Coast Guard Awards $1M Contract for Cape May Training Center Food Services
Contract Overview
Contract Amount: $1,021,244 ($1.0M)
Contractor: State of NEW Jersey
Awarding Agency: Department of Homeland Security
Start Date: 2026-04-01
End Date: 2026-05-31
Contract Duration: 60 days
Daily Burn Rate: $17.0K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: FULL FOOD SERVICE FOR TRAINING CENTER CAPE MAY NJ
Place of Performance
Location: AVALON, CAPE MAY County, NEW JERSEY, 08202
Plain-Language Summary
Department of Homeland Security obligated $1.0 million to STATE OF NEW JERSEY for work described as: FULL FOOD SERVICE FOR TRAINING CENTER CAPE MAY NJ Key points: 1. Contract awarded to State of New Jersey for food services. 2. No competition was utilized under the Simplified Acquisition Procedures (SAP). 3. The contract has a fixed price with economic price adjustment. 4. This award represents a small portion of the overall federal spending in the food service sector.
Value Assessment
Rating: fair
The contract value of $1,021,244 for a two-month period appears high for food services. Benchmarking against similar contracts for large-scale food service operations is necessary to determine true value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed under SAP, suggesting a limited competition approach. This may have impacted price discovery and potentially led to a higher price than if full and open competition were utilized.
Taxpayer Impact: The lack of competition could result in taxpayers paying more than necessary for these food services.
Public Impact
Ensures essential food services are provided for Coast Guard personnel at the training center. Supports the operational readiness of the training facility. Potential for increased costs due to limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for overpricing due to lack of competition
- Fixed Price with Economic Price Adjustment can increase costs
Positive Signals
- Ensures essential service delivery
- Contract awarded to a state entity
Sector Analysis
This contract falls within the broader food service industry, which is a significant area of federal spending. Benchmarks for similar large-scale food service contracts would be useful for comparison.
Small Business Impact
This contract was awarded to the State of New Jersey and does not appear to involve small businesses as prime contractors or subcontractors based on the provided data.
Oversight & Accountability
Oversight will be crucial to ensure the quality of food services and to monitor the economic price adjustment clause to prevent excessive cost increases.
Related Government Programs
- Food Service Contractors
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Limited competition
- Potential for overpricing
- Economic Price Adjustment clause
- High cost for a short duration
Tags
food-service-contractors, department-of-homeland-security, nj, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $1.0 million to STATE OF NEW JERSEY. FULL FOOD SERVICE FOR TRAINING CENTER CAPE MAY NJ
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 $1.0 million.
What is the period of performance?
Start: 2026-04-01. End: 2026-05-31.
What is the typical cost per meal or per person for similar large-scale food service contracts within the federal government?
Determining the typical cost per meal or per person for similar federal food service contracts requires access to a broader dataset of comparable awards. Factors like location, service level, and duration significantly influence pricing. Without specific benchmarks, it's difficult to definitively assess if this $1M contract for two months is cost-effective. Further analysis of contract clauses and service requirements is needed.
What are the specific criteria that led to the decision not to compete this contract under SAP?
The rationale for not competing this contract under SAP is not detailed in the provided data. Typically, such decisions might stem from urgent needs, unique capabilities required, or existing relationships that justify a limited competition approach. Understanding the specific circumstances and justification is essential for assessing the risk associated with limited competition and its potential impact on pricing and value for taxpayers.
How will the economic price adjustment (EPA) clause be monitored to ensure it does not lead to unjustified cost increases?
Monitoring the EPA clause requires clear guidelines and regular reviews by the contracting officer. The Coast Guard must establish a process to verify the legitimacy of price increases claimed by the contractor, likely tied to specific economic indicators or commodity price indices. Transparent reporting and justification for any adjustments will be key to ensuring taxpayer funds are used efficiently and that the EPA does not become a mechanism for price gouging.
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: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 153 HALSEY ST, NEWARK, NJ, 07102
Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government, Self-Certified Small Disadvantaged Business, Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $2,068,319
Exercised Options: $2,068,319
Current Obligation: $1,021,244
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-04-01
Current End Date: 2026-05-31
Potential End Date: 2026-05-31 00:00:00
Last Modified: 2026-04-01
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