USDA's $16.7M food service contract awarded to Stewart's Firefighter Food Catering, Inc. for 5 years

Contract Overview

Contract Amount: $16,716,677 ($16.7M)

Contractor: Stewart's Firefighter Food Catering, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2010-01-01

End Date: 2014-12-31

Contract Duration: 1,825 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 21

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: NATIONAL MOBILE FOOD SERVICES

Place of Performance

Location: REDMOND, DESCHUTES County, OREGON, 97756

State: Oregon Government Spending

Plain-Language Summary

Department of Agriculture obligated $16.7 million to STEWART'S FIREFIGHTER FOOD CATERING, INC. 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. The contract type (Fixed Price with Economic Price Adjustment) introduces some inflation risk. 4. Performance occurred over a 5-year period, allowing for assessment of sustained service delivery. 5. This contract falls within the broader food service industry supporting federal operations.

Value Assessment

Rating: good

The total contract value of $16.7 million over five years averages to approximately $3.34 million per year. This figure seems within a reasonable range for comprehensive mobile food services, especially considering potential operational complexities like remote locations or specialized dietary needs. Benchmarking against similar large-scale federal food service contracts would provide a more precise value-for-money assessment, but the annual average does not immediately raise significant concerns.

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 the initial exclusion of certain sources might have occurred, the final award was made through a broad competitive process. The presence of 21 bids suggests a healthy level of competition, which typically drives down prices and encourages better service offerings. This broad competition is a positive indicator for price discovery and achieving fair market value.

Taxpayer Impact: The robust competition for this contract likely resulted in taxpayer savings by ensuring that the government received competitive pricing for the food services provided.

Public Impact

Federal employees and potentially other authorized personnel in the serviced areas benefited from consistent access to food services. The contract facilitated the delivery of mobile food services, likely supporting operations in various locations. The geographic impact is primarily focused on Oregon, as indicated by the 'SN' field. The contract supported jobs within the food service industry, contributing to the local economy in Oregon.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases due to the 'Economic Price Adjustment' clause, which could impact budget predictability.
The 'Definitive Contract' type, while common, can sometimes be less flexible than other contract types if needs change significantly.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process and potential for competitive pricing.
A significant number of bids (21) suggests strong market interest and a competitive environment.
The contract duration of 5 years allowed for sustained service delivery and potential for building a reliable vendor relationship.

Sector Analysis

The food service industry is a large and diverse sector, encompassing a wide range of businesses from small local caterers to large multinational corporations. Federal contracts for food services are common, supporting military bases, government agencies, national parks, and other public facilities. This specific contract, valued at $16.7 million over five years, represents a significant procurement within the broader food service sector, likely serving a substantial number of individuals. Comparable spending benchmarks would involve looking at other large federal food service contracts, particularly those for mobile or remote operations.

Small Business Impact

The provided data does not indicate whether this contract included specific small business set-asides or subcontracting requirements. The fact that it was awarded under 'Full and Open Competition' suggests that small businesses were eligible to bid, but it does not confirm if they were specifically targeted or successful. Further analysis would be needed to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the Department of Agriculture's Forest Service. Accountability measures would be embedded in the contract terms, including performance standards, delivery schedules, and quality requirements. 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
Mobile Food Services
Department of Agriculture Procurement
Forest Service Operations Support
Catering Services

Risk Flags

Potential for cost overruns due to economic price adjustment clause.
Need for detailed performance review to ensure value for money was achieved.
Lack of specific small business participation data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $16.7 million to STEWART'S FIREFIGHTER FOOD CATERING, INC.. NATIONAL MOBILE FOOD SERVICES

Who is the contractor on this award?

The obligated recipient is STEWART'S FIREFIGHTER FOOD CATERING, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $16.7 million.

What is the period of performance?

Start: 2010-01-01. End: 2014-12-31.

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

The contract primarily involved providing mobile food services, which typically entails preparing and serving meals in temporary or remote locations. Given the award to 'STEWART'S FIREFIGHTER FOOD CATERING, INC.', it is highly probable that these services were intended to support personnel working in the field, such as firefighters during wildfire suppression efforts or other Forest Service personnel engaged in remote operations. The services likely included meal planning, food preparation, transportation of food and equipment, and serving meals, potentially catering to specific dietary needs and ensuring food safety standards were met in challenging environments.

How does the average annual cost of this contract compare to similar federal food service contracts?

The average annual cost of this contract was approximately $3.34 million ($16.7 million / 5 years). To benchmark this effectively, one would need to compare it with other federal contracts for mobile food services or large-scale catering operations supporting agencies with similar operational footprints, such as the Department of the Interior or the Department of Defense. Factors like geographic scope, number of personnel served, duration of service, and specific service requirements (e.g., specialized dietary accommodations, remote site support) heavily influence cost. Without direct comparisons of contracts with identical parameters, it's difficult to definitively state if $3.34 million annually is high or low, but it appears to be within a plausible range for significant federal food service operations.

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

The 'Fixed Price with Economic Price Adjustment' (FPEPA) contract type introduces a degree of risk related to fluctuating costs of goods and labor. While the base price is fixed, the economic price adjustment clause allows for modifications to the contract price based on changes in specific economic indicators, such as the Consumer Price Index (CPI) or industry-specific cost indices for food and labor. For taxpayers, this means the final cost could exceed the initially anticipated fixed price if inflation is high. For the government, it mitigates the risk of the contractor being unable to fulfill the contract due to unforeseen cost increases, which could lead to contract termination or disputes. The Forest Service would need robust monitoring to ensure adjustments are justified and accurately calculated.

What does the number of bidders (21) suggest about the market for federal mobile food services?

The fact that 21 bids were received for this contract strongly suggests a competitive and active market for federal mobile food services, at least within the geographic region or operational scope relevant to this procurement. A high number of bidders typically indicates that multiple companies possess the capability and interest to perform such services for the government. This level of competition is generally favorable for the government, as it increases the likelihood of receiving competitive pricing, innovative solutions, and high-quality service offerings. It also suggests that barriers to entry for qualified firms may not be excessively high, allowing a diverse range of contractors to participate.

Were there any specific performance issues or successes documented during the contract's execution?

The provided summary data does not contain specific details regarding the performance outcomes, successes, or issues encountered during the execution of this contract from 2010 to 2014. A thorough assessment of performance would require reviewing contract performance reports, customer satisfaction surveys, any documented disputes or claims, and potentially reports from the agency's program managers or contracting officers. Without access to these internal documents or post-award performance evaluations, it is impossible to comment on the contractor's track record for this specific engagement.

How does this contract's duration and value compare to the typical lifecycle of federal food service contracts?

This contract, valued at $16.7 million over five years (1825 days), falls within a common range for significant federal service contracts. Five-year terms are frequently used for service contracts to allow for stable service delivery and contractor investment, while also providing the government periodic opportunities to re-evaluate its needs and the market. The total value is substantial, indicating a large-scale requirement. Many federal food service contracts can range from shorter durations (1-3 years) for smaller needs to multi-year contracts with option periods extending beyond five years for very large or critical operations. This particular contract appears to represent a moderately long-term, high-value commitment.

Industry Classification

NAICS: Accommodation and Food Services › Special Food Services › Food Service Contractors

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: AG-024B-S-07-9001

Offers Received: 21

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

Evaluated Preference: NONE

Contractor Details

Address: 1600 N FOURTH ST, LAKEVIEW, OR, 97630

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,716,677

Exercised Options: $16,716,677

Current Obligation: $16,716,677

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline