Department of the Navy awards $56.4M contract for food services to Lakeview Center Inc

Contract Overview

Contract Amount: $56,423,664 ($56.4M)

Contractor: Lakeview Center Inc

Awarding Agency: Department of Defense

Start Date: 2006-01-12

End Date: 2011-05-15

Contract Duration: 1,949 days

Daily Burn Rate: $28.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200607!160396!1700!N68836!FLEET AND INDUSTRIAL SUPPLY CENT!N6883606C0018 !A!N! !N! ! !20060112!20060930!098929524!098929524!098929524!N!LAKEVIEW CENTER INC !1221 W LAKEVIEW AVE !PENSACOLA !FL!32501!55975!033!12!PENSACOLA NAS !ESCAMBIA !FLORIDA !+000007650819!N!N!000049650819!S203!FOOD SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !722310!E! !3! ! ! ! ! !99990909!B! ! !A! !D!U!J!1!001!N!1G!Z!N!Z! ! !Y!Z!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! !1723!N00204!0001! !

Place of Performance

Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32508

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $56.4 million to LAKEVIEW CENTER INC for work described as: 200607!160396!1700!N68836!FLEET AND INDUSTRIAL SUPPLY CENT!N6883606C0018 !A!N! !N! ! !20060112!20060930!098929524!098929524!098929524!N!LAKEVIEW CENTER INC !1221 W LAKEVIEW AVE !PENSACOLA !FL!32501!55975!033!12!PENSACOLA NAS !ESCA… Key points: 1. Contract awarded for food services at Pensacola NAS. 2. Lakeview Center Inc. is the sole awardee. 3. Contract duration spans over 4 years. 4. Firm Fixed Price contract type. 5. Awarded by the Department of the Navy. 6. Primary NAICS code is 722310 (Food Service Contractors).

Value Assessment

Rating: fair

The total award amount of $56.4 million over approximately 4 years suggests a significant investment in food services. Benchmarking this against similar contracts for large naval installations would be necessary to determine if the per-year cost is competitive. Without specific details on the scope of services (e.g., number of meals, types of facilities served), a precise value-for-money assessment is challenging. However, the substantial dollar amount warrants scrutiny for efficiency and cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This raises questions about whether alternative vendors were considered or if there were specific justifications for not pursuing a competitive procurement. Sole-source awards can sometimes lead to higher prices and reduced innovation compared to fully competed contracts, as the government lacks the leverage of multiple bidders.

Taxpayer Impact: Taxpayers may not be receiving the best possible price or service quality due to the lack of competition. A sole-source award bypasses the opportunity for multiple companies to bid, potentially driving down costs through competitive pressure.

Public Impact

Service members and personnel at Pensacola Naval Air Station benefit from food services. Ensures consistent and reliable food provision for base operations. Supports the local economy in Escambia County, Florida, through service provision. Potential workforce implications for food service staff employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially value.
Lack of transparency in the justification for sole-sourcing.
Contract duration is substantial, requiring ongoing performance monitoring.
Firm Fixed Price can shift risk to the contractor, but may be priced higher initially.

Positive Signals

Contract awarded to a specific entity, indicating a known provider.
Firm Fixed Price contract type provides cost certainty for the government.
Awarded by a major federal agency (Department of the Navy).

Sector Analysis

The food services sector within government contracting is substantial, encompassing a wide range of requirements from institutional cafeterias to specialized catering. This contract falls under the broader category of support services, which are critical for the day-to-day operations of military bases and other federal facilities. Benchmarking this award against other large-scale food service contracts for military installations would provide context on pricing and scope. The NAICS code 722310 specifically targets food service contractors, indicating a focus on companies with expertise in this area.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the substantial value and the sole-source nature of the award, it is unlikely that subcontracting opportunities for small businesses were a primary consideration or requirement within the solicitation. Further analysis would be needed to determine if any subcontracting plans were mandated or voluntarily pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. The Inspector General for the Department of Defense may also have jurisdiction for audits and investigations. Transparency regarding the justification for the sole-source award and ongoing performance monitoring are key aspects of oversight. The firm fixed-price nature of the contract provides some cost control, but performance quality oversight remains crucial.

Related Government Programs

Naval Air Station Food Services
Department of Defense Food Procurement
Base Operations Support Contracts
Federal Food Service Contracts

Risk Flags

Sole-source award lacks competitive justification.
Potential for non-competitive pricing.
Limited transparency on award rationale.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.4 million to LAKEVIEW CENTER INC. 200607!160396!1700!N68836!FLEET AND INDUSTRIAL SUPPLY CENT!N6883606C0018 !A!N! !N! ! !20060112!20060930!098929524!098929524!098929524!N!LAKEVIEW CENTER INC !1221 W LAKEVIEW AVE !PENSACOLA !FL!32501!55975!033!12!PENSACOLA NAS !ESCAMBIA !FLORIDA !+000007650819!N!N!000049650819!S203!FOOD SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !722310!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is LAKEVIEW CENTER 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 $56.4 million.

What is the period of performance?

Start: 2006-01-12. End: 2011-05-15.

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

The provided data does not specify the justification for the sole-source award. Typically, sole-source procurements are justified under circumstances such as urgent and compelling needs, unique capabilities of a single contractor, or when only one responsible source exists. Without the official justification document (e.g., a Justification and Approval - J&A), it is impossible to ascertain the precise reasons. This lack of transparency is a common concern with sole-source awards, as it bypasses the competitive process that usually ensures better pricing and wider vendor participation for the taxpayer.

How does the total contract value compare to similar food service contracts at other naval installations?

The total contract value of $56.4 million over approximately 4 years equates to an average annual value of roughly $14.1 million. To assess value for money, this figure needs to be compared with food service contracts at comparable naval installations, considering factors like the size of the installation, the number of personnel served, and the scope of services (e.g., dining facilities, catering, subsistence). Without access to a database of comparable contracts, it's difficult to definitively state if this represents a competitive price. However, for a large naval base, this amount could be within a reasonable range, though a detailed benchmark analysis is required.

What are the potential risks associated with a sole-source award of this magnitude?

The primary risk associated with a sole-source award of this magnitude is the potential for inflated pricing due to the absence of competitive pressure. The government may not be achieving the best possible value for its money. Additionally, there's a risk of complacency from the contractor, as they face no direct competition for future work or performance incentives. Other risks include a lack of innovation, as the contractor may not feel compelled to introduce efficiencies or new services. Ensuring robust performance monitoring and clear contract deliverables becomes even more critical in sole-source situations to mitigate these risks.

What is the historical spending pattern for food services at Pensacola NAS prior to this contract?

The provided data focuses solely on this specific contract award (N6883606C0018). It does not include historical spending data for food services at Pensacola NAS. To analyze historical spending patterns, one would need to access procurement databases covering previous contract periods for this requirement at this installation. Understanding past spending could reveal trends in contract values, competition levels, and contractor performance, providing valuable context for evaluating the current award's value and necessity.

What specific services are included under the 'Food Services' category for this contract?

The data indicates the primary NAICS code is 722310, which covers 'Food Service Contractors'. This generally includes the provision, preparation, and serving of meals and beverages. For a naval installation, this likely encompasses operating dining facilities, providing subsistence for personnel, potentially catering for events, and managing food-related logistics. However, the precise scope, including the number of meals, types of venues, operating hours, and specific dietary requirements, is not detailed in the provided summary data. A review of the contract's Statement of Work (SOW) would be necessary for a complete understanding.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline