DoD's $10M Shelf Stocking Contract Awarded to Pride Industries Raises Questions on Competition and Value
Contract Overview
Contract Amount: $10,011,662 ($10.0M)
Contractor: Pride Industries
Awarding Agency: Department of Defense
Start Date: 2007-08-21
End Date: 2013-08-31
Contract Duration: 2,202 days
Daily Burn Rate: $4.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SHELF STOCKING, RSHA, AND CUSTODIAL OPERATIONS
Place of Performance
Location: MCCLELLAN, SACRAMENTO County, CALIFORNIA, 95652, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $10.0 million to PRIDE INDUSTRIES for work described as: SHELF STOCKING, RSHA, AND CUSTODIAL OPERATIONS Key points: 1. The contract for shelf stocking, RSHA, and custodial operations was awarded to Pride Industries for $10,011,661.69. 2. Awarded by the Defense Commissary Agency (DeCA) under the Department of Defense, the contract spanned from 2007 to 2013. 3. The contract was not available for competition, raising concerns about potential price inflation and lack of market pressure. 4. The sector is 'Other Support Services,' with a specific NAICS code of 561990. 5. The firm fixed price contract type suggests a defined cost, but the lack of competition hinders a true value assessment.
Value Assessment
Rating: questionable
Pricing for this contract is difficult to assess due to the lack of competitive bidding. Without benchmarks from similar contracts awarded through open competition, it's hard to determine if the $10 million price tag represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited competition approach. This likely restricted price discovery and may have led to a higher cost for taxpayers than if multiple vendors had bid.
Taxpayer Impact: The lack of competition limits the government's ability to secure the best possible price, potentially resulting in increased taxpayer expenditure.
Public Impact
Taxpayers may have overpaid for shelf stocking and custodial services due to the absence of competitive bidding. Military personnel and their families may have experienced varying levels of service quality depending on the efficiency of the sole-source provider. The long duration of the contract (2202 days) without re-competition could indicate a missed opportunity for cost savings and service improvements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Limited oversight due to sole-source award
Positive Signals
- Firm fixed price contract type
- Services provided to support military families
Sector Analysis
This contract falls under 'Other Support Services,' a broad category that can include a wide range of services. Benchmarking spending in this specific niche is challenging without more granular data on comparable contracts.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award to a single, likely larger, entity suggests a missed opportunity for small business participation.
Oversight & Accountability
The limited competition nature of this award warrants closer scrutiny. Oversight should focus on ensuring the contractor met all performance requirements and that the pricing, while not competitively determined, was reasonable.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- Defense Commissary Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in cost determination
- Missed opportunity for small business engagement
Tags
all-other-support-services, department-of-defense, ca, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.0 million to PRIDE INDUSTRIES. SHELF STOCKING, RSHA, AND CUSTODIAL OPERATIONS
Who is the contractor on this award?
The obligated recipient is PRIDE INDUSTRIES.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Commissary Agency).
What is the total obligated amount?
The obligated amount is $10.0 million.
What is the period of performance?
Start: 2007-08-21. End: 2013-08-31.
What was the justification for awarding this contract on a limited competition basis, and were alternative solutions explored?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION.' This implies a specific justification, possibly related to unique capabilities or a sole-source situation. Further investigation would be needed to understand the exact reasons and whether other options were truly unavailable or simply not pursued.
How does the per-unit cost of shelf stocking and custodial services under this contract compare to industry averages or government benchmarks?
Without a competitive benchmark or specific unit cost data, a direct comparison is impossible. The 'questionable' value rating stems from this lack of comparative data. The government should maintain internal benchmarks or conduct market research for similar services to assess cost-effectiveness.
What was the impact of this sole-source award on the overall efficiency and quality of commissary operations?
The impact on efficiency and quality is difficult to quantify without performance metrics. However, the absence of competition can reduce the incentive for a contractor to innovate or improve services beyond the contract minimums. This could potentially lead to stagnation in service delivery.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services
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
Address: 10030 FOOTHILLS BLVD, ROSEVILLE, CA, 95747
Business Categories: AbilityOne Program Participant, Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $11,897,166
Exercised Options: $11,897,166
Current Obligation: $10,011,662
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-08-21
Current End Date: 2013-08-31
Potential End Date: 2013-08-31 00:00:00
Last Modified: 2015-10-05
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