Air Force awards $34M+ galley food services contract to Palmetto Goodwill Services

Contract Overview

Contract Amount: $34,087,990 ($34.1M)

Contractor: Palmetto Goodwill Services

Awarding Agency: Department of Defense

Start Date: 2018-05-01

End Date: 2023-08-31

Contract Duration: 1,948 days

Daily Burn Rate: $17.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: GALLEY FOOD SERVICES BASE YEAR CONTRACT AWARD

Place of Performance

Location: CHARLESTON AFB, CHARLESTON County, SOUTH CAROLINA, 29404

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $34.1 million to PALMETTO GOODWILL SERVICES for work described as: GALLEY FOOD SERVICES BASE YEAR CONTRACT AWARD Key points: 1. Contract awarded to a non-profit organization, potentially indicating a social mission focus. 2. The contract is a firm-fixed-price type, offering cost certainty for the government. 3. Awarded as 'Not Available for Competition', raising questions about the procurement process. 4. The duration of the contract is substantial, spanning over 1900 days. 5. The contract value represents a significant investment in base support services. 6. The service area is South Carolina, indicating a specific geographic focus.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed service requirements and performance metrics. The firm-fixed-price structure provides cost predictability. However, the lack of competitive bidding means there's no direct market comparison to assess if the price represents optimal value for money. Further analysis would require understanding the scope of services provided and comparing them to similar contracts for galley food services at other Air Force bases.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'Not Available for Competition' designation, indicating that the procurement was not openly competed. This suggests that either a specific justification was made for a sole-source award, or it fell under a specific exception to full and open competition. The limited competition means that the government did not benefit from a wide range of proposals and potential price reductions that typically arise from a competitive bidding process.

Taxpayer Impact: Taxpayers may not have received the most competitive pricing due to the absence of a robust bidding process. The lack of competition limits the government's ability to negotiate the best possible terms and prices.

Public Impact

Service members at the designated Air Force installation will receive galley food services. The contract supports the daily operational needs of the military base. The primary beneficiaries are the personnel stationed at the facility. The contract has implications for the workforce employed by Palmetto Goodwill Services in South Carolina.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Limited transparency in the procurement process due to sole-source award.
Potential for reduced innovation or service quality without competitive pressure.

Positive Signals

Award to a non-profit organization (Palmetto Goodwill Services) may align with social or community support objectives.
Firm-fixed-price contract provides budget certainty for the government.
Long contract duration suggests a stable, ongoing need for the services.

Sector Analysis

The defense sector relies heavily on support services contracts to maintain base operations and ensure the well-being of military personnel. Galley food services are a critical component of this infrastructure. While specific market size data for galley food services is not readily available, the broader defense support services market is substantial. This contract fits within the category of base operations and logistics support, which is a significant area of federal spending.

Small Business Impact

The data indicates that small business participation was not a primary consideration for this contract, as the 'sb' field is false and the contract was not set aside for small businesses. There is no explicit information on subcontracting plans for small businesses. This suggests that the primary contractor, Palmetto Goodwill Services, is likely responsible for fulfilling the majority of the service requirements, with limited direct impact on the small business ecosystem through subcontracting opportunities on this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the relevant Department of the Air Force contracting and financial management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services for an agreed-upon price. Transparency may be limited due to the sole-source nature of the award, but contract award data is publicly available through federal procurement databases.

Related Government Programs

Base Operations Support Services
Food Services Contracts
Department of Defense Support Contracts
Non-Profit Contractor Awards

Risk Flags

Sole-source award limits competitive pricing.
Lack of detailed performance metrics makes value assessment difficult.
Potential for reduced innovation due to limited competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.1 million to PALMETTO GOODWILL SERVICES. GALLEY FOOD SERVICES BASE YEAR CONTRACT AWARD

Who is the contractor on this award?

The obligated recipient is PALMETTO GOODWILL SERVICES.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $34.1 million.

What is the period of performance?

Start: 2018-05-01. End: 2023-08-31.

What is the track record of Palmetto Goodwill Services in performing similar government contracts?

Information regarding Palmetto Goodwill Services' specific track record with government contracts, particularly for galley food services, is not detailed in the provided data. As a non-profit organization, their primary mission may differ from traditional for-profit food service providers. To assess their track record, one would need to examine past performance reviews, contract history with the Department of Defense or other federal agencies, and any reported issues or successes in fulfilling similar service requirements. A deeper dive into federal procurement databases like SAM.gov or FPDS would be necessary to compile a comprehensive performance history and evaluate their capability to meet the demands of this significant contract.

How does the per-day cost of this contract compare to similar galley food service contracts at other Air Force bases?

To compare the per-day cost, we first calculate the average daily cost of this contract. The total award amount is $34,087,990.20, and the duration is 1948 days. This results in an average daily cost of approximately $17,499.07. Benchmarking this against similar contracts requires access to data on other Air Force galley food service contracts, including their total value, duration, and scope of services. Without this comparative data, it is difficult to definitively state whether this contract's daily cost is high, low, or average. Factors such as the number of personnel served, geographic location, and specific service requirements (e.g., menu complexity, operating hours) significantly influence cost, making direct comparisons complex.

What are the specific risks associated with awarding a large support services contract on a sole-source basis?

Awarding a large support services contract on a sole-source basis carries several risks. Primarily, it eliminates the potential for cost savings that typically arise from a competitive bidding process, potentially leading to higher prices for the government and taxpayers. There is also a risk of reduced service quality or innovation, as the contractor faces less pressure from market competition to improve performance or offer new solutions. Furthermore, a sole-source award can raise concerns about fairness and transparency in the procurement process, potentially leading to perceptions of favoritism or a lack of due diligence in exploring alternative sources. This can also limit opportunities for new or smaller businesses to enter the market and compete for government contracts.

What is the expected effectiveness of Palmetto Goodwill Services in delivering galley food services based on their organizational mission?

The effectiveness of Palmetto Goodwill Services in delivering galley food services is not directly predictable solely from their status as a non-profit organization. While Goodwill organizations are typically mission-driven, focusing on employment and training for individuals facing barriers, their operational capacity for large-scale food service contracts depends on their infrastructure, management expertise, and dedicated resources. Their effectiveness will hinge on their ability to recruit, train, and manage a sufficient workforce, maintain food safety standards, and meet the specific dietary and service requirements of the Air Force personnel. A thorough assessment would require evaluating their past performance in similar service provision, their financial stability, and their specific operational plans for this contract, rather than relying solely on their non-profit designation.

How has federal spending on galley food services evolved over the past five years, and where does this contract fit in?

Analyzing the evolution of federal spending on galley food services over the past five years requires access to comprehensive historical spending data across all relevant agencies. This specific contract, awarded in May 2018 with an end date in August 2023, falls within this timeframe. Without broader data, it's difficult to place this $34M+ award in the context of overall trends. However, such contracts are a consistent component of defense spending, reflecting the ongoing need to provide essential services to military personnel. Increases or decreases in overall spending in this category could be influenced by factors such as troop levels, base consolidations, shifts in outsourcing strategies, and budget appropriations. This single award represents a significant, but localized, expenditure within the larger ecosystem of military support services.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA441816R0006

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2150 EAGLE DRIVE, BLDG 100, NORTH CHARLESTON, SC, 29406

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: $34,087,990

Exercised Options: $34,087,990

Current Obligation: $34,087,990

Actual Outlays: $5,881,860

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline