FEMA awards $50.6M contract for disaster response lodging, supporting 128 beds in Kentucky

Contract Overview

Contract Amount: $50,609,186 ($50.6M)

Contractor: Cotton Commercial USA, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2022-08-05

End Date: 2023-12-31

Contract Duration: 513 days

Daily Burn Rate: $98.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS REQUIREMENT IS TO OBTAIN CONTRACTOR SUPPORT TO PROVIDE TRANSPORTATION AND SET UP OF CLUS TO CREATE RESPONDER LODGING SITES FOR 125 BED STANDARD CLUS AND 3 ADA COMPLIANT BEDS (128 TOTAL BEDS).THE SITES SHALL INCLUDE WRAP-AROUND,

Place of Performance

Location: EMMALENA, KNOTT County, KENTUCKY, 41740

State: Kentucky Government Spending

Plain-Language Summary

Department of Homeland Security obligated $50.6 million to COTTON COMMERCIAL USA, INC. for work described as: THE PURPOSE OF THIS REQUIREMENT IS TO OBTAIN CONTRACTOR SUPPORT TO PROVIDE TRANSPORTATION AND SET UP OF CLUS TO CREATE RESPONDER LODGING SITES FOR 125 BED STANDARD CLUS AND 3 ADA COMPLIANT BEDS (128 TOTAL BEDS).THE SITES SHALL INCLUDE WRAP-AROUND, Key points: 1. Contract focuses on essential logistics for disaster response, including transportation and setup of temporary lodging. 2. The award represents a significant investment in FEMA's disaster preparedness and response capabilities. 3. Performance period spans over a year, indicating a need for sustained support. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The North American Industry Classification System (NAICS) code 493190 suggests a focus on warehousing and storage services related to the lodging setup. 6. The geographic focus on Kentucky highlights a specific regional need for disaster response infrastructure.

Value Assessment

Rating: fair

The total award of $50.6 million for providing and setting up 128 beds, including transportation, appears substantial. Benchmarking this against similar disaster response lodging contracts is challenging due to the specific nature of the services. However, the firm-fixed-price structure suggests that the contractor is responsible for managing costs within the agreed-upon price, which can be a positive indicator for value if performance is met. Further analysis would require comparing the per-bed setup and transportation costs to industry standards for emergency deployments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but the competitive nature of the award suggests that FEMA sought the best value through a transparent process. Full and open competition generally leads to more competitive pricing and a wider range of potential solutions.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs and ensures that the government receives a fair price for goods and services.

Public Impact

Disaster-affected populations in Kentucky will benefit from the provision of temporary, safe, and compliant lodging. The contract supports the establishment of responder lodging sites, enabling emergency personnel to effectively manage disaster relief operations. Geographic impact is concentrated in Kentucky, addressing a specific regional need for disaster response infrastructure. The contract implies a need for logistical and setup workforce, potentially creating temporary employment opportunities in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen logistical challenges arise during setup and transportation.
Dependence on contractor's ability to mobilize resources quickly in response to disaster events.
Ensuring compliance with ADA requirements for the specified number of beds adds complexity and potential for delays.

Positive Signals

Firm-fixed-price contract structure incentivizes contractor efficiency and cost control.
Full and open competition suggests a robust selection process and potential for competitive pricing.
The contract duration indicates a commitment to sustained support for disaster response operations.

Sector Analysis

This contract falls within the broader logistics and support services sector, specifically catering to emergency response needs. The market for disaster preparedness and response services is critical, especially given the increasing frequency and severity of natural disasters. While specific market size data for this niche is not readily available, it is a vital component of national security and emergency management infrastructure. Comparable spending benchmarks would likely be found within other federal agencies' disaster relief and contingency support contracts.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting goals for this contract. As it was awarded under full and open competition, it is possible that small businesses participated as prime contractors or subcontractors. However, without further information, the direct impact on the small business ecosystem remains unclear. Analysis of subcontracting plans would be necessary to assess the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and the Federal Emergency Management Agency (FEMA). Mechanisms likely include contract performance monitoring, regular reporting requirements from the contractor, and potentially site inspections to ensure compliance with delivery and setup specifications. Transparency is generally maintained through federal contract databases, though specific operational details might be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Disaster Relief Fund
Emergency Management and Assistance
Logistics and Transportation Services
Temporary Housing Programs

Risk Flags

Potential for performance delays
Cost control risks under FFP
Logistical complexity in disaster zones

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $50.6 million to COTTON COMMERCIAL USA, INC.. THE PURPOSE OF THIS REQUIREMENT IS TO OBTAIN CONTRACTOR SUPPORT TO PROVIDE TRANSPORTATION AND SET UP OF CLUS TO CREATE RESPONDER LODGING SITES FOR 125 BED STANDARD CLUS AND 3 ADA COMPLIANT BEDS (128 TOTAL BEDS).THE SITES SHALL INCLUDE WRAP-AROUND,

Who is the contractor on this award?

The obligated recipient is COTTON COMMERCIAL USA, 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 $50.6 million.

What is the period of performance?

Start: 2022-08-05. End: 2023-12-31.

What is the contractor's track record with FEMA or similar agencies for disaster response logistics?

Information regarding Cotton Commercial USA, Inc.'s specific track record with FEMA or similar agencies for disaster response logistics is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or commendations related to their services in emergency situations. Federal procurement databases and past performance questionnaires are key resources for evaluating a contractor's reliability and experience in delivering critical support services under pressure. Without this historical data, it is difficult to definitively assess their capability to meet the demands of this specific contract.

How does the per-bed cost for setup and transportation compare to industry benchmarks for emergency deployments?

The provided data does not include a breakdown of costs per bed for setup and transportation, making a direct comparison to industry benchmarks difficult. The total award of $50.6 million for 128 beds averages to approximately $395,385 per bed, which encompasses transportation, setup, and potentially other associated services. To benchmark this, one would need to isolate the costs specifically related to the transportation and physical setup of the lodging units and compare these figures against industry rates for rapid deployment of temporary shelters or housing in disaster-stricken areas. Factors such as the complexity of site preparation, distance of transportation, and the specific type of lodging units used would significantly influence these costs.

What are the primary risks associated with the transportation and setup of these lodging sites?

The primary risks associated with the transportation and setup of these lodging sites include logistical challenges in reaching remote or damaged areas, potential delays due to weather or infrastructure damage, and ensuring the timely and safe delivery and assembly of 128 beds, including ADA-compliant units. There is also a risk of cost overruns if unforeseen site preparation is required or if transportation logistics become more complex than anticipated. Furthermore, ensuring the quality and safety of the setup is critical for the well-being of responders. The firm-fixed-price nature of the contract means the contractor bears the brunt of these cost risks, but performance failures could still impact FEMA's operational readiness.

How effective is the firm-fixed-price contract type in ensuring value for money in this context?

The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and risks can be reasonably anticipated. In this case, providing transportation and setup for lodging sites, the scope appears relatively clear. FFP shifts the cost risk to the contractor, incentivizing them to manage expenses efficiently and complete the work within budget. This can lead to cost savings for the government compared to cost-reimbursement contracts, provided the contractor is competent and the initial price is fair. However, if unforeseen issues arise that significantly increase the contractor's costs, they may cut corners on quality or performance, potentially negating the value.

What is the historical spending pattern for similar disaster response lodging support by FEMA?

Historical spending patterns for similar disaster response lodging support by FEMA are not detailed in the provided data. To analyze this, one would need to examine FEMA's budget allocations and contract awards over several fiscal years, specifically looking for contracts related to temporary housing, shelter provision, and logistical support during declared disasters. Trends in spending could reveal whether investments in such capabilities are increasing, decreasing, or remaining stable, and how this $50.6 million award fits within that historical context. Understanding these patterns can help assess the scale and recurring nature of such needs.

What are the implications of the 'Other Warehousing and Storage' NAICS code for this contract?

The assignment of NAICS code 493190, 'Other Warehousing and Storage,' to this contract suggests that a significant component of the service involves the management, storage, and potentially the staging of the lodging units (CLUS) before transportation and setup. This implies that the contractor may be responsible for warehousing the equipment, coordinating its movement, and ensuring it is ready for deployment. While the primary outcome is lodging setup, the NAICS code points to the logistical and inventory management aspects being a key part of the service offering, potentially involving facilities for storing and preparing the units.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › Other Warehousing and Storage

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5443 KATY HOCKLEY CUT-OFF RD, KATY, TX, 77493

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $50,609,186

Exercised Options: $50,609,186

Current Obligation: $50,609,186

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FB8021D00000005

IDV Type: IDC

Timeline