FEMA awards $183M for Hurricane Ida lodging, including tents and shelters, to Cotton Commercial USA
Contract Overview
Contract Amount: $183,079,578 ($183.1M)
Contractor: Cotton Commercial USA, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2021-09-02
End Date: 2022-02-02
Contract Duration: 153 days
Daily Burn Rate: $1.2M/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CONTRACT FOR CONTAINERIZED LODGING UNITS SOFT-SIDED TENTS AND RESPONDER SHELTERING UNITS IN SUPPORT OF THE STATE OF LOUISIANA BECAUSE OF HURRICANE IDA
Place of Performance
Location: AMELIA, SAINT MARY County, LOUISIANA, 70340
Plain-Language Summary
Department of Homeland Security obligated $183.1 million to COTTON COMMERCIAL USA, INC. for work described as: CONTRACT FOR CONTAINERIZED LODGING UNITS SOFT-SIDED TENTS AND RESPONDER SHELTERING UNITS IN SUPPORT OF THE STATE OF LOUISIANA BECAUSE OF HURRICANE IDA Key points: 1. Significant award for disaster relief, highlighting the need for rapid deployment of temporary housing. 2. Focus on soft-sided tents and responder sheltering units indicates a need for flexible and quickly deployable solutions. 3. The contract's duration and value suggest a substantial, ongoing need for these services in disaster-prone areas. 4. Facilities Support Services sector is critical for emergency response and recovery operations.
Value Assessment
Rating: fair
The contract value of $183M is substantial. Without specific benchmarks for containerized lodging and soft-sided tents in disaster zones, a precise value assessment is difficult. However, the scale suggests a significant need and potentially a premium for rapid deployment and availability.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited competition approach. This may have been due to the urgent nature of the disaster response following Hurricane Ida. Limited competition can sometimes lead to higher prices compared to fully competed contracts.
Taxpayer Impact: Taxpayer funds are being used for essential disaster relief. While the cost is high, it addresses a critical need for shelter and support for affected populations and responders.
Public Impact
Provides essential temporary housing and shelter for individuals and emergency responders impacted by Hurricane Ida. Supports the recovery efforts in Louisiana by ensuring availability of critical infrastructure like lodging units. Demonstrates the federal government's commitment to disaster preparedness and response.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of full and open competition
- Potential for higher costs due to limited competition
- Urgency of need may have impacted price negotiation
Positive Signals
- Addresses critical disaster relief needs
- Supports affected populations and responders
- Ensures availability of essential services
Sector Analysis
This contract falls under Facilities Support Services, a sector crucial for government operations, especially during emergencies. The spending aligns with the need for rapid deployment of temporary infrastructure in response to natural disasters, a common requirement for agencies like FEMA.
Small Business Impact
The contract was awarded to Cotton Commercial USA, Inc. There is no indication from the provided data whether small businesses were involved as subcontractors or if this award specifically targeted small business participation.
Oversight & Accountability
The award was made by the Department of Homeland Security (FEMA). Oversight would typically involve monitoring contract performance, delivery schedules, and adherence to terms. The duration and value suggest ongoing monitoring is necessary.
Related Government Programs
- Facilities Support Services
- Department of Homeland Security Contracting
- Federal Emergency Management Agency Programs
Risk Flags
- Lack of competition may have led to inflated pricing.
- Urgency of award could have bypassed thorough vetting.
- Contract duration suggests potential for cost overruns if not managed closely.
- Dependence on a single vendor for critical disaster infrastructure.
Tags
facilities-support-services, department-of-homeland-security, la, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $183.1 million to COTTON COMMERCIAL USA, INC.. CONTRACT FOR CONTAINERIZED LODGING UNITS SOFT-SIDED TENTS AND RESPONDER SHELTERING UNITS IN SUPPORT OF THE STATE OF LOUISIANA BECAUSE OF HURRICANE IDA
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 $183.1 million.
What is the period of performance?
Start: 2021-09-02. End: 2022-02-02.
What was the justification for not competing this contract fully, given the significant dollar amount?
The justification for not competing this contract fully likely stems from the urgent and immediate need for disaster relief following Hurricane Ida. In such crisis situations, agencies often utilize limited competition or sole-source awards to expedite the procurement process and ensure essential resources are deployed rapidly to affected areas, prioritizing speed over the potential cost savings of a full competition.
How does the per-unit cost of these lodging units compare to similar disaster relief procurements?
Without specific data on the per-unit cost breakdown for containerized lodging units, soft-sided tents, and responder sheltering units, a direct comparison is challenging. However, given the limited competition and the urgency associated with disaster response, it is plausible that the per-unit costs may be higher than those achieved through fully competed, non-emergency procurements. Benchmarking would require detailed cost data for similar rapid-deployment solutions.
What mechanisms are in place to ensure the effectiveness and quality of the delivered lodging and sheltering units?
Effectiveness and quality are typically ensured through contract performance standards, inspection protocols, and acceptance criteria outlined in the contract. FEMA would likely have personnel on the ground to verify that the delivered units meet the specified requirements for safety, habitability, and functionality. Post-deployment feedback and performance reviews would also contribute to assessing the overall effectiveness of the procured resources.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: PURCHASE OF STRUCTURES/FACILITIES › PURCHASE BUILDINGS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 70FBR621R00000023
Offers Received: 1
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: $1,323,586,992
Exercised Options: $183,079,578
Current Obligation: $183,079,578
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2021-09-02
Current End Date: 2022-02-02
Potential End Date: 2022-02-03 00:00:00
Last Modified: 2022-03-24
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