USDA's $14.7M Food Services Contract Awarded to R & G Food Services Inc. Amidst Full and Open Competition

Contract Overview

Contract Amount: $14,699,677 ($14.7M)

Contractor: R & G Food Services Inc

Awarding Agency: Department of Agriculture

Start Date: 2006-02-14

End Date: 2009-12-31

Contract Duration: 1,416 days

Daily Burn Rate: $10.4K/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: TUCSON, PIMA County, ARIZONA, 85705

State: Arizona Government Spending

Plain-Language Summary

Department of Agriculture obligated $14.7 million to R & G FOOD SERVICES INC for work described as: NATIONAL MOBILE FOOD SERVICES Key points: 1. The contract value of $14.7 million over its period of performance represents a significant investment in catering services. 2. R & G Food Services Inc. secured this contract through full and open competition, indicating a competitive bidding process. 3. The fixed-price with economic price adjustment structure introduces potential cost escalation risks for the government. 4. The sector is primarily food services, supporting agency operations and personnel.

Value Assessment

Rating: fair

The contract value of $14.7 million over 1416 days suggests a moderate daily rate for catering services. Without specific per-meal or per-person cost data, a direct comparison to industry benchmarks is challenging, but the overall value seems aligned with large-scale federal food service needs.

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,' indicating that while competition was sought, specific sources may have been excluded initially. This method aims for competitive pricing but the exclusion clause warrants scrutiny.

Taxpayer Impact: The competitive bidding process is intended to secure the best value for taxpayers. However, the economic price adjustment clause could lead to increased costs over the contract's duration.

Public Impact

Ensures essential food services are provided to support USDA operations, potentially impacting employee morale and productivity. The contract supports a private sector company, contributing to employment and economic activity within the food service industry. Transparency in the bidding process is crucial for public trust and ensuring taxpayer funds are used efficiently.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause may lead to cost overruns.
Exclusion of sources in competition could limit optimal pricing.
Lack of detailed cost breakdown makes value assessment difficult.

Positive Signals

Awarded through full and open competition.
Supports essential agency functions.
Contract duration provides stability for service provider.

Sector Analysis

The food services sector within the federal government is substantial, encompassing a wide range of needs from institutional cafeterias to event catering. Benchmarks for such contracts vary widely based on scope, location, and service level, but large contracts like this typically undergo rigorous review.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false, sb: false). Therefore, there is no direct benefit to small businesses through this specific award, and opportunities for subcontracting are not explicitly detailed.

Oversight & Accountability

Oversight would typically involve contract performance monitoring by the Forest Service to ensure service quality and adherence to terms. The 'Economic Price Adjustment' clause necessitates careful monitoring to prevent unwarranted price increases.

Related Government Programs

Caterers
Department of Agriculture Contracting
Forest Service Programs

Risk Flags

Potential for cost overruns due to EPA clause.
Limited transparency on source exclusion rationale.
Lack of detailed cost breakdown for value assessment.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $14.7 million to R & G FOOD SERVICES INC. NATIONAL MOBILE FOOD SERVICES

Who is the contractor on this award?

The obligated recipient is R & G FOOD SERVICES INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $14.7 million.

What is the period of performance?

Start: 2006-02-14. End: 2009-12-31.

What specific services are included under 'NATIONAL MOBILE FOOD SERVICES' and how do they align with the Forest Service's operational needs?

The term 'NATIONAL MOBILE FOOD SERVICES' likely encompasses catering and food provision for various Forest Service activities, potentially including remote field operations, training exercises, or special events. The mobile aspect suggests flexibility in deployment. Understanding the specific types of meals, service hours, and locations is crucial to assess if the contracted services directly support the agency's mission and operational tempo effectively.

How does the 'Economic Price Adjustment' clause impact the total cost and taxpayer exposure, given the contract's duration?

The Economic Price Adjustment (EPA) clause allows for modifications to the contract price based on fluctuations in specified economic factors, such as labor costs or material prices. Over a 1416-day period, these adjustments can significantly increase the total contract cost beyond the initial estimate. Rigorous monitoring and clear definitions of trigger events for EPA are essential to mitigate taxpayer exposure to uncontrolled inflation.

What was the rationale for 'EXCLUSION OF SOURCES' in the competition, and did it result in a competitive price?

The exclusion of certain sources during the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process suggests that specific vendors or types of vendors were deemed ineligible or unsuitable for reasons outlined in the solicitation. While the intent is to ensure qualified bidders, this exclusion could potentially limit the number of competitive offers received, possibly impacting the final price achieved. A review of the justification for exclusion is needed to confirm it did not unduly restrict competition.

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: RFP 49-05-07

Offers Received: 25

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

Evaluated Preference: NONE

Contractor Details

Address: 24 E FLORES ST, TUCSON, AZ, 90

Business Categories: Category Business, Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $14,699,677

Exercised Options: $14,699,677

Current Obligation: $14,699,677

Timeline