Navy awards $17.2M food service contract to CA Dept of Rehabilitation, a sole-source provider

Contract Overview

Contract Amount: $17,228,931 ($17.2M)

Contractor: CA Dept of Rehabilitation

Awarding Agency: Department of Defense

Start Date: 2021-05-01

End Date: 2026-03-31

Contract Duration: 1,795 days

Daily Burn Rate: $9.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NAVAL AMPHIBIOUS BASE CORONADO

Place of Performance

Location: SACRAMENTO, SACRAMENTO County, CALIFORNIA, 95814

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $17.2 million to CA DEPT OF REHABILITATION for work described as: NAVAL AMPHIBIOUS BASE CORONADO Key points: 1. Contract awarded to a state agency, raising questions about typical competitive procurement processes. 2. Significant duration of nearly 5 years suggests a long-term need for these services. 3. The firm fixed-price structure aims to control costs, but requires careful monitoring of service delivery. 4. Geographic concentration in California may limit broader market participation. 5. The absence of small business set-asides indicates a focus on large-scale service providers or state entities.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its unique nature as a state agency award rather than a private sector procurement. The firm fixed-price contract type suggests an attempt to cap costs, but without comparable private sector bids, assessing true value-for-money is difficult. The price per day is approximately $9,600, which needs to be evaluated against the scope and quality of services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded via a sole-source procurement, meaning only one vendor was considered. While the data indicates 'FULL AND OPEN COMPETITION', the award to a state agency often bypasses traditional competitive bidding processes. This approach may be justified if the state agency possesses unique capabilities or is mandated for specific social or economic reasons, but it limits price discovery and potentially excludes more cost-effective private sector solutions.

Taxpayer Impact: Sole-source awards can mean taxpayers do not benefit from the cost savings that typically arise from competitive bidding. This could lead to higher overall costs compared to what might be achieved in an open market.

Public Impact

Service members at Naval Amphibious Base Coronado will receive food services. The contract supports the operational readiness of a key naval installation. The primary beneficiary is the Department of the Navy, ensuring essential support functions. Workforce implications are primarily for the California Department of Rehabilitation's employees providing the service.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs than market alternatives.
Sole-source nature raises concerns about transparency and potential for inflated pricing.
Contract duration without competitive re-evaluation could reduce incentive for efficiency gains.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a state agency might align with specific public service or employment goals.
Concentration in California could support local employment and state-level initiatives.

Sector Analysis

The food service industry is a significant sector within government contracting, encompassing a wide range of services from catering to full-scale dining operations. Government spending in this area is substantial, driven by the need to support military bases, federal agencies, and other public institutions. This contract falls within the broader category of facility support services, where competition can vary widely depending on the specific requirements and the availability of qualified providers. Benchmarks for similar contracts are difficult to establish due to the unique nature of this award to a state agency.

Small Business Impact

This contract does not appear to include a small business set-aside. The award to a state agency suggests that subcontracting opportunities for small businesses may be limited or managed through the state agency's own procurement processes, rather than directly through federal contracting mechanisms. This approach bypasses the typical federal small business subcontracting plan requirements.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a firm fixed-price contract, performance monitoring is crucial to ensure service quality and adherence to the contract terms. Transparency is reduced due to the sole-source nature of the award. There is no specific mention of an Inspector General's jurisdiction for this particular award, though the DoD IG generally has oversight over defense spending.

Related Government Programs

Naval Base Support Services
Food and Ration Services
Government Food Service Contracts
State Agency Service Agreements

Risk Flags

Sole-source award limits competitive pricing.
Potential for higher costs due to lack of market competition.
State agency's primary mission may not align with large-scale federal food service.
Limited transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.2 million to CA DEPT OF REHABILITATION. NAVAL AMPHIBIOUS BASE CORONADO

Who is the contractor on this award?

The obligated recipient is CA DEPT OF REHABILITATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.2 million.

What is the period of performance?

Start: 2021-05-01. End: 2026-03-31.

What is the track record of the California Department of Rehabilitation in providing large-scale food services to federal entities?

Information regarding the California Department of Rehabilitation's specific track record in providing large-scale food services to federal entities is not readily available in public databases. As a state agency, its primary mission typically revolves around vocational rehabilitation and employment services for individuals with disabilities. While it may have internal food service operations or partner with entities that do, direct experience as a primary food service contractor for a federal installation like a naval base is unusual. Further investigation would be needed to ascertain the depth and success of any such prior engagements, including their scale, duration, and client satisfaction.

How does the cost of this contract compare to similar food service contracts at other naval bases?

Direct comparison of this $17.2 million contract to similar food service contracts at other naval bases is difficult due to several factors. Firstly, the contract was awarded sole-source to a state agency, which may operate under different cost structures and overhead compared to private sector contractors. Secondly, the scope of services, quality standards, and specific operational needs of Naval Amphibious Base Coronado are unique. Without detailed service level agreements and performance metrics for comparable contracts, a precise cost-value analysis is not feasible. The firm fixed-price nature provides cost certainty but doesn't inherently guarantee market competitiveness.

What are the potential risks associated with awarding a food service contract sole-source to a state agency?

The primary risks associated with a sole-source award to a state agency include a lack of competitive pricing, potentially leading to higher costs for taxpayers. Competition typically drives innovation and efficiency, which may be absent in a sole-source scenario. There's also a risk that the agency may not possess the same level of specialized expertise or agility in service delivery as experienced private sector food service providers. Furthermore, oversight and accountability mechanisms might differ, and the agency's primary mission may not be commercial food service, potentially impacting service quality or responsiveness if not adequately managed.

What is the expected impact of this contract on the operational effectiveness of Naval Amphibious Base Coronado?

This contract is expected to ensure the consistent and reliable provision of food services to personnel at Naval Amphibious Base Coronado. By securing a food service provider, the Navy can focus on its core mission objectives, knowing that essential support functions like dining are being managed. The duration of the contract (nearly 5 years) suggests a commitment to stable operations. The effectiveness will depend on the quality of service delivered by the California Department of Rehabilitation and its ability to meet the specific dietary needs and service expectations of the base's population.

How has federal spending on food service contractors evolved over the past five years, and does this contract align with trends?

Federal spending on food service contractors has generally remained substantial, reflecting the ongoing need to support military installations and government facilities. While specific aggregate data for 'Food Service Contractors' (NAICS 722310) over the last five years requires detailed analysis of federal procurement databases, the trend is typically characterized by a mix of large, long-term contracts and smaller, more frequent awards. This $17.2 million contract, awarded as a definitive contract with a long duration, aligns with the pattern of significant, long-term investments in base support services. However, the sole-source nature to a state agency is a deviation from the more common competitive awards to private firms.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0024421R0008

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 721 CAPITOL MALL 6TH FL, SACRAMENTO, CA, 95814

Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $19,987,440

Exercised Options: $19,987,440

Current Obligation: $17,228,931

Actual Outlays: $7,371,825

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline