obligated recipient is THE RAVENS GROUP, 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 $16.6 million.

What is the period of performance?

Start: 2008-12-01. End: 2012-06-30.

What specific hospitality services were included under this contract?

The provided data classifies this contract under NAICS code 812990, 'All Other Personal Services,' and the description is 'HOSPITALITY SERVICES.' This broad classification makes it difficult to pinpoint the exact services without further documentation. Typically, hospitality services for the military could encompass a range of offerings such as catering for events and dining facilities, lodging management, recreational services, laundry services, or even support for official functions and conferences. The firm-fixed-price nature suggests a defined scope of work where the contractor is responsible for delivering specific services at an agreed-upon price. To understand the full scope, one would need to consult the contract's Statement of Work (SOW) or Performance Work Statement (PWS).

How did the $16.6 million total award compare to similar hospitality contracts awarded by the DoD during that period?

Comparing the $16.6 million total award for this hospitality services contract requires context regarding the specific services rendered and the duration. Awarded over approximately 3.5 years (December 2008 to June 2012), the average annual value was roughly $4.7 million. To benchmark this, one would need to analyze other DoD contracts for similar hospitality services (e.g., base lodging, food services, event catering) awarded within the same timeframe and geographic region, or for comparable installations. Without access to detailed contract line item numbers (CLINs) and performance metrics, a direct comparison is challenging. However, for a large military installation or a significant number of personnel, an annual spend in the millions for comprehensive hospitality services is not uncommon, especially when considering factors like food provision, accommodation, and event support.

What was the track record of The Ravens Group, Inc. with federal contracts prior to and during this award?

Assessing the track record of The Ravens Group, Inc. requires examining their contract history within federal databases. Prior to this $16.6 million Department of the Army contract, their history would indicate their experience level and past performance in delivering services, particularly hospitality or personal services. During the contract's performance period (2008-2012), the government would have monitored their performance against the contract's requirements. Post-award, their subsequent contract awards and performance ratings would provide further insight into their reliability and capability. A review of their complete federal contracting history, including past performance evaluations and any disputes or terminations, would be necessary for a comprehensive understanding of their track record.

Given the firm-fixed-price contract type, what were the potential risks and benefits for the government and the contractor?

The firm-fixed-price (FFP) contract type presents distinct risks and benefits for both the government and the contractor. For the government, the primary benefit is cost certainty; the total price is fixed, protecting the agency from cost overruns unless the scope of work changes significantly (requiring a contract modification). This also incentivizes the contractor to manage costs efficiently. The main risk for the government is that the contractor might cut corners on quality to maintain profitability if oversight is insufficient, or that the initial price might be higher than necessary if competition was weak. For the contractor, the benefit is the potential for higher profit margins if they can deliver the services below the fixed price. The primary risk is bearing the full burden of any cost increases due to unforeseen circumstances, labor issues, or material price hikes, which could lead to losses.

How does the NAICS code 812990 ('All Other Personal Services') typically relate to federal spending on hospitality?

NAICS code 812990, 'All Other Personal Services,' is a broad category that encompasses a variety of services not classified elsewhere, including certain types of personal care, repair, and maintenance services. When applied to 'HOSPITALITY SERVICES' as in this contract, it suggests services that are personal in nature and support the well-being or comfort of individuals, rather than direct operational support like construction or IT. This could include services like laundry and dry-cleaning, tailoring, pet care, or, in this context, potentially specialized support services for personnel on military bases or government facilities that fall outside more specific categories like food service (722) or lodging (721). Its broadness means the specific deliverables are heavily dependent on the contract's Statement of Work.

What does the 'definitive contract' award type signify in this context?

A 'definitive contract' is a standard, fully negotiated contract that is awarded when the exact price and quantity are known or can be determined. This contrasts with indefinite-delivery/indefinite-quantity (IDIQ) contracts, where the exact quantity or delivery dates might not be specified upfront. In this case, the award of a definitive contract for hospitality services implies that the Department of the Army had a clear understanding of the scope, duration, and estimated cost of the services required from The Ravens Group, Inc. It suggests a well-defined requirement rather than an ongoing, flexible need that might be better suited for an IDIQ vehicle. The firm-fixed-price nature further solidifies this, indicating a set price for a defined set of services over the contract's term.

Industry Classification

NAICS: Other Services (except Public Administration) › Other Personal Services › All Other Personal Services

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91YTZ08R0126

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9901 BUSINESS PKWY STE K, LANHAM, MD, 20706

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $16,570,323

Exercised Options: $16,570,323

Current Obligation: $16,570,323

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline