Agriculture Department's $10.9M mobile food services contract awarded to Cattlemen's Meat Company in Montana

Contract Overview

Contract Amount: $10,895,717 ($10.9M)

Contractor: Cattlemen's Meat Company

Awarding Agency: Department of Agriculture

Start Date: 2005-06-15

End Date: 2009-12-31

Contract Duration: 1,660 days

Daily Burn Rate: $6.6K/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: CUT BANK, GLACIER County, MONTANA, 59427

State: Montana Government Spending

Plain-Language Summary

Department of Agriculture obligated $10.9 million to CATTLEMEN'S MEAT COMPANY for work described as: NATIONAL MOBILE FOOD SERVICES Key points: 1. Contract value appears reasonable given the duration and scope of mobile food services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Fixed price with economic price adjustment indicates potential for cost fluctuations. 4. Contract duration of 1660 days (approx. 4.5 years) suggests a long-term need. 5. The North American Industry Classification System (NAICS) code 722320 points to a specific catering service sector. 6. The contract was awarded in 2005, providing historical context for current spending.

Value Assessment

Rating: good

The contract value of approximately $10.9 million over 1660 days averages to roughly $6,564 per day. This daily rate for mobile food services, especially for a government agency like the Forest Service, seems within a reasonable range, considering factors like staffing, food costs, equipment, and logistical support. Without specific benchmarks for government mobile food services in Montana during that period, a direct comparison is difficult, but the overall value does not immediately suggest overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was broad, there might have been specific exclusions or justifications for not considering all potential sources initially. However, the 'full and open' designation generally suggests a robust bidding process where multiple vendors had the opportunity to compete. The number of bidders is not specified, but this method aims to achieve fair market pricing.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it encourages multiple vendors to submit bids, driving down prices and ensuring the government receives competitive offers.

Public Impact

Federal employees and potentially the public in Forest Service operational areas in Montana benefited from catering services. The contract provided essential food services, likely supporting field operations, events, or remote work locations. Geographic impact is concentrated in Montana, where the Forest Service operates. The contract supported jobs within the food service industry, specifically for Cattlemen's Meat Company and its employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause introduces potential for cost increases beyond initial projections.
The contract's age (awarded 2005) means current market conditions and pricing may differ significantly.
Lack of specific details on competition level (number of bidders) limits a full assessment of price discovery.

Positive Signals

Awarded through full and open competition, indicating a structured and potentially cost-effective procurement.
The contract duration suggests a stable, long-term requirement met by a single award.
The vendor, Cattlemen's Meat Company, likely has experience in food services, implied by the contract award.

Sector Analysis

The food services sector, particularly catering, is a significant part of the broader services industry. Government contracts for food services are common, supporting various agencies and their operational needs, from military bases to national parks and administrative offices. The market size for government catering is substantial, with numerous companies vying for these contracts. This specific contract fits within the niche of mobile food services, which requires specialized logistics and equipment compared to fixed-site catering.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, Cattlemen's Meat Company, was awarded the full contract, and any subcontracting would be at their discretion, not mandated by a small business set-aside.

Oversight & Accountability

Oversight for this contract would have been managed by the U.S. Department of Agriculture's Forest Service contracting officers and program managers. Accountability measures would include adherence to contract terms, service level agreements, and financial reporting. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Food Service Contracts
Department of Agriculture Procurement
Forest Service Operational Support
Mobile Food Services Industry
Government Catering Services

Risk Flags

Economic Price Adjustment Clause
Historical Contract Data
Limited Competition Details

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $10.9 million to CATTLEMEN'S MEAT COMPANY. NATIONAL MOBILE FOOD SERVICES

Who is the contractor on this award?

The obligated recipient is CATTLEMEN'S MEAT COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $10.9 million.

What is the period of performance?

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

What was the specific nature of the mobile food services provided under this contract?

The contract, awarded to Cattlemen's Meat Company, was for 'NATIONAL MOBILE FOOD SERVICES.' While the exact nature of these services isn't detailed in the provided data, it typically encompasses providing prepared food and beverages via mobile units (like food trucks or temporary catering setups) to support government personnel. This could include catering for events, providing meals at remote work sites, or supporting specific Forest Service operations in areas lacking permanent food facilities. The NAICS code 722320, 'Caterers,' further specifies the industry focus on preparing and serving food at a location other than the place of preparation.

How does the contract's value compare to similar mobile food service contracts awarded by the government around the same period?

Comparing the contract's total value of $10.9 million over approximately 4.5 years (1660 days) requires detailed benchmarking against similar government mobile food service contracts from 2005-2009. The average daily cost of roughly $6,564 is a starting point. However, without data on the scale of operations (e.g., number of people served daily, specific locations, types of meals), the complexity of logistics, and the specific contract terms (like the economic price adjustment), a precise comparison is challenging. Generally, government contracts aim for competitive pricing, and the 'full and open competition' suggests an effort to achieve this. However, specific market rates for mobile catering in Montana during that era would be needed for a definitive value assessment.

What are the potential risks associated with the 'Fixed Price with Economic Price Adjustment' contract type?

The 'Fixed Price with Economic Price Adjustment' (FP-EPA) contract type introduces a degree of risk for both the government and the contractor. For the government, the primary risk is that the contract price could increase over time due to fluctuations in specified economic factors, such as labor costs, material costs (like food ingredients), or fuel prices. While the base price is fixed, the economic price adjustment allows for upward revisions, potentially leading to higher overall spending than initially budgeted. For the contractor, the risk is mitigated as they are protected against unforeseen cost increases in key economic variables. However, the contractor still bears the risk of managing costs within the fixed portion and ensuring the economic adjustments accurately reflect market changes.

What does the contract award date (2005) imply about its relevance to current federal spending analysis?

The award date of 2005 means this contract is historical data. While it provides insight into past procurement practices, vendor performance, and spending patterns of the Forest Service for mobile food services, it is not directly representative of current federal spending. Economic conditions, market prices for food and labor, technology, and government contracting regulations have evolved significantly since 2005. Therefore, using this contract's value or terms to predict or evaluate current spending would be misleading without substantial adjustments for inflation, market changes, and policy shifts. It serves as a baseline for historical analysis rather than a benchmark for contemporary fiscal assessment.

How did the 'Full and Open Competition After Exclusion of Sources' method impact the bidding process and potential pricing?

The procurement method 'Full and Open Competition After Exclusion of Sources' indicates that the Forest Service intended to solicit offers from all responsible sources, but specific sources were excluded for documented reasons. This suggests a deliberate narrowing of the potential bidder pool, perhaps due to specific technical requirements, past performance issues with certain vendors, or national security considerations. While 'full and open' aims for broad competition, the 'exclusion of sources' implies that the number of actual bidders might have been less than in a purely unrestricted full and open competition. This could potentially impact price discovery, as fewer bidders might lead to less aggressive pricing compared to a scenario where all possible vendors were included. The justification for exclusion is critical to understanding the extent of competition achieved.

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: 102 SOUTH CENTRAL AVENUE, CUT BANK, MT, 01

Business Categories: Category Business, HUBZone Firm, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $10,895,717

Exercised Options: $10,895,717

Current Obligation: $10,895,717

Timeline