FEMA awards $37.9M for 700 temporary shelters to support New Mexico wildfire response

Contract Overview

Contract Amount: $37,943,795 ($37.9M)

Contractor: Cotton Commercial USA, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-06-25

End Date: 2025-06-13

Contract Duration: 353 days

Daily Burn Rate: $107.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TASK ORDER FOR RESPONDER SHELTERING UNITS (RSUS) WITH 700-BEDS TO SUPPORT RESPONSE TO THE NEW MEXICO WILDFIRES AND DR-4795-NM.

Place of Performance

Location: LINCOLN, LINCOLN County, NEW MEXICO, 88338

State: New Mexico Government Spending

Plain-Language Summary

Department of Homeland Security obligated $37.9 million to COTTON COMMERCIAL USA, INC. for work described as: TASK ORDER FOR RESPONDER SHELTERING UNITS (RSUS) WITH 700-BEDS TO SUPPORT RESPONSE TO THE NEW MEXICO WILDFIRES AND DR-4795-NM. Key points: 1. Contract provides critical emergency housing solutions for disaster-affected populations. 2. Single award task order indicates a specific need met by a single vendor. 3. Fixed-price contract type helps manage cost certainty for the government. 4. Short performance period aligns with immediate disaster relief requirements. 5. Focus on facilities support services highlights a key area of government need. 6. Geographic focus on New Mexico underscores regional disaster response efforts.

Value Assessment

Rating: good

The contract value of $37.9 million for 700 Responder Sheltering Units (RSUs) appears reasonable given the urgent need for temporary housing during a major disaster like the New Mexico wildfires. While direct comparisons are difficult without knowing the specific unit specifications and duration of deployment, the price per unit is approximately $54,200. This figure should be benchmarked against the cost of similar emergency shelter solutions procured by FEMA or other agencies during past disasters to ensure value for money. The firm fixed-price nature of the award provides cost predictability.

Cost Per Unit: Approximately $54,200 per unit (700 beds over the contract duration).

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that it is a single award task order suggests that Cotton Commercial USA, Inc. was selected as the most advantageous offer based on the government's criteria. The level of competition, while not explicitly detailed by the number of bidders, is positive as it allows for a broader range of solutions and potentially better pricing.

Taxpayer Impact: Full and open competition generally leads to better price discovery and ensures that taxpayer funds are used efficiently by fostering a competitive environment among potential suppliers.

Public Impact

Provides essential temporary housing for individuals and families displaced by the New Mexico wildfires. Supports the Federal Emergency Management Agency's (FEMA) disaster response operations in New Mexico. Aims to stabilize affected populations by offering safe and secure shelter. Contributes to the overall recovery and resilience efforts in the impacted region. May indirectly support local economies through the deployment and maintenance of these shelter units.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for extended deployment needs beyond initial estimates, impacting overall cost.
Logistical challenges in deploying and managing 700 shelter units in a disaster zone.
Ensuring timely and effective maintenance and support for the deployed units.

Positive Signals

Addresses a critical and immediate need for disaster-affected populations.
Firm fixed-price contract provides cost certainty.
Awarded under full and open competition, suggesting a competitive process.
Specific focus on a defined disaster event (New Mexico wildfires).

Sector Analysis

The Facilities Support Services sector encompasses a wide range of services essential for the operation and maintenance of government facilities. This contract falls within the broader category of emergency preparedness and disaster response services, a critical area for government spending, particularly in response to natural disasters. The market for temporary shelter solutions is often activated during emergencies, with various providers capable of supplying modular units, tents, or other forms of temporary housing. Benchmarking this spending would involve comparing the cost per unit and overall contract value to similar emergency shelter procurements by FEMA and other federal agencies during past disaster events.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor, Cotton Commercial USA, Inc., is not explicitly identified as a small business in the provided data, the contract does not appear to have a small business subcontracting goal attached. Further analysis would be needed to determine if any small businesses are involved as subcontractors, which is common in large-scale service contracts.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a task order under a larger contract vehicle (implied by 'Delivery Order'), oversight may be managed through the parent contract's administration. FEMA's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award. Transparency is facilitated by the public availability of contract awards through systems like FPDS.

Related Government Programs

FEMA Disaster Relief Fund
Emergency Management and Response Services
Temporary Housing Programs
Federal Procurement Data System (FPDS)

Risk Flags

Potential for cost overruns if deployment or maintenance exceeds initial estimates.
Logistical complexities in delivering and setting up 700 units in a disaster zone.
Ensuring adequate security and services for shelter occupants.
Dependency on contractor's ability to scale operations rapidly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $37.9 million to COTTON COMMERCIAL USA, INC.. TASK ORDER FOR RESPONDER SHELTERING UNITS (RSUS) WITH 700-BEDS TO SUPPORT RESPONSE TO THE NEW MEXICO WILDFIRES AND DR-4795-NM.

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 $37.9 million.

What is the period of performance?

Start: 2024-06-25. End: 2025-06-13.

What is the typical cost range for similar temporary shelter units procured by FEMA during disaster responses?

Determining a precise 'typical' cost range for temporary shelter units is complex due to variations in unit type, size, amenities, duration of deployment, and geographic location. However, for large-scale disaster responses, FEMA has procured various forms of temporary housing. For instance, during Hurricane Katrina, costs for temporary housing units varied significantly. More recently, during other major events, costs for modular units or rapidly deployable shelters have ranged from tens of thousands to over a hundred thousand dollars per unit, depending on the specifications and service period. The approximate $54,200 per unit cost for these 700-bed Responder Sheltering Units (RSUs) should be evaluated against FEMA's historical data for similar procurements, considering factors like the number of beds per unit, included services (e.g., setup, maintenance), and the contract duration. Without specific details on the RSUs' features and the exact service period included in the $37.9 million, a definitive benchmark is challenging, but it falls within a plausible range for emergency mass sheltering solutions.

How does the performance period of this contract align with typical disaster response timelines?

This contract has a performance period from June 25, 2024, to June 13, 2025, with a duration of 353 days. This duration is substantial and suggests that the need for temporary sheltering is anticipated to extend beyond the immediate aftermath of the New Mexico wildfires. Disaster response timelines can vary greatly; immediate relief efforts often focus on the first few weeks or months, but long-term recovery and housing solutions can take years. A nearly year-long performance period indicates that these RSUs are intended to provide sustained support, potentially covering initial emergency response phases through to more stable, albeit temporary, housing arrangements as permanent solutions are developed. This aligns with the reality that disaster recovery is a protracted process, and sustained support is often required.

What are the potential risks associated with deploying a large number of temporary shelter units in a disaster-affected area?

Deploying 700 temporary shelter units in a disaster-affected area like New Mexico presents several potential risks. Logistical challenges are paramount; transporting, setting up, and managing such a large number of units requires significant coordination and resources, especially in areas potentially impacted by damaged infrastructure. Security for the shelters and their occupants is a concern, necessitating adequate staffing and protocols. Furthermore, ensuring the habitability and maintenance of these units throughout their deployment is crucial; issues like sanitation, power, and water supply must be consistently managed. There's also the risk of prolonged reliance on temporary solutions, which can delay permanent housing efforts or create community integration challenges. Finally, unforeseen environmental factors or changes in disaster scope could impact the effectiveness and cost of the deployment.

What is the track record of Cotton Commercial USA, Inc. in providing disaster response services?

Cotton Commercial USA, Inc. has a significant track record in providing disaster response and recovery services, including temporary facilities and debris removal. They are known for their rapid deployment capabilities and experience in managing large-scale operations following natural disasters. Their portfolio often includes providing temporary housing, command centers, and other essential infrastructure in emergency situations. While specific details of past FEMA contracts would require further database searches, the company's general reputation and business focus suggest they are a capable provider for this type of requirement. Their experience likely includes navigating the complexities of government contracting and emergency logistics, which is critical for fulfilling an award of this nature effectively.

How does the 'Facilities Support Services' NAICS code (561210) relate to the services provided under this contract?

The North American Industry Classification System (NAICS) code 561210, 'Facilities Support Services,' accurately categorizes the services provided under this contract. This code encompasses establishments primarily engaged in providing operating staff for the client's facilities, such as building management and maintenance services. In the context of this task order, Cotton Commercial USA, Inc. is providing Responder Sheltering Units (RSUs), which are essentially temporary facilities. The 'support services' aspect likely includes the setup, maintenance, and potentially management of these units to ensure they are functional and habitable for disaster survivors. Therefore, the NAICS code reflects the provision and operational support of these essential temporary structures, aligning with the broader definition of facilities support in an emergency context.

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

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: $181,676,448

Exercised Options: $37,943,795

Current Obligation: $37,943,795

Actual Outlays: $35,443,795

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FB8023D00000007

IDV Type: IDC

Timeline