FEMA awarded $66.8M for COVID-19 emergency management support in New York
Contract Overview
Contract Amount: $66,855,347 ($66.9M)
Contractor: American Medical Response, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2020-03-28
End Date: 2021-07-29
Contract Duration: 488 days
Daily Burn Rate: $137.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: EMERGENCY MANAGEMENT SUPPORT SERVICES IN RESPONSE TO THE EFFECTGS OF COVID-19 IN THE STATE OF NEW YORK
Place of Performance
Location: NEW YORK, NEW YORK County, NEW YORK, 10035
State: New York Government Spending
Plain-Language Summary
Department of Homeland Security obligated $66.9 million to AMERICAN MEDICAL RESPONSE, INC. for work described as: EMERGENCY MANAGEMENT SUPPORT SERVICES IN RESPONSE TO THE EFFECTGS OF COVID-19 IN THE STATE OF NEW YORK Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. Services provided under a Time and Materials (T&M) contract type, which can pose cost control challenges. 3. The contract duration of 488 days indicates a significant, ongoing need for support. 4. The awardee, American Medical Response, Inc., is a major player in emergency medical services. 5. The contract value is substantial, reflecting the scale of the COVID-19 emergency response. 6. No small business set-aside was utilized, indicating the primary award was not specifically targeted to small businesses.
Value Assessment
Rating: fair
The contract value of $66.8 million for emergency management support services over approximately 16 months is significant. Benchmarking this against similar large-scale disaster response contracts is challenging due to the unique nature of the COVID-19 pandemic. The Time and Materials (T&M) pricing structure, while flexible for evolving needs, carries inherent risks for cost overruns if not closely managed. Without detailed breakdowns of labor rates and material costs, a precise value-for-money assessment is difficult, but the scale suggests a need for rigorous oversight.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but this method generally fosters price discovery and allows the government to select the best value. The open competition suggests a healthy market for these types of emergency management support services.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages competitive pricing and potentially leads to better service delivery through a wider pool of qualified contractors.
Public Impact
Residents of New York state benefited from enhanced emergency management support during the COVID-19 pandemic. Services likely included logistical support, resource coordination, and potentially medical transportation or staffing. The geographic impact is focused on New York State, addressing the specific needs of the region. The contract supported the critical response infrastructure required to manage the public health crisis.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) contract type can lead to cost escalation if not managed effectively.
- Lack of specific bidder numbers makes it difficult to fully assess the intensity of competition.
- The large dollar value necessitates strong oversight to ensure funds are used efficiently.
Positive Signals
- Awarded through full and open competition, indicating a broad market engagement.
- The contract addresses a critical national emergency, demonstrating responsiveness to urgent needs.
- The duration of the contract suggests a sustained effort in a vital area of public service.
Sector Analysis
Emergency management support services, particularly in response to a pandemic, fall within the broader professional, scientific, and technical services sector. This sector is characterized by a wide range of specialized firms, from large government contractors to niche consultancies. The market size for disaster and emergency response services is substantial, driven by natural disasters, public health crises, and national security needs. This contract represents a significant award within this specialized segment, highlighting the government's reliance on external expertise during large-scale emergencies.
Small Business Impact
The data indicates that this contract was not awarded as a small business set-aside (ss: false, sb: false). This suggests that the primary contract was competed broadly, and the awardee is likely a large business. There is no information provided on subcontracting plans or performance related to small businesses. Therefore, the direct impact on the small business ecosystem for this specific award appears limited, though larger prime contractors may engage small businesses in their supply chain.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and the Federal Emergency Management Agency (FEMA). As a Time and Materials contract, rigorous monitoring of labor hours, rates, and material costs would be essential. FEMA's Office of Inspector General (OIG) would likely have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency would be facilitated through contract databases like FPDS, though detailed performance reports may not be publicly available.
Related Government Programs
- COVID-19 Relief Funding
- Emergency Response Contracts
- Disaster Preparedness and Management
- Public Health Services Contracts
- State and Local Government Support
Risk Flags
- Potential for cost overruns due to T&M contract type.
- Lack of specific competition details (number of bidders).
- Large contract value requires robust oversight.
Tags
emergency-management, covid-19, fema, department-of-homeland-security, new-york, time-and-materials, full-and-open-competition, ambulance-services, healthcare-support, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $66.9 million to AMERICAN MEDICAL RESPONSE, INC.. EMERGENCY MANAGEMENT SUPPORT SERVICES IN RESPONSE TO THE EFFECTGS OF COVID-19 IN THE STATE OF NEW YORK
Who is the contractor on this award?
The obligated recipient is AMERICAN MEDICAL RESPONSE, INC..
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 $66.9 million.
What is the period of performance?
Start: 2020-03-28. End: 2021-07-29.
What is the track record of American Medical Response, Inc. with federal contracts, particularly in emergency management?
American Medical Response, Inc. (AMR) is a significant provider of emergency medical services in the United States. While this specific contract is for broader emergency management support related to COVID-19, AMR has a substantial history of federal contracting, often related to medical support, patient transport, and emergency response. Their experience typically involves responding to large-scale events, including natural disasters and public health emergencies. Analyzing their past performance on similar federal contracts, including any past performance issues or commendations, would provide further insight into their capability to execute this award. Publicly available data often shows a pattern of large-value contracts awarded to AMR across various federal agencies, reflecting their established presence in the sector.
How does the $66.8 million award compare to typical FEMA spending on emergency management support services?
The $66.8 million award is substantial and reflects the unprecedented scale and duration of the COVID-19 pandemic response. FEMA's spending on emergency management support services can vary dramatically year-to-year, heavily influenced by the occurrence and severity of disasters. In typical years, FEMA might award numerous smaller contracts for specific support functions. However, during major national emergencies like COVID-19, FEMA's obligations surge, leading to fewer, but much larger, awards for comprehensive support. This $66.8 million contract, while large in absolute terms, is likely commensurate with the demands of a nationwide public health crisis requiring extensive logistical and operational support over an extended period. Comparing it to pre-pandemic spending on similar services would show a significant increase due to the unique circumstances.
What are the primary risks associated with a Time and Materials (T&M) contract for emergency services?
The primary risk associated with a Time and Materials (T&M) contract, like the one awarded to American Medical Response, Inc., is the potential for cost escalation. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee or profit. If the scope of work expands, or if labor hours and material usage are not meticulously tracked and managed, costs can significantly exceed initial estimates. For emergency services during a pandemic, the unpredictable nature of the crisis can lead to increased demand for resources, exacerbating this risk. Effective government oversight, including detailed auditing of invoices and close monitoring of work performed, is crucial to mitigate these risks and ensure fair pricing for the taxpayer.
What does the 'Ambulance Services' NAICS code (621910) imply about the services rendered under this contract?
The North American Industry Classification System (NAICS) code 621910, 'Ambulance Services,' suggests that a core component of the services provided under this contract likely involved emergency medical transportation and related patient care. While the contract is broadly categorized as 'Emergency Management Support Services,' the inclusion of this NAICS code indicates that the contractor's expertise in ambulance operations was a key factor. This could encompass transporting patients, providing on-site medical support, managing medical logistics, or deploying ambulances and trained personnel to support FEMA's response efforts in New York during the COVID-19 pandemic. It highlights a focus on the critical medical logistics and transport aspects of emergency response.
How might the duration of the contract (488 days) impact the overall cost and effectiveness of the emergency support?
A contract duration of 488 days (approximately 16 months) for emergency management support during a prolonged crisis like COVID-19 suggests a need for sustained, ongoing operations rather than a short-term surge. This extended period allows for continuity of services, which is vital for managing a crisis of this magnitude. However, it also increases the potential for cost growth, especially under a Time and Materials (T&M) structure. From an effectiveness standpoint, the duration enables the contractor to build operational capacity, refine processes, and provide consistent support. For taxpayers, a longer duration necessitates vigilant oversight to ensure that the extended need is justified and that costs remain controlled and reasonable throughout the contract period. It also implies a significant and persistent requirement for the services rendered.
Industry Classification
NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › Ambulance Services
Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HSFE70-17-R-0008
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rural/Metro Fire Dept., Inc. (UEI: 832700053)
Address: 6363 S FIDDLERS GREEN CIR 14TH FL, GREENWOOD VILLAGE, CO, 80111
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $66,855,347
Exercised Options: $66,855,347
Current Obligation: $66,855,347
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HSFE7017D0014
IDV Type: IDC
Timeline
Start Date: 2020-03-28
Current End Date: 2021-07-29
Potential End Date: 2021-07-29 00:00:00
Last Modified: 2021-08-02
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