DoD's $6.19M Shelf Stocking & Custodial Contract Awarded to PRIDE INDUSTRIES Raises Value Questions

Contract Overview

Contract Amount: $6,188,869 ($6.2M)

Contractor: Pride Industries

Awarding Agency: Department of Defense

Start Date: 2021-10-01

End Date: 2026-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $3.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SHELF STOCKING AND CUSTODIAL OPERATIONS

Place of Performance

Location: MONTEREY, MONTEREY County, CALIFORNIA, 93944

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $6.2 million to PRIDE INDUSTRIES for work described as: SHELF STOCKING AND CUSTODIAL OPERATIONS Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The firm-fixed-price contract type offers some cost certainty but may not incentivize efficiency. 3. Duration of 5 years (1825 days) suggests a long-term need for these services. 4. Geographic focus on California for Defense Commissary Agency operations. 5. Lack of competition is a significant indicator for potential value-for-money concerns. 6. The contract's value is moderate within the context of large federal service contracts.

Value Assessment

Rating: fair

Benchmarking the value of this $6.19 million contract for shelf stocking and custodial operations is challenging without specific performance metrics or comparable contract data. However, the absence of competition suggests that the government may not have secured the most competitive pricing. Firm-fixed-price contracts can provide cost certainty, but without a competitive bidding process, it's difficult to assess if the price reflects true market value or represents a fair deal for taxpayers. Further analysis would require understanding the scope of services and comparing them to industry standards for similar facilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source can provide the required services. The lack of competition means there were no other bidders to compare against, which can limit price discovery and potentially lead to higher costs for the government. Without a competitive process, it's difficult to ascertain if the selected contractor, PRIDE INDUSTRIES, offered the best possible price or value.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings that typically arise from competitive bidding. This can result in paying a premium for services that might be obtained at a lower cost through an open competition.

Public Impact

Service members and their families utilizing Defense Commissary Agency stores in California will benefit from maintained stock levels and cleanliness. The contract ensures the operational readiness and customer experience at commissary facilities. Supports local workforce in California through employment opportunities for shelf stocking and custodial staff. Maintains a sanitary and organized shopping environment for commissary patrons.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of transparency in the justification for sole-source award.
Potential for cost overruns if not closely managed due to fixed-price nature without competition.
Long contract duration could lead to complacency if performance is not rigorously monitored.

Positive Signals

PRIDE INDUSTRIES is an established provider of facilities management services.
Firm-fixed-price contract provides budget predictability.
Contract supports essential commissary operations for military families.
Long-term contract indicates a stable, ongoing requirement.

Sector Analysis

This contract falls within the broader federal services sector, specifically supporting commissary operations. The market for facilities management, including custodial and stocking services, is substantial within the federal government. Comparable spending benchmarks for similar services across different agencies or military branches would provide a clearer picture of value. The Defense Commissary Agency (DeCA) relies on such contracts to maintain its network of stores, which are critical for military personnel and their families.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). PRIDE INDUSTRIES is a large business. There is no information provided regarding subcontracting plans for small businesses. This contract does not appear to directly support the small business ecosystem through set-asides, but subcontracting opportunities could potentially exist if PRIDE INDUSTRIES engages smaller firms for specific tasks.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Commissary Agency's contracting and program management offices. Accountability measures are usually embedded within the contract terms, including performance standards and reporting requirements. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Commissary Agency Operations
Federal Facilities Maintenance Contracts
Logistics and Supply Chain Support Services
Government Custodial Services Contracts

Risk Flags

Sole-source award without clear justification.
Potential for inflated pricing due to lack of competition.
Performance monitoring challenges in sole-source contracts.
Contract duration may exceed demonstrated need without review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.2 million to PRIDE INDUSTRIES. SHELF STOCKING 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 $6.2 million.

What is the period of performance?

Start: 2021-10-01. End: 2026-09-30.

What is the track record of PRIDE INDUSTRIES in performing similar shelf stocking and custodial services for the federal government?

PRIDE INDUSTRIES is a large, privately held company that provides a wide range of facility services, including custodial, maintenance, and logistics support, to government and commercial clients. While specific details on their performance for the Defense Commissary Agency (DeCA) under this particular contract are not publicly available in this data snippet, the company generally has a significant presence in the federal contracting space. Their experience often includes managing large-scale service contracts. A deeper dive into past performance evaluations, contract awards, and any reported issues or successes with similar government contracts would be necessary to fully assess their track record for this specific service requirement.

How does the $6.19 million contract value compare to similar shelf stocking and custodial contracts awarded by the Defense Commissary Agency or other federal entities?

Benchmarking the $6.19 million value requires comparing it against contracts with similar scopes of work, geographic locations, and durations. Without access to a comprehensive database of DeCA or other federal agency contracts for shelf stocking and custodial services, a precise comparison is difficult. However, for a 5-year firm-fixed-price contract covering multiple locations or a significant facility within California, this value appears moderate. Larger contracts might encompass broader logistical support or services across more numerous commissaries. The sole-source nature of this award also complicates direct value comparisons, as competitive bids often drive prices down.

What are the primary risks associated with a sole-source award for essential services like shelf stocking and custodial operations?

The primary risks associated with a sole-source award for essential services are diminished price competition and potential lack of innovation. Without multiple bidders vying for the contract, the government may not achieve the most cost-effective pricing, potentially leading to higher expenditures for taxpayers. Furthermore, the absence of competitive pressure can reduce the incentive for the contractor to seek efficiencies or introduce innovative service delivery methods. There's also a risk that the government might overpay if the sole-source justification is not robust or if the contractor's pricing is not rigorously scrutinized. Ensuring strong contract oversight and performance management becomes even more critical in sole-source situations.

What is the expected impact of this contract on the operational effectiveness of the Defense Commissary Agency in California?

This contract is expected to have a positive impact on the operational effectiveness of the Defense Commissary Agency (DeCA) in California by ensuring that commissary stores are consistently stocked and maintained in a clean, orderly condition. Reliable shelf stocking directly contributes to product availability for military families, enhancing their shopping experience and ensuring access to essential goods. Similarly, effective custodial operations are crucial for maintaining a safe, sanitary, and welcoming environment, which is vital for customer satisfaction and public health. The 5-year duration suggests a commitment to sustained operational support, contributing to the overall mission of DeCA to provide quality goods and services to the military community.

Are there any historical spending patterns or trends related to shelf stocking and custodial services at the Defense Commissary Agency that this contract aligns with or deviates from?

Historical spending patterns for shelf stocking and custodial services at the Defense Commissary Agency (DeCA) are not detailed in the provided data. However, it is reasonable to assume that DeCA has consistently required such services to maintain its retail operations. Federal agencies often award multi-year contracts for essential support services to ensure continuity. The $6.19 million value over five years suggests an average annual spend of approximately $1.24 million. Without historical data, it's impossible to determine if this represents an increase, decrease, or stable spending trend compared to previous contracts or periods. The shift to a sole-source award, if previous contracts were competed, could indicate a change in procurement strategy or circumstances.

What are the implications of the firm-fixed-price contract type for managing costs and risks in this service contract?

A firm-fixed-price (FFP) contract type means the price is set and not subject to adjustment based on the contractor's cost experience. For this shelf stocking and custodial services contract, the FFP structure provides the government with cost certainty, as the total expenditure is known upfront ($6.19 million over five years). This shifts the cost risk primarily to the contractor, PRIDE INDUSTRIES. If the contractor's costs exceed the agreed-upon price, their profit margin will decrease. Conversely, if they manage costs efficiently, their profit will increase. The main risk for the government under an FFP contract, especially when awarded sole-source, is ensuring that the initial price was fair and reasonable and that the contractor is motivated to perform adequately despite the lack of direct cost-based oversight.

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, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,082,881

Exercised Options: $12,806,541

Current Obligation: $6,188,869

Actual Outlays: $2,320,203

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline