Goodwill Industries receives $305M for food services at Naval Station Great Lakes over four years

Contract Overview

Contract Amount: $305,293,186 ($305.3M)

Contractor: Goodwill Industries of Southeastern Wisconsin, Inc.

Awarding Agency: Department of Defense

Start Date: 2014-08-01

End Date: 2018-09-30

Contract Duration: 1,521 days

Daily Burn Rate: $200.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF FOOD AND LOGISTICS SUPPORT SERVICES FOR NAVAL STATION GREAT LAKES, GREAT LAKES IL IGF::OT::IGF

Place of Performance

Location: GREAT LAKES, LAKE County, ILLINOIS, 60088

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $305.3 million to GOODWILL INDUSTRIES OF SOUTHEASTERN WISCONSIN, INC. for work described as: IGF::OT::IGF FOOD AND LOGISTICS SUPPORT SERVICES FOR NAVAL STATION GREAT LAKES, GREAT LAKES IL IGF::OT::IGF Key points: 1. Contract awarded to a single non-profit organization, raising questions about competitive pricing. 2. The contract value represents a significant portion of federal spending on food services for this specific installation. 3. Performance history and quality of service delivery are key indicators for assessing value. 4. The fixed-price nature of the contract shifts some financial risk to the contractor. 5. Long-term contract duration suggests a need for consistent and reliable service provision. 6. The absence of competition may limit opportunities for cost savings through market forces.

Value Assessment

Rating: fair

The contract value of over $305 million for four years of food services at a single naval station is substantial. Without comparable contracts for similar installations or detailed cost breakdowns, it is difficult to definitively benchmark the value for money. However, the lack of competition suggests that pricing may not have been optimized through market forces. The fixed-price structure provides some cost certainty but requires careful monitoring of service delivery to ensure value is achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The reasons for this approach are not detailed in the provided data, but it means that other potential vendors, including for-profit companies and other non-profits, did not have an opportunity to bid. This lack of competition limits the government's ability to compare offers and potentially secure more favorable pricing or innovative solutions.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also bypasses opportunities to foster a broader base of contractors.

Public Impact

Naval Station Great Lakes personnel benefit from consistent food services. The contract supports the daily operations and morale of military members stationed at Great Lakes. The geographic impact is concentrated in Illinois, specifically at the naval installation. The contract likely supports employment opportunities within the local community through Goodwill Industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source awards can reduce transparency in pricing.
Performance metrics and quality assurance are critical for value realization without competition.

Positive Signals

Award to a non-profit organization may align with social objectives.
Long-term contract provides stability for service delivery.
Fixed-price contract offers budget predictability.

Sector Analysis

The food service industry is a significant sector within government contracting, encompassing a wide range of services from cafeteria operations to specialized catering. Federal spending in this area supports military bases, government facilities, and other public institutions. This contract falls under the broader category of logistics and support services, where reliable and cost-effective provision is crucial for operational readiness. Benchmarking would typically involve comparing per-meal costs or per-person costs against similar contracts at other military installations or large institutional food service providers.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. As a sole-source award to a large non-profit, the direct impact on the small business ecosystem is likely minimal, unless Goodwill Industries itself utilizes small businesses for specific support functions not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. The Inspector General's office for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse. Transparency is limited due to the sole-source nature, but contract performance reviews and audits would be standard oversight mechanisms.

Related Government Programs

Military Base Food Services
Logistics and Support Services
Non-Profit Contracting
Naval Operations Support

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for cost overruns without competitive benchmarking.
Dependence on a single provider for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $305.3 million to GOODWILL INDUSTRIES OF SOUTHEASTERN WISCONSIN, INC.. IGF::OT::IGF FOOD AND LOGISTICS SUPPORT SERVICES FOR NAVAL STATION GREAT LAKES, GREAT LAKES IL IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is GOODWILL INDUSTRIES OF SOUTHEASTERN WISCONSIN, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $305.3 million.

What is the period of performance?

Start: 2014-08-01. End: 2018-09-30.

What is the historical spending trend for food services at Naval Station Great Lakes?

Historical spending data for food services at Naval Station Great Lakes prior to this $305 million contract (2014-2018) is not explicitly provided. However, the scale of this award suggests a consistent and significant need for these services over an extended period. To understand trends, one would need to examine contract awards for similar services at this installation or comparable naval bases over a longer timeframe, looking for patterns in contract values, durations, and awardees. Without this historical context, it's challenging to determine if this contract represents an increase, decrease, or stable level of spending for these essential services.

How does the per-meal cost of this contract compare to industry benchmarks?

Determining the precise per-meal cost requires detailed financial data and service delivery metrics that are not available in the provided summary. The contract is a fixed-price definitive contract valued at approximately $305 million over four years. To calculate a per-meal cost, one would need to know the total number of meals served during the contract period. Without this information, direct comparison to industry benchmarks for per-meal costs is not feasible. Generally, military food service costs can vary widely based on location, type of service, and specific nutritional requirements. The sole-source nature of this award also complicates direct benchmarking against competitively bid contracts.

What are the specific performance metrics and quality assurance measures for this contract?

The provided data does not detail the specific performance metrics or quality assurance measures established for this food service contract. Typically, such contracts include Service Level Agreements (SLAs) that outline key performance indicators (KPIs) related to food quality, safety, timeliness of service, customer satisfaction, and adherence to dietary guidelines. Quality assurance would involve regular inspections, audits, and feedback mechanisms, potentially including government quality assurance representatives (QARs) monitoring contractor performance. The effectiveness of the contract hinges on robust oversight and enforcement of these undefined metrics.

What is Goodwill Industries' track record in providing large-scale food services for the federal government?

Goodwill Industries of Southeastern Wisconsin, Inc. was awarded this significant contract, indicating a capacity to manage large-scale food service operations. While the provided data focuses on this single contract, a comprehensive assessment of their track record would involve reviewing their past performance on other federal contracts, particularly those involving food services or large logistical support. This would include examining past performance evaluations, any contract disputes or terminations, and their overall experience in meeting the demanding requirements of government service provision. Their status as a non-profit may also influence their operational approach and cost structure compared to for-profit entities.

What are the potential risks associated with a sole-source award for essential services like food provision?

The primary risk associated with a sole-source award for essential services like food provision is the potential for inflated costs due to the absence of competitive bidding. Without market pressure, the contractor may not be incentivized to offer the most competitive pricing. Additionally, there's a risk of complacency in service quality or innovation, as the contractor faces no direct threat from competitors. This can also limit the government's flexibility in adapting to changing needs or seeking more efficient solutions. Ensuring value and performance in such scenarios relies heavily on strong government oversight, clear contract terms, and rigorous performance monitoring.

Industry Classification

NAICS: Accommodation and Food Services › Special Food Services › Food Service Contractors

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0018914RZ005

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5300 N 118TH COURT, MILWAUKEE, WI, 53225

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: $305,610,110

Exercised Options: $305,610,110

Current Obligation: $305,293,186

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline