Agriculture Department awards $5M calibration service contract to Mill Creek LLC for 3 years

Contract Overview

Contract Amount: $500,899 ($500.9K)

Contractor: Mill Creek LLC

Awarding Agency: Department of Agriculture

Start Date: 2024-06-01

End Date: 2027-05-31

Contract Duration: 1,094 days

Daily Burn Rate: $458/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BRM OWNED TOOLS CALIBRATION SERVICE CONTRACT

Place of Performance

Location: MANHATTAN, RILEY County, KANSAS, 66502

State: Kansas Government Spending

Plain-Language Summary

Department of Agriculture obligated $500,898.72 to MILL CREEK LLC for work described as: BRM OWNED TOOLS CALIBRATION SERVICE CONTRACT Key points: 1. Contract value appears reasonable for specialized calibration services over a three-year period. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. The definitive contract type indicates a flexible agreement for ongoing service needs. 4. Fixed-price contract structure shifts performance risk to the contractor. 5. Contract duration aligns with typical service agreements for specialized equipment. 6. Geographic focus on Kansas for services may indicate a regional operational need.

Value Assessment

Rating: good

The contract value of approximately $5 million over three years for calibration services seems within a reasonable range for specialized technical support. Benchmarking against similar contracts for laboratory equipment calibration would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor has adequately estimated costs and risks, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while competition was sought, certain sources may have been excluded for specific reasons, possibly related to technical capabilities or prior performance. With three bidders, the competition level is moderate, suggesting that price discovery was likely effective, but potentially not as robust as with a larger number of offers.

Taxpayer Impact: A moderate level of competition helps ensure that taxpayer funds are used efficiently by preventing excessive pricing. However, further analysis of the exclusion criteria would clarify if any potential cost savings were foregone.

Public Impact

The Agricultural Research Service (ARS) benefits from ensuring the accuracy and reliability of its testing equipment. Essential calibration services are delivered to maintain the integrity of scientific research and data. Services are geographically focused in Kansas, supporting regional ARS facilities. The contract supports specialized technical roles within the calibration and testing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to exclusion of sources needs further investigation.
Reliance on a single contractor for critical calibration services could pose a risk if performance falters.

Positive Signals

Firm fixed-price contract aligns incentives for contractor efficiency.
Three bidders indicate some level of market interest and potential for competitive pricing.
Contract duration of three years provides stability for service delivery.

Sector Analysis

The market for testing laboratories and services (NAICS 541380) is diverse, encompassing a wide range of specialized testing and calibration activities. This contract falls within the segment focused on scientific and technical instrument calibration. Spending in this sector is driven by regulatory compliance, quality control, and research and development needs across various government agencies. Comparable spending benchmarks would depend on the specific types of instruments being calibrated and the complexity of the services required.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal unless Mill Creek LLC voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program officials within the Agricultural Research Service. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Agricultural Research Service Operations
Scientific Equipment Maintenance
Federal Laboratory Services
Metrology and Calibration Services

Risk Flags

Potential for limited competition due to exclusion of sources.
Contractor performance risk requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $500,898.72 to MILL CREEK LLC. BRM OWNED TOOLS CALIBRATION SERVICE CONTRACT

Who is the contractor on this award?

The obligated recipient is MILL CREEK LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Research Service).

What is the total obligated amount?

The obligated amount is $500,898.72.

What is the period of performance?

Start: 2024-06-01. End: 2027-05-31.

What is the track record of Mill Creek LLC in performing similar calibration services for federal agencies?

Information regarding Mill Creek LLC's specific track record with federal agencies for calibration services is not detailed in the provided data. A thorough review would involve examining past performance evaluations, any reported contract disputes or terminations, and the scope and complexity of services previously rendered. Understanding their experience with similar equipment and regulatory environments is crucial for assessing their capability to fulfill this contract effectively. Without this historical data, the assessment relies primarily on the current contract's terms and the competitive process.

How does the awarded price compare to market rates for similar calibration services?

The provided data does not include specific per-unit costs or detailed service breakdowns, making a direct comparison to market rates challenging. The total contract value of approximately $5 million over three years for calibration services needs to be contextualized by the number and type of instruments to be calibrated, the required calibration standards (e.g., NIST traceability), and the geographic scope. Benchmarking against industry reports or publicly available pricing for similar services, considering the contract's fixed-price nature, would be necessary to determine if the price represents good value for money.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential performance issues by the contractor, such as delays or substandard calibration quality, which could impact the reliability of ARS research. Another risk is the potential for price increases in future contract renewals if competition diminishes. Mitigation strategies include the firm fixed-price structure, which incentivizes contractor efficiency and cost control. The moderate competition level (3 bidders) also provides some assurance against excessively high pricing. Robust government oversight, clear performance standards, and defined remedies for non-performance are essential mitigation measures.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach for this type of service?

This procurement approach suggests that while the agency aimed for broad competition, specific criteria led to the exclusion of certain potential offerors. This can be effective if the exclusions are based on legitimate technical requirements, security needs, or past performance issues that genuinely limit the pool of qualified vendors. It aims to balance competition with ensuring that only capable contractors participate. The effectiveness hinges on the justification for exclusions; if exclusions were arbitrary, it could limit price discovery and potentially lead to higher costs for taxpayers.

What is the historical spending pattern for calibration services within the Agricultural Research Service?

The provided data does not include historical spending patterns for calibration services within the Agricultural Research Service. To assess this contract's context, one would need to analyze past expenditures on similar services, identify trends in contract values, durations, and awarded contractors over several fiscal years. Understanding historical spending can reveal whether this $5 million, three-year contract represents an increase, decrease, or stable level of investment in calibration services, and whether spending has been concentrated with specific vendors or spread across multiple sources.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 12805B24Q0113

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Prairie Band, LLC

Address: 19035 US HIGHWAY 75, HOLTON, KS, 66436

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $888,117

Exercised Options: $500,899

Current Obligation: $500,899

Actual Outlays: $256,456

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline