Coast Guard's $2M food service contract in San Diego awarded to CA Dept of Rehabilitation

Contract Overview

Contract Amount: $2,012,816 ($2.0M)

Contractor: CA Dept of Rehabilitation

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-01

End Date: 2026-11-30

Contract Duration: 820 days

Daily Burn Rate: $2.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FULL FOOD SERVICE USCG SECTOR SAN DIEGO, CA

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92101

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.0 million to CA DEPT OF REHABILITATION for work described as: FULL FOOD SERVICE USCG SECTOR SAN DIEGO, CA Key points: 1. Contract awarded to a state rehabilitation agency, potentially indicating a focus on social impact alongside service delivery. 2. The contract is a firm-fixed-price type, which shifts cost risk to the contractor. 3. Competition was conducted under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 4. The contract duration of 820 days (approx. 2.25 years) provides a stable service period. 5. The North American Industry Classification System (NAICS) code 722310 points to a specialized food service operation.

Value Assessment

Rating: good

The contract value of approximately $2 million over 820 days suggests a moderate annual spend for food services. Benchmarking against similar contracts for food services within federal agencies, particularly those supporting operational units like the Coast Guard, would be necessary for a precise value-for-money assessment. However, the award to a state rehabilitation agency might imply a pricing structure that considers social objectives, which could differ from purely commercial bids. Without specific cost breakdowns or comparable commercial bids, a definitive value assessment is challenging, but the award to a non-traditional provider warrants further examination of cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders compared to full and open competition. While the specific number of bids received is not detailed, SAP is designed for procurements under a certain dollar threshold, often resulting in less robust competition. The award to the CA Department of Rehabilitation suggests a specific outreach or consideration for state agencies or entities with social missions. The limited competition under SAP may mean that the government did not explore the full range of potential providers, potentially impacting price discovery.

Taxpayer Impact: Limited competition under SAP means taxpayers may not have benefited from the lowest possible price achievable through a broader bidding process. While the award might serve social objectives, the absence of wider competition could lead to higher costs than if multiple commercial vendors had competed.

Public Impact

Coast Guard personnel in Sector San Diego will receive food services, ensuring operational readiness and morale. The contract supports the mission of the U.S. Coast Guard, a key component of the Department of Homeland Security. The primary geographic impact is within San Diego, California, where the Coast Guard sector is located. The contract may provide employment opportunities through the CA Department of Rehabilitation, supporting individuals with disabilities or other barriers to employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to limited competition under SAP.
Ensuring consistent quality and service delivery from a non-traditional food service provider.
Dependence on a single state agency for a critical operational support service.

Positive Signals

Supports a state rehabilitation agency, aligning with potential social equity and workforce development goals.
Firm-fixed-price contract structure provides cost certainty for the government.
Award to a state entity may foster intergovernmental cooperation.

Sector Analysis

The food service industry is a large and diverse sector, encompassing everything from institutional catering to restaurant operations. Federal contracts for food services are common across various agencies, supporting military bases, government facilities, and operational units. This contract falls within the broader 'Food Service Contractors' NAICS code (722310), which specifically covers establishments primarily engaged in preparing food for immediate consumption, such as caterers and contract food service providers. The market for federal food service contracts is competitive, with both large commercial entities and specialized providers vying for these opportunities. The value of this specific contract is relatively modest within the overall federal spending landscape for food services.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false) and the contractor is not identified as a small business (sb=false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The award to a state agency rather than a commercial entity means that the typical ecosystem of small business subcontractors often seen in larger federal contracts is unlikely to be directly involved in this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Coast Guard, a component of the Department of Homeland Security. The contract is a firm-fixed-price type, which simplifies some aspects of financial oversight compared to cost-reimbursement contracts. Performance monitoring, quality control, and adherence to service level agreements would be key oversight functions. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Food Service Contracts
Department of Homeland Security Contracts
U.S. Coast Guard Operations Support
California State Agency Contracts

Risk Flags

Limited Competition
Non-Traditional Contractor
Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.0 million to CA DEPT OF REHABILITATION. FULL FOOD SERVICE USCG SECTOR SAN DIEGO, CA

Who is the contractor on this award?

The obligated recipient is CA DEPT OF REHABILITATION.

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 $2.0 million.

What is the period of performance?

Start: 2024-09-01. End: 2026-11-30.

What is the track record of the CA Department of Rehabilitation in providing food services to federal agencies?

Information regarding the CA Department of Rehabilitation's specific track record in providing food services to federal agencies, particularly the U.S. Coast Guard, is not readily available in public databases. State rehabilitation agencies typically focus on vocational training and employment for individuals with disabilities. While they may operate food service programs as part of their training initiatives, their experience as a direct federal contractor for large-scale food services is likely limited or specialized. Further inquiry would be needed to ascertain their past performance in similar federal contracting roles, including their capacity to meet the stringent requirements of a military or law enforcement support contract.

How does the pricing of this contract compare to commercial food service providers in San Diego?

A direct comparison of this contract's pricing to commercial food service providers in San Diego is challenging without detailed cost breakdowns. The contract value of approximately $2 million over 820 days (roughly $2,455 per day) needs to be evaluated against the specific scope of services, which includes full food services for the USCG Sector San Diego. Commercial catering and food service contracts vary significantly based on the level of service, menu complexity, number of individuals served, and overhead. Given that the awardee is a state rehabilitation agency, the pricing might incorporate factors beyond pure profit motive, such as employment support costs. A comprehensive benchmark would require detailed service requirements and a comparison with bids from commercial entities that might have participated if the competition had been broader.

What are the primary risks associated with awarding a food service contract to a state rehabilitation agency?

The primary risks associated with awarding a food service contract to a state rehabilitation agency like the CA Department of Rehabilitation include potential challenges in service consistency and scalability, as their core mission may not be large-scale food service operations. There could be a learning curve in meeting federal procurement regulations and performance standards. Ensuring adequate staffing, supply chain management, and emergency preparedness might also pose risks if the agency lacks extensive experience in these areas within a federal contracting context. Furthermore, if the agency's operational model relies heavily on specific training programs, disruptions to those programs could impact service delivery. However, these risks can be mitigated through robust contract oversight, clear performance metrics, and strong communication channels.

What is the expected effectiveness of this contract in supporting Coast Guard operations?

The effectiveness of this contract in supporting Coast Guard operations hinges on the reliable and consistent provision of quality food services. For personnel stationed at Sector San Diego, access to adequate and nutritious meals is crucial for maintaining morale, health, and operational readiness. If the CA Department of Rehabilitation successfully delivers on the contract's requirements, it will contribute positively to the well-being of Coast Guard members, allowing them to focus on their primary missions. The effectiveness will be measured by the contractor's ability to meet service level agreements, maintain food safety standards, and adapt to the specific needs of the Coast Guard personnel. Consistent performance will be key to ensuring this contract effectively supports the operational tempo of the sector.

How does this contract's value compare to historical federal spending on food services for similar Coast Guard installations?

The contract value of $2,012,816.06 for full food services for USCG Sector San Diego represents a specific investment for a particular installation. To compare this to historical federal spending, one would need to analyze contracts for food services at other Coast Guard sectors or similar-sized military/law enforcement installations. Factors such as geographic location (cost of living, logistics), the number of personnel served, the duration of the contract, and the scope of services (e.g., dining hall operations, event catering) significantly influence contract values. Without access to a comprehensive database of comparable historical contracts, it is difficult to definitively state whether this contract's value is high, low, or average. However, the annual value (approximately $894,000) appears moderate for supporting a sector-level installation.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70Z08424QDL930005

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: State of California Department of Corrections & Rehabilitation

Address: 721 CAPITOL MALL, SACRAMENTO, CA, 95814

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

Financial Breakdown

Contract Ceiling: $4,466,185

Exercised Options: $2,012,816

Current Obligation: $2,012,816

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline