DoD's $46.4M Food Service Contract Awarded to Global Connections to Employment, Inc. Raises Value Questions

Contract Overview

Contract Amount: $46,400,832 ($46.4M)

Contractor: Global Connections to Employment, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-08-31

End Date: 2021-02-28

Contract Duration: 1,277 days

Daily Burn Rate: $36.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF FOOD SERVICE SUPPORT, PENSACOLA

Place of Performance

Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32506

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $46.4 million to GLOBAL CONNECTIONS TO EMPLOYMENT, INC. for work described as: IGF::OT::IGF FOOD SERVICE SUPPORT, PENSACOLA Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The contract duration of 1277 days (over 3.5 years) suggests a significant, long-term service requirement. 3. Firm Fixed Price contract type offers cost certainty but may not incentivize efficiency gains. 4. The absence of a small business set-aside raises questions about opportunities for smaller enterprises. 5. Performance context is limited without specific metrics on service quality or operational efficiency. 6. Sector positioning within Food Service Contractors (NAICS 722310) is clear, but benchmarks are needed.

Value Assessment

Rating: fair

Benchmarking the value of this $46.4 million contract is challenging without detailed performance data or comparable sole-source awards. The firm fixed-price structure provides cost predictability for the government, but the lack of competition means there's no direct market comparison to assess if the pricing is optimal. Without insight into the specific services rendered and their quality, it's difficult to definitively state if the government received excellent value for its investment. Further analysis would require understanding the scope of work and comparing it to industry standards for similar food service operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, indicating that the government did not conduct a competitive solicitation. This typically occurs when only one source is capable of meeting the requirement, or in specific circumstances like follow-on work to a previous sole-source award. The lack of competition means there were no other bidders, and therefore no direct price comparison or negotiation leverage that would typically arise from a competitive process. This can lead to higher prices than might be achieved in an open market.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without multiple offers, the government had limited ability to negotiate the best possible price, potentially resulting in less efficient use of public funds.

Public Impact

Service members and personnel at the Department of the Navy facility in Pensacola, Florida, benefit from consistent food service operations. The contract ensures the delivery of essential food services, contributing to the morale and well-being of military personnel. Geographic impact is localized to Pensacola, Florida, supporting the base's operational readiness. Workforce implications include employment opportunities for individuals involved in food preparation, service, and support roles, potentially including individuals with disabilities if the contractor has such a mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs.
Lack of transparency in the justification for sole-source award.
Firm fixed price may not incentivize cost efficiencies or innovation.
No clear indication of performance metrics or quality assurance in the provided data.

Positive Signals

Contract provides essential services to military personnel, supporting morale and readiness.
Firm fixed price offers budget certainty for the government.
Long-term contract (1277 days) suggests stability in service provision.

Sector Analysis

The food service industry is a significant sector within government contracting, encompassing a wide range of services from cafeteria operations to catering for events. This contract falls under NAICS code 722310 (Food Service Contractors). Government spending in this area is substantial, driven by the need to provide meals and catering for military bases, federal agencies, and other public institutions. Benchmarking this contract's value would involve comparing its per-meal cost or overall service cost against similar contracts at other military installations or federal facilities, considering factors like location, service complexity, and contract type.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (ss=false, sb=false). This means that opportunities for small businesses to compete for or subcontract on this significant $46.4 million award were not explicitly mandated by the contract terms. Without specific subcontracting plans or goals included in the award documentation, the impact on the small business ecosystem is uncertain. It is possible that the prime contractor may engage small businesses, but this is not guaranteed by the contract's structure.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency is limited by the sole-source nature of the award and the lack of publicly available performance reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

Department of Defense Food Service Contracts
Navy Food Service Operations
Food Service Support Contracts
Government Catering Services
Base Support Services

Risk Flags

Sole-source award without clear justification.
Potential for inflated pricing due to lack of competition.
Absence of publicly available performance data.
No small business subcontracting requirements specified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.4 million to GLOBAL CONNECTIONS TO EMPLOYMENT, INC.. IGF::OT::IGF FOOD SERVICE SUPPORT, PENSACOLA

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 $46.4 million.

What is the period of performance?

Start: 2017-08-31. End: 2021-02-28.

What specific food services were provided under this contract, and what was the scope of work?

The provided data indicates the contract is for 'FOOD SERVICE SUPPORT' under NAICS code 722310. While the exact scope of work is not detailed, this typically includes the provision of meals, food preparation, dining facility management, and potentially catering services for personnel at the Department of the Navy facility in Pensacola, Florida. The duration of the contract (1277 days) suggests a comprehensive and ongoing requirement for these services, likely covering daily meals for a significant number of individuals. Further details on the specific deliverables, service levels, and operational requirements would be found in the contract's statement of work (SOW).

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

The contract was designated as 'NOT AVAILABLE FOR COMPETITION,' which is a sole-source justification. Common reasons for sole-source awards include situations where only one responsible source can provide the required supplies or services, or when there's a compelling urgency. Without access to the specific Justification and Approval (J&A) document associated with this award, the precise rationale remains unknown. However, such justifications must meet strict federal acquisition regulations (FAR) criteria, often involving unique capabilities, proprietary technology, or specific circumstances that preclude full and open competition.

How does the firm fixed price (FFP) contract type impact cost control and contractor performance?

A Firm Fixed Price (FFP) contract, like the one awarded here, establishes a price that is not subject to adjustment based on the contractor's cost experience in performing the work. This provides the government with cost certainty and shifts the risk of cost overruns to the contractor. For the contractor, it incentivizes efficient performance to maximize profit. However, in a sole-source scenario, the absence of competition means the initial FFP may not be as competitive as it could be. While it controls costs for the government post-award, it doesn't guarantee the 'best' price was negotiated initially due to the lack of market comparison.

What is the historical spending pattern for food service support at this Navy facility?

The provided data only pertains to this specific contract awarded in August 2017. To understand historical spending patterns, one would need to analyze contract awards for food service support at the Department of the Navy's Pensacola facility over several preceding years. This would involve searching federal procurement databases (like FPDS or USASpending) for similar contracts, noting their values, durations, award types (competitive vs. sole-source), and contractors. Analyzing this history could reveal trends in spending, identify periods of increased or decreased investment, and highlight any shifts in contracting strategies, such as a move towards or away from sole-source awards.

Are there any performance metrics or quality assurance measures associated with this contract?

The provided summary data does not include specific performance metrics or quality assurance (QA) measures for this contract. In a typical federal contract, especially one for essential services like food support, a Performance Work Statement (PWS) would outline the required performance standards, and a Quality Assurance Surveillance Plan (QASP) would detail how the government monitors the contractor's performance against those standards. Without these details, it's difficult to assess the effectiveness of the service provided or the contractor's adherence to quality expectations. These documents are usually part of the contract award file.

What is the significance of the contractor, Global Connections to Employment, Inc., in the context of this award?

Global Connections to Employment, Inc. (GCE) is a non-profit organization that focuses on providing employment opportunities for individuals with disabilities. Their involvement in federal contracting, particularly through sole-source awards, often aligns with government initiatives to support employment for this population. While the specific justification for this sole-source award isn't detailed, GCE's mission suggests a potential alignment with socio-economic contracting goals. Understanding GCE's track record in delivering similar services and managing large contracts would be crucial for a complete assessment of this award's success.

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: N6883617R0013

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: $46,400,832

Exercised Options: $46,400,832

Current Obligation: $46,400,832

Actual Outlays: $3,190,285

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline