Forest Service awarded $19.2M to FOR STARS EXPRESS, INC. for mobile food services in California

Contract Overview

Contract Amount: $19,240,704 ($19.2M)

Contractor: FOR Stars Express, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2005-06-15

End Date: 2009-12-31

Contract Duration: 1,660 days

Daily Burn Rate: $11.6K/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: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $19.2 million to FOR STARS EXPRESS, INC. for work described as: NATIONAL MOBILE FOOD SERVICES Key points: 1. Contract value of $19.2M over 5 years suggests a significant need for catering services. 2. Full and open competition indicates a potentially competitive bidding process. 3. Fixed Price with Economic Price Adjustment contract type introduces some pricing risk. 4. The contract duration of 1660 days (approx. 4.5 years) is substantial. 5. Services are geographically focused on California. 6. The North American Industry Classification System (NAICS) code 722320 points to a specific catering niche.

Value Assessment

Rating: fair

The contract value of $19.2M over approximately 4.5 years averages to about $4.27M annually. Benchmarking this against similar large-scale mobile food service contracts is difficult without more specific service details. However, the fixed-price nature with economic adjustments suggests an attempt to control costs while accounting for market fluctuations. The number of offers received (25) indicates a degree of market interest, but the final price relative to estimated costs is not provided.

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,' suggesting that while the competition was broad, there might have been specific reasons for excluding certain sources initially. With 25 offers received, the competition level appears robust, which typically aids in price discovery and can lead to more favorable pricing for the government. The agency's choice of this procurement method implies confidence in achieving a fair market price through a competitive process.

Taxpayer Impact: A high level of competition generally benefits taxpayers by driving down prices and encouraging innovative solutions. The 25 offers suggest that multiple companies vied for this contract, increasing the likelihood that the government secured a competitive rate for the mobile food services.

Public Impact

Benefits federal employees and potentially visitors in areas served by the Forest Service in California. Provides essential catering and food services, likely in remote or operational locations. Geographic impact is concentrated within California. Supports jobs within the food service industry, particularly for the awarded contractor and its suppliers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause could lead to cost overruns if market prices increase significantly.
The fixed-price nature may limit flexibility if service requirements change substantially during the contract period.
Reliance on a single contractor for a large geographic area could pose logistical challenges if performance falters.

Positive Signals

Full and open competition suggests a fair market approach and potential for competitive pricing.
A substantial number of offers (25) indicates strong market interest and a healthy competitive landscape.
The contract duration provides stability for service delivery and contractor planning.

Sector Analysis

The food service industry, particularly catering (NAICS 722320), is a significant sector. Federal contracts for such services often support agency operations in diverse locations, including remote areas where commercial options are limited. This contract fits within the broader category of support services for government agencies, ensuring personnel are provisioned. Comparable spending benchmarks would depend on the scale and specific nature of the mobile food services provided.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if FOR STARS EXPRESS, INC. chooses to engage them. Without specific subcontracting plans, the direct benefit to the small business ecosystem from this particular award is not immediately apparent.

Oversight & Accountability

Oversight would typically be managed by the Forest Service contracting officer and contract specialists. Performance monitoring, quality assurance checks, and invoice reviews are standard accountability measures. Transparency is facilitated by public contract databases, though detailed performance reports are not always publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Food Service Contracts
Forest Service Operational Support
Mobile Catering Services
Government Food Procurement

Risk Flags

Potential for cost increases due to economic price adjustment.
Performance risk associated with a large-scale service contract.
Dependency on a single contractor for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $19.2 million to FOR STARS EXPRESS, INC.. NATIONAL MOBILE FOOD SERVICES

Who is the contractor on this award?

The obligated recipient is FOR STARS EXPRESS, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $19.2 million.

What is the period of performance?

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

What is the track record of FOR STARS EXPRESS, INC. with federal contracts?

Information on FOR STARS EXPRESS, INC.'s specific track record with federal contracts is limited based solely on the provided data. The data indicates this is a significant award for them, valued at $19.2M. To assess their track record thoroughly, one would need to examine their past performance on other federal contracts, including any awards, terminations, or disputes. A review of contract databases like SAM.gov or FPDS would reveal their history, including on-time delivery, quality of service, and compliance with contract terms. Without this broader context, it's difficult to definitively assess their reliability and past performance.

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

Directly comparing the awarded price of $19.2M to market rates for similar mobile food services is challenging without detailed specifications of the services rendered (e.g., number of meals, types of cuisine, service locations, duration of service). The contract value averages approximately $4.27M annually. To benchmark effectively, one would need to identify comparable contracts awarded by other federal agencies or state/local governments for large-scale mobile catering in similar operational environments. Factors such as labor costs, food costs, transportation, and overhead in California would influence market rates. The presence of 25 offers suggests competitive pricing was sought, but the actual value-for-money requires a deeper analysis of service scope and prevailing market conditions.

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' clause, which allows for price changes based on market fluctuations in food and labor costs. There's also a risk of performance issues if the contractor, FOR STARS EXPRESS, INC., fails to meet service delivery standards across the specified geographic area in California. Given the fixed-price nature (before adjustments), scope creep or unforeseen operational challenges could strain the contractor's profitability or lead to quality compromises. Finally, reliance on a single vendor for a large-scale service introduces dependency risk; if the contractor experiences significant disruptions, service continuity could be impacted.

How effective is the Forest Service in managing large catering contracts?

The effectiveness of the Forest Service in managing large catering contracts like this one is not directly ascertainable from the provided data. Effectiveness would be measured by factors such as the contractor's consistent performance, adherence to budget, timely delivery of services, and overall satisfaction with the food quality and service. Standard government oversight mechanisms, including contract performance monitoring, quality assurance surveillance plans, and regular reporting, are expected to be in place. The Forest Service's ability to manage this contract effectively would depend on the diligence of its contracting officers and program managers in overseeing FOR STARS EXPRESS, INC.'s operations and enforcing contract terms.

What are the historical spending patterns for mobile food services by the Forest Service?

Historical spending patterns for mobile food services by the Forest Service are not detailed in the provided data. This $19.2M contract represents a significant single award. To understand historical patterns, one would need to analyze aggregate spending data for similar services (NAICS 722320 or related codes) over multiple fiscal years. This analysis would reveal trends in contract values, number of awards, types of contractors used, and geographic distribution of spending. Such a review could indicate whether this contract is an anomaly, part of a growing trend, or consistent with past procurement strategies for essential support services.

What is the significance of the 'Full and Open Competition After Exclusion of Sources' procurement method?

The 'Full and Open Competition After Exclusion of Sources' method signifies that the agency initially considered excluding certain sources but ultimately opened the competition to all responsible sources. This approach is often used when there's a need to ensure broad market participation while potentially addressing specific requirements or past performance issues that might limit the pool of eligible bidders initially. The fact that it progressed to full and open competition with 25 offers suggests that the initial exclusions did not unduly restrict the market and that a competitive environment was successfully established, aiming to achieve the best value for the government.

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: 223 CALIFORNIA ST, EL SEGUNDO, CA, 36

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $19,240,704

Exercised Options: $19,240,704

Current Obligation: $19,240,704

Timeline