Chano brings in a man who was assaulted in his hotel room but insists he was alone and tries to figure out why he's lying. With bicentennial celebrations starting to ramp up, Barney and the detectives have to deal with an unusual array of suspects, Wojo and Yemana investigate a pair of horse thefts involving the NYPD Horse Unit and a hansom cab driver. 

Facing budget cuts, the city starts to shut down various precincts. As a result, detective Dietrich gets assigned to the twelfth, causing Fish to go on restricted duty. He then goes home for lunch to how life will be like once he has to retire.