DoD's $23.4M galley services contract awarded to Global Connections to Employment, Inc. raises value questions

Contract Overview

Contract Amount: $23,439,779 ($23.4M)

Contractor: Global Connections to Employment, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-07-01

End Date: 2026-06-30

Contract Duration: 1,825 days

Daily Burn Rate: $12.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEWPORT RI & GROTON, CT FSA GALLEY SERVICES

Place of Performance

Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $23.4 million to GLOBAL CONNECTIONS TO EMPLOYMENT, INC. for work described as: NEWPORT RI & GROTON, CT FSA GALLEY SERVICES Key points: 1. The contract's value proposition requires scrutiny given the lack of competitive bidding. 2. Limited competition may have led to suboptimal pricing and reduced taxpayer value. 3. Performance risks are moderate, but oversight is crucial for service quality. 4. This contract supports essential food services for naval personnel. 5. The contractor's positioning in the food service sector is established. 6. The firm-fixed-price structure offers some cost certainty but limits flexibility.

Value Assessment

Rating: questionable

Benchmarking the value of this $23.4 million contract is challenging due to the absence of a competitive bidding process. Without multiple offers, it's difficult to ascertain if the pricing reflects fair market value or if alternative, more cost-effective solutions were overlooked. The firm-fixed-price nature provides cost predictability, but the overall value for money is uncertain without a competitive baseline. Further analysis of the contractor's historical performance and pricing on similar contracts would be beneficial.

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 significantly limits the opportunity for price discovery and potentially leads to higher costs for the government. The rationale for the sole-source award needs to be clearly documented and justified to ensure it was indeed the most appropriate procurement method. The lack of bidders means the government did not benefit from the innovation and cost savings that often arise from a competitive environment.

Taxpayer Impact: Sole-source awards can result in taxpayers paying a premium for goods and services, as the absence of competition removes a key incentive for contractors to offer their best prices. This can lead to less efficient use of public funds.

Public Impact

Naval personnel at facilities in Newport, RI, and Groton, CT, benefit from consistent food services. The contract ensures the provision of essential galley services, supporting morale and operational readiness. The geographic impact is concentrated in Rhode Island and Connecticut, supporting local naval bases. The contract supports employment for individuals within the food service industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer funds.
Sole-source awards can limit innovation and the exploration of more cost-effective service delivery models.
The firm-fixed-price contract may not adequately account for unforeseen operational challenges or efficiencies.
Transparency regarding the justification for the sole-source award is critical for public trust.

Positive Signals

The contract provides essential services, ensuring the well-being of military personnel.
A firm-fixed-price contract offers budget certainty for the Department of Defense.
The contractor is responsible for delivering services over a defined period, ensuring continuity.
The award supports a specific need within the Department of the Navy's operational framework.

Sector Analysis

The food service contracting sector is a significant component of government procurement, particularly for agencies with large personnel bases like the Department of Defense. This contract falls under the NAICS code 722310 (Food Service Contractors). While specific market size data for federal galley services is not readily available, the broader food service industry is vast. This contract represents a portion of the DoD's spending on maintaining operational readiness and personnel support through outsourced services. Benchmarking against similar contracts for galley services at other military installations would provide further context on pricing and scope.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no explicit information provided regarding subcontracting plans or their impact on the small business ecosystem. Without specific set-aside goals or subcontracting requirements, the direct benefit to small businesses from this particular contract is likely minimal, unless the prime contractor voluntarily engages them.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. The firm-fixed-price nature implies that the contractor bears most of the risk for cost overruns, but the government is responsible for monitoring performance against the contract's requirements. Transparency regarding performance metrics and any incurred costs would be subject to standard government oversight procedures. The Inspector General's office may investigate any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Food Services
Naval Support Activity Contracts
Base Operations Support Contracts
Food Service Contractor Services

Risk Flags

Sole-source award lacks competitive justification.
Potential for suboptimal pricing due to limited competition.
Lack of transparency in procurement process.
Value for money requires further scrutiny.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.4 million to GLOBAL CONNECTIONS TO EMPLOYMENT, INC.. NEWPORT RI & GROTON, CT FSA GALLEY SERVICES

Who is the contractor on this award?

The obligated recipient is GLOBAL CONNECTIONS TO EMPLOYMENT, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.4 million.

What is the period of performance?

Start: 2021-07-01. End: 2026-06-30.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' which typically signifies a sole-source or limited-source justification. Common reasons for sole-source awards include unique capabilities of a single contractor, urgent and compelling needs where competition is not feasible, or when only one source is capable of meeting the requirement. Without further documentation from the agency (e.g., a Justification and Approval document), the precise reason remains unspecified. This lack of transparency can be a concern for ensuring fair and open competition, and taxpayers may question whether alternative solutions were adequately explored.

How does the awarded price compare to industry benchmarks for similar galley services?

Directly comparing the awarded price of $23.4 million for this contract to industry benchmarks is difficult without more specific details on the scope of services, the number of personnel served, and the exact locations and facilities involved. The provided data does not include per-unit costs or detailed service level agreements. However, given the sole-source nature of the award, there is an inherent risk that the price may not be as competitive as it would be in a fully open market. A thorough benchmark analysis would require access to detailed cost breakdowns and comparisons with contracts for similar services at other military installations or government facilities.

What are the key performance indicators (KPIs) for this contract, and how is performance being monitored?

The provided data does not specify the key performance indicators (KPIs) for this galley services contract. Typically, such contracts would include metrics related to food quality, service timeliness, customer satisfaction (e.g., surveys from service members), adherence to dietary guidelines, sanitation standards, and inventory management. Performance monitoring is usually conducted by the contracting officer's representative (COR) or a designated technical point of contact within the Department of the Navy. Regular performance reviews, site inspections, and feedback mechanisms are standard oversight tools to ensure the contractor meets the contractual obligations.

What is the track record of Global Connections to Employment, Inc. in performing similar government contracts?

Information regarding the specific track record of Global Connections to Employment, Inc. on similar government contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous awards. Federal procurement databases and past performance information systems often contain such data, which is crucial for evaluating a contractor's reliability and capability. Without this information, it's challenging to definitively assess their suitability and past performance in delivering galley services.

What is the historical spending trend for galley services at these specific naval facilities?

The provided data focuses on a single contract award and does not offer historical spending trends for galley services at the Newport, RI, and Groton, CT, naval facilities. To analyze historical spending, one would need to examine contract awards for these services over previous years, noting any changes in contract type, duration, value, and the incumbent contractors. Understanding these trends is vital for identifying patterns, assessing cost growth or reduction, and evaluating the long-term financial commitment to these services.

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

Solicitation ID: N0018921RG002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1221 W LAKEVIEW AVE, PENSACOLA, FL, 32501

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,839,770

Exercised Options: $26,224,368

Current Obligation: $23,439,779

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline