Department of Transportation's $11.3M food service contract with NANA SERVICES, LLC awarded in 2003, spanning over 5 years

Contract Overview

Contract Amount: $11,374,276 ($11.4M)

Contractor: Nana Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2003-01-15

End Date: 2008-09-30

Contract Duration: 2,085 days

Daily Burn Rate: $5.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Place of Performance

Location: FEDERAL WAY, KING County, WASHINGTON, 98003

State: Washington Government Spending

Plain-Language Summary

Department of Transportation obligated $11.4 million to NANA SERVICES, LLC for work described as: Key points: 1. Contract awarded for food services, indicating a need for essential operational support. 2. Long contract duration suggests a stable, ongoing requirement for these services. 3. The contract's fixed-price with economic price adjustment structure aims to manage cost fluctuations. 4. Awarded by the Maritime Administration, highlighting a specific agency need. 5. The North American Industry Classification System (NAICS) code 722310 points to a standard food service operation. 6. The contract was not competitively procured, raising questions about potential value for money. 7. The absence of small business set-aside flags suggests larger contractors may have been involved or it was not a focus.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable food service contracts from the same period and agency. The fixed-price with economic price adjustment (FPEPA) structure can sometimes lead to higher costs than pure fixed-price contracts if economic adjustments are significant. Without detailed breakdowns of service delivery and cost components, it's difficult to definitively assess if the $11.3 million over its duration represents excellent value for money compared to market rates for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in specific emergency situations. The lack of competition means there was no opportunity to solicit bids from various suppliers, which could potentially lead to higher prices and less innovation.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without a competitive process, there's less pressure on the contractor to offer the lowest possible price.

Public Impact

Personnel within the Maritime Administration likely benefited from consistent and reliable food services. The contract supported food preparation and delivery, ensuring operational readiness for agency staff. The geographic impact is likely localized to the facility or facilities where the services were rendered. Workforce implications include employment for individuals involved in food service operations under NANA SERVICES, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Lack of competition may reduce incentives for contractor efficiency and service quality improvements.
Economic price adjustment clauses can introduce cost uncertainty and potential overruns if not carefully managed.

Positive Signals

Contract provided essential food services, ensuring operational continuity for the agency.
Long-term award suggests a stable and predictable service delivery model.
Fixed-price with economic price adjustment can offer some cost stability while accounting for market fluctuations.

Sector Analysis

The food service industry is a broad sector encompassing a wide range of operations, from institutional catering to restaurant management. Government contracts for food services are common, supporting federal agencies, military bases, and other public institutions. The market size for government food service contracts is substantial, driven by the continuous need for catering and dining facilities. This particular contract falls within the institutional food service segment, providing essential support to the Maritime Administration's operations.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. This suggests that the primary contractor, NANA SERVICES, LLC, may be a larger entity, or that the nature of the food service requirement did not lend itself to small business participation through set-asides. The absence of small business involvement could mean missed opportunities for smaller firms to participate in federal contracting.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Transportation's contracting officers and the Maritime Administration's program managers. Accountability measures would be defined in the contract's terms and conditions, likely including performance standards and reporting requirements. Transparency is generally facilitated through contract databases like FPDS, which provide basic award information. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Food Service Contracts
Department of Transportation Agency Support Contracts
Maritime Administration Operational Support
Institutional Food Service Contracts

Risk Flags

Sole-source award raises concerns about competition and potential cost efficiencies.
Lack of transparency regarding the justification for sole-source procurement.
Economic price adjustment clauses can introduce cost volatility if not managed strictly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $11.4 million to NANA SERVICES, LLC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is NANA SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Maritime Administration).

What is the total obligated amount?

The obligated amount is $11.4 million.

What is the period of performance?

Start: 2003-01-15. End: 2008-09-30.

What was the specific justification for awarding this 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 sole-source determination is not detailed in the provided data. Typically, sole-source awards are justified when only one responsible source can satisfy the agency's needs, such as in cases of unique capabilities, urgent and compelling needs, or when a follow-on contract is required for compatibility with existing systems. Without further documentation from the Department of Transportation, the precise reason for bypassing the competitive bidding process remains unknown.

How did the economic price adjustment clause impact the final cost of the contract?

The data indicates the contract type was 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' (FPEPA). This clause allows for adjustments to the contract price based on fluctuations in specified economic factors, such as labor costs, material costs, or inflation indices. While the total award amount is listed as $11,374,275.92, the exact impact of the economic price adjustment on this final figure is not discernible from the provided summary data. To determine the impact, one would need to review the contract's payment history and the specific economic indices used for adjustments over the contract's duration.

What were the performance standards and metrics used to evaluate NANA SERVICES, LLC's delivery?

The provided data does not include specific performance standards or metrics for this contract. In a typical federal contract, performance is evaluated against requirements outlined in the Performance Work Statement (PWS) or Statement of Work (SOW). These documents would detail the quality, timeliness, and scope of services expected. Contract administration offices and contracting officers are responsible for monitoring contractor performance and ensuring compliance. Without access to the full contract document or performance reports, assessing the quality of service provided by NANA SERVICES, LLC is not possible.

What is the typical duration and value range for similar food service contracts within the Department of Transportation?

The Department of Transportation (DOT) manages a wide array of contracts, and food service contracts can vary significantly in duration and value depending on the specific agency, location, and scope of services. Contracts for large facilities or extensive operations might span several years and cost millions, similar to this $11.3 million, 5-year contract. Smaller, localized needs might result in shorter durations and lower values. Benchmarking requires comparing contracts with similar service scopes (e.g., cafeteria operations, event catering) and client agencies within the DOT or similar federal departments. The provided data offers one data point, but a broader analysis of comparable contracts would be needed for a robust benchmark.

Were there any past performance issues or disputes associated with NANA SERVICES, LLC on this or other federal contracts?

The provided summary data does not contain information regarding past performance issues or disputes related to NANA SERVICES, LLC. Federal contracting processes typically include a review of a contractor's past performance as part of the award decision, especially in competitive procurements. However, for sole-source awards, the emphasis might be on the unique capability rather than extensive past performance comparison. To ascertain any past performance issues, one would need to consult more detailed contract administration records, performance evaluations, or contract dispute databases.

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

Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Contractor Details

Parent Company: Nana Regional Corporation Inc (UEI: 079253761)

Address: 1010 S 336TH ST STE 115, FEDERAL WAY, WA, 09

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $5,755,400

Exercised Options: $17,762,664

Current Obligation: $11,374,276

Timeline