FEMA awards $163.8K purchase order for PAD lease in Tennessee, citing no competition

Contract Overview

Contract Amount: $163,800 ($163.8K)

Contractor: Sherman Hudson

Awarding Agency: Department of Homeland Security

Start Date: 2025-01-23

End Date: 2026-04-08

Contract Duration: 440 days

Daily Burn Rate: $372/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PAD LEASE IN SUPPORT OF DR-4832-TN.

Place of Performance

Location: NEWPORT, COCKE County, TENNESSEE, 37821

State: Tennessee Government Spending

Plain-Language Summary

Department of Homeland Security obligated $163,800 to SHERMAN HUDSON for work described as: PAD LEASE IN SUPPORT OF DR-4832-TN. Key points: 1. The contract value is relatively small, suggesting a focused need for specific support services. 2. The absence of competition raises questions about potential cost efficiencies and market responsiveness. 3. The short duration of the contract (440 days) indicates a temporary or project-specific requirement. 4. The service category, 'All Other Business Support Services,' is broad and may encompass various administrative functions. 5. The contract is a firm fixed-price award, which shifts cost risk to the contractor.

Value Assessment

Rating: questionable

Given the lack of competition and the broad service category, it is difficult to benchmark the value for money. The contract value of $163.8K for a 440-day lease of PAD support is not inherently high, but without comparable sole-source awards or market research, assessing its fairness is challenging. The firm fixed-price nature provides cost certainty for the government, but the absence of competitive bidding means potential savings may have been forgone.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT COMPETED,' indicating a sole-source or limited competition procurement. The specific justification for this approach is not provided in the data. Without a competitive process, it's impossible to determine how many potential bidders were considered or why they were excluded. This lack of transparency limits the ability to assess if the government obtained the best possible price and terms.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings typically achieved through competitive bidding, potentially leading to higher prices than if multiple vendors had vied for the contract.

Public Impact

The primary beneficiary is the Federal Emergency Management Agency (FEMA), which receives PAD lease support. The services delivered are business support functions essential for FEMA's operations in Tennessee. The geographic impact is localized to Tennessee, supporting disaster relief or recovery efforts in the state. Workforce implications are likely minimal, as this appears to be a lease of property or equipment rather than a large service contract requiring significant personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potential cost savings for taxpayers.
Broad service category ('All Other Business Support Services') lacks specificity, making performance monitoring potentially challenging.
Sole-source justification is not provided, raising concerns about procurement fairness and transparency.

Positive Signals

Firm fixed-price award provides cost certainty for the government.
Contract supports FEMA's critical mission, likely related to disaster response or management in Tennessee.
The contract value is relatively small, minimizing significant financial risk.

Sector Analysis

The contract falls under the broad 'Business Support Services' sector, specifically NAICS code 561499. This category includes a wide range of non-professional, non-technical support services. Federal spending in this area is substantial, encompassing everything from administrative support to call centers. However, this specific award is a small purchase order, indicating it is a minor component within the larger federal contracting landscape for business support.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false) and does not appear to involve significant subcontracting opportunities (sb: false). As a sole-source award of limited value, it is unlikely to have a substantial direct impact on the small business ecosystem, though it does represent a federal expenditure that could have otherwise gone to a small business if competed.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Emergency Management Agency (FEMA) contracting officers and program managers. As a purchase order, it is likely subject to internal agency review and potentially audits by the Department of Homeland Security's Office of Inspector General, particularly if it were part of a larger, higher-risk program. Transparency is limited due to the sole-source nature and lack of detailed justification.

Related Government Programs

FEMA Disaster Relief Operations
Emergency Management Support Services
Federal Property Leasing
Business Support Services Contracts

Risk Flags

Lack of Competition
Sole-Source Justification Missing
Broad Service Category

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $163,800 to SHERMAN HUDSON. PAD LEASE IN SUPPORT OF DR-4832-TN.

Who is the contractor on this award?

The obligated recipient is SHERMAN HUDSON.

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 $163,800.

What is the period of performance?

Start: 2025-01-23. End: 2026-04-08.

What specific services does 'PAD LEASE IN SUPPORT OF DR-4832-TN' entail, and how does it relate to Disaster Recovery 4832 in Tennessee?

The provided data offers limited detail on the specific services encompassed by 'PAD LEASE IN SUPPORT OF DR-4832-TN.' 'PAD' could potentially refer to a staging area, portable accommodation, or a specific piece of equipment. The reference to 'DR-4832-TN' strongly suggests this lease is directly tied to a specific disaster declaration or recovery effort in Tennessee (TN). Without further documentation, the exact nature of the 'lease' and its operational support function within the disaster recovery framework remains unclear. It likely involves providing physical space, equipment, or logistical support critical for FEMA's response and recovery operations in the affected Tennessee region.

Why was this contract awarded on a sole-source basis instead of through full and open competition?

The data explicitly states the contract was 'NOT COMPETED,' indicating a sole-source award. The specific justification for this procurement approach is not detailed in the provided information. Typically, sole-source awards are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need where competition is not feasible. Without the official justification document (e.g., a Justification for Other Than Full and Open Competition - JOFOC), it is impossible to ascertain the precise reasons FEMA pursued this contract without competition. This lack of transparency raises concerns about whether the government explored all viable options to ensure fair pricing and maximize competition.

How does the $163,800 contract value compare to similar PAD lease or support services procured by FEMA or other agencies?

Benchmarking the $163,800 contract value for 'PAD LEASE IN SUPPORT OF DR-4832-TN' against similar procurements is challenging without more specific details on the 'PAD' itself and the exact services rendered. However, as a sole-source award for a duration of approximately 14 months (440 days), this value appears moderate for disaster-related support. FEMA often procures a wide range of services, from temporary housing solutions to logistical support, during disaster responses. If 'PAD' refers to a significant piece of equipment or a substantial leased space critical for operations, the cost might be reasonable. Conversely, if it represents a minor support function, it could be on the higher side, especially given the lack of competitive pressure. A thorough comparison would require access to historical data on similar sole-source awards or competitive bids for comparable disaster support assets in specific geographic regions.

What are the potential risks associated with a sole-source contract for essential disaster support services?

Sole-source contracts for essential disaster support services carry several potential risks. Firstly, the absence of competition can lead to inflated pricing, as the government may not benefit from the cost efficiencies that arise when multiple vendors vie for a contract. This means taxpayers could be paying more than necessary. Secondly, there's a risk of reduced quality or suboptimal service delivery, as the contractor may face less pressure to perform at a high level compared to a competitive environment. Thirdly, transparency and accountability can be diminished, making it harder to scrutinize the procurement process and the contractor's performance. Finally, sole-source awards can sometimes indicate a lack of adequate planning or market research, potentially leading to reliance on a single vendor that may not be the most suitable or cost-effective option in the long run.

What is the track record of SHERMAN HUDSON as a federal contractor, particularly with FEMA or disaster-related services?

The provided data identifies SHERMAN HUDSON as the contractor for this purchase order. However, it does not offer any information regarding their past performance, track record, or experience with federal contracts, specifically with FEMA or in providing disaster-related services. To assess their reliability and past performance, one would need to consult federal procurement databases like SAM.gov (System for Award Management) or the Contractor Performance Assessment Reporting System (CPARS). Without this external data, it is impossible to evaluate SHERMAN HUDSON's history, including their on-time delivery, quality of work, and compliance with contract terms on previous federal engagements.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › All Other Business Support Services

Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1120 MORRELL SPRINGS RD, NEWPORT, TN, 37821

Business Categories: Category Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $163,800

Exercised Options: $163,800

Current Obligation: $163,800

Actual Outlays: $133,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline