FEMA awards $12.2M for disaster emergency communications support, with 3 bidders competing

Contract Overview

Contract Amount: $12,206,497 ($12.2M)

Contractor: Global Miracle Solutions LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-11-21

End Date: 2026-11-20

Contract Duration: 1,460 days

Daily Burn Rate: $8.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PROGRAM SUPPORT SERVICES FOR THE DISASTER EMERGENCY COMMUNICATIONS (DEC) DIVISION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $12.2 million to GLOBAL MIRACLE SOLUTIONS LLC for work described as: PROGRAM SUPPORT SERVICES FOR THE DISASTER EMERGENCY COMMUNICATIONS (DEC) DIVISION Key points: 1. Contract value of $12.2M over 4 years suggests a moderate annual spend for program support. 2. The 'Full and Open Competition After Exclusion of Sources' indicates a competitive process, though specific exclusions warrant review. 3. A Time and Materials contract type can pose cost control risks if not closely managed. 4. The contract supports critical disaster emergency communications, aligning with FEMA's core mission. 5. The primary performance location is Washington D.C., indicating a concentration of federal activity. 6. The contractor, Global Miracle Solutions LLC, is relatively new to federal contracting based on available data.

Value Assessment

Rating: fair

The contract's total value of $12.2 million over four years averages to $3.05 million annually. Benchmarking this against similar program support contracts for emergency management agencies is difficult without more specific service details. However, the Time and Materials (T&M) pricing structure, while common, can lead to higher costs if not meticulously managed and monitored for efficiency. The absence of a fixed price or cost-plus-fixed-fee structure suggests potential for cost overruns if the scope of work expands or if labor hours are not optimized.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while the competition was intended to be broad, certain sources were excluded for specific reasons, potentially related to unique capabilities or prior performance. With three bidders, the competition level is moderate, which can provide some price discovery but may not be as robust as a fully open competition with a larger number of participants. Further details on the exclusion criteria would be needed to fully assess the impact on competition.

Taxpayer Impact: A moderate level of competition with three bidders offers some assurance of fair pricing for taxpayers. However, the exclusion of certain sources could potentially limit the most competitive offers, meaning taxpayers might not be receiving the absolute lowest possible price.

Public Impact

The primary beneficiary is the Federal Emergency Management Agency (FEMA), which receives essential support for its Disaster Emergency Communications (DEC) Division. The services delivered are crucial for maintaining and enhancing the nation's ability to communicate during and after disasters. The geographic impact is primarily focused on Washington D.C., where the contractor is located and likely performs much of the support. Workforce implications include the creation of jobs within Global Miracle Solutions LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type introduces inherent cost escalation risks if not rigorously managed.
The 'Exclusion of Sources' clause requires scrutiny to ensure it did not unduly limit competition.
Limited historical data on the contractor's performance in similar large-scale federal contracts.
Concentration of performance in a single geographic location (DC) may limit broader reach or local economic impact.

Positive Signals

The contract supports a critical national security function related to disaster communications.
The award was made under a competitive process, indicating some level of market vetting.
The contract duration of four years provides stability for program support.
The agency is FEMA, a well-established entity with clear mission requirements for this type of support.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), specifically supporting program management and technical services for emergency communications. The federal market for such services is substantial, driven by the ongoing need for robust communication infrastructure and support, particularly for agencies like FEMA. Comparable spending benchmarks would depend on the specific technical expertise and scope of 'program support,' but contracts in this domain often range from millions to tens of millions annually, depending on the scale and criticality of the supported program.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal. The focus is on a prime contractor, Global Miracle Solutions LLC, which may or may not be a small business itself, but the award mechanism did not prioritize small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Emergency Management Agency (FEMA) contracting officers and program managers. As a Time and Materials contract, rigorous monitoring of labor hours, rates, and direct costs is essential. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse, with the DHS OIG likely having oversight.

Related Government Programs

Disaster Emergency Communications
Emergency Management Support
Federal Communications Services
Program Management Support
Department of Homeland Security Contracts

Risk Flags

Potential for cost overruns due to T&M contract type.
Limited competition due to 'Exclusion of Sources' clause.
Lack of extensive performance history for the contractor in similar roles.
Need for detailed understanding of 'program support services' scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $12.2 million to GLOBAL MIRACLE SOLUTIONS LLC. PROGRAM SUPPORT SERVICES FOR THE DISASTER EMERGENCY COMMUNICATIONS (DEC) DIVISION

Who is the contractor on this award?

The obligated recipient is GLOBAL MIRACLE SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $12.2 million.

What is the period of performance?

Start: 2022-11-21. End: 2026-11-20.

What is the specific nature of the 'program support services' being provided to the Disaster Emergency Communications (DEC) Division?

The provided data abbreviates the description to 'PROGRAM SUPPORT SERVICES FOR THE DISASTER EMERGENCY COMMUNICATIONS (DEC) DIVISION.' Without further details, 'program support services' can encompass a wide range of activities. These typically include administrative, technical, and management assistance necessary for the effective operation of the DEC program. This could involve tasks such as strategic planning, policy development, technical analysis, system integration support, cybersecurity assessments, training development, logistical coordination, and financial management. The specific nature is crucial for understanding the value and risk associated with the Time and Materials contract type, as it dictates the type of labor and potential for scope creep.

How does the $12.2 million contract value compare to historical spending on similar DEC program support?

To compare the $12.2 million contract value to historical spending, one would need to analyze prior FEMA contracts for DEC program support. This would involve searching contract databases for similar service descriptions and contract types awarded over the past several years. Factors to consider include the duration of previous contracts, the number of bidders, and the final awarded amounts. A preliminary assessment suggests that $3.05 million annually (total value divided by duration) is a moderate figure for specialized federal program support. However, without specific historical data points for DEC support, a definitive comparison of value for money and market rates cannot be made. Trends in federal spending on emergency communications and disaster preparedness would also provide context.

What are the potential risks associated with the 'Time and Materials' (T&M) contract type for this service?

The primary risk with a Time and Materials (T&M) contract is the potential for cost escalation. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the scope of work is not clearly defined, or if project management and oversight are insufficient, the contractor may incur more labor hours or use more expensive materials than anticipated, leading to costs exceeding initial estimates. For FEMA's DEC program support, this means that the $12.2 million ceiling could be breached if tasks take longer than expected or if unforeseen complexities arise, requiring more intensive labor inputs. Robust monitoring and clear task orders are critical to mitigate these risks.

What does 'Full and Open Competition After Exclusion of Sources' imply about the competition and potential value?

The 'Full and Open Competition After Exclusion of Sources' (FACCES) designation indicates that the solicitation was made available to all responsible sources, but specific sources were excluded from consideration. The reasons for exclusion are typically documented and can include factors like national security, proprietary information, or the need for highly specialized, unique capabilities that only certain contractors possess. While this method aims for broad competition, the exclusion of specific entities could potentially limit the number of highly qualified bidders and, consequently, the degree of price competition. The fact that three bids were received suggests a moderate level of interest, but the exclusion clause warrants a review to ensure it was justified and did not unduly restrict the market, potentially impacting the best value achieved for taxpayers.

What is the track record of Global Miracle Solutions LLC in performing federal contracts, particularly for FEMA or similar agencies?

Based on the provided data, Global Miracle Solutions LLC is the contractor, and the contract award date is November 21, 2022. Information regarding their specific track record, especially for FEMA or similar agencies, is not detailed in the summary data. A comprehensive assessment would require examining their contract history in federal procurement databases (like FPDS), looking at past performance evaluations, the types and values of previous contracts, and any reported issues or successes. Without this detailed history, it's difficult to gauge their experience level and reliability for critical functions like disaster emergency communications support.

How does the $836,100 (8361) bid amount relate to the final awarded value of $12.2 million?

The value '8361' listed as 'br' (likely bid/reference amount) appears to be significantly lower than the total awarded value of $12,206,497.23. This discrepancy suggests that '8361' might represent a specific component of the bid, a reference number, or perhaps an initial estimate or a bid for a specific CLIN (Contract Line Item Number) rather than the total contract value. Given the total award is over $12 million, the '8361' figure is unlikely to be the total bid amount. It's possible it relates to a specific task order, a base year estimate, or is simply a data entry anomaly or a placeholder that doesn't represent the full scope's financial value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70FA5022R00000010

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 270 EAST 100 S, SALT LAKE CITY, UT, 84111

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,206,497

Exercised Options: $12,206,497

Current Obligation: $12,206,497

Actual Outlays: $6,108,032

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D1047

IDV Type: IDC

Timeline