Defense food services contract awarded to PENTAD CORPORATION for over $18.9 million, spanning 1249 days

Contract Overview

Contract Amount: $18,923,819 ($18.9M)

Contractor: Pentad Corp

Awarding Agency: Department of Defense

Start Date: 2003-04-30

End Date: 2006-09-30

Contract Duration: 1,249 days

Daily Burn Rate: $15.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200307!000056!1700!MA40B !FISC JACKSONVILLE - SPECIAL PROJ!N6883603C0025 !A!N! !N! !20030430!20030930!801065046!801065046!801065046!N!PENTAD CORPORATION !2900 SOUTH RANCHO DRIVE !LAS VEGAS !NV!89102!* !* !CU!GUANTANAMO NAS !* !CUBA !+000000790329!N!N!000010246804!S203!FOOD SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !722310!E! !3! ! ! ! ! !99990909!B! ! !A! !A!Y!J!2!006!B! !Z!N!Z! ! !Y!B!N!N! ! !A! !A!A!000!A!B!N! ! ! ! ! !N60514!0001! !

Plain-Language Summary

Department of Defense obligated $18.9 million to PENTAD CORP for work described as: 200307!000056!1700!MA40B !FISC JACKSONVILLE - SPECIAL PROJ!N6883603C0025 !A!N! !N! !20030430!20030930!801065046!801065046!801065046!N!PENTAD CORPORATION !2900 SOUTH RANCHO DRIVE !LAS VEGAS !NV!89102!* !* !CU!GUANTANAMO NAS !* … Key points: 1. Contract value of $18.9 million for food services at Guantanamo Bay Naval Base. 2. Awarded through full and open competition, indicating a potentially competitive bidding process. 3. Duration of 1249 days suggests a long-term need for these services. 4. The contract falls under the 'Food Service Contractors' industry, a common government service requirement. 5. The firm fixed-price contract type aims to control costs for the government. 6. No small business set-aside was utilized, suggesting larger contractors were likely involved.

Value Assessment

Rating: fair

The contract value of $18.9 million for food services over approximately 3.5 years appears within a reasonable range for a military installation of this size and complexity. Benchmarking against similar contracts for food services at overseas bases would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an attempt to manage cost certainty, but the total value could fluctuate based on actual service delivery and any potential change orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' which typically means that all responsible sources were permitted to submit a bid. The data indicates there were 6 bidders, suggesting a healthy level of competition for this requirement. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely drove down prices and ensured the government received competitive offers for essential food services.

Public Impact

Service members and personnel stationed at Guantanamo Bay Naval Base benefit from consistent food services. The contract ensures the provision of food preparation and related services. The geographic impact is concentrated at Guantanamo Bay Naval Base, Cuba. The contract supports jobs within the food service industry, potentially including local hires or contracted personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if not managed tightly due to the fixed-price nature and long duration.
Ensuring consistent quality of food services across the entire contract period can be challenging.
Logistical complexities of delivering food services to an overseas location like Guantanamo Bay.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm fixed-price contract type provides cost certainty for the government.
Long contract duration suggests a stable and ongoing requirement, allowing for efficient service planning.

Sector Analysis

The food service industry is a significant sector within government contracting, encompassing a wide range of services from cafeteria operations to specialized catering. This contract for food services at a naval base falls within the broader 'Services' category, with a specific Product Service Code (PSC) of 722310. Government spending in this area is consistent, driven by the need to support military personnel and government facilities worldwide. Comparable spending benchmarks would involve analyzing other large-scale food service contracts awarded to military installations, both domestic and overseas.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and the 'sb' field is false. With 6 bidders and a significant contract value, it is likely that larger, established companies were the primary participants. There is no explicit information on subcontracting plans, but for a contract of this nature and size, it is common for prime contractors to engage small businesses for specialized support services, though this is not guaranteed without specific subcontracting goals being mandated.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy, with specific contracting officers and program managers responsible for monitoring performance, quality, and adherence to contract terms. Inspector General (IG) jurisdiction would apply for investigations into fraud, waste, or abuse. Transparency is generally facilitated through contract award databases, but detailed performance reports are often internal.

Related Government Programs

Base Operations Support Services
Food and Hospitality Services
Military Dining Facilities Management
Government Food Procurement
Contingency Support Services

Risk Flags

Potential for logistical challenges in overseas food service delivery.
Risk of price volatility for food supplies over the contract duration.
Need for robust quality assurance to maintain service standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.9 million to PENTAD CORP. 200307!000056!1700!MA40B !FISC JACKSONVILLE - SPECIAL PROJ!N6883603C0025 !A!N! !N! !20030430!20030930!801065046!801065046!801065046!N!PENTAD CORPORATION !2900 SOUTH RANCHO DRIVE !LAS VEGAS !NV!89102!* !* !CU!GUANTANAMO NAS !* !CUBA !+000000790329!N!N!000010246804!S203!FOOD SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !722310!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is PENTAD CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.9 million.

What is the period of performance?

Start: 2003-04-30. End: 2006-09-30.

What was the track record of PENTAD CORPORATION with similar government contracts prior to this award?

Prior to this award in 2003, PENTAD CORPORATION had a history of receiving government contracts, primarily within the food services and facilities management sectors. While specific details of their performance on all prior contracts are not detailed in this dataset, the award of a significant contract like this one suggests a demonstrated capability to meet government requirements. Further analysis would involve examining their contract history for performance ratings, past performance questionnaires, and any documented issues or successes on previous food service contracts, particularly those with the Department of Defense or Department of the Navy.

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

Direct per-unit cost comparison is challenging without specific metrics like cost per meal or cost per person served. The total contract value of $18.9 million over 1249 days averages to approximately $15,131 per day. To benchmark this effectively, one would need to compare this daily rate against similar contracts at other naval installations, factoring in the number of personnel served, the scope of services (e.g., types of meals, operating hours), and the geographic location's cost of living and logistics. Without such granular data, it's difficult to definitively state if this represents excellent or fair value on a per-unit basis.

What are the primary risks associated with a long-term, firm-fixed-price contract for food services at an overseas location?

The primary risks for a long-term, firm-fixed-price contract for food services at an overseas location like Guantanamo Bay include logistical challenges, potential for inflation impacting supply costs, and the risk of the contractor absorbing unexpected cost increases. For the government, the risk lies in potentially paying a premium if market conditions change significantly or if the contractor's initial pricing was overly conservative. Ensuring consistent quality and service delivery over an extended period, especially with potential personnel turnover at the contractor's end, also presents a risk that requires diligent oversight.

How effective was the competition in driving down costs for this specific food service requirement?

The presence of 6 bidders in a full and open competition suggests a competitive environment that likely contributed to driving down costs. While the exact cost savings cannot be quantified without a baseline or comparison to a sole-source scenario, a higher number of bidders generally correlates with more competitive pricing. The firm-fixed-price nature of the contract further locks in the price, meaning the government benefits from the negotiated rate throughout the contract's duration, assuming no significant change orders.

What is the historical spending trend for food services at Guantanamo Bay Naval Base?

This dataset provides a single data point for food services at Guantanamo Bay Naval Base awarded in 2003. To understand historical spending trends, one would need to analyze contract awards for food services at this installation over multiple years, looking at contract values, durations, and the number of competitors for each award. This would reveal whether spending has increased, decreased, or remained stable, and if the nature of the contracts (e.g., competition level, contract type) has evolved over time.

What are the implications of the 'NOT DISCERNABLE OR CLASSIFIED' field for the contract's transparency?

The 'NOT DISCERNABLE OR CLASSIFIED' designation in a contract field, if it pertains to sensitive information like specific operational details or security-related aspects, can limit transparency. However, for a standard service contract like food services, it might refer to less critical data points that are not publicly releasable or were not specified. If it relates to the core service delivery or pricing structure, it could obscure important details for public analysis. Without knowing the exact field it refers to, its impact on transparency is uncertain but warrants attention if it pertains to key contract elements.

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: SEALED BID

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4107 W CHEYENNE AVE SUITE 106, NORTH LAS VEGAS, NV, 04

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline