DoD's $12.8M Food Service Contract with Louise W. Eggleston Center Faces Limited Competition Concerns
Contract Overview
Contract Amount: $12,846,865 ($12.8M)
Contractor: Louise W. Eggleston Center, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-09-22
End Date: 2026-09-24
Contract Duration: 1,463 days
Daily Burn Rate: $8.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: NMCP FOOD SERVICES
Place of Performance
Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23708
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $12.8 million to LOUISE W. EGGLESTON CENTER, INC. for work described as: NMCP FOOD SERVICES Key points: 1. The contract is a firm-fixed-price definitive contract valued at $12.8 million. 2. Awarded by the Department of the Navy, it serves the NMCP Food Services. 3. The contract is not available for competition, raising questions about price discovery. 4. The sector is Food Service Contractors, with a NAICS code of 722310.
Value Assessment
Rating: fair
The contract is firm-fixed-price, which provides cost certainty. However, without competitive bidding, it's difficult to assess if the $12.8 million price represents fair value compared to market rates for similar food services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' indicating a limited competition approach. This lack of open bidding may hinder effective price discovery and potentially lead to higher costs for taxpayers.
Taxpayer Impact: The limited competition approach could result in taxpayers paying more than necessary for food services due to the absence of a competitive bidding process.
Public Impact
Military personnel and staff relying on NMCP food services will experience continuity of service. Taxpayers may be impacted by potentially inflated costs due to limited competition. The awardee, Louise W. Eggleston Center, Inc., benefits from a guaranteed contract. The Department of the Navy ensures essential food services are provided.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of price benchmark
- Potential for overpayment
Positive Signals
- Firm-fixed-price contract type
- Long-term duration ensures service continuity
Sector Analysis
The food service sector, particularly for government contracts, often involves significant spending. Benchmarks for similar contracts are difficult to establish without competitive data, but large-scale food service operations typically require substantial investment and operational expertise.
Small Business Impact
There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The firm-fixed-price contract type offers some level of cost control. However, the lack of competition warrants closer oversight to ensure the contractor is delivering services efficiently and at a reasonable cost throughout the contract's duration.
Related Government Programs
- Food Service Contractors
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding may lead to higher costs.
- Potential for reduced innovation due to limited market pressure.
- Difficulty in verifying fair and reasonable pricing.
- Reliance on a single source could pose supply chain risks.
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 $12.8 million to LOUISE W. EGGLESTON CENTER, INC.. NMCP FOOD SERVICES
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 $12.8 million.
What is the period of performance?
Start: 2022-09-22. End: 2026-09-24.
What is the justification for awarding this contract without full and open competition?
The provided data states the contract is 'NOT AVAILABLE FOR COMPETITION.' A detailed justification would typically be required by federal acquisition regulations, outlining specific reasons such as a lack of qualified sources, urgent and compelling needs, or other exceptions that preclude competitive procedures. Without this justification, it's difficult to assess the necessity of the limited competition.
How does the awarded price compare to industry benchmarks for similar food service contracts of this scale?
Without competitive bidding data or access to detailed cost breakdowns, a direct comparison to industry benchmarks is challenging. The 'fair' rating reflects this uncertainty. A thorough analysis would require benchmarking against other government or large-scale private sector food service contracts, considering factors like location, service scope, and quality standards.
What mechanisms are in place to ensure the contractor's performance meets quality standards and cost-effectiveness despite limited competition?
While the contract is firm-fixed-price, ensuring cost-effectiveness and quality requires robust performance monitoring. The Department of the Navy should have established performance metrics and inspection protocols. Regular reviews of service delivery, customer feedback, and adherence to contract specifications are crucial to hold the contractor accountable and mitigate risks associated with limited competition.
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: N0018922Q0200
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, Woman Owned Business
Financial Breakdown
Contract Ceiling: $17,742,567
Exercised Options: $12,846,865
Current Obligation: $12,846,865
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2022-09-22
Current End Date: 2026-09-24
Potential End Date: 2028-03-24 00:00:00
Last Modified: 2025-09-19
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