Defense Commissary Agency awards $7.6M contract for shelf stocking and custodial services at Oceana NAS

Contract Overview

Contract Amount: $7,589,596 ($7.6M)

Contractor: Pride Industries

Awarding Agency: Department of Defense

Start Date: 2021-08-01

End Date: 2026-07-31

Contract Duration: 1,825 days

Daily Burn Rate: $4.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OCEANA NAS COMMISSARY: SHELF STOCKING OPERATIONS, RECEIVING/STORAGE/HOLDING AREA AND CUSTODIAL OPERATIONS

Place of Performance

Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23454

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $7.6 million to PRIDE INDUSTRIES for work described as: OCEANA NAS COMMISSARY: SHELF STOCKING OPERATIONS, RECEIVING/STORAGE/HOLDING AREA AND CUSTODIAL OPERATIONS Key points: 1. Contract value appears reasonable for the scope of services, which include stocking, receiving, storage, and custodial operations. 2. The contract was awarded on a 'not available for competition' basis, raising questions about potential cost savings from a competitive process. 3. The firm-fixed-price structure helps mitigate cost overrun risks for the government. 4. The contract duration of five years (1825 days) provides stability for service delivery. 5. This contract supports essential base operations, ensuring readiness and quality of life for service members and their families.

Value Assessment

Rating: fair

The contract value of approximately $7.6 million over five years averages to about $1.5 million annually. Benchmarking this against similar support service contracts for military installations is challenging without more specific details on the scale of operations and service intensity. However, the firm-fixed-price nature suggests that the pricing was determined upfront, potentially limiting negotiation flexibility compared to other contract types. Without a competitive bidding process, it's difficult to definitively assess if this represents the best possible value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'not available for competition' justification. This typically means that only one responsible source was determined to be capable of meeting the government's needs. The lack of a competitive bidding process limits the opportunity for price discovery and may result in higher costs for the government compared to a fully competed contract. The specific reasons for this sole-source award are not detailed in the provided data.

Taxpayer Impact: The absence of competition means taxpayers may not be benefiting from the most cost-effective pricing that could have been achieved through a bidding process. This could lead to a higher overall expenditure for these essential support services.

Public Impact

Service members and their families at Oceana Naval Air Station benefit from well-stocked commissaries and maintained facilities. The contract ensures the efficient operation of commissary services, contributing to morale and welfare. The services provided include shelf stocking, receiving, storage, and custodial operations, directly impacting the daily experience at the base. The contract supports the Defense Commissary Agency's mission to provide quality goods and services to military personnel and their families at discounted prices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source justification requires further scrutiny to ensure necessity.
Performance metrics and quality control details are not provided, making assessment of service quality difficult.

Positive Signals

Firm-fixed-price contract type helps control costs.
Long-term contract (5 years) provides service continuity.
Supports essential quality-of-life services for military personnel.

Sector Analysis

This contract falls within the broader 'Support Services' sector, specifically focusing on facility maintenance and logistics support for a government entity. The market for such services is competitive, with numerous companies offering janitorial, stocking, and logistics solutions. However, government contracts, especially those with specific security or location requirements like a military base, can sometimes limit the pool of eligible contractors. The value of this contract is modest within the context of large-scale government support service procurements.

Small Business Impact

The provided data indicates that small business participation (ss and sb flags) is not a feature of this contract. There is no indication of small business set-asides or subcontracting requirements. This means that opportunities for small businesses to participate in this specific contract are likely limited, and the primary contractor, PRIDE INDUSTRIES, will be responsible for fulfilling the service requirements.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Commissary Agency (DECA) contracting officer and their representatives. As a Department of Defense contract, it is also subject to oversight from the Department of Defense Office of Inspector General. Transparency is generally maintained through contract award databases, but detailed performance monitoring and quality assurance reports are often internal.

Related Government Programs

Defense Commissary Agency Operations
Base Support Services
Logistics and Warehousing Services
Facility Maintenance Contracts

Risk Flags

Sole-source award justification requires verification.
Lack of detailed performance metrics hinders evaluation.
Potential for suboptimal value due to non-competitive award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.6 million to PRIDE INDUSTRIES. OCEANA NAS COMMISSARY: SHELF STOCKING OPERATIONS, RECEIVING/STORAGE/HOLDING AREA AND CUSTODIAL OPERATIONS

Who is the contractor on this award?

The obligated recipient is PRIDE INDUSTRIES.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Commissary Agency).

What is the total obligated amount?

The obligated amount is $7.6 million.

What is the period of performance?

Start: 2021-08-01. End: 2026-07-31.

What specific factors led to the 'not available for competition' determination for this contract?

The 'not available for competition' status typically arises when only one responsible source is capable of providing the required services. This could be due to unique capabilities, proprietary technology, urgent and compelling needs where only one contractor can respond in time, or specific government property requirements. Without further details from the contracting agency (Defense Commissary Agency), the precise justification remains unclear. However, such determinations are subject to strict regulatory guidelines to ensure fair and open competition is pursued whenever possible. The lack of transparency around this specific justification warrants further inquiry to ensure taxpayer funds are being used efficiently.

How does the annual cost of this contract compare to similar commissary support services at other naval bases?

Direct comparison of the annual cost of approximately $1.5 million for shelf stocking, receiving, storage, and custodial operations at Oceana NAS is difficult without detailed service level agreements and scope of work for comparable contracts. Factors such as the size of the commissary, operating hours, volume of goods, and specific custodial requirements can significantly influence costs. Generally, firm-fixed-price contracts aim for predictable spending, but the absence of competition here prevents a direct value-for-money assessment against market rates. A comprehensive analysis would require benchmarking against contracts with similar service scopes and geographic locations, adjusted for local economic factors and specific operational demands.

What are the key performance indicators (KPIs) used to evaluate PRIDE INDUSTRIES' performance under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or quality assurance surveillance plans (QASP) for this contract. Typically, for shelf stocking and custodial services, KPIs might include metrics such as on-time stocking completion rates, accuracy of inventory receiving, cleanliness standards for storage areas and public spaces, response times for custodial issues, and overall customer satisfaction. The Defense Commissary Agency would have established specific measurable standards within the contract's performance work statement (PWS) to ensure PRIDE INDUSTRIES meets the required service levels. Without access to these details, a thorough assessment of performance effectiveness is not possible.

What is PRIDE INDUSTRIES' track record with similar government contracts, particularly within the Department of Defense?

PRIDE INDUSTRIES has a history of providing facilities management and support services, including janitorial, maintenance, and logistics, to various government entities. While specific details on their performance for the Defense Commissary Agency or similar DoD contracts are not provided in this data snippet, the company generally operates in this sector. A deeper dive into their contract history, including past performance evaluations, any awards or penalties, and the types of services rendered, would be necessary to fully assess their suitability and reliability for this Oceana NAS contract. Reviewing federal procurement databases and past performance information systems would offer more insight.

Are there any specific risks associated with the 'not available for competition' award, beyond potential cost implications?

Beyond the potential for higher costs due to lack of competition, awarding contracts on a sole-source basis can introduce other risks. These may include a reduced incentive for the contractor to innovate or improve services over time, as they face less market pressure. There's also a risk of vendor lock-in, making it difficult to switch providers in the future. Furthermore, if the justification for the sole-source award was not robust, it could indicate potential weaknesses in the agency's procurement planning or execution. Ensuring adequate oversight and performance management becomes even more critical in sole-source situations to mitigate these inherent risks.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10030 FOOTHILLS BLVD, ROSEVILLE, CA, 95747

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,554,281

Exercised Options: $12,719,112

Current Obligation: $7,589,596

Actual Outlays: $3,916,259

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline