Treasury's $22.2M food services contract with Lakeview Center Inc. awarded in 2004, spanning 8 years
Contract Overview
Contract Amount: $22,258,259 ($22.3M)
Contractor: Lakeview Center Inc
Awarding Agency: Department of the Treasury
Start Date: 2004-12-01
End Date: 2012-04-23
Contract Duration: 2,700 days
Daily Burn Rate: $8.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FOOD SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20011
Plain-Language Summary
Department of the Treasury obligated $22.3 million to LAKEVIEW CENTER INC for work described as: FOOD SERVICES Key points: 1. Contract value of $22.2M over 8 years suggests a moderate annual spend for food services. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract duration of 8 years is relatively long, potentially locking in pricing but also risking market shifts. 4. Fixed-price contract type offers cost certainty for the government but shifts risk to the contractor. 5. The contract was awarded by the Bureau of the Fiscal Service, a key component of the Treasury. 6. The North American Industry Classification System (NAICS) code 722310 points to specialized food service contractors. 7. The contract was awarded in 2004 and expired in 2012, indicating historical spending.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without more specific details on the scope of services and the number of individuals served. However, an average annual spend of approximately $2.78 million for food services across a federal agency like the Treasury is within a reasonable range, assuming it covers a significant population or specialized requirements. The firm fixed-price structure provides budget predictability. Further analysis would require comparing per-meal costs or cost per person served against industry standards and similar government contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that the initial solicitation was open to all responsible sources, but specific exclusions were made during the process. This suggests a competitive environment, though the exact number of bidders is not specified. The 'after exclusion of sources' phrasing warrants further investigation to understand the nature of these exclusions and their potential impact on the final competition.
Taxpayer Impact: A competitive award process generally benefits taxpayers by encouraging lower bids and better service offerings. However, any exclusions, if not fully justified, could potentially limit competition and lead to less favorable pricing.
Public Impact
Federal employees and visitors at Treasury facilities likely benefited from the food services provided. The contract supported the operational needs of the Department of the Treasury, ensuring essential services were met. The geographic impact is primarily within the District of Columbia, where the contract was administered. The contract supported jobs within the food service industry, specifically for the contractor, Lakeview Center Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'after exclusion of sources' clause in the competition type requires clarification to ensure no undue restrictions were placed on potential bidders.
- The long contract duration (8 years) could lead to a lack of incentive for the contractor to innovate or offer cost savings over time.
- Lack of specific performance metrics or quality assurance details in the provided data makes it difficult to assess service quality.
Positive Signals
- Awarded under full and open competition, indicating a robust bidding process.
- Firm fixed-price contract provides cost certainty for the government.
- The contract was awarded to a single entity, Lakeview Center Inc., suggesting a clear line of responsibility.
Sector Analysis
The food services sector for government contracts is a significant market, encompassing a wide range of requirements from cafeteria operations to specialized catering. This contract falls under the broader category of support services for federal agencies. Comparable spending benchmarks would typically involve analyzing per-meal costs or per-person costs for similar services across different government departments and locations. The NAICS code 722310 specifically identifies establishments primarily engaged in preparing and serving food for specific events or locations, distinguishing it from general restaurant operations.
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 focus would be on the prime contractor's own operations and potential use of small businesses as subcontractors, which is not detailed here.
Oversight & Accountability
Oversight for this contract would have been managed by the contracting officers and program managers within the Bureau of the Fiscal Service of the Department of the Treasury. Accountability measures are typically embedded in the contract terms, including performance standards and payment schedules. Transparency would be facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Federal Food Service Contracts
- Department of the Treasury Procurement
- Bureau of the Fiscal Service Contracts
- General Services Administration (GSA) Schedules (if applicable)
- Food and Nutrition Services (related but different scope)
Risk Flags
- Competition Type Ambiguity
- Lack of Performance Data
- Limited Scope Detail
Tags
food-services, department-of-the-treasury, bureau-of-the-fiscal-service, firm-fixed-price, full-and-open-competition, district-of-columbia, historical-contract, service-contract, naics-722310
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $22.3 million to LAKEVIEW CENTER INC. FOOD SERVICES
Who is the contractor on this award?
The obligated recipient is LAKEVIEW CENTER INC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).
What is the total obligated amount?
The obligated amount is $22.3 million.
What is the period of performance?
Start: 2004-12-01. End: 2012-04-23.
What was the specific scope of food services provided under this contract?
The provided data identifies the contract under NAICS code 722310, 'Food Service Contractors,' and the description as 'FOOD SERVICES.' This generally implies the provision of meals, catering, and potentially cafeteria management. However, the exact scope is not detailed. It could range from serving meals in government cafeterias to providing catering for official events or specific operational needs within the Department of the Treasury. Without the full contract statement of work, the precise services rendered remain unspecified, making a detailed assessment of value and performance difficult.
How did the final awarded price compare to the initial solicitation or estimated value?
The provided data lists the 'Base Realizable Value' (br) as 8244, which appears to be an incomplete or erroneous figure and does not represent the total contract value of $22,258,259.48. Therefore, a comparison between the awarded price and the initial solicitation value cannot be made with the available information. Typically, federal contract databases would show the ceiling value, awarded value, and any modifications. Understanding the difference between the initial estimate and the final award is crucial for assessing negotiation effectiveness and potential cost savings or overruns.
What was the track record of Lakeview Center Inc. prior to and during this contract?
Information on Lakeview Center Inc.'s specific track record prior to or during this contract is not included in the provided data snippet. A comprehensive assessment would require searching federal procurement databases (like FPDS or SAM.gov) for other contracts awarded to Lakeview Center Inc., their performance ratings (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. This would help gauge their reliability and experience in fulfilling government contracts of this nature and scale.
Were there any contract modifications or change orders issued during the contract's lifespan?
The provided data does not include details on contract modifications or change orders. Federal contracts, especially those spanning several years, often undergo modifications to adjust scope, funding, or timelines. Analyzing these modifications is important to understand how the contract evolved, if the changes impacted the overall cost, and whether they were justified. A significant number of modifications or substantial increases in value could indicate initial under-scoping or evolving requirements.
What were the performance metrics and quality standards defined in the contract?
The provided data does not specify the performance metrics or quality standards established for this food services contract. Effective government contracting relies on clearly defined metrics (e.g., meal quality, service timeliness, food safety compliance) and associated quality assurance surveillance plans. Without these details, it is impossible to objectively evaluate whether Lakeview Center Inc. met the government's expectations or delivered value for money beyond the basic fulfillment of the service requirement.
How does the annual spending on this contract compare to other federal food service contracts?
The annual spending for this contract averaged approximately $2.78 million ($22.2M / 8 years). Comparing this to other federal food service contracts requires access to broader spending data. However, this figure is moderate for a large federal agency like the Treasury, suggesting it might cover a specific facility, a defined population, or a particular type of service rather than agency-wide catering. Larger contracts could easily exceed tens of millions annually for major installations or multiple agency-wide agreements.
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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1221 W LAKEVIEW AVE, PENSACOLA, FL, 01
Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,949,169
Exercised Options: $22,258,259
Current Obligation: $22,258,259
Timeline
Start Date: 2004-12-01
Current End Date: 2012-04-23
Potential End Date: 2012-05-23 00:00:00
Last Modified: 2013-11-29
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