DoD awards $2.06M contract for shelf stocking and receiving services to New Leaf, Inc

Contract Overview

Contract Amount: $2,055,529 ($2.1M)

Contractor: NEW Leaf, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-10-01

End Date: 2026-09-30

Contract Duration: 729 days

Daily Burn Rate: $2.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SHELF STOCKING AND RECEIVING/STORAGE/HOLDING AREA SERVICES

Place of Performance

Location: OAK HARBOR, ISLAND County, WASHINGTON, 98278

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $2.1 million to NEW LEAF, INC. for work described as: SHELF STOCKING AND RECEIVING/STORAGE/HOLDING AREA SERVICES Key points: 1. Contract awarded on a non-competitive basis, raising questions about potential cost savings through competition. 2. The contract duration of 729 days suggests a need for consistent, long-term support services. 3. Fixed-price contract type aims to control costs, but the absence of competition limits price benchmarking. 4. Services include stocking, receiving, and storage, critical for efficient commissary operations. 5. The award to a single vendor warrants scrutiny regarding market availability and alternative solutions. 6. Geographic focus on Washington state indicates localized operational requirements.

Value Assessment

Rating: fair

The contract value of $2.06 million over approximately two years for shelf stocking and receiving services appears within a reasonable range for such support functions. However, without competitive bidding, it is difficult to definitively benchmark the value for money. Comparable contracts for similar services in other regions or awarded competitively could provide a better understanding of pricing efficiency. The firm fixed-price structure suggests an attempt to cap costs, but the lack of competition means the government may not be realizing the lowest possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, indicating that a full and open competition was not conducted. This typically occurs when only one responsible source can provide the required services. The lack of multiple bidders means there was no opportunity for price discovery through a competitive process, potentially leading to higher costs for the government compared to a competed award. The specific justification for this sole-source award would need further review to understand the circumstances.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without multiple bids, the government cannot be assured it is receiving the most cost-effective solution available in the market.

Public Impact

Military personnel and their families stationed in Washington will benefit from efficiently stocked and organized commissary shelves, improving their shopping experience. The services provided ensure the smooth operation of the Defense Commissary Agency's logistics and inventory management. The contract's geographic impact is limited to facilities within Washington state. The contract supports jobs related to logistics, warehousing, and retail support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices and reduced value for taxpayer dollars.
Sole-source awards can limit innovation and the introduction of more efficient service models.
Dependence on a single contractor can create risks if the contractor fails to perform or faces financial instability.

Positive Signals

Firm fixed-price contract type helps to establish cost certainty and manage budget.
The contract duration suggests a stable, ongoing need for these essential support services.
Awarding to a single entity may streamline management and oversight if the contractor is reliable.

Sector Analysis

The Defense Commissary Agency (DeCA) operates a global chain of commissaries to provide groceries to military personnel, retirees, and their families at prices generally 25% lower than civilian supermarkets. This contract for shelf stocking and receiving/storage services falls under the broader support services sector, specifically within logistics and supply chain management for retail operations. The market for such services is competitive, but specific requirements like proximity to military bases or specialized handling can influence procurement strategies. The total federal spending on 'All Other Support Services' (NAICS 561990) is substantial, with this contract representing a small portion.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside for this award, nor is there information suggesting subcontracting opportunities for small businesses. The award was made to New Leaf, Inc., and without further details on their size or subcontracting plans, the direct impact on the small business ecosystem is unclear. However, the non-competitive nature of the award limits the potential for small businesses to compete for this specific contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and the Defense Commissary Agency. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. The firm fixed-price nature provides some cost control. Transparency regarding the justification for the sole-source award and performance metrics would be key areas for oversight. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Commissary Agency Operations
Logistics and Supply Chain Management Services
Retail Support Services
Federal Procurement Services

Risk Flags

Sole-source award raises concerns about value for money.
Lack of competition limits price discovery and potential cost savings.
Dependence on a single contractor poses performance and stability risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.1 million to NEW LEAF, INC.. SHELF STOCKING AND RECEIVING/STORAGE/HOLDING AREA SERVICES

Who is the contractor on this award?

The obligated recipient is NEW LEAF, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.1 million.

What is the period of performance?

Start: 2024-10-01. End: 2026-09-30.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' which is a category for sole-source procurements. The specific justification would typically be documented in the contract file and may include reasons such as the unavailability of other sources, urgent and compelling needs, or specific technical requirements that only one contractor can meet. Without access to the contract's justification and approval (J&A) document, the precise reason remains unknown. This lack of competition is a significant factor in assessing the overall value and cost-effectiveness of the award, as it bypasses the potential benefits of a competitive bidding process, such as price reductions and a wider selection of qualified vendors.

How does the per-unit cost of these services compare to industry benchmarks or similar government contracts?

The provided data does not include specific per-unit cost breakdowns for the shelf stocking and receiving/storage services. The total contract value is $2,055,528.60 over 729 days. To establish a per-unit cost benchmark, we would need to know the volume of goods stocked, the number of hours worked, or the square footage managed. Without this granular data, a direct comparison to industry benchmarks or similar government contracts is not feasible. The absence of competitive bidding further complicates this analysis, as there is no market-driven price point to reference for validation of cost-effectiveness.

What is the track record of New Leaf, Inc. in performing similar government contracts?

Information regarding New Leaf, Inc.'s specific track record in performing similar government contracts is not detailed in the provided data. As the award was sole-source, it suggests that the Department of Defense or the Defense Commissary Agency identified New Leaf, Inc. as the only responsible source capable of meeting the contract's requirements. A comprehensive assessment of their track record would typically involve reviewing past performance evaluations, contract history, and any reported issues or successes on previous federal awards. This information is crucial for understanding the contractor's reliability and capability in delivering the required services.

What are the potential risks associated with awarding this contract to a single vendor?

Awarding a contract on a sole-source basis to a single vendor, New Leaf, Inc., introduces several potential risks. Firstly, there is a risk of paying a higher price than would be achievable through competition, as the vendor faces no pressure to offer the lowest possible cost. Secondly, there's a risk of reduced service quality or innovation, as the vendor may have less incentive to improve performance without competitive threats. Thirdly, the government becomes dependent on this single contractor; any performance failures, financial instability, or unforeseen issues with New Leaf, Inc. could significantly disrupt commissary operations in Washington. Finally, the lack of competition limits the government's ability to explore alternative solutions or leverage market dynamics.

How does this contract's value and duration compare to historical spending patterns for similar services within the Defense Commissary Agency?

The provided data does not include historical spending patterns for similar services within the Defense Commissary Agency, making a direct comparison difficult. The current contract is valued at approximately $2.06 million over 729 days (roughly two years). To assess if this is in line with historical spending, one would need to analyze past contracts for shelf stocking, receiving, and storage services awarded by DeCA, considering factors like inflation, scope changes, and market conditions over time. The sole-source nature of this award also makes it harder to gauge if it represents a typical market price or an outlier due to the lack of competition.

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: 660 SE FIDALGO AVE, OAK HARBOR, WA, 98277

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: $7,210,481

Exercised Options: $3,086,908

Current Obligation: $2,055,529

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline