Coast Guard Awards $12.25M Food Services Contract to New Jersey Firm Amidst Limited Competition
Contract Overview
Contract Amount: $12,254,938 ($12.3M)
Contractor: State of NEW Jersey
Awarding Agency: Department of Homeland Security
Start Date: 2025-04-01
End Date: 2026-03-31
Contract Duration: 364 days
Daily Burn Rate: $33.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TRACEN CAPE MAY FULL FOOD SERVICES. EXCEPTION 2(D).
Place of Performance
Location: CAPE MAY, CAPE MAY County, NEW JERSEY, 08204
Plain-Language Summary
Department of Homeland Security obligated $12.3 million to STATE OF NEW JERSEY for work described as: TRACEN CAPE MAY FULL FOOD SERVICES. EXCEPTION 2(D). Key points: 1. The contract is valued at $12.25 million over one year. 2. Competition is limited, raising questions about price discovery. 3. The sector is Food Service Contractors, with a specific PSC code not provided. 4. Risk factors include potential for overpricing due to limited competition.
Value Assessment
Rating: fair
The contract is a firm fixed price delivery order. Without a specific PSC or more detailed contract information, benchmarking the price against similar contracts is difficult. The provided 'br' value of 33667 might represent a benchmark, but its context is unclear.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION' with an 'EXCEPTION 2(D)', indicating a limited competition scenario. This approach may limit the government's ability to secure the best possible price through robust market competition.
Taxpayer Impact: Limited competition can lead to higher costs for taxpayers if effective price discovery mechanisms are not employed.
Public Impact
Taxpayers may be paying more than necessary due to the lack of full and open competition. The specific needs of the U.S. Coast Guard at TRACEN CAPE MAY for food services are being met. The contract duration is one year, allowing for periodic review of service and pricing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for price escalation
- Lack of detailed PSC code
Positive Signals
- Firm fixed price contract type
- Contract awarded to a firm in the same state as the facility
Sector Analysis
This contract falls within the Food Service Contractors sector. Spending benchmarks for this specific niche within government contracting are not readily available without a more precise PSC code. However, food services are a consistent operational need across many government facilities.
Small Business Impact
The data indicates that this contract was not awarded to a small business (ss: false, sb: false). Further analysis would be needed to determine if small businesses were considered or had the opportunity to compete.
Oversight & Accountability
Oversight will be crucial to ensure the quality of services and fair pricing, especially given the limited competition. The Department of Homeland Security and the U.S. Coast Guard are responsible for contract administration and performance monitoring.
Related Government Programs
- Food Service Contractors
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Limited competition may lead to inflated prices.
- Lack of detailed PSC code hinders benchmarking.
- Potential for vendor lock-in due to limited competition.
- Absence of small business participation.
Tags
food-service-contractors, department-of-homeland-security, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $12.3 million to STATE OF NEW JERSEY. TRACEN CAPE MAY FULL FOOD SERVICES. EXCEPTION 2(D).
Who is the contractor on this award?
The obligated recipient is STATE OF NEW JERSEY.
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 $12.3 million.
What is the period of performance?
Start: 2025-04-01. End: 2026-03-31.
What specific justification was provided for the 'EXCEPTION 2(D)' that limited competition for this food services contract?
The provided data mentions 'EXCEPTION 2(D)' but does not detail the specific justification. Typically, this exception relates to circumstances where only one responsible source can satisfy the agency's needs. Understanding this justification is key to assessing the necessity of limited competition and its potential impact on value for money.
How does the 'br' value of 33667 relate to the contract's total value and potential cost savings?
The 'br' value of 33667 is presented without context, making it difficult to ascertain its meaning or relevance to the $12.25 million contract. It could represent a benchmark price, a previous contract value, or a component cost. Clarification is needed to determine if it indicates cost efficiency or potential overspending.
What are the performance metrics and quality assurance procedures in place for this food services contract?
The provided data does not include details on performance metrics or quality assurance procedures. For a contract of this value and duration, robust oversight mechanisms are essential to ensure the U.S. Coast Guard receives high-quality food services and that the contractor meets all contractual obligations effectively.
Industry Classification
NAICS: Accommodation and Food Services › Special Food Services › Food Service Contractors
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 10 QUAKER BRIDGE PLAZA RM 102, TRENTON, NJ, 08619
Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government
Financial Breakdown
Contract Ceiling: $12,254,938
Exercised Options: $12,254,938
Current Obligation: $12,254,938
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70Z08420DAA550900
IDV Type: IDC
Timeline
Start Date: 2025-04-01
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 02:10:59
Last Modified: 2026-03-11
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