USDA Forest Service Awards $25.5M Mobile Food Services Contract to R & G Food Services Inc

Contract Overview

Contract Amount: $25,485,125 ($25.5M)

Contractor: R & G Food Services Inc

Awarding Agency: Department of Agriculture

Start Date: 2010-01-01

End Date: 2014-12-31

Contract Duration: 1,825 days

Daily Burn Rate: $14.0K/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: TUCSON, PIMA County, ARIZONA, 85705

State: Arizona Government Spending

Plain-Language Summary

Department of Agriculture obligated $25.5 million to R & G FOOD SERVICES INC for work described as: NATIONAL MOBILE FOOD SERVICES Key points: 1. Contract value of $25.5 million over 5 years. 2. Awarded via full and open competition after exclusion of sources. 3. Fixed Price with Economic Price Adjustment contract type. 4. Services provided in Arizona. 5. No small business participation noted.

Value Assessment

Rating: fair

The contract value of $25.5 million over five years suggests a significant investment in mobile food services. Benchmarking against similar contracts is difficult without more specific service details, but the fixed-price structure with economic adjustments aims to manage cost fluctuations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources,' indicating a competitive process but with specific limitations. This method might impact price discovery by potentially narrowing the pool of eligible bidders compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayers are impacted through the funding of these mobile food services, with the fixed-price with economic adjustment clause designed to mitigate cost overruns due to market changes.

Public Impact

Provides essential food services in remote or temporary locations for Forest Service personnel and potentially the public. Supports operational readiness and morale for those working in national forests. The economic price adjustment clause could lead to increased costs if inflation rises significantly.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation.
Potential for cost increases due to economic price adjustment.
Limited competition noted in the award method.

Positive Signals

Awarded through a competitive process.
Provides essential services to support agency operations.

Sector Analysis

The Food Service Contractors sector (NAICS 722310) encompasses businesses providing food services at various locations. Spending in this sector can vary widely based on agency needs, location, and contract duration. This contract represents a substantial investment for mobile food services within the Forest Service.

Small Business Impact

The contract data indicates no small business participation (ss: false, sb: false). This suggests that the prime contractor is likely a large business, and there is an opportunity to assess if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

The contract was awarded by the Department of Agriculture's Forest Service. Oversight would involve monitoring contract performance, adherence to terms, and financial expenditures to ensure value for taxpayer money.

Related Government Programs

Food Service Contractors
Department of Agriculture Contracting
Forest Service Programs

Risk Flags

Limited competition due to source exclusion.
Potential for cost escalation via economic price adjustment.
No small business participation identified.
Contract duration of 5 years is substantial.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $25.5 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 $25.5 million.

What is the period of performance?

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

What specific mobile food services are provided under this contract, and how do they align with the Forest Service's operational needs?

The contract details do not specify the exact nature of the mobile food services. However, given the Forest Service context, these likely include catering, food truck operations, or temporary food concessions at remote sites, fire camps, or public events. The alignment with operational needs would depend on the strategic placement and service hours to support personnel and visitors effectively.

How did the 'exclusion of sources' in the competition process impact the final price and service quality?

The 'exclusion of sources' implies that certain types of potential bidders were not allowed to compete, possibly due to specific requirements or prior relationships. This limitation could have reduced the number of competitive offers, potentially leading to a higher price than if all sources were included. It also raises questions about whether the most innovative or cost-effective solutions were considered.

What is the projected impact of the economic price adjustment clause on the total contract cost over its duration?

The economic price adjustment (EPA) clause allows for changes in contract price based on fluctuations in economic factors like labor or material costs. Without specific EPA indices or historical inflation data for Arizona, it's difficult to quantify the exact impact. However, in periods of high inflation, the EPA could significantly increase the total contract cost beyond the initial fixed-price estimate.

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: 1687 W PRINCE RD STE 151, TUCSON, AZ, 85705

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $25,485,125

Exercised Options: $25,485,125

Current Obligation: $25,485,125

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline