Coast Guard awards $645K contract for dining and lodging services to Bluewater Management Group LLC

Contract Overview

Contract Amount: $645,359 ($645.4K)

Contractor: Bluewater Management Group LLC

Awarding Agency: Department of Homeland Security

Start Date: 2026-03-11

End Date: 2026-05-15

Contract Duration: 65 days

Daily Burn Rate: $9.9K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DINING AND LODGING: USCGC ALERT FY26 D&L

Place of Performance

Location: BROOKLYN, KINGS County, NEW YORK, 11217

State: New York Government Spending

Plain-Language Summary

Department of Homeland Security obligated $645,359 to BLUEWATER MANAGEMENT GROUP LLC for work described as: DINING AND LODGING: USCGC ALERT FY26 D&L Key points: 1. Contract awarded for essential support services, indicating a need for consistent operational readiness. 2. The contract duration is relatively short, suggesting a need for immediate or temporary services. 3. Awarded under Simplified Acquisition Procedures (SAP), implying a focus on efficiency for smaller procurements. 4. The fixed-price nature of the contract helps to control costs and provides predictability. 5. The specific NAICS code points to a niche service within the hospitality sector.

Value Assessment

Rating: good

The contract value of $645,359 for a 65-day period appears reasonable for specialized dining and lodging services, especially considering potential logistical complexities for a Coast Guard asset like the USCGC ALERT. Benchmarking against similar short-term, high-demand support contracts for government vessels or remote operations would be necessary for a definitive value assessment. However, the absence of extensive performance history for this specific awardee in public databases suggests a need for careful monitoring of service delivery and cost adherence.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for more streamlined competition among a smaller pool of vendors, often for procurements under the micro-purchase threshold or for specific circumstances. While not a full and open competition, SAP aims to foster competition where feasible. The specific number of bidders is not detailed, but the use of SAP suggests that the competition may have been limited to pre-qualified vendors or those responding to a specific solicitation.

Taxpayer Impact: For taxpayers, limited competition under SAP can sometimes lead to slightly higher prices than a broad, full-and-open competition, but it also ensures that the government can procure necessary services efficiently and quickly, avoiding potential delays that could be more costly in the long run.

Public Impact

Service members aboard the USCGC ALERT will benefit from reliable dining and lodging facilities, enhancing morale and operational effectiveness. The contract ensures the provision of essential life support services, crucial for maintaining the readiness of a deployed Coast Guard cutter. The services will be delivered in New York, supporting local economic activity through the contractor's operations. This contract indirectly supports the Coast Guard's maritime security and law enforcement missions by ensuring personnel are well-supported.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP may not have yielded the absolute lowest price.
Short contract duration could indicate potential for future, larger contracts with this vendor, requiring ongoing performance scrutiny.
Lack of extensive public performance data for Bluewater Management Group LLC necessitates close oversight.

Positive Signals

Awarded under a streamlined process (SAP) for efficiency.
Fixed-price contract provides cost certainty.
Contract supports critical operational needs of the U.S. Coast Guard.

Sector Analysis

This contract falls within the broader hospitality and support services sector, specifically catering to government and institutional clients. The market for such services is competitive, with numerous providers capable of offering specialized lodging and dining. Government contracts in this space often require adherence to strict regulations and quality standards. The value of this specific award is modest within the context of overall federal spending on support services, but it represents a critical component of operational readiness for the Coast Guard.

Small Business Impact

The contract was not set aside for small businesses, nor is there an indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary awardee, Bluewater Management Group LLC, is likely not a small business, or if it is, the contract was not specifically designated as a small business set-aside. The impact on the small business ecosystem is therefore minimal for this particular award, though larger prime contractors often utilize small businesses for subcontracting opportunities on subsequent, larger contracts.

Oversight & Accountability

Oversight for this contract will primarily reside with the U.S. Coast Guard contracting officers and program managers responsible for the USCGC ALERT's operations. Standard contract administration procedures will be followed to ensure compliance with terms and conditions. Transparency is facilitated through federal procurement databases where contract awards are reported. While no specific Inspector General jurisdiction is mentioned, the Department of Homeland Security's Office of Inspector General would have oversight authority over potential fraud, waste, or abuse related to this contract.

Related Government Programs

USCG Operational Support Contracts
Federal Hospitality Services
Maritime Support Services
Government Lodging Contracts

Risk Flags

Limited competition
Potential performance risk due to limited contractor history
Short contract duration may indicate urgency or temporary need

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $645,359 to BLUEWATER MANAGEMENT GROUP LLC. DINING AND LODGING: USCGC ALERT FY26 D&L

Who is the contractor on this award?

The obligated recipient is BLUEWATER MANAGEMENT GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $645,359.

What is the period of performance?

Start: 2026-03-11. End: 2026-05-15.

What is the track record of Bluewater Management Group LLC in performing similar government contracts?

Publicly available data on Bluewater Management Group LLC's track record with government contracts is limited. While they have been awarded this specific contract by the U.S. Coast Guard, further investigation into their past performance on similar federal, state, or local contracts would be necessary for a comprehensive assessment. This includes reviewing past performance evaluations, any documented disputes or contract terminations, and the scope and value of previous awards. A lack of extensive historical data might indicate a newer entrant into the federal contracting space or a focus on specific niches not widely publicized. The Coast Guard's internal performance metrics and feedback will be crucial for evaluating this awardee's suitability.

How does the awarded price compare to market rates for similar dining and lodging services?

Benchmarking the $645,359 award for a 65-day period requires detailed analysis of comparable services. Factors such as location (New York), specific service level requirements (dining and lodging for a Coast Guard vessel), and the nature of the client (military/government) significantly influence pricing. Without specific details on the per diem rates, meal provisions, and accommodation standards, a precise comparison is difficult. However, government contracts often negotiate rates that are competitive but may differ from commercial rates due to regulatory requirements and bulk purchasing power. The use of Simplified Acquisition Procedures (SAP) might imply that the pricing was deemed fair and reasonable within that framework, but a deeper dive into the contractor's cost proposal and market research conducted by the agency would provide a clearer picture of value for money.

What are the primary risks associated with this contract award?

The primary risks associated with this contract include potential performance issues from Bluewater Management Group LLC, given the limited public track record. There's also a risk related to the short duration, which might indicate underlying issues with the USCGC ALERT's existing arrangements or an urgent, unforeseen need, potentially leading to rushed execution or unforeseen costs. Competition under SAP, while efficient, may not have secured the most competitive pricing. Furthermore, ensuring consistent quality of service that meets Coast Guard standards for morale and operational readiness is a key risk area. Finally, any logistical challenges in delivering services to a potentially mobile asset like a Coast Guard cutter present operational risks.

How effective is the Simplified Acquisition Procedures (SAP) in ensuring value for this type of contract?

Simplified Acquisition Procedures (SAP) are designed to streamline the procurement process for acquisitions valued below certain thresholds (currently $250,000, though specific agency thresholds can vary and larger amounts are possible under certain conditions). For contracts like this one, which appears to be around the $645K mark, it's possible it falls under expanded SAP provisions or was competed using procedures that are more streamlined than full and open competition. SAP aims for efficiency and speed, which can be valuable for urgent needs or smaller procurements. However, the level of competition and detailed cost analysis might be less rigorous than in larger procurements, potentially impacting the ultimate value for money. The effectiveness hinges on the agency's execution of SAP, including adequate market research and fair solicitation practices.

What is the historical spending pattern for dining and lodging services for the USCGC ALERT or similar Coast Guard vessels?

Analyzing historical spending patterns for dining and lodging services for the USCGC ALERT or similar Coast Guard vessels would provide crucial context for this $645,359 award. This would involve examining past contracts for the same or comparable vessels, noting the duration, scope of services, awarded amounts, and the contractors involved. Understanding whether this award represents an increase or decrease in spending, and whether it aligns with previous cost structures, is vital. Trends in spending could reveal patterns of increased operational tempo, changes in service providers, or shifts in pricing dynamics within the sector. Without this historical data, it's challenging to definitively assess if this contract represents a fair price or a deviation from established norms.

Industry Classification

NAICS: Accommodation and Food Services › Traveler Accommodation › Hotels (except Casino Hotels) and Motels

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70Z08026QMECP0016

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 820 GREENBRIER CIR, CHESAPEAKE, VA, 23320

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

Financial Breakdown

Contract Ceiling: $645,359

Exercised Options: $645,359

Current Obligation: $645,359

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline