DOJ's $5,000 grease trap pumping contract awarded to Farmers Union Industries, LLC for 90 days

Contract Overview

Contract Amount: $5,000 ($5.0K)

Contractor: Farmers Union Industries, LLC

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-06-30

Contract Duration: 90 days

Daily Burn Rate: $56/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 QTR 3 FCI SANDSTONE GREASE TRAP PUMPING 20,000 GALLONS FOR THE INSTITUTION FOOD SERVICE GREASE TRAP.

Place of Performance

Location: REDWOOD FALLS, REDWOOD County, MINNESOTA, 56283

State: Minnesota Government Spending

Plain-Language Summary

Department of Justice obligated $5,000 to FARMERS UNION INDUSTRIES, LLC for work described as: FY26 QTR 3 FCI SANDSTONE GREASE TRAP PUMPING 20,000 GALLONS FOR THE INSTITUTION FOOD SERVICE GREASE TRAP. Key points: 1. Value for money appears reasonable given the specialized nature of grease trap pumping and the short duration. 2. Competition dynamics indicate a potentially efficient procurement process under Simplified Acquisition Procedures (SAP). 3. Risk indicators are low due to the straightforward service and short performance period. 4. Performance context is limited to a specific facility maintenance need. 5. Sector positioning is within essential facility support services for federal institutions.

Value Assessment

Rating: good

The contract value of $5,000 for 20,000 gallons of grease trap pumping over 90 days seems appropriate for a specialized maintenance service. Without specific benchmarks for this exact service in federal facilities, it's difficult to provide a precise comparison. However, the fixed-price nature suggests a clear understanding of costs between the parties. The amount is relatively small, indicating a focused scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of quotes from pre-qualified vendors. While not a full and open competition, SAP is designed to ensure fair pricing for smaller procurements. The exact number of bidders is not specified, but the process aims for efficiency and cost-effectiveness for purchases below the SAT.

Taxpayer Impact: For taxpayers, limited competition under SAP generally means a balance between achieving a fair price and ensuring timely delivery of essential services without the administrative overhead of a large-scale competition.

Public Impact

The primary beneficiaries are the Federal Prison System / Bureau of Prisons, ensuring operational continuity of food service facilities. The service delivered is essential maintenance for grease trap pumping, preventing system clogs and environmental issues. The geographic impact is localized to the specific federal facility in Minnesota where the service is required. Workforce implications are minimal, likely involving a small, specialized crew from the contractor for the service duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future, similar procurements if competition remains limited.
Dependence on a single contractor for a critical, albeit short-term, service.

Positive Signals

Procurement under SAP suggests an effort to achieve efficiency for a relatively small dollar value.
Fixed-price contract provides cost certainty for the government.
Short contract duration limits long-term financial exposure and allows for re-evaluation of needs.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on facility maintenance and support. The market for specialized services like grease trap pumping is often fragmented, with local and regional providers. Federal spending in this area is typically driven by the operational needs of various agencies and their physical infrastructure, ensuring compliance with health and environmental regulations.

Small Business Impact

The data indicates this contract was competed under SAP and does not specify any small business set-aside. Given the small dollar value, it's possible small businesses participated, but there's no explicit indication of a set-aside. Subcontracting is unlikely for a service of this nature and duration. The impact on the small business ecosystem would depend on whether small businesses were solicited and awarded.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer's representative (COR) within the Bureau of Prisons, responsible for ensuring the service is performed according to the purchase order terms. Accountability is maintained through the fixed-price agreement and the potential for non-renewal or corrective action if performance is unsatisfactory. Transparency is limited by the SAP competition level, but the award itself is typically recorded in federal procurement databases.

Related Government Programs

Federal Facility Maintenance Contracts
Environmental Services Contracts
Bureau of Prisons Operational Support
Grease Trap Maintenance Services

Risk Flags

Potential for price escalation in future procurements due to limited competition.
Service interruption risk if follow-on contract is delayed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $5,000 to FARMERS UNION INDUSTRIES, LLC. FY26 QTR 3 FCI SANDSTONE GREASE TRAP PUMPING 20,000 GALLONS FOR THE INSTITUTION FOOD SERVICE GREASE TRAP.

Who is the contractor on this award?

The obligated recipient is FARMERS UNION INDUSTRIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $5,000.

What is the period of performance?

Start: 2026-04-01. End: 2026-06-30.

What is the typical cost range for 20,000 gallons of grease trap pumping for federal facilities?

Determining a precise 'typical' cost range for 20,000 gallons of grease trap pumping specifically for federal facilities is challenging without access to detailed historical data and regional cost variations. However, general industry estimates for commercial grease trap cleaning can range from $0.50 to $2.00 per gallon, depending on factors like location, accessibility, frequency of service, and the complexity of the system. For 20,000 gallons, this could translate to a broad range of $10,000 to $40,000. The $5,000 award for this contract suggests either a highly competitive bid, a more efficient process, a lower volume than the stated capacity, or potentially a lower per-gallon rate than typical commercial benchmarks, possibly due to the specific contract vehicle or the contractor's operational efficiencies within the federal system.

How does competition under Simplified Acquisition Procedures (SAP) typically affect pricing for services like grease trap pumping?

Simplified Acquisition Procedures (SAP) are designed for purchases below the Simplified Acquisition Threshold (SAT), currently $250,000. For procurements under SAP, agencies are generally required to obtain quotes from a reasonable number of qualified sources. This typically involves soliciting at least three quotes. While not as robust as full and open competition, this process generally fosters a degree of price competition, leading to prices that are fair and reasonable. For services like grease trap pumping, SAP aims to balance the need for competitive pricing with the administrative efficiency required for smaller dollar value contracts. The outcome is usually a price that reflects market rates, potentially with some savings due to the streamlined process, but less aggressive than what might be achieved in a larger, more widely advertised competition.

What are the potential risks associated with a short-duration, fixed-price contract for essential facility services?

Short-duration, fixed-price contracts for essential facility services, like grease trap pumping, present a few potential risks. Firstly, if the scope of work is underestimated or unforeseen issues arise during the short performance period, the contractor might incur losses, potentially leading to a desire to cut corners on service quality or future bids. Conversely, if the price is set too high due to a lack of competitive pressure or inaccurate estimation, the government may overpay for the service. For short durations, there's also a risk of service interruption if the follow-on contract is not awarded or executed promptly. Finally, the fixed-price nature might disincentivize the contractor from identifying more cost-effective or preventative solutions that could benefit the government in the long run, as their focus is on delivering the contracted service within the agreed price.

What is the track record of Farmers Union Industries, LLC in providing similar services to the federal government?

Information regarding the specific track record of Farmers Union Industries, LLC in providing grease trap pumping or similar facility maintenance services to the federal government is not readily available in the provided data. Federal procurement databases (like SAM.gov or FPDS) would typically contain records of past awards to this contractor. To assess their track record, one would need to search these databases for previous contracts, noting the types of services rendered, contract values, performance ratings (if available), and any history of disputes or contract terminations. Without this external data, it's impossible to evaluate their past performance or reliability for this specific service category.

How does the $5,000 contract value compare to the overall federal spending on facility maintenance and waste management?

The $5,000 contract value for grease trap pumping is a very small component of overall federal spending on facility maintenance and waste management. Federal agencies collectively spend billions of dollars annually on a wide array of facility support services, including HVAC maintenance, janitorial services, groundskeeping, pest control, and waste disposal. Specialized services like grease trap pumping, while critical for certain facilities (especially those with food service operations), represent a niche within this larger spending category. This specific contract's value is indicative of a localized, short-term need rather than a large-scale program. It is a micro-transaction within the vast landscape of federal facility operations budgets.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 220 PONDEROSA RD, REDWOOD FALLS, MN, 56283

Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,000

Exercised Options: $5,000

Current Obligation: $5,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline