Pentad Corp's $27.8M Navy food service contract shows a 7-year duration with firm fixed pricing

Contract Overview

Contract Amount: $27,788,641 ($27.8M)

Contractor: Pentad Corp

Awarding Agency: Department of Defense

Start Date: 2007-10-01

End Date: 2013-03-31

Contract Duration: 2,008 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SEASIDE GALLEY

Plain-Language Summary

Department of Defense obligated $27.8 million to PENTAD CORP for work described as: SEASIDE GALLEY Key points: 1. The contract utilized full and open competition, suggesting a competitive bidding process. 2. Firm fixed pricing provides cost certainty for the government, limiting potential overruns. 3. The contract's duration of 7 years indicates a long-term need for these services. 4. The award was made by the Department of the Navy, a major defense agency. 5. The North American Industry Classification System (NAICS) code 722310 points to food service operations. 6. The contract was awarded as a definitive contract, a common type for services. 7. The base contract value was over $13.8M, with potential for growth.

Value Assessment

Rating: good

The contract's firm fixed price structure is generally favorable for cost control. While specific per-unit cost data is not provided, the total award value over its 7-year duration suggests a significant investment in food services. Benchmarking against similar large-scale food service contracts for military installations would be necessary for a more precise value assessment. The absence of extensive modifications or change orders, if applicable, would further indicate good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 7 bidders suggests a healthy level of competition for this food service 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 robust competition for this contract likely resulted in a more cost-effective outcome for taxpayers, ensuring that the government received competitive pricing for essential food services.

Public Impact

Naval personnel and potentially their families stationed at the relevant facility will benefit from the food services provided. The contract ensures the continuous availability of food services, a critical component of military base operations and morale. The geographic impact is localized to the specific naval installation where the galley is operated. 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

Potential for price increases in subsequent contract periods if not locked in.
Dependence on a single contractor for a critical service could pose a risk if performance issues arise.
Long-term contracts can sometimes lead to complacency if not actively managed and overseen.

Positive Signals

Firm fixed price provides budget certainty.
Full and open competition suggests a competitive market was leveraged.
The contract's duration indicates a stable, long-term service provision.
Multiple bidders (7) indicate significant market interest and potential for quality service.

Sector Analysis

This contract falls within the food service industry, a sector that supports various government operations, particularly in institutional settings like military bases. The market for government food service contracts is substantial, driven by the need to provide meals for personnel across different branches of the armed forces. Comparable spending benchmarks would involve analyzing other large-scale food service contracts awarded to private companies by defense agencies or other government entities for similar operational needs.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false). There is no explicit information regarding subcontracting plans for small businesses. The absence of a small business set-aside suggests that the primary award went to a larger entity, and the impact on the small business ecosystem would depend on whether Pentad Corp utilizes small businesses in its supply chain or subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Navy. Accountability measures are inherent in the firm fixed-price contract type, which holds the contractor responsible for delivering services within the agreed-upon price. Transparency is generally facilitated through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Military Food Service Contracts
Base Operations Support Contracts
Department of Defense Food Procurement
Government Food Service NAICS 722310

Risk Flags

Long contract duration may require active management to ensure continued value.
Lack of specific performance metrics in summary data hinders detailed assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.8 million to PENTAD CORP. SEASIDE GALLEY

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 $27.8 million.

What is the period of performance?

Start: 2007-10-01. End: 2013-03-31.

What was the contractor's performance history prior to this award?

Assessing Pentad Corp's performance history prior to this specific award is crucial for understanding their reliability and capability. Without access to past performance reviews, CPARS (Contractor Performance Assessment Reporting System) data, or records of any disputes or contract terminations, it's difficult to definitively gauge their track record. However, the fact that they were awarded a 7-year, multi-million dollar contract under full and open competition suggests they likely met the minimum qualification standards and demonstrated some level of past performance deemed acceptable by the Department of the Navy at the time of award. Further investigation into their contract history with the government, particularly within the Department of Defense, would be necessary for a comprehensive assessment.

How does the per-meal cost compare to similar military installations?

Calculating a precise per-meal cost requires detailed data on the total contract value allocated specifically to meals served, the number of meals provided, and the contract duration. The provided data gives a total contract value of $27.8 million over approximately 5.5 years (October 2007 to March 2013). To benchmark, we would need to know the average daily population served and the contract's specific provisions for meal pricing. If we assume the entire contract value was for meals and served a consistent population, a rough estimate could be made. However, without knowing the exact number of meals or the specific services included (e.g., dining facility operations vs. catering), direct comparison to other military installations is challenging. Generally, firm-fixed-price contracts aim for competitive pricing, but actual value depends heavily on the specific operational context and negotiated rates.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not explicitly detail the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a food service contract of this nature, typical KPIs would likely include food quality and safety standards (e.g., adherence to health codes, temperature controls), service timeliness (e.g., meal availability during designated hours), customer satisfaction (e.g., feedback surveys from service members), inventory management, and waste reduction. SLAs would define the expected level of service for these areas, with potential penalties or incentives tied to performance. The firm fixed-price nature suggests that meeting these undefined standards is a condition of payment, but the specifics would be outlined in the contract's statement of work and performance requirements.

What was the total spending on food services by the Department of the Navy in the years this contract was active?

To determine the total spending on food services by the Department of the Navy during the active period of this contract (October 2007 to March 2013), one would need to access historical federal spending databases and aggregate all contracts falling under relevant NAICS codes (like 722310) and PSC codes related to food services awarded by the Navy during those fiscal years. This specific contract represents $27.8 million of that total. Analyzing broader spending trends would reveal if this contract was part of an increasing, decreasing, or stable investment in outsourced food services by the Navy during that period, potentially indicating shifts in policy or operational needs.

Were there any contract modifications or change orders, and what was their financial impact?

The provided summary data does not include information on contract modifications or change orders. For a contract spanning over five years, it is common to have modifications for adjustments in scope, quantity, or pricing due to unforeseen circumstances or evolving requirements. The financial impact of such modifications could significantly alter the total contract value from the initial award amount. Without access to the contract's modification history, it's impossible to assess if the final cost deviated substantially from the original $27.8 million estimate or if the changes were managed effectively within the contract's framework.

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: N6883607R0030

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10117 EDGECLIFF LN, LAS VEGAS, NV, 89145

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,788,641

Exercised Options: $27,788,641

Current Obligation: $27,788,641

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline