Pentad Corp awarded $26.1M for GTMO food services, highlighting firm fixed-price contract for 5 years

Contract Overview

Contract Amount: $26,129,328 ($26.1M)

Contractor: Pentad Corp

Awarding Agency: Department of Defense

Start Date: 2021-06-01

End Date: 2026-05-31

Contract Duration: 1,825 days

Daily Burn Rate: $14.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GTMO FULL FOOD SERVICE

Plain-Language Summary

Department of Defense obligated $26.1 million to PENTAD CORP for work described as: GTMO FULL FOOD SERVICE Key points: 1. Contract value of $26.1M over five years suggests a significant investment in base support services. 2. The firm fixed-price structure shifts cost risk to the contractor, potentially leading to predictable budgeting. 3. Full and open competition indicates a robust bidding process, likely fostering competitive pricing. 4. The contract duration of 1825 days allows for long-term planning and operational stability. 5. This award falls under the Food Service Contractors NAICS code, a common area for government procurement. 6. The absence of small business set-aside suggests the scale or nature of services may not have been suitable for such provisions.

Value Assessment

Rating: good

The contract's total value of $26.1M over five years averages approximately $5.2M annually for food services at Guantanamo Bay. Benchmarking this against similar large-scale food service contracts for military installations is challenging without more specific service details. However, the firm fixed-price nature suggests that the government has secured predictable costs, assuming the contractor can manage their expenses effectively within the agreed-upon price. The number of bids received (5) indicates a reasonable level of interest, which typically supports fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Five bids were received, indicating a healthy level of interest from potential contractors. This competitive environment is generally favorable for price discovery and ensures that the government receives offers from multiple qualified entities, potentially leading to a more cost-effective outcome.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible price for essential services. Full and open competition reduces the likelihood of inflated costs that might occur with less competitive or sole-source arrangements.

Public Impact

Service members and personnel stationed at Guantanamo Bay will receive consistent and reliable food services. The contract supports the operational readiness and morale of U.S. forces at the GTMO base. Geographic impact is localized to the U.S. Naval Station at Guantanamo Bay, Cuba. The contract supports jobs within the food service industry, potentially including local hires or specialized culinary staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor to cut corners on quality or service to maintain profitability under fixed price.
Dependence on a single contractor for a critical service like food provision at a remote location.
Risk of unforeseen cost increases for the contractor that could impact service delivery if not managed well.

Positive Signals

Firm fixed-price contract provides budget certainty for the government.
Full and open competition suggests a competitive market was engaged, likely yielding a fair price.
Contract duration allows for stable service provision and reduces frequent re-procurement costs.

Sector Analysis

The food service industry is a significant sector within government contracting, encompassing a wide range of support services for military bases, federal agencies, and other public institutions. This contract, under NAICS code 722310 (Food Service Contractors), represents a portion of the broader government spending on base operations and personnel support. Comparable spending benchmarks for food services at large military installations can vary widely based on location, scale of operations, and specific service requirements, but contracts in the tens of millions over several years are common for major bases.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements mentioned in the provided data. The scale and nature of providing full food services for a military installation often lend themselves to larger contracting firms with established infrastructure and experience. This means that direct opportunities for small businesses may be limited unless they are part of a larger prime contractor's supply chain or subcontracting team.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and operational commands at Guantanamo Bay. Accountability measures are embedded within the firm fixed-price contract terms, requiring the contractor to meet specific service levels and quality standards. Transparency is generally maintained through contract award databases and reporting requirements, though detailed operational oversight specifics are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support Services
Food and Hospitality Services
Military Dining Facilities
Contingency Support Contracts

Risk Flags

Potential for cost overruns impacting contractor profitability and service quality.
Logistical challenges unique to remote overseas locations.
Dependence on contractor for essential personnel support services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.1 million to PENTAD CORP. GTMO FULL FOOD SERVICE

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 $26.1 million.

What is the period of performance?

Start: 2021-06-01. End: 2026-05-31.

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

Historical spending data for food services at Guantanamo Bay (GTMO) by the Department of the Navy is not directly available in this dataset. However, this $26.1M contract awarded in 2021 for a five-year term (ending 2026) indicates an average annual expenditure of approximately $5.2M. To understand the historical pattern, one would need to examine prior contracts for similar services at GTMO, looking at their values, durations, and awarded contractors. This would reveal trends in pricing, competition levels, and the stability of service providers over time. Without access to historical contract databases or specific reports on GTMO's operational budget, a comprehensive analysis of past spending is not feasible based solely on the provided data.

How does the pricing of this contract compare to similar food service contracts at other U.S. military installations?

Directly comparing the pricing of this $26.1M contract for GTMO food services to similar contracts at other U.S. military installations is complex without detailed service scopes and location-specific cost-of-living adjustments. The average annual cost of approximately $5.2M suggests a substantial operation. Factors such as the number of personnel served, the type of cuisine offered, the frequency of meals, and the logistical challenges of operating at GTMO (a remote and unique location) all influence pricing. Generally, firm fixed-price contracts aim for competitive rates, and the receipt of five bids indicates a degree of market competitiveness. However, without a standardized benchmark for 'per-meal' cost or 'per-person-per-day' cost across various installations, a precise value-for-money comparison is difficult.

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

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this food service contract. Typically, such contracts would include detailed requirements related to food quality, safety standards (e.g., HACCP compliance), nutritional guidelines, service hours, cleanliness of facilities, waste management, and customer satisfaction. Performance would likely be monitored through regular inspections, customer feedback mechanisms, and contractor reporting. Failure to meet these KPIs or SLAs could result in penalties, contract modifications, or even termination. The firm fixed-price nature implies that the contractor is responsible for meeting these standards within the agreed budget.

What is the track record of Pentad Corp in managing large-scale government food service contracts?

Information regarding Pentad Corp's specific track record in managing large-scale government food service contracts is not detailed in the provided data. To assess their capabilities, one would need to review their past performance on similar contracts, including client feedback, any past performance issues or awards, and the scale and complexity of previous operations. A thorough review would involve checking databases like the Contractor Performance Assessment Reporting System (CPARS) if available, or seeking information from the awarding agency (Department of the Navy) regarding Pentad Corp's history. Their ability to successfully execute this $26.1M contract hinges on their demonstrated experience in logistics, quality control, and personnel management within the food service sector, particularly in challenging environments.

What are the potential risks associated with a firm fixed-price contract for food services at a remote location like GTMO?

A firm fixed-price contract for food services at a remote location like GTMO carries several potential risks. Firstly, the contractor assumes all cost overruns. If food prices increase unexpectedly, or if logistical costs for transportation to GTMO rise significantly, Pentad Corp could face reduced profit margins or financial losses, potentially impacting service quality or their willingness to continue the contract under the agreed terms. Secondly, the remoteness of GTMO can exacerbate supply chain disruptions, making it harder and more expensive for the contractor to procure necessary goods. This could lead to shortages or compromises in food quality. Finally, attracting and retaining qualified staff at a remote overseas location can be challenging and costly, potentially affecting service delivery if staffing levels are not maintained.

Industry Classification

NAICS: Accommodation and Food Services › Special Food Services › Food Service Contractors

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6883620R0009

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2816 HUBER HEIGHTS DR, LAS VEGAS, NV, 89128

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

Financial Breakdown

Contract Ceiling: $32,807,074

Exercised Options: $26,979,750

Current Obligation: $26,129,328

Actual Outlays: $1,278,608

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline