DoD Awards $8.9M Contract for Shelf Stocking and Custodial Services to Network Enterprises Inc
Contract Overview
Contract Amount: $8,893,404 ($8.9M)
Contractor: Network Enterprises Inc
Awarding Agency: Department of Defense
Start Date: 2022-01-01
End Date: 2026-12-31
Contract Duration: 1,825 days
Daily Burn Rate: $4.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SHELF STOCKING AND CUSTODIAL OPERATIONS EO14042
Place of Performance
Location: HICKAM AFB, HONOLULU County, HAWAII, 96853
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $8.9 million to NETWORK ENTERPRISES INC for work described as: SHELF STOCKING AND CUSTODIAL OPERATIONS EO14042 Key points: 1. Contract value of $8.9 million over five years. 2. Services include shelf stocking and custodial operations. 3. Awarded by the Department of Defense to Network Enterprises Inc. 4. Operates under a firm fixed-price contract type.
Value Assessment
Rating: fair
The contract value of $8.9 million over five years for shelf stocking and custodial services appears reasonable given the scope. However, without specific per-unit cost data or benchmarks for similar services within the DoD, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited competition approach. This could potentially lead to higher prices than if full and open competition were utilized, as market forces are restricted.
Taxpayer Impact: The limited competition may result in taxpayers paying more than necessary for these essential support services.
Public Impact
Ensures operational readiness and cleanliness within DoD facilities. Supports military personnel and their families by maintaining essential services. Potential for job creation within the service sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may impact cost-effectiveness.
- Lack of detailed performance metrics in provided data.
- Potential for scope creep in custodial and stocking services.
Positive Signals
- Long-term contract provides stability for service provider.
- Addresses essential operational needs for the Defense Commissary Agency.
- Firm fixed-price contract offers budget predictability.
Sector Analysis
This contract falls within the 'Other Support Services' sector, specifically related to facility maintenance and logistics. Benchmarks for this sector can vary widely based on location and service complexity, but $8.9M over five years for stocking and custodial services suggests a significant operational footprint.
Small Business Impact
The data indicates this contract was not awarded to a small business, as 'sb' is false. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this larger award.
Oversight & Accountability
Oversight will be crucial to ensure Network Enterprises Inc. meets the performance standards outlined in the firm fixed-price contract. The Defense Commissary Agency is responsible for monitoring service delivery and addressing any deficiencies.
Related Government Programs
- All Other Support Services
- Department of Defense Contracting
- Defense Commissary Agency Programs
Risk Flags
- Limited competition may lead to higher costs.
- Lack of detailed cost breakdown hinders value assessment.
- Potential for service quality issues without defined KPIs.
- Contractor is not a small business, limiting direct SMB participation.
Tags
all-other-support-services, department-of-defense, hi, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.9 million to NETWORK ENTERPRISES INC. SHELF STOCKING AND CUSTODIAL OPERATIONS EO14042
Who is the contractor on this award?
The obligated recipient is NETWORK ENTERPRISES INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Commissary Agency).
What is the total obligated amount?
The obligated amount is $8.9 million.
What is the period of performance?
Start: 2022-01-01. End: 2026-12-31.
What is the specific breakdown of costs for shelf stocking versus custodial operations, and how does this compare to industry averages for similar facilities?
The provided data does not detail the cost breakdown between shelf stocking and custodial operations. To assess value, a comparison with industry averages for similar services at comparable facilities would be necessary. This would involve analyzing labor costs, material usage, and overhead for both service components to identify potential inefficiencies or areas of overpricing.
What are the key performance indicators (KPIs) for this contract, and how will compliance be measured to mitigate risks associated with service quality?
Key performance indicators (KPIs) are not explicitly detailed in the provided data. Effective oversight requires clearly defined KPIs related to stocking efficiency, cleanliness standards, response times, and personnel conduct. Regular performance reviews and audits against these KPIs are essential to ensure the contractor meets contractual obligations and mitigate risks of substandard service delivery.
Given the limited competition, what mechanisms are in place to ensure the contractor remains incentivized to provide cost-effective services throughout the contract duration?
With a limited competition award and a firm fixed-price structure, the primary incentive for cost-effectiveness lies in the contractor's desire for future contract awards and maintaining a positive performance record. However, robust oversight and clear performance standards are crucial. The Defense Commissary Agency should actively monitor service delivery and contractor performance to ensure value for money is achieved, despite the lack of competitive pressure during the initial award.
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: 615 PIIKOI ST STE 1105, HONOLULU, HI, 96814
Business Categories: AbilityOne Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Tax Exempt, Minority Owned Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $10,715,613
Exercised Options: $10,715,613
Current Obligation: $8,893,404
Actual Outlays: $793,025
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-01-01
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-12-31
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