Simplot Livestock awarded $4.8M for off-range corral services, highlighting a need for animal production support

Contract Overview

Contract Amount: $4,797,714 ($4.8M)

Contractor: Simplot Livestock CO

Awarding Agency: Department of the Interior

Start Date: 2024-08-16

End Date: 2026-02-28

Contract Duration: 561 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SIMPLOT LIVESTOCK - OFF-RANGE CORRAL (ORC) SERVICES TASK ORDER

Place of Performance

Location: GRAND VIEW, OWYHEE County, IDAHO, 83624

State: Idaho Government Spending

Plain-Language Summary

Department of the Interior obligated $4.8 million to SIMPLOT LIVESTOCK CO for work described as: SIMPLOT LIVESTOCK - OFF-RANGE CORRAL (ORC) SERVICES TASK ORDER Key points: 1. The contract value of $4.8 million for off-range corral services suggests a significant operational requirement. 2. Full and open competition was utilized, indicating a broad market engagement for these services. 3. The firm-fixed-price contract type aims to provide cost certainty for the Bureau of Land Management. 4. The duration of 561 days points to a medium-term need for these animal production support activities. 5. The contract is a delivery order under a larger agreement, suggesting a phased or task-based approach. 6. Services are located in Idaho, impacting the regional workforce and local economy.

Value Assessment

Rating: fair

Benchmarking the value of off-range corral services is challenging without specific service details and comparable contract data. However, the $4.8 million award over approximately 1.5 years indicates a substantial investment in animal management. The firm-fixed-price structure suggests an attempt to control costs, but the overall value for money depends on the efficiency and effectiveness of the services provided by Simplot Livestock.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and encourages competitive pricing. The Bureau of Land Management's use of this approach indicates a commitment to seeking the best value from the available market.

Taxpayer Impact: Taxpayers benefit from a competitive process that is intended to drive down costs and ensure that the government receives services at a fair market price.

Public Impact

The primary beneficiaries are the Bureau of Land Management (BLM) and the animals under their care, ensuring proper management and housing. Services delivered include the operation and maintenance of off-range corrals for livestock. The geographic impact is concentrated in Idaho, where the corrals are located. Workforce implications include job creation and economic activity within the local Idaho community supporting the corral operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed service scope makes it difficult to assess true value for money.
Firm-fixed-price contracts can sometimes lead to reduced flexibility if unforeseen issues arise.
Dependence on a single delivery order under a larger contract may limit visibility into overall program costs.
Limited information on the number of bidders restricts a full assessment of competitive intensity.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract provides cost predictability for the agency.
The contract duration suggests a stable, ongoing need for these services.
Simplot Livestock's award implies they met the technical and performance requirements of the BLM.

Sector Analysis

The contract falls within the broader 'Support Activities for Animal Production' sector, which is crucial for managing livestock, particularly in public land contexts. This sector involves services related to animal husbandry, housing, and care. The market size for such specialized services can vary, but it is often tied to government land management agencies and agricultural operations. Comparable spending benchmarks are difficult to establish without more granular data on the specific services provided.

Small Business Impact

There is no indication that this contract included a small business set-aside. Simplot Livestock Co. is likely a larger entity. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data, but could potentially exist if Simplot engages local service providers for specific needs within the corral operations.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Land Management (BLM), the awarding agency. Accountability measures are inherent in the firm-fixed-price contract terms, requiring Simplot Livestock to deliver specified services within budget. Transparency is facilitated by the contract award being publicly available, though detailed performance metrics and operational oversight procedures are not specified.

Related Government Programs

Bureau of Land Management Livestock Management Programs
Federal Animal Welfare and Care Contracts
Public Lands Grazing Management Support

Risk Flags

Potential for cost overruns if unforeseen animal health issues arise.
Dependence on a single contractor for critical animal welfare services.
Limited transparency on specific performance metrics and oversight details.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $4.8 million to SIMPLOT LIVESTOCK CO. SIMPLOT LIVESTOCK - OFF-RANGE CORRAL (ORC) SERVICES TASK ORDER

Who is the contractor on this award?

The obligated recipient is SIMPLOT LIVESTOCK CO.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Land Management).

What is the total obligated amount?

The obligated amount is $4.8 million.

What is the period of performance?

Start: 2024-08-16. End: 2026-02-28.

What specific services are included under 'Off-Range Corral (ORC) Services'?

The provided data does not detail the specific services encompassed by 'Off-Range Corral (ORC) Services'. Typically, these services would involve the provision of temporary or long-term housing, feeding, watering, and basic veterinary care for livestock, often wild horses or burros, that have been removed from public rangelands. The exact scope would be defined in the task order's statement of work, which is not available here. Understanding these specifics is crucial for evaluating the contract's true value and performance.

How does the $4.8 million contract value compare to historical spending on similar services by the BLM?

Without access to historical spending data for 'Off-Range Corral (ORC) Services' specifically, a direct comparison is not possible. However, the $4.8 million award over approximately 1.5 years suggests a significant and ongoing need for these services. The Bureau of Land Management manages large herds of wild horses and burros, requiring substantial resources for their care and management. This contract value should be assessed against the agency's overall budget for wild horse and burro management and the number of animals being supported.

What are the key performance indicators (KPIs) for this contract, and how is Simplot Livestock's performance being measured?

The provided contract data does not specify the Key Performance Indicators (KPIs) or the methods used to measure Simplot Livestock's performance. In a firm-fixed-price contract for corral services, KPIs would likely relate to animal health and welfare standards (e.g., mortality rates, veterinary care compliance), facility maintenance, feeding and watering protocols, and adherence to reporting requirements. The Bureau of Land Management would typically conduct regular inspections and reviews to ensure compliance with the contract's statement of work and performance standards.

What is the track record of Simplot Livestock Co. in performing similar government contracts?

The award of this $4.8 million contract to Simplot Livestock Co. by the Bureau of Land Management suggests they have a relevant track record and possess the capabilities to perform these services. However, a comprehensive assessment of their track record would require reviewing their past performance on similar federal contracts, including client feedback, any past performance issues, and their history with the Federal Awardee Performance and Integrity Information System (FAPIIS). Without this detailed history, it's difficult to definitively gauge their reliability.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks include challenges in maintaining animal health and welfare in a corral setting, potential cost overruns if the fixed price doesn't account for unforeseen veterinary needs or operational issues, and logistical challenges in managing livestock. Mitigation strategies would typically involve robust oversight by the BLM, clear performance standards in the contract, contingency planning for animal health emergencies, and potentially performance bonds. The firm-fixed-price nature itself is a risk mitigation for the government regarding cost certainty, assuming the scope is well-defined.

How does the 'Support Activities for Animal Production' category align with the Bureau of Land Management's overall mission?

Support Activities for Animal Production, particularly in the context of off-range corrals, directly aligns with the Bureau of Land Management's mission to manage wild horse and burro populations on public lands. The BLM is mandated to prevent overpopulation and resulting rangeland degradation. Removing excess animals and providing them with care in off-range facilities is a key component of their herd management strategy. This contract supports the BLM's efforts to balance livestock grazing, protect ecosystems, and ensure the welfare of wild equids.

Industry Classification

NAICS: Agriculture, Forestry, Fishing and Hunting › Support Activities for Animal Production › Support Activities for Animal Production

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: J. R. Simplot Company

Address: 1301 HWY 67, GRAND VIEW, ID, 83624

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

Financial Breakdown

Contract Ceiling: $4,797,714

Exercised Options: $4,797,714

Current Obligation: $4,797,714

Actual Outlays: $3,709,642

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140L0122D0001

IDV Type: IDC

Timeline