DoD's $28.2M Galley Services Contract with Louise W. Eggleston Center, Inc. raises competition concerns
Contract Overview
Contract Amount: $28,245,401 ($28.2M)
Contractor: Louise W. Eggleston Center, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-04-01
End Date: 2022-09-30
Contract Duration: 2,008 days
Daily Burn Rate: $14.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF MESS ATTENDANT SERVICES AT GALLEYS LOCATED IN THE NORFOLK AREA
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $28.2 million to LOUISE W. EGGLESTON CENTER, INC. for work described as: IGF::OT::IGF MESS ATTENDANT SERVICES AT GALLEYS LOCATED IN THE NORFOLK AREA Key points: 1. Contract awarded for galley services in Norfolk area. 2. Significant value of $28.2 million over its life. 3. Awarded as 'NOT AVAILABLE FOR COMPETITION', indicating limited or no competition. 4. Sector is Food Service Contractors, supporting military operations.
Value Assessment
Rating: questionable
The contract's fixed price nature is standard, but without competitive bidding, it's difficult to assess if the $28.2M price represents fair market value. Benchmarking is challenging without comparable contract data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a sole-source or limited competition award. This lack of open bidding likely prevented price discovery through market forces, potentially leading to higher costs.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pricing mechanisms.
Public Impact
Ensures essential food services for military personnel in Norfolk. Lack of competition raises questions about cost-effectiveness for taxpayers. Potential for improved service delivery if competition were introduced. Supports a specific contractor, potentially impacting other businesses in the sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Limited transparency in award process
Positive Signals
- Ensures essential service delivery
- Long-term contract provides stability
Sector Analysis
This contract falls within the Food Service Contractors sector, which is crucial for supporting military readiness and personnel welfare. Spending benchmarks for similar galley services can vary widely based on location, scope, and service level.
Small Business Impact
The data does not indicate whether small businesses were involved in subcontracting or if this contract offered opportunities for small business participation. The sole-source nature limits potential for small business prime contracting.
Oversight & Accountability
The 'NOT AVAILABLE FOR COMPETITION' status warrants further oversight to ensure the justification for limited competition was robust and that the pricing is reasonable. Accountability for cost-effectiveness is key.
Related Government Programs
- Food Service Contractors
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated costs
- Limited transparency in award justification
- Difficulty in performance benchmarking
Tags
food-service-contractors, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.2 million to LOUISE W. EGGLESTON CENTER, INC.. IGF::OT::IGF MESS ATTENDANT SERVICES AT GALLEYS LOCATED IN THE NORFOLK AREA
Who is the contractor on this award?
The obligated recipient is LOUISE W. EGGLESTON CENTER, 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 $28.2 million.
What is the period of performance?
Start: 2017-04-01. End: 2022-09-30.
What was the specific justification for awarding this contract without competition?
The provided data states 'NOT AVAILABLE FOR COMPETITION' without further detail. A thorough review would require accessing the contract file to understand the specific circumstances, such as unique capabilities, urgent needs, or lack of qualified sources, that led to this determination.
How does the per-unit cost compare to similar galley services contracts in other military installations?
Without specific per-unit cost breakdowns (e.g., cost per meal, cost per service hour) and comparable data from other installations, a direct comparison is not possible. The total contract value of $28.2M over five years provides a high-level figure, but lacks granular detail for effective benchmarking.
What is the potential impact on service quality when a contract is awarded without competition?
While a lack of competition doesn't automatically equate to poor quality, it can reduce the incentive for a contractor to innovate or maintain high standards, as there is no direct market pressure from competitors. Quality is typically managed through contract performance metrics and oversight.
Industry Classification
NAICS: Accommodation and Food Services › Special Food Services › Food Service Contractors
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0018917R0023
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1161 INGLESIDE RD, NORFOLK, VA, 23502
Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $30,576,811
Exercised Options: $29,355,297
Current Obligation: $28,245,401
Actual Outlays: $1,536,515
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2017-04-01
Current End Date: 2022-09-30
Potential End Date: 2022-09-30 00:00:00
Last Modified: 2022-06-23
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