DoD's $23.9M Food Service Contract with NMS Management Inc. Awarded via Full and Open Competition

Contract Overview

Contract Amount: $23,941,143 ($23.9M)

Contractor: NMS Management Inc.

Awarding Agency: Department of Defense

Start Date: 2015-09-18

End Date: 2021-04-30

Contract Duration: 2,051 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF FOOD SERVICE ATTENDANT SERVICES - NBSD

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $23.9 million to NMS MANAGEMENT INC. for work described as: IGF::OT::IGF FOOD SERVICE ATTENDANT SERVICES - NBSD Key points: 1. Contract value of $23.9 million over approximately 5.7 years indicates a significant investment in food services. 2. The contract was awarded using 'Full and Open Competition After Exclusion of Sources,' suggesting a competitive process with specific justifications. 3. The firm-fixed-price contract type helps manage cost certainty for the government. 4. The contract duration of 2051 days (approx. 5.7 years) is substantial, allowing for stable service provision. 5. The North American Industry Classification System (NAICS) code 722310 points to a specialized food service operation. 6. The contract was awarded to NMS MANAGEMENT INC., a single entity, highlighting potential concentration in service provision.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more granular data on the scope of services provided and the specific locations served. However, a $23.9 million spend over nearly six years for food services at a naval base suggests a substantial operational scale. Without comparable contract data for similar facilities or detailed cost breakdowns, it is difficult to definitively assess value for money. The firm-fixed-price structure provides some cost control, but the overall efficiency and quality of service delivery would be key indicators of true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This designation implies that while the competition was intended to be open, specific sources may have been excluded for documented reasons, or the competition was limited to a pre-qualified list. The presence of 7 bids suggests a reasonable level of interest, but the 'exclusion of sources' aspect warrants further investigation to understand if it limited the competitive landscape and potentially impacted price discovery.

Taxpayer Impact: The level of competition, while having 7 bidders, was not fully open, which could mean taxpayers did not benefit from the widest possible range of offers, potentially leading to a higher price than if all potential sources were considered.

Public Impact

Service members and personnel at the Naval Support Activity (NSA) Monterey Bay, California, are the primary beneficiaries of these food services. The contract ensures the provision of essential food services, contributing to morale and operational readiness. The geographic impact is localized to the Naval Support Activity Monterey Bay in California. The contract supports jobs within the food service industry, both directly with the contractor and indirectly through its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition type raises questions about the breadth of competition and potential missed opportunities for cost savings.
Lack of detailed performance metrics makes it difficult to assess the contractor's effectiveness beyond basic service delivery.
The firm-fixed-price nature, while providing cost certainty, could disincentivize innovation or exceptional service if not coupled with strong performance management.

Positive Signals

The award was made under a competitive process, indicating that multiple vendors were considered.
The firm-fixed-price contract type offers predictable costs for the government.
The contract duration allows for stable and consistent service delivery to the end-users.

Sector Analysis

The food service industry for government contracts is a significant sector, often involving large, long-term agreements to support military bases, federal agencies, and other public institutions. Companies like NMS MANAGEMENT INC. specialize in providing these essential services, which range from cafeteria operations to catering and food preparation. This contract fits within the broader category of facility support services, where reliable and cost-effective operations are paramount. Benchmarking would involve comparing the per-meal cost or per-person cost against similar contracts at other military installations or federal facilities.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the contractor, NMS MANAGEMENT INC., is likely a larger entity. There is no explicit information regarding subcontracting plans for small businesses within this data. Therefore, the direct impact on the small business ecosystem from this specific contract award is likely minimal, unless NMS MANAGEMENT INC. voluntarily engages small businesses in its supply chain or subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. The firm-fixed-price nature implies that the contractor bears most of the cost risk, but performance monitoring is crucial. Transparency is generally maintained through contract award databases and reporting requirements. Specific accountability measures would be detailed in the contract's performance work statement and could include penalties for non-performance or incentives for exceeding expectations. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Base Operations Support (BOS)
Food and Ration Services
Hospitality Services Contracts
Government Dining Facilities
Logistics and Support Services

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Lack of detailed performance metrics in summary data.
Contract value is substantial, requiring diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.9 million to NMS MANAGEMENT INC.. IGF::OT::IGF FOOD SERVICE ATTENDANT SERVICES - NBSD

Who is the contractor on this award?

The obligated recipient is NMS MANAGEMENT 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 $23.9 million.

What is the period of performance?

Start: 2015-09-18. End: 2021-04-30.

What is the historical spending pattern for food services at Naval Support Activity Monterey Bay?

Historical spending data for food services at Naval Support Activity Monterey Bay prior to this contract (2015-2021) is not directly available in the provided data. However, the award amount of $23.9 million over approximately 5.7 years suggests an average annual spending of roughly $4.2 million. To understand the historical pattern, one would need to examine previous contracts for similar services at this installation, looking at award amounts, contract types, and durations. This would reveal whether spending has been consistent, increasing, or decreasing over time and if there have been shifts in contracting strategies, such as moving from cost-plus to fixed-price arrangements or vice versa.

How does the per-unit cost of this contract compare to similar food service contracts at other naval installations?

A direct per-unit cost comparison is challenging without knowing the exact number of meals served or personnel supported daily/annually under this contract. The total contract value is $23.9 million over approximately 2051 days. If we assume an average of 5,000 meals per day (a hypothetical number for illustration), the cost per meal would be approximately $2.33 ($23,900,000 / 2051 days / 5000 meals/day). This figure needs to be benchmarked against per-meal costs at comparable naval bases, considering factors like location, type of facility (e.g., barracks vs. command center), and the specific mix of services (e.g., cafeteria, grab-and-go, special events). Without this granular data, a precise comparison is not feasible.

What are the key performance indicators (KPIs) used to evaluate NMS MANAGEMENT INC.'s performance under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate NMS MANAGEMENT INC.'s performance. Typically, for food service contracts, KPIs would include metrics related to food quality (e.g., taste, freshness, nutritional value), service timeliness (e.g., speed of service, availability of options), sanitation and safety standards (e.g., compliance with health codes, absence of foodborne illnesses), customer satisfaction (e.g., survey results, feedback mechanisms), and operational efficiency (e.g., waste reduction, inventory management). The contract's Performance Work Statement (PWS) would detail these KPIs and the methods for measuring and reporting on them.

What is the track record of NMS MANAGEMENT INC. with federal contracts, particularly in food services?

NMS MANAGEMENT INC. has a history of federal contracting, as evidenced by this award. To assess their track record, a deeper dive into their contract history with the Department of Defense and other federal agencies would be necessary. This would involve reviewing past performance evaluations, any contract disputes or terminations, and the types and values of contracts they have successfully managed. Information on their experience with similar-sized food service operations at military installations would be particularly relevant. A positive track record would indicate reliability and capability, while a history of issues could signal potential risks.

What is the significance of the 'Full and Open Competition After Exclusion of Sources' designation for this contract?

The 'Full and Open Competition After Exclusion of Sources' designation is significant because it implies a deviation from a purely open bidding process. While the intent was competitive, specific sources may have been excluded based on pre-qualification criteria, past performance issues, or other documented justifications. This means that not all potential offerors were allowed to bid. The number of bids received (7) suggests some level of competition, but the exclusion could potentially limit the range of innovative solutions or the most competitive pricing that might have emerged from a truly unrestricted competition. Understanding the rationale behind the exclusion is key to assessing its impact on value for taxpayers.

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

Solicitation ID: N0024415R0014

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 155 W 35TH ST STE A, NATIONAL CITY, CA, 91950

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,195,285

Exercised Options: $23,941,143

Current Obligation: $23,941,143

Actual Outlays: $957,961

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline