FEMA awards $18M for 53M liters of bottled water to support Hurricane Helene response

Contract Overview

Contract Amount: $17,994,550 ($18.0M)

Contractor: Composite Analysis Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-10-09

End Date: 2025-03-03

Contract Duration: 145 days

Daily Burn Rate: $124.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS EMERGENCY RESPONSE REQUIREMENT IS TO PROCURE 53,000,000 LITERS OF BOTTLED DRINKING WATER WITH A MINIMUM OF 18-MONTHS OF VIABLE SHELF-LIFE IN SUPPORT OF THE HURRICANE HELENE. THE OFFEROR SHALL DELIVER UP TO A MINIMUM OF 1,000,000 L

Place of Performance

Location: CONLEY, DEKALB County, GEORGIA, 30288

State: Georgia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $18.0 million to COMPOSITE ANALYSIS GROUP, INC. for work described as: THE PURPOSE OF THIS EMERGENCY RESPONSE REQUIREMENT IS TO PROCURE 53,000,000 LITERS OF BOTTLED DRINKING WATER WITH A MINIMUM OF 18-MONTHS OF VIABLE SHELF-LIFE IN SUPPORT OF THE HURRICANE HELENE. THE OFFEROR SHALL DELIVER UP TO A MINIMUM OF 1,000,000 L Key points: 1. The contract prioritizes rapid delivery of a critical resource during an emergency. 2. A large volume of water suggests a significant anticipated need for disaster relief. 3. The fixed-price contract structure aims to control costs for this essential supply. 4. The short performance period indicates an urgent and time-sensitive requirement. 5. The award to Composite Analysis Group, Inc. warrants review of their emergency response capabilities. 6. The geographic focus on Georgia highlights regional vulnerability to hurricane impacts.

Value Assessment

Rating: good

The per-unit cost for bottled water is approximately $0.34 per liter. Benchmarking this against typical commercial rates for bulk bottled water, especially with expedited delivery requirements, suggests a fair price. However, the emergency nature of the procurement may have influenced the final cost, potentially leading to a premium compared to non-emergency bulk purchases. Further analysis would involve comparing this to other disaster relief water contracts.

Cost Per Unit: $0.34 per liter

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bids suggests a reasonable level of interest for this type of emergency requirement. A competitive process, even with a limited number of bidders, generally helps in achieving a fair market price and ensuring the government receives the best value.

Taxpayer Impact: Full and open competition, even with two bidders, is beneficial for taxpayers as it encourages competitive pricing and ensures that the government is not locked into a single supplier, potentially leading to cost savings.

Public Impact

Residents and emergency responders in Georgia affected by Hurricane Helene will benefit from access to safe drinking water. The contract ensures the availability of 53 million liters of bottled drinking water for immediate distribution. The primary geographic impact is within Georgia, a state prone to hurricane-related disruptions. This procurement supports the logistical needs of disaster relief operations, indirectly impacting the workforce involved in emergency response and distribution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation if demand significantly outstrips supply during the hurricane response.
Logistical challenges in ensuring timely and widespread distribution of such a large volume of water across affected areas.
Ensuring the quality and shelf-life of the water meets the minimum 18-month requirement throughout the delivery period.

Positive Signals

The contract specifies a minimum shelf-life, ensuring the water remains viable for an extended period.
The fixed-price nature of the contract provides cost certainty for the government.
The award was made under full and open competition, suggesting a competitive bidding process.

Sector Analysis

The bottled water manufacturing sector is characterized by high volume, relatively low margins, and significant logistical considerations. This contract falls within the broader food and beverage manufacturing industry, with a specific focus on emergency preparedness and disaster relief supplies. The market size for emergency bottled water can fluctuate significantly based on the frequency and severity of natural disasters. This procurement represents a substantial single order within this niche.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for logistical support or other services not detailed in this award notice.

Oversight & Accountability

The Federal Emergency Management Agency (FEMA) is responsible for overseeing this contract. Oversight mechanisms would typically include monitoring delivery schedules, quality control of the water, and ensuring compliance with the contract terms. Transparency is generally maintained through public contract databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Disaster Relief Funding
Emergency Preparedness Supplies
National Security Stockpile
FEMA Operations Support

Risk Flags

Emergency Procurement
Logistical Complexity
Supply Chain Risk
Quality Assurance

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.0 million to COMPOSITE ANALYSIS GROUP, INC.. THE PURPOSE OF THIS EMERGENCY RESPONSE REQUIREMENT IS TO PROCURE 53,000,000 LITERS OF BOTTLED DRINKING WATER WITH A MINIMUM OF 18-MONTHS OF VIABLE SHELF-LIFE IN SUPPORT OF THE HURRICANE HELENE. THE OFFEROR SHALL DELIVER UP TO A MINIMUM OF 1,000,000 L

Who is the contractor on this award?

The obligated recipient is COMPOSITE ANALYSIS GROUP, 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 $18.0 million.

What is the period of performance?

Start: 2024-10-09. End: 2025-03-03.

What is the track record of Composite Analysis Group, Inc. in providing emergency response supplies, specifically bottled water?

Information regarding Composite Analysis Group, Inc.'s specific track record in providing emergency response supplies, particularly bottled water, is not detailed in the provided data. A thorough review would require examining past performance evaluations, contract history with FEMA or other agencies for similar items, and any reported issues or successes in previous emergency procurements. Understanding their capacity, logistical capabilities, and experience in rapid deployment of essential goods is crucial for assessing their reliability in this critical role. Without this historical data, the assessment relies heavily on the current contract's terms and the competitive nature of its award.

How does the per-unit cost of $0.34 per liter compare to historical FEMA water procurements for disaster relief?

The per-unit cost of $0.34 per liter for bottled water in this FEMA contract is a key metric for value assessment. To benchmark this effectively, it's essential to compare it against historical FEMA procurements for similar quantities and delivery timelines during disaster responses. Factors such as the urgency of the need, transportation costs to the affected region, and market fluctuations in water prices at the time of procurement can significantly influence per-unit costs. If historical data shows similar or lower prices for comparable emergency water supplies, this contract may represent good value. Conversely, if historical prices were substantially lower, it could indicate potential overspending or a premium paid for expedited delivery and availability.

What are the primary risks associated with procuring such a large volume of water under an emergency requirement?

The primary risks associated with procuring 53 million liters of bottled water under an emergency requirement include logistical challenges in distribution, potential quality control issues with a large batch, and the risk of overstocking if the anticipated need is overestimated. Ensuring timely delivery to affected areas, maintaining the water's shelf-life throughout the distribution process, and managing the sheer volume present significant operational hurdles. Furthermore, the urgency of emergency procurement can sometimes lead to less rigorous vetting of suppliers or less favorable pricing compared to planned procurements. Effective risk mitigation would involve robust logistical planning, stringent quality assurance protocols, and clear communication channels with the contractor.

What is the expected effectiveness of this contract in meeting the immediate needs of Hurricane Helene victims?

The effectiveness of this contract in meeting the immediate needs of Hurricane Helene victims hinges on several factors. The procurement of 53 million liters of bottled water directly addresses the critical need for safe drinking water following a hurricane, which often contaminates local water supplies. The specified delivery period, though short, aims to ensure rapid availability. The effectiveness will be measured by the speed and efficiency of distribution to affected populations, the quality of the water provided, and whether the quantity procured is sufficient for the scale of the disaster. Successful execution by FEMA and the contractor will be crucial for mitigating public health risks and supporting recovery efforts.

How does this contract's value compare to the overall federal spending on disaster relief supplies?

This contract, valued at approximately $18 million for bottled water, represents a specific component within the broader federal spending on disaster relief supplies. Federal spending on disaster relief can encompass a wide array of goods and services, including temporary housing, food, medical supplies, debris removal, and infrastructure repair, often totaling billions of dollars annually, especially in active hurricane seasons. While $18 million is a significant sum for a single commodity, it is likely a fraction of the total federal expenditure for a major event like Hurricane Helene. Comparing its value requires understanding the proportion it represents of the overall disaster response budget and how efficiently these funds were utilized relative to other relief efforts.

Industry Classification

NAICS: Manufacturing › Beverage Manufacturing › Bottled Water Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1701 OAKBROOK DR STE D, NORCROSS, GA, 30093

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $17,994,550

Exercised Options: $17,994,550

Current Obligation: $17,994,550

Actual Outlays: $17,994,550

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FB7022D00000011

IDV Type: IDC

Timeline