Department of the Navy awards $15.7M contract for food services to PENTAD NEVADA LLC, with a 7-year performance period

Contract Overview

Contract Amount: $15,672,423 ($15.7M)

Contractor: Pentad Nevada LLC

Awarding Agency: Department of Defense

Start Date: 2005-09-22

End Date: 2011-06-30

Contract Duration: 2,107 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200512!005868!1700!N00244!FLEET AND INDUSTRIAL SUPPLY CENT!N0024405C0067 !A!N! !N! ! !20050922!20060930!106717411!106717411!106717411!N!PENTAD NEVADA LLC !2900 S RANCHO DRIVE !LAS VEGAS !NV!89102!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000003870775!N!N!000019255865!S203!FOOD SERVICES !S1 !SERVICES !000 !* !722310!E! !3! ! ! ! ! !20200930!B! ! !A! !A!N!J!2!011!K! !C!N!Z! ! !N!B!N!Y! ! !D! !K!A!000!A!B!N! ! ! ! !1710!N00245!0001! !

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $15.7 million to PENTAD NEVADA LLC for work described as: 200512!005868!1700!N00244!FLEET AND INDUSTRIAL SUPPLY CENT!N0024405C0067 !A!N! !N! ! !20050922!20060930!106717411!106717411!106717411!N!PENTAD NEVADA LLC !2900 S RANCHO DRIVE !LAS VEGAS !NV!89102!66000!073!06!SAN DIEGO !SAN … Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract's duration of over 7 years may indicate a need for long-term, stable service provision. 3. The fixed-price contract type shifts performance risk to the contractor. 4. The service category is food services, a common operational requirement for military installations. 5. The award was made by the Department of the Navy, a major component of the Department of Defense. 6. The contract was awarded to a single entity, PENTAD NEVADA LLC.

Value Assessment

Rating: fair

The awarded amount of $15.7 million over approximately 7 years for food services appears to be within a reasonable range for a large federal contract of this nature. Benchmarking against similar food service contracts for military bases would provide a clearer picture of value for money. The firm fixed-price structure suggests the government has locked in a price, but the overall cost-effectiveness depends on the quality and efficiency of the services provided by PENTAD NEVADA LLC.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources.' While this indicates an initial broad solicitation, the 'exclusion of sources' clause suggests specific criteria or limitations were applied during the competition. The number of bidders is not explicitly stated in the provided data, but the 'full and open' designation generally implies multiple interested parties were considered, which should facilitate price discovery.

Taxpayer Impact: A competitive award process, even with exclusions, is generally favorable for taxpayers as it aims to secure the best possible price and service through market forces.

Public Impact

Service members and personnel at the designated Navy installation will receive food services. The contract supports the operational readiness and morale of the armed forces. The geographic impact is primarily focused on the location of the Navy installation where services are rendered. The contract supports jobs within the food service industry, potentially benefiting local economies where the contractor operates.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if service demands exceed initial projections under a fixed-price contract.
Dependence on a single contractor for a critical service like food provision.
Ensuring consistent quality and compliance with health and safety standards over a long contract term.

Positive Signals

Awarded through a competitive process, indicating potential for good value.
Firm fixed-price contract shifts risk to the contractor.
Long contract duration suggests a stable and reliable service provider was sought.

Sector Analysis

The food service industry is a significant sector within the broader services market, encompassing a wide range of providers from small local caterers to large multinational corporations. Federal contracts for food services are common, supporting military bases, government facilities, and correctional institutions. The market is characterized by varying levels of competition depending on the scale and location of the requirement. This contract, valued at approximately $15.7 million over seven years, represents a substantial procurement within this sector.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, PENTAD NEVADA LLC, is responsible for fulfilling the contract requirements, and any subcontracting decisions would be at their discretion, not mandated by a small business set-aside.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer within the Department of the Navy. Performance monitoring, quality assurance checks, and invoice approvals are standard oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Food Services Contracts
Department of Defense Food Procurement
Navy Installation Support Services
General Services Administration (GSA) Schedule Contracts (if applicable)
Logistics and Support Services Contracts

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Long contract duration may reduce flexibility.
Performance risk for quality and consistency over extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.7 million to PENTAD NEVADA LLC. 200512!005868!1700!N00244!FLEET AND INDUSTRIAL SUPPLY CENT!N0024405C0067 !A!N! !N! ! !20050922!20060930!106717411!106717411!106717411!N!PENTAD NEVADA LLC !2900 S RANCHO DRIVE !LAS VEGAS !NV!89102!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000003870775!N!N!000019255865!S203!FOOD SERVICES !S1 !SERVICES !000 !* !722310!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is PENTAD NEVADA LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.7 million.

What is the period of performance?

Start: 2005-09-22. End: 2011-06-30.

What is the historical spending pattern for food services by the Department of the Navy?

Historical spending on food services by the Department of the Navy is substantial, reflecting the need to support a large global presence and numerous personnel. While specific aggregate data requires deep dives into historical procurement databases, the Navy consistently procures a wide array of food-related services, from dining hall operations to catering for events and specialized feeding requirements. This spending fluctuates based on operational tempo, base realignments, and changes in service delivery models. Analyzing trends over the past decade would reveal patterns in contract values, durations, and the types of services most frequently procured, offering context for individual contract awards like the one to PENTAD NEVADA LLC.

How does PENTAD NEVADA LLC's track record compare for similar federal contracts?

Assessing PENTAD NEVADA LLC's track record requires examining their past performance on federal contracts, particularly those involving food services or similar large-scale service provisions. A review of their contract history would reveal the number of contracts awarded, their values, durations, and any reported performance issues or accolades. Specifically, looking for prior awards from the Department of the Navy or other military branches for food services would provide the most relevant comparison. Information on past performance, including any contract terminations, disputes, or positive performance reviews, is crucial for evaluating their reliability and capability to execute the current $15.7 million contract effectively.

What are the key performance indicators (KPIs) for this food service contract?

Key Performance Indicators (KPIs) for this food service contract would likely focus on service quality, cost control, and compliance. Common KPIs include food safety and sanitation compliance (e.g., passing health inspections with high scores), customer satisfaction ratings from service members, adherence to nutritional standards, waste reduction targets, and on-time delivery of services. For a firm fixed-price contract, KPIs also indirectly monitor the contractor's efficiency in managing costs while meeting quality standards. The government would establish specific, measurable, achievable, relevant, and time-bound (SMART) KPIs within the contract's Performance Work Statement (PWS) to ensure the contractor meets expectations.

What is the potential risk associated with the 'exclusion of sources' in the competition type?

The 'exclusion of sources' clause within a 'full and open competition' award type suggests that while the competition was broadly solicited, certain potential bidders were excluded based on specific criteria outlined in the solicitation. This could be due to requirements for specialized experience, security clearances, geographic presence, or past performance. While intended to ensure only qualified vendors participate, it carries a risk of limiting competition more than necessary, potentially leading to higher prices or fewer innovative solutions if the exclusion criteria are overly restrictive or not well-justified. A thorough review of the solicitation's justification for exclusion is needed to assess this risk.

How does the contract duration of over 7 years impact value for money?

A contract duration exceeding 7 years, as seen in this $15.7 million award, can offer significant value for money by providing stability and predictability for both the government and the contractor. For the government, it ensures continuous service delivery without the administrative burden and potential disruption of frequent re-competitions. For the contractor, a longer term allows for greater investment in specialized equipment, training, and process improvements, potentially leading to economies of scale and efficiencies that can be passed on as cost savings. However, it also carries the risk of locking the government into a potentially suboptimal price or service level if market conditions or needs change significantly over the contract's life.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2900 S RANCHO DRIVE, LAS VEGAS, NV, 89102

Business Categories: Category Business, HUBZone Firm, Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline