DoD's $7.4M contract for fitness and recreation attendants awarded to The Mission Essential Group, LLC

Contract Overview

Contract Amount: $7,425,226 ($7.4M)

Contractor: THE Mission Essential Group, LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-01

End Date: 2026-08-31

Contract Duration: 1,460 days

Daily Burn Rate: $5.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LABOR - FITNESS & REC ATTENDANT

Plain-Language Summary

Department of Defense obligated $7.4 million to THE MISSION ESSENTIAL GROUP, LLC for work described as: LABOR - FITNESS & REC ATTENDANT Key points: 1. The contract value of $7.4 million over four years suggests a moderate annual spend for supporting fitness and recreation services. 2. Awarded under a Blanket Purchase Agreement (BPA) Call, indicating a pre-negotiated framework for services. 3. The firm-fixed-price contract type shifts cost risk to the contractor, potentially leading to more predictable expenses. 4. The absence of small business set-aside flags suggests the primary award was not specifically targeted for small business participation. 5. The North American Industry Classification System (NAICS) code 541930 is for Translation and Interpretation Services, which appears to be a mismatch with the contract description 'LABOR - FITNESS & REC ATTENDANT'. This discrepancy warrants further investigation. 6. The contract duration of 1460 days (4 years) provides a stable period for service delivery.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more specific details on the services provided and the number of personnel required. The annual value of approximately $1.86 million is moderate for a Department of Defense contract. However, the apparent mismatch between the NAICS code (Translation and Interpretation Services) and the contract description (Fitness & Rec Attendant) raises significant concerns about the accuracy of the data and the potential for misallocation of funds or inappropriate service procurement. Without clarification, it is difficult to assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. However, the award was made via a BPA Call, which implies that a pre-existing BPA was in place, potentially limiting the pool of eligible offerors to those already awarded under the parent BPA. The number of bidders for this specific call is not provided, making it difficult to fully assess the level of competition achieved for this particular task order.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of offers, potentially leading to lower prices and better service quality. However, the use of a BPA call might have narrowed the effective competition.

Public Impact

Military personnel and their families stationed at the facility where these services are provided will benefit from access to fitness and recreation programs. The contract supports the morale and well-being of service members by ensuring the availability of recreational facilities and activities. The geographic impact is localized to the specific Department of the Army installation where the services are performed. The contract directly impacts the workforce by creating employment opportunities for fitness and recreation attendants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Significant discrepancy between the stated contract description (Fitness & Rec Attendant) and the assigned NAICS code (Translation and Interpretation Services), indicating potential data entry errors or misclassification that could obscure the true nature and cost of services.
Lack of detail on the specific services required and the number of personnel makes it difficult to ascertain if the $7.4 million is a reasonable cost.
Award through a BPA Call, while efficient, may not represent the most competitive pricing achievable if the parent BPA itself was not widely competed or if only a few vendors were eligible for the call.

Positive Signals

Awarded under full and open competition, which theoretically promotes competitive pricing.
Firm-fixed-price contract type helps control costs by shifting risk to the contractor.
The contract provides a stable, four-year period for service delivery, ensuring continuity for morale and welfare programs.

Sector Analysis

The contract falls within the broader professional, scientific, and technical services sector, specifically related to support services for government operations. While the NAICS code suggests translation services, the description points to labor for fitness and recreation. This type of contract is common across various government agencies to support personnel welfare and facility operations. Comparable spending benchmarks would depend heavily on the specific location, scale of operations, and the exact nature of the fitness and recreation services required.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (sb=false). There is no information provided regarding subcontracting plans or performance. Without this information, it is difficult to assess the impact on the small business ecosystem or whether opportunities for small businesses were included in the subcontracting chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army. Transparency is facilitated by public contract databases, but specific performance metrics and detailed spending breakdowns are often not publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Morale, Welfare, and Recreation (MWR) Programs
Department of Defense Support Services Contracts
Government Labor Services
Fitness and Recreation Facility Management

Risk Flags

NAICS Code Mismatch
Lack of Service Specificity
Potential Data Integrity Issues

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.4 million to THE MISSION ESSENTIAL GROUP, LLC. LABOR - FITNESS & REC ATTENDANT

Who is the contractor on this award?

The obligated recipient is THE MISSION ESSENTIAL GROUP, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7.4 million.

What is the period of performance?

Start: 2022-09-01. End: 2026-08-31.

What is the primary reason for the discrepancy between the contract description 'LABOR - FITNESS & REC ATTENDANT' and the assigned NAICS code '541930 - Translation and Interpretation Services'?

The discrepancy between the contract description and the NAICS code is a significant data integrity issue. The NAICS code 541930 is specifically for 'Translation and Interpretation Services,' which involves providing language translation and interpretation. In contrast, 'LABOR - FITNESS & REC ATTENDANT' clearly describes personnel responsible for operating and maintaining fitness centers, sports facilities, and recreational programs. This mismatch could stem from a clerical error during contract creation, a misinterpretation of the service by the data entry personnel, or potentially an attempt to categorize a broader service under an incorrect code. Such discrepancies hinder accurate analysis of federal spending, make it difficult to compare similar contracts, and raise questions about the procurement process and data management within the agency. Further investigation would be required to determine the correct classification and understand the actual services being procured.

How does the firm-fixed-price contract type impact the overall cost and risk for the government?

A firm-fixed-price (FFP) contract is designed to provide the government with cost certainty. Under an FFP agreement, the contractor assumes the majority of the cost risk. This means that the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. If the contractor's expenses exceed the fixed price, they absorb the loss. Conversely, if their costs are lower than anticipated, they retain the profit. For the government, this structure offers predictability in budgeting and helps prevent cost overruns, which is a significant advantage. However, it can also lead to higher initial prices compared to cost-reimbursement contracts, as contractors typically build in a contingency to cover potential cost increases and risks. The effectiveness of an FFP contract relies on a well-defined scope of work to avoid disputes and change orders.

What does the use of a BPA Call imply about the competition and pricing for this contract?

The use of a Blanket Purchase Agreement (BPA) Call indicates that this contract is a task order issued under a pre-existing BPA. BPAs are established with vendors to streamline the procurement of recurring supplies or services. When a BPA is in place, agencies can issue calls or orders against it without conducting a new full and open competition for each individual purchase, provided the BPA itself was established through appropriate competition. This can lead to faster acquisition. However, the level of competition for the specific BPA Call depends on the terms of the parent BPA and whether multiple vendors under that BPA were solicited for this particular call. If the parent BPA was awarded competitively and multiple vendors were solicited for this call, it could still yield competitive pricing. If the parent BPA had limited competition, or if only one vendor was solicited for this call, the pricing might not be as competitive as a standalone, fully competed contract.

Are there any indicators of potential contractor performance issues or risks based on the provided data?

The provided data does not contain specific performance metrics or historical performance ratings for The Mission Essential Group, LLC related to this contract. Therefore, it is not possible to assess contractor performance issues or risks directly from this dataset. However, the significant discrepancy between the contract description and the NAICS code is a red flag that could indicate systemic issues with data accuracy or contract management, which indirectly could pose a risk to effective service delivery and oversight. A thorough review of past performance information, contract modifications, and any reported issues would be necessary to make a comprehensive risk assessment.

How does this contract's spending compare to similar fitness and recreation support services within the Department of Defense?

Comparing this contract's spending requires context that is not fully available in the provided data. The total value of $7.4 million over four years equates to an average annual spend of approximately $1.86 million. To benchmark this effectively, one would need data on the number of personnel supported, the specific services rendered (e.g., gym operations, sports coaching, event management), the geographic location (which impacts labor costs), and the size and type of military installation. Without these details, it's difficult to state definitively if $1.86 million annually is high, low, or average for supporting fitness and recreation attendants. Data from other DoD contracts for similar services, adjusted for scale and location, would be necessary for a meaningful comparison.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › Translation and Interpretation Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6525 W CAMPUS OVAL STE 101, NEW ALBANY, OH, 43054

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,191,822

Exercised Options: $8,571,772

Current Obligation: $7,425,226

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91WFU19A0001

IDV Type: BPA

Timeline