Agriculture's $18.6M mobile food services contract awarded to Big Sky Mobile Catering Corp

Contract Overview

Contract Amount: $18,629,332 ($18.6M)

Contractor: BIG SKY Mobile Catering Corp

Awarding Agency: Department of Agriculture

Start Date: 2005-06-15

End Date: 2009-12-31

Contract Duration: 1,660 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 25

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: NATIONAL MOBILE FOOD SERVICES

Place of Performance

Location: MISSOULA, MISSOULA County, MONTANA, 59802

State: Montana Government Spending

Plain-Language Summary

Department of Agriculture obligated $18.6 million to BIG SKY MOBILE CATERING CORP for work described as: NATIONAL MOBILE FOOD SERVICES Key points: 1. Contract value represents a significant investment in mobile food services for the Forest Service. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (1660 days) indicates a long-term need for these services. 4. The fixed-price with economic price adjustment structure aims to manage cost fluctuations. 5. The award to a single contractor suggests a focus on specialized capabilities or economies of scale. 6. The contract's geographic focus is Montana, impacting local service delivery and potentially workforce.

Value Assessment

Rating: fair

The total contract value of $18.6 million over approximately 4.5 years averages to about $4.1 million annually. Benchmarking this against similar large-scale mobile food service contracts is challenging without more specific service details. However, the fixed-price with economic price adjustment (EPA) clause suggests an attempt to balance cost certainty with market volatility. The absence of detailed performance metrics makes a definitive value-for-money assessment difficult, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while initial sources might have been considered, the final award was made after a broad solicitation. The presence of 25 bids suggests a robust level of competition, which typically drives down prices and encourages innovation. This level of competition is generally favorable for the government and taxpayers.

Taxpayer Impact: A competitive award process with 25 bidders generally leads to better pricing and service options for taxpayers, as contractors vie to offer the most attractive terms.

Public Impact

Provides essential food services to Forest Service personnel and potentially the public in Montana. Supports operations within the National Forest system, contributing to the overall mission of the agency. Impacts the local economy in Montana through employment and the utilization of local resources. Ensures the availability of food services during various operational periods, potentially including remote or temporary assignments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the economic price adjustment clause if market prices rise significantly.
Dependence on a single contractor for a critical service could pose risks if performance issues arise.
Limited transparency on specific performance metrics and quality control measures.

Positive Signals

Awarded through full and open competition with a substantial number of bids, indicating a competitive market.
The contract duration suggests a stable and predictable service provision.
The fixed-price element provides some level of cost control for the government.

Sector Analysis

The food services industry is vast, encompassing everything from small local eateries to large-scale contract catering. This contract falls within the government contracting segment of the food services sector, specifically focusing on mobile or temporary catering solutions. Government spending in this area supports agency operations, particularly in remote or field-based activities. Comparable spending benchmarks would depend heavily on the scale and specific requirements of the mobile food services provided, such as the number of people served, locations, and duration of service.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions (ss: false, sb: false). This suggests that the contract was not exclusively reserved for small businesses. While the prime contractor, Big Sky Mobile Catering Corp., is not explicitly identified as small or large, the scale of the contract might suggest a larger entity or a joint venture. There is no information provided on subcontracting plans, so the direct impact on the small business ecosystem is unclear, though large prime contracts can sometimes offer subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Agriculture's Forest Service contracting officers and program managers. Accountability measures would be defined in the contract's terms and conditions, including performance standards and payment schedules. Transparency is generally facilitated through contract award databases like FPDS, where basic information is publicly available. Further oversight might be provided by the agency's Inspector General if performance issues or potential fraud are suspected.

Related Government Programs

Food Services Contracts
Mobile Food Services
Catering Services
Department of Agriculture Contracts
Forest Service Operations Support

Risk Flags

Potential for cost escalation due to EPA clause.
Contractor performance dependency.
Lack of detailed performance metrics in award data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $18.6 million to BIG SKY MOBILE CATERING CORP. NATIONAL MOBILE FOOD SERVICES

Who is the contractor on this award?

The obligated recipient is BIG SKY MOBILE CATERING CORP.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $18.6 million.

What is the period of performance?

Start: 2005-06-15. End: 2009-12-31.

What is the track record of Big Sky Mobile Catering Corp. with federal contracts?

Information on Big Sky Mobile Catering Corp.'s specific track record with federal contracts is limited in the provided data. The data indicates this specific contract (ID: DCA) was awarded on June 15, 2005, and ended on December 31, 2009, with a total value of $18,629,331.70. To assess their broader track record, one would need to search federal procurement databases (like FPDS or SAM.gov) for other contracts awarded to this entity, examining their performance history, any past performance issues, and the types of services they have provided. Without this broader search, it's difficult to gauge their overall reliability and experience beyond this single large contract.

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

Directly comparing the awarded price of $18.6 million for mobile food services to specific market rates is challenging without detailed service scope and location specifics. The contract value averaged approximately $4.1 million per year over its 4.5-year duration. To benchmark this, one would need to identify comparable government or commercial contracts for large-scale mobile catering in similar geographic regions (Montana) and for similar operational contexts (e.g., supporting field operations). Factors like the number of meals served, service hours, menu complexity, and logistical support required significantly influence pricing. The fact that it was awarded under full and open competition with 25 bids suggests the price was likely competitive within the market for the defined scope.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential cost increases due to the 'economic price adjustment' (EPA) clause, which allows for price changes based on market fluctuations. If the cost of food, labor, or fuel rises significantly, the total cost to the government could exceed initial projections. Another risk is contractor performance; reliance on a single entity for essential food services means any disruption in service (e.g., equipment failure, staffing shortages, quality issues) could impact Forest Service operations. Finally, the long duration of the contract (1660 days) increases the exposure to these risks over time. Effective oversight and clear performance standards are crucial to mitigate these.

How effective was this contract in meeting the Forest Service's food service needs?

The provided data does not contain specific metrics to evaluate the effectiveness of this contract in meeting the Forest Service's food service needs. Effectiveness would typically be measured by factors such as service reliability, food quality, customer satisfaction (from Forest Service personnel), adherence to budget, and timely delivery. While the contract was completed, its success in fulfilling operational requirements is not detailed. Post-contract reviews or performance reports, if available, would be necessary to assess its effectiveness. The renewal or lack thereof, and the nature of any subsequent contracts, could also serve as indirect indicators.

What were the historical spending patterns for mobile food services by the Forest Service prior to this contract?

The provided data focuses solely on this specific contract and does not offer insights into historical spending patterns for mobile food services by the Forest Service prior to June 2005. To understand historical trends, one would need to analyze procurement data for previous years, identifying contracts for similar services awarded to the Forest Service or other relevant agencies. This analysis would reveal whether spending on mobile food services has been consistent, increasing, or decreasing, and whether this contract represented a significant shift in investment. Without access to that broader historical data, it's impossible to establish a spending pattern context for this $18.6 million award.

What is the significance of the 'economic price adjustment' (EPA) clause in this contract?

The 'economic price adjustment' (EPA) clause in this fixed-price contract is significant because it allows for modifications to the contract price based on changes in specified economic factors, such as labor costs, material costs (food ingredients), or transportation fuel. This clause is typically included in longer-term contracts to protect both the contractor and the government from unforeseen market volatility. For the contractor, it ensures that rising costs do not erode profit margins. For the government, it provides a mechanism to potentially benefit from price decreases while accepting the risk of price increases, aiming for a fair market price over the contract's life. The specific indices and caps governing the EPA would determine the extent of price adjustments.

Industry Classification

NAICS: Accommodation and Food Services › Special Food Services › Caterers

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCE CONSERVERVAT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: RFP490507

Offers Received: 25

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 135 W BROADWAY ST, MISSOULA, MT, 01

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $18,629,332

Exercised Options: $18,629,332

Current Obligation: $18,629,332

Timeline