Department of the Navy awards $31M firm-fixed-price contract for dining facilities at NATTC, with limited competition

Contract Overview

Contract Amount: $30,973,719 ($31.0M)

Contractor: Lakeview Center Inc

Awarding Agency: Department of Defense

Start Date: 2013-05-01

End Date: 2016-03-31

Contract Duration: 1,065 days

Daily Burn Rate: $29.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF DINING FACILITIES AT NATTC GALLEY

Place of Performance

Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32508

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $31.0 million to LAKEVIEW CENTER INC for work described as: IGF::OT::IGF DINING FACILITIES AT NATTC GALLEY Key points: 1. Contract value of $30.97M over 3 years suggests a significant investment in base support services. 2. Limited competition raises questions about potential price overruns and the best value achieved for taxpayers. 3. The firm-fixed-price structure aims to control costs, but the lack of robust competition may undermine this. 4. Performance context is crucial to understand if the services met the needs of NATTC personnel. 5. This contract falls within the broader category of base operations support, essential for military readiness. 6. The duration of the contract (1065 days) indicates a long-term need for these food services.

Value Assessment

Rating: fair

The contract value of approximately $31 million over three years for dining facilities at NATTC represents a substantial expenditure. Benchmarking this against similar contracts for food services at other naval training commands would be necessary for a precise value-for-money assessment. However, the limited competition noted in the award details suggests that the government may not have achieved the most competitive pricing possible, potentially impacting the overall value. Without detailed performance metrics or comparison data, it's difficult to definitively assess if the price paid was optimal for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' basis, indicating a limited competitive process. While the specific reasons for this limitation are not detailed, it typically suggests that only one responsible source was available or that a compelling justification for other-than-full-and-open competition was met. The limited number of bidders, potentially only one, means that the government did not benefit from a wide range of proposals and price negotiations, which could lead to higher costs than if the contract had been fully competed.

Taxpayer Impact: The limited competition for this significant contract means taxpayers may have paid a premium. Without multiple bids, the government had less leverage to negotiate the lowest possible price, potentially resulting in funds being spent that could have been saved through a more competitive bidding process.

Public Impact

Naval Air Technical Training Center (NATTC) personnel benefit from the provision of dining services. The contract ensures the availability of food services, contributing to the morale and operational readiness of military staff and trainees. The geographic impact is localized to the NATTC facility in Florida. Workforce implications include employment for individuals involved in food preparation, service, and management, likely through the contractor's staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than a fully competed contract.
Lack of transparency in the 'not available for competition' justification could hide potential inefficiencies.
Contract duration without clear performance benchmarks makes long-term value assessment challenging.

Positive Signals

Firm-fixed-price contract type helps to control costs and provides predictability.
The contract addresses a critical support service for military training operations.
Award to a specific contractor suggests a potentially established relationship or specialized capability.

Sector Analysis

This contract falls within the Food Service Contractors industry, a segment of the broader base support services sector for government and military operations. The North American Industry Classification System (NAICS) code 722310, 'Food Service Contractors,' covers establishments primarily engaged in preparing and serving food for others on contract. Spending in this sector is often driven by the needs of government agencies, particularly the Department of Defense, to provide essential services to personnel at various installations. Comparable spending benchmarks would involve analyzing other food service contracts at similar military training facilities.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, LAKEVIEW CENTER INC, would be responsible for fulfilling the contract requirements. Analysis of their subcontracting plans, if any, would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. The Inspector General (IG) for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract. Transparency is assessed by the availability of contract award details; however, the justification for limited competition warrants further scrutiny to ensure accountability and prevent potential misuse of funds.

Related Government Programs

Base Operations Support Services
Food Services Contracts
Department of Defense Procurement
Naval Training Command Support

Risk Flags

Limited Competition
Potential for Overpricing
Lack of Performance Benchmarks

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.0 million to LAKEVIEW CENTER INC. IGF::OT::IGF DINING FACILITIES AT NATTC GALLEY

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 $31.0 million.

What is the period of performance?

Start: 2013-05-01. End: 2016-03-31.

What is the track record of LAKEVIEW CENTER INC in performing similar government contracts?

Information regarding LAKEVIEW CENTER INC's specific track record with government contracts, particularly within the Department of Defense or for food services, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, any contract disputes or terminations, and the successful completion of similar-sized or scope contracts. Without this historical data, it is difficult to gauge their reliability and capability to consistently meet the requirements of this NATTC dining facilities contract. Further research into federal procurement databases and past performance information repositories would be necessary to establish a baseline of their performance history.

How does the awarded price compare to market rates for similar food services?

The provided data does not include specific per-unit costs or detailed service breakdowns, making a direct comparison to market rates challenging. The total contract value of $30.97 million over approximately 3.3 years (1065 days) averages to roughly $9.4 million per year. To benchmark this against market rates, one would need to analyze the scope of services (e.g., number of meals served daily, types of cuisine, operating hours) and compare these metrics to commercial food service contracts or other government contracts for similar facilities. The limited competition aspect also suggests that the negotiated price might be higher than what could be achieved in a more competitive environment, potentially inflating the cost relative to market benchmarks.

What are the primary risks associated with a 'not available for competition' contract award?

The primary risks associated with a 'not available for competition' award, as indicated by 'CT: NOT AVAILABLE FOR COMPETITION', include a lack of price competition, which can lead to inflated costs for taxpayers. It also reduces the incentive for the contractor to innovate or provide exceptional service, as there is no direct threat of losing the contract to a competitor. Furthermore, it raises concerns about transparency and fairness in the procurement process. Without a competitive bidding process, it is harder to ensure that the government is receiving the best value and that the chosen contractor is truly the most qualified and cost-effective option available. This can also foster a perception of favoritism or cronyism if the justification for limited competition is not robust and well-documented.

What is the expected effectiveness of these dining facilities in supporting NATTC's mission?

The effectiveness of these dining facilities in supporting NATTC's mission is directly tied to the quality, reliability, and affordability of the food services provided by LAKEVIEW CENTER INC. Well-managed and accessible dining options contribute significantly to the morale, health, and productivity of military personnel and trainees, which are crucial for maintaining operational readiness and focus on training objectives. If the services are consistently delivered to a high standard, meeting dietary needs and providing a positive dining experience, they will effectively support the mission by ensuring personnel are well-fed and able to concentrate on their training. Conversely, poor service, inconsistent quality, or high costs could negatively impact morale and detract from the primary training mission.

How has federal spending on food service contractors evolved over the past five years?

Analyzing the evolution of federal spending on food service contractors over the past five years requires access to comprehensive federal procurement data. Generally, spending in this category tends to be relatively stable, driven by the consistent need for base support services across military installations. However, factors such as changes in military force size, deployment levels, and shifts in contracting strategies (e.g., increased use of performance-based contracts or consolidation of services) can influence overall expenditure. The Department of Defense is typically the largest spender in this category. Without specific aggregate data, it's difficult to provide precise figures, but trends often reflect overall defense budget allocations and priorities for maintaining personnel welfare and operational readiness.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Escambia County School District (UEI: 808973353)

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: $35,945,288

Exercised Options: $35,945,288

Current Obligation: $30,973,719

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $148,437

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline