FEMA awards $14.26M for emergency medical support in Florida during Hurricane Helene response

Contract Overview

Contract Amount: $14,259,765 ($14.3M)

Contractor: American Medical Response, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-10-09

End Date: 2025-01-22

Contract Duration: 105 days

Daily Burn Rate: $135.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: EMERGENCY MEDICAL SUPPORT SERVICES WITHIN CONTINENTAL UNITED STATES AND TERRITORIES SPECIFICALLY IN THE STATE OF FLORIDA IN RESPONSE TO HURRICANE HELENE

Place of Performance

Location: HAVANA, GADSDEN County, FLORIDA, 32333

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $14.3 million to AMERICAN MEDICAL RESPONSE, INC. for work described as: EMERGENCY MEDICAL SUPPORT SERVICES WITHIN CONTINENTAL UNITED STATES AND TERRITORIES SPECIFICALLY IN THE STATE OF FLORIDA IN RESPONSE TO HURRICANE HELENE Key points: 1. Contract addresses critical need for medical services during a major natural disaster. 2. Full and open competition suggests a robust market for these specialized services. 3. Delivery order structure indicates a rapid response mechanism for urgent requirements. 4. Performance period aligns with the immediate aftermath and recovery phases of a hurricane. 5. Focus on Florida highlights a geographically specific and high-impact deployment. 6. The contract's value is significant, reflecting the scale of potential medical needs.

Value Assessment

Rating: good

The contract value of $14.26 million for approximately 105 days of service appears reasonable given the emergency nature and scope of Hurricane Helene response. Benchmarking against similar disaster response contracts is challenging due to unique event-driven pricing, but the per-day cost is within a plausible range for specialized medical support in a disaster zone. The Time and Materials pricing structure allows for flexibility in addressing unpredictable needs, though it requires diligent oversight to ensure cost efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the open competition suggests a healthy market for emergency medical support services. This process is designed to foster price discovery and ensure the government receives competitive pricing by allowing all responsible sources to participate.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring that the most capable and cost-effective providers are selected.

Public Impact

Residents and visitors in Florida affected by Hurricane Helene will receive essential emergency medical care. The contract ensures the availability of critical medical personnel and equipment during a public health crisis. Services will be delivered within continental United States and territories, with a specific focus on Florida. This contract supports the healthcare workforce by potentially engaging medical professionals and support staff for disaster relief operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Time and Materials contract if not closely monitored.
Logistical challenges in deploying and sustaining medical teams in a disaster-stricken area.
Ensuring consistent quality of care across diverse operational sites.
Coordination with local healthcare infrastructure and emergency management agencies.

Positive Signals

Addresses a critical, time-sensitive need for public safety and health.
Leverages established emergency response capabilities of the contractor.
Full and open competition promotes best value and cost-effectiveness.
Clear geographic focus on Florida for targeted support.

Sector Analysis

The emergency medical services sector is crucial for public health and safety, particularly during natural disasters. This contract falls under the broader healthcare services industry, specifically focusing on rapid response capabilities. The market for such services is often characterized by specialized providers with the infrastructure and personnel to deploy quickly. Comparable spending benchmarks are difficult to establish due to the ad-hoc nature of disaster response, but FEMA's consistent need for such services during emergencies indicates a significant and recurring market.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As it was awarded under full and open competition, it is possible that small businesses could have participated directly or indirectly. However, without further information on subcontracting plans or set-aside goals, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. Mechanisms would include regular performance reviews, financial audits, and adherence to the terms of the Time and Materials contract. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Disaster Medical Assistance Teams (DMAT)
Emergency Management Performance Grants
National Disaster Medical System (NDMS)

Risk Flags

Potential for cost overruns due to T&M structure in a high-stress environment.
Logistical complexities of deploying and sustaining medical operations post-disaster.
Need for stringent oversight to ensure efficient resource utilization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $14.3 million to AMERICAN MEDICAL RESPONSE, INC.. EMERGENCY MEDICAL SUPPORT SERVICES WITHIN CONTINENTAL UNITED STATES AND TERRITORIES SPECIFICALLY IN THE STATE OF FLORIDA IN RESPONSE TO HURRICANE HELENE

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 $14.3 million.

What is the period of performance?

Start: 2024-10-09. End: 2025-01-22.

What is the track record of American Medical Response, Inc. in handling large-scale disaster response contracts for federal agencies?

American Medical Response, Inc. (AMR) is a major provider of emergency medical services in the United States and has a significant history of responding to large-scale disasters, including hurricanes, wildfires, and mass casualty events. They frequently partner with federal, state, and local agencies, including FEMA, to provide critical medical support during emergencies. Their experience often involves deploying ambulances, medical personnel, and establishing temporary medical facilities. While specific contract performance details are often proprietary or buried within agency reports, AMR's sustained presence in the disaster response market suggests a generally accepted capability to fulfill such requirements. However, like any large contractor, they may have faced scrutiny or performance issues on specific past contracts, which would require a deeper dive into individual contract histories and agency evaluations.

How does the $14.26 million award compare to typical FEMA spending for similar emergency medical support during hurricane responses?

Comparing this $14.26 million award to typical FEMA spending for similar emergency medical support during hurricane responses is complex due to the highly variable nature of disasters and the specific needs they create. FEMA's spending fluctuates significantly based on the hurricane's intensity, the affected area's population density, the extent of infrastructure damage, and the duration of the response. For a major hurricane impacting a populated state like Florida, $14.26 million for approximately 105 days of critical medical support is within a plausible range. FEMA often utilizes a mix of pre-negotiated contracts, delivery orders against existing indefinite-delivery/indefinite-quantity (IDIQ) vehicles, and direct procurements for immediate needs. Without access to FEMA's internal cost-benefit analyses or detailed historical spending data for comparable events, a precise benchmark is difficult, but the award reflects a substantial commitment to addressing significant medical needs.

What are the primary risks associated with a Time and Materials (T&M) contract for emergency medical services in a disaster zone?

The primary risks associated with a Time and Materials (T&M) contract for emergency medical services in a disaster zone revolve around cost control and contractor efficiency. T&M contracts reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials used. In a chaotic disaster environment, there's a heightened risk of scope creep, inefficient labor utilization (e.g., extended downtime, unnecessary overtime), and inflated material costs due to scarcity or emergency surcharges. For FEMA, this necessitates robust oversight, including detailed timesheet verification, justification for material purchases, and close monitoring of service delivery to ensure that taxpayer funds are used efficiently and effectively. The flexibility of T&M is beneficial for unpredictable needs, but it places a greater burden on the government to manage and control costs.

How effective is full and open competition in ensuring the best value for emergency medical services during a declared disaster?

Full and open competition is generally considered the most effective method for ensuring the best value for goods and services, including emergency medical services, even during declared disasters. It allows a wide range of qualified vendors to submit proposals, fostering a competitive environment that drives down prices and encourages innovation. For disaster response, this means FEMA can select from multiple providers capable of meeting stringent requirements for speed, expertise, and resource availability. While the urgency of a disaster might sometimes necessitate expedited processes or sole-source awards for immediate life-saving needs, utilizing full and open competition whenever feasible ensures that the government obtains the most capable services at the most reasonable cost. The challenge lies in balancing the need for rapid deployment with the time required for a competitive solicitation and evaluation process.

What are the potential workforce implications of this contract for the medical sector in Florida and surrounding regions?

This contract could have several workforce implications for the medical sector in Florida and surrounding regions. Firstly, it will likely require the mobilization of a significant number of medical professionals, including paramedics, EMTs, nurses, and support staff, to meet the demands of Hurricane Helene response. This could lead to temporary employment opportunities for individuals seeking disaster relief work. Secondly, it may draw personnel away from their regular duties or other potential employment within the region, potentially creating temporary shortages in other healthcare settings. Thirdly, the contractor, American Medical Response, Inc., may need to recruit additional staff specifically for this contract, potentially impacting local hiring markets. Finally, the experience gained by medical professionals working on this contract could enhance their skills and readiness for future emergency situations.

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

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: American Medical Response West

Address: 6363 S FIDDLERS GREEN CIR FL 14, 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: $14,259,765

Exercised Options: $14,259,765

Current Obligation: $14,259,765

Actual Outlays: $14,259,765

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 70FB7022D00000027

IDV Type: IDC

Timeline