FEMA awards $106.7M for hurricane response, providing 350 beds in Georgia or North Carolina

Contract Overview

Contract Amount: $106,719,431 ($106.7M)

Contractor: Cotton Commercial USA, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-30

End Date: 2024-10-30

Contract Duration: 30 days

Daily Burn Rate: $3.6M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RESPONDER SUPPORT CAMP TASK ORDER FOR 350 BEDS IN THE STATES OF GEORGIA OR NORTH CAROLINA IN RESPONSE TO HURRICANE HELENE.

Place of Performance

Location: FLAT ROCK, HENDERSON County, NORTH CAROLINA, 28731

State: North Carolina Government Spending

Plain-Language Summary

Department of Homeland Security obligated $106.7 million to COTTON COMMERCIAL USA, INC. for work described as: RESPONDER SUPPORT CAMP TASK ORDER FOR 350 BEDS IN THE STATES OF GEORGIA OR NORTH CAROLINA IN RESPONSE TO HURRICANE HELENE. Key points: 1. Contract addresses immediate needs following Hurricane Helene, demonstrating rapid response capability. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type helps to control costs and provides predictability. 4. The short duration of 30 days indicates a focus on emergency relief rather than long-term solutions. 5. The contract value is significant, reflecting the scale of the disaster and the required resources.

Value Assessment

Rating: good

The contract value of $106.7 million for 350 beds over 30 days appears reasonable given the emergency nature and the need for rapid deployment of resources. Benchmarking against similar disaster response contracts is challenging due to the unique circumstances and urgency. However, the per-bed cost, while not explicitly stated, would need to be assessed against the services provided, including facility setup, maintenance, and staffing, to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The fact that it was competed suggests that multiple vendors likely vied for the opportunity, which typically drives more competitive pricing. The specific number of bidders is not provided, but the competition level is a positive sign for price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of offers, potentially leading to lower prices and better service quality compared to sole-source or limited competition awards.

Public Impact

Provides essential temporary shelter for individuals and families displaced by Hurricane Helene. Supports disaster relief efforts by the Federal Emergency Management Agency (FEMA). Benefits residents in affected areas of Georgia or North Carolina. Facilitates the immediate provision of housing during a critical recovery period. May involve local workforce support for setup, maintenance, and operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen logistical challenges arise during rapid deployment.
Ensuring adequate staffing and services are consistently maintained throughout the 30-day period.
Coordination challenges between federal, state, and local entities during an emergency.
Availability of suitable facilities in the designated response areas.

Positive Signals

Clear contract type (firm fixed price) helps manage budget certainty.
Awarded under full and open competition, suggesting competitive pricing.
Addresses a critical and immediate need for disaster relief.
Short duration focuses resources on urgent requirements.

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically addressing emergency response needs. The market for disaster relief services is specialized, often involving rapid deployment of temporary infrastructure and personnel. While not a typical large-scale construction or long-term facility management contract, it requires significant logistical and operational capabilities. Comparable spending benchmarks would likely be found within FEMA's disaster relief appropriations and other emergency management agency contracts.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. Given the scale and urgency of the award, it is possible that larger, more established contractors with the capacity for rapid deployment were prioritized. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Emergency Management Agency (FEMA), which is responsible for managing disaster relief operations. Accountability measures are typically embedded in the contract terms, including performance standards and reporting requirements. Transparency is generally maintained through contract award databases, though specific operational details during an emergency may be limited. The Inspector General for the Department of Homeland Security would have jurisdiction over potential fraud, waste, or abuse.

Related Government Programs

FEMA Disaster Relief Fund
Emergency Management and Assistance
Temporary Housing Programs
Hurricane Response Operations

Risk Flags

Potential for scope creep if needs extend beyond initial 30 days.
Ensuring equitable access to shelter for all affected populations.
Logistical complexities in deploying resources rapidly to affected states.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $106.7 million to COTTON COMMERCIAL USA, INC.. RESPONDER SUPPORT CAMP TASK ORDER FOR 350 BEDS IN THE STATES OF GEORGIA OR NORTH CAROLINA IN RESPONSE TO HURRICANE HELENE.

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 $106.7 million.

What is the period of performance?

Start: 2024-09-30. End: 2024-10-30.

What is the typical cost per bed for temporary emergency housing provided by FEMA?

The cost per bed for temporary emergency housing can vary significantly based on factors such as the duration of the need, the type of housing provided (e.g., tents, temporary structures, leased properties), the level of services included (e.g., utilities, security, catering), and the geographic location. For this specific contract, the total award of $106.7 million for 350 beds over 30 days suggests a substantial per-bed cost, likely reflecting the rapid deployment, comprehensive services, and emergency premium associated with Hurricane Helene response. Without detailed service breakdowns, direct comparison to typical per-bed costs for longer-term or less urgent housing solutions is difficult, but it underscores the significant investment required for immediate disaster relief.

How does the competition level for this contract compare to other FEMA emergency response awards?

This contract was awarded under 'full and open competition,' which is the preferred method for federal procurements and generally indicates a healthy level of competition. For emergency response contracts, the urgency and specialized nature of the services can sometimes lead to fewer bidders than in more routine procurements. However, FEMA aims to compete these awards whenever feasible to ensure fair pricing and access to capable vendors. The specific number of bidders for this $106.7 million award is not detailed, but the 'full and open' designation suggests that FEMA sought broad market participation, which is a positive indicator for competitive outcomes, even in time-sensitive situations.

What are the key performance indicators (KPIs) for this type of emergency housing contract?

Key performance indicators (KPIs) for this type of emergency housing contract would likely focus on the rapid and effective deployment and operation of the temporary facilities. Essential KPIs would include the speed of setup and readiness of the 350 beds, the availability and quality of essential services (e.g., sanitation, power, water), adherence to safety and security protocols, and the overall satisfaction of the occupants. Maintaining occupancy rates and ensuring the facilities meet the needs of displaced individuals are also critical. The contract's firm fixed-price nature implies that meeting these performance standards within the agreed budget is paramount for the contractor.

What is the track record of COTTON COMMERCIAL USA, INC. in disaster response contracting?

Assessing the track record of COTTON COMMERCIAL USA, INC. in disaster response contracting requires a review of their past performance with federal agencies, particularly FEMA. Information on previous awards, contract values, and performance evaluations would be crucial. Companies specializing in emergency services often have specific certifications and demonstrated capabilities in rapid mobilization, logistics, and on-site management under challenging conditions. A thorough review of their contract history, including any past issues or commendations related to disaster relief, would provide insight into their reliability and effectiveness for this significant Hurricane Helene response task order.

How does the $106.7 million award compare to FEMA's typical spending on hurricane response?

The $106.7 million award for this specific task order represents a significant but not unprecedented level of spending for FEMA's hurricane response efforts. FEMA's annual budget for disaster relief can fluctuate dramatically depending on the severity and number of natural disasters. Major hurricanes can trigger billions of dollars in federal aid. This particular award is for a focused, 30-day operation to provide temporary shelter, which is a critical component of immediate response. While substantial, it should be viewed within the broader context of FEMA's overall disaster recovery expenditures, which can encompass a wide range of services and long-term rebuilding efforts.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70FBR424R00000030

Offers Received: 2

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: $172,893,635

Exercised Options: $106,719,431

Current Obligation: $106,719,431

Actual Outlays: $106,719,431

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FB8023D00000007

IDV Type: IDC

Timeline