Coast Guard food services contract awarded for $2.6M, raising questions about competition and value

Contract Overview

Contract Amount: $2,587,929 ($2.6M)

Contractor: Maryland State Department of Education

Awarding Agency: Department of Homeland Security

Start Date: 2022-04-01

End Date: 2026-04-30

Contract Duration: 1,490 days

Daily Burn Rate: $1.7K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GALLEY FULL FOOD SERVICES USCG YARD

Place of Performance

Location: CURTIS BAY, BALTIMORE CITY County, MARYLAND, 21226

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.6 million to MARYLAND STATE DEPARTMENT OF EDUCATION for work described as: GALLEY FULL FOOD SERVICES USCG YARD Key points: 1. Contract awarded without full and open competition, potentially limiting price discovery. 2. Fixed-price contract type offers some cost certainty but may not incentivize efficiency. 3. Duration of 1490 days suggests a long-term need for these services. 4. Awarded to a state entity, which may have different cost structures than private firms. 5. Lack of detailed performance metrics makes assessing value for money challenging. 6. Geographic location in Maryland may limit the pool of potential competitors.

Value Assessment

Rating: fair

The contract value of $2.6 million over approximately four years for galley food services is difficult to benchmark without more detailed service descriptions and performance data. Awarding to a state department of education, rather than a specialized food service provider, raises questions about whether the government secured the most competitive pricing and efficient service delivery. The firm fixed-price structure provides some cost predictability, but the absence of clear performance metrics makes it hard to definitively assess value for money compared to industry standards or similar government contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under the simplified acquisition procedures (SAP), and the data indicates it was 'NOT COMPETED UNDER SAP'. The specific details of the limited competition are not provided, but the absence of a full and open competition suggests that the pool of potential bidders was restricted. This could be due to various factors, such as specific requirements or the nature of the awardee. Limited competition generally leads to less robust price discovery and potentially higher costs for the government.

Taxpayer Impact: Limited competition means taxpayers may not have benefited from the lowest possible price achievable through a broader bidding process.

Public Impact

Service members and personnel at the U.S. Coast Guard facility in Maryland will receive galley food services. Ensures the provision of essential food services, contributing to the morale and operational readiness of the Coast Guard. The contract supports the operational needs of the Department of Homeland Security through its agency, the U.S. Coast Guard. Potential indirect impact on the local workforce in Maryland through employment opportunities related to food service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the justification for limited competition.
Absence of detailed performance standards makes oversight and value assessment difficult.
Potential for higher costs due to restricted bidding environment.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a state entity might indicate a pre-existing relationship or specific mission alignment.
Contract ensures continuity of essential food services for personnel.

Sector Analysis

The food service industry is a large and competitive sector. Government contracts for food services are common across various agencies, supporting military bases, federal facilities, and public institutions. Benchmarking this contract's value is challenging without specific details on the scope of services, number of meals, and quality standards. However, contracts of this size typically require robust competition to ensure cost-effectiveness.

Small Business Impact

The data indicates that small business participation was not a stated factor in this award (ss: false, sb: false). There is no indication of small business set-asides or subcontracting requirements. This means the contract did not actively aim to support small businesses, and their role in fulfilling this requirement is not specified.

Oversight & Accountability

Oversight mechanisms for this contract are not detailed in the provided data. As a definitive contract, it would typically fall under the purview of the contracting agency's oversight and potentially the Inspector General for the Department of Homeland Security. However, the lack of specific performance metrics and the limited competition raise concerns about the effectiveness of oversight in ensuring value and accountability.

Related Government Programs

Federal Food Service Contracts
Department of Homeland Security Procurement
U.S. Coast Guard Operations Support
Government Food Service Management

Risk Flags

Limited Competition
Lack of Performance Metrics
Unclear Justification for Non-Competition
Potential Value for Money Concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.6 million to MARYLAND STATE DEPARTMENT OF EDUCATION. GALLEY FULL FOOD SERVICES USCG YARD

Who is the contractor on this award?

The obligated recipient is MARYLAND STATE DEPARTMENT OF EDUCATION.

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 $2.6 million.

What is the period of performance?

Start: 2022-04-01. End: 2026-04-30.

What specific services are included under this 'GALLEY FULL FOOD SERVICES' contract?

The provided data does not specify the exact services included under 'GALLEY FULL FOOD SERVICES'. Typically, such contracts encompass the procurement of food supplies, preparation of meals, serving of food, and maintenance of galley facilities. This could range from providing three meals a day to specific catering services for events. Without a detailed statement of work, it is difficult to ascertain the full scope and compare it to industry standards or other government contracts for similar services.

What is the justification for awarding this contract without full and open competition?

The data states the contract was 'NOT COMPETED UNDER SAP' and implies limited competition. The specific justification for not pursuing a full and open competition is not provided. Reasons for limited competition can include factors like urgency, availability of only one responsible source, or specific requirements that only one entity can meet. However, without this justification, it is impossible to assess whether the government received fair value and if taxpayer funds were used efficiently. This lack of transparency is a significant concern.

How does the pricing of this contract compare to similar food service contracts for the Coast Guard or other federal agencies?

Direct comparison of pricing is challenging without detailed service scope and performance metrics. The total award value is $2,587,928.67 over approximately 1490 days (about 4 years). This averages to roughly $647,000 per year. To assess value, one would need to compare this on a per-meal basis, per-person basis, or per-facility basis against benchmarks for similar government food service contracts. The fact that it was not fully competed suggests potential for higher-than-market pricing.

What are the performance standards and metrics used to evaluate the contractor's success?

The provided data does not include any specific performance standards or metrics for this contract. A well-structured contract would typically outline key performance indicators (KPIs) related to food quality, service timeliness, sanitation, customer satisfaction, and cost control. The absence of such metrics makes it difficult to objectively measure the contractor's performance, ensure accountability, and determine if the government is receiving the expected value for its investment.

What is the track record of the Maryland State Department of Education in providing large-scale food services to federal agencies?

The Maryland State Department of Education (MSDE) is primarily focused on K-12 education within the state. While they manage large food programs for schools (like the National School Lunch Program), their experience in directly contracting for and managing galley food services for a federal agency like the Coast Guard is not readily apparent from their primary mission. It raises questions about whether they are the most qualified entity for this specific type of service delivery compared to specialized federal contractors.

What is the historical spending pattern for galley food services at this specific U.S. Coast Guard location?

The provided data does not offer historical spending patterns for galley food services at this specific U.S. Coast Guard location. To understand if the $2.6 million award is consistent, increasing, or decreasing compared to previous periods, one would need access to historical contract data for this facility. Analyzing past spending would help identify trends, potential cost escalations, and whether the current contract represents a reasonable investment over time.

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 COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2301 ARGONNE DR, BALTIMORE, MD, 21218

Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $4,840,570

Exercised Options: $4,840,570

Current Obligation: $2,587,929

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline