DoD's $77.6M food service contract for three bases awarded to Global Connections to Employment, Inc

Contract Overview

Contract Amount: $77,621,465 ($77.6M)

Contractor: Global Connections to Employment, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-03-01

End Date: 2026-02-28

Contract Duration: 1,825 days

Daily Burn Rate: $42.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FOOD SERVICE, TRI-REGION GALLEY (PENSACOLA, EGLIN, GULFPORT)

Place of Performance

Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32506

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $77.6 million to GLOBAL CONNECTIONS TO EMPLOYMENT, INC. for work described as: FOOD SERVICE, TRI-REGION GALLEY (PENSACOLA, EGLIN, GULFPORT) Key points: 1. Contract value represents significant investment in base support services. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long-term duration (5 years) suggests a need for stable, ongoing service provision. 4. Fixed-price contract type aims to control costs, but flexibility may be limited. 5. Performance context is critical given the essential nature of food services for military personnel. 6. Sector positioning is within essential base operations and support services.

Value Assessment

Rating: fair

The contract's value of $77.6 million over five years for food services at three naval air stations is substantial. Benchmarking this against similar multi-base food service contracts is challenging without more specific service level data. The firm fixed-price structure suggests an attempt to control costs, but the lack of competition in the award process makes a direct value-for-money assessment difficult. The provided benchmark of $4.25 million (br) is unclear in its scope and comparison basis.

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 is available or in situations of urgency or specific capability requirements. The lack of competition limits the opportunity for price discovery through bidding and may result in higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding, as there was no pressure from multiple vendors to offer the lowest possible price.

Public Impact

Service members and civilian personnel at NAS Pensacola, NAS Eglin, and NAS Gulfport benefit from consistent food services. The contract ensures the provision of essential dining and food preparation services. Geographic impact is concentrated in Florida and Mississippi, supporting personnel at these key installations. Workforce implications include employment opportunities for individuals involved in food service operations, potentially including those with employment barriers if the contractor has such a mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially leading to higher costs.
Lack of transparency in the sole-source justification requires further scrutiny.
Long-term contract duration may not adapt well to changing food service needs or technologies.
Performance metrics and quality assurance details are not readily available for assessment.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Contract ensures essential services are provided to military personnel.
Awarding to a single entity can streamline management and oversight if performance is strong.

Sector Analysis

The food service industry for government contracts is a significant segment within the broader facilities support services sector. This contract falls under the North American Industry Classification System (NAICS) code 722310 (Food Service Contractors). The market involves numerous providers, ranging from large corporations to smaller specialized firms. Government contracts in this space often require adherence to strict health, safety, and quality standards, and can be awarded through various competition levels. The total federal spending on food services is substantial, supporting military bases, federal agencies, and other government facilities.

Small Business Impact

The contract data indicates that small business participation (sb) is false, and it was not set aside for small businesses (ss). This suggests that the primary award was not directed towards small business concerns. There is no explicit information on subcontracting plans for small businesses within the provided data. The absence of a small business set-aside means that larger businesses were eligible and likely competed for or were awarded this contract, potentially limiting direct opportunities for small businesses in this specific award.

Oversight & Accountability

Oversight for this contract would typically 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. The firm fixed-price nature implies that the contractor bears the risk of cost overruns, simplifying some aspects of financial oversight. However, detailed performance monitoring, quality assurance, and compliance checks are crucial for ensuring value and service delivery. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Base Operations Support Services
Food and Ration Services
Hospitality and Food Services Contracts
Department of Defense Procurement

Risk Flags

Sole Source Award
Lack of Competition
Long Contract Duration
Unclear Benchmark Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $77.6 million to GLOBAL CONNECTIONS TO EMPLOYMENT, INC.. FOOD SERVICE, TRI-REGION GALLEY (PENSACOLA, EGLIN, GULFPORT)

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 $77.6 million.

What is the period of performance?

Start: 2021-03-01. End: 2026-02-28.

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

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this determination is not detailed in the data. Typically, sole-source awards are made when only one responsible source is capable of providing the required service, there is a compelling urgency, or for reasons of industrial mobilization or national security. Without further documentation from the Department of the Navy, the precise rationale remains unclear. This lack of competition means that the government did not explore potential cost savings that could arise from a competitive bidding process, potentially impacting the overall value for taxpayers.

How does the contract's firm fixed-price (FFP) structure impact cost control and flexibility for food services?

A Firm Fixed-Price (FFP) contract structure, as indicated for this food service agreement, obligates the contractor to perform the work for a predetermined price, regardless of the actual costs incurred. This structure is beneficial for the government as it provides cost certainty and shifts the risk of cost overruns to the contractor. For food services, this means the government knows the total cost upfront. However, FFP contracts can offer less flexibility if requirements change significantly during the contract period. Modifications to the scope of work would likely require formal change orders, potentially involving price adjustments, and may not be as adaptable to unforeseen operational needs or evolving dietary preferences compared to other contract types like cost-plus.

What are the potential risks associated with a 5-year duration for a food service contract?

A five-year duration (including option periods, totaling 1825 days) for a food service contract presents several potential risks. Firstly, the cost of food and labor can fluctuate significantly over such a long period, and if the contract is FFP, the contractor may build in contingencies that inflate the price, or conversely, face financial strain if costs rise unexpectedly. Secondly, the needs and preferences of the military personnel being served may evolve, and a long-term contract might not easily accommodate changes in dietary trends, health requirements, or service expectations. Thirdly, technological advancements in food service operations or management could emerge, making the contracted services outdated. Finally, the contractor's performance could degrade over time, and the long duration limits the government's ability to switch providers if issues arise, unless significant contract breaches occur.

Can the benchmark value of $4.25 million (br) be used to assess the value for money of this $77.6 million contract?

The provided benchmark value of $4.25 million (br) is insufficient on its own to accurately assess the value for money of the $77.6 million food service contract. The context and scope of this benchmark are unclear; it is unknown if it represents an annual cost, a cost for a specific base, a cost for a different type of service, or a historical average. Without knowing what this $4.25 million figure represents (e.g., per year, per base, specific service level), it cannot be reliably compared to the total contract value or its annual average ($77.6M / 5 years = ~$15.5M/year). A meaningful value-for-money assessment would require comparing the contract's price and service levels against similar contracts at comparable installations or against industry standards for the specific services provided.

What are the implications of awarding this contract to Global Connections to Employment, Inc. given its name suggests a focus on employment?

The contractor's name, 'Global Connections to Employment, Inc.,' suggests a potential mission or focus related to providing employment opportunities, possibly for individuals facing barriers to employment. If this is the case, the contract award could have positive social implications, contributing to workforce development and inclusion. However, from a purely fiscal and operational standpoint, the primary concern remains the effective and efficient delivery of food services at the specified military installations. The government must ensure that the contractor's primary mission does not detract from its ability to meet the demanding requirements of military food service contracts, including quality, safety, and timeliness. The sole-source nature of the award makes it harder to assess if this specific contractor was chosen due to unique capabilities related to its employment mission or for other reasons.

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: N6883621R0004

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: $84,534,490

Exercised Options: $84,534,490

Current Obligation: $77,621,465

Actual Outlays: $31,526,147

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline