DHS awards $2.29M modification for Maui wildfire recovery, extending support by 3 months

Contract Overview

Contract Amount: $2,291,902 ($2.3M)

Contractor: Lima Charlie, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2025-12-01

End Date: 2027-02-28

Contract Duration: 454 days

Daily Burn Rate: $5.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LIMA CHARLIE: THE PURPOSE OF THIS MODIFICATION IS TO EXTEND THE POP OUT FOR 3 MONTHS FROM 12/1/2025 THROUGH 02/28/2026 IN SUPPORT DR-4724-HI MAUI WILDFIRES.

Place of Performance

Location: LAHAINA, MAUI County, HAWAII, 96761

State: Hawaii Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.3 million to LIMA CHARLIE, INC for work described as: LIMA CHARLIE: THE PURPOSE OF THIS MODIFICATION IS TO EXTEND THE POP OUT FOR 3 MONTHS FROM 12/1/2025 THROUGH 02/28/2026 IN SUPPORT DR-4724-HI MAUI WILDFIRES. Key points: 1. Contract modification extends critical support for Maui wildfire recovery efforts. 2. Focus on residential property management indicates direct impact on affected communities. 3. The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 4. Firm Fixed Price contract type provides cost certainty for the government. 5. The extension period is relatively short, suggesting a need for ongoing assessment of recovery needs. 6. The awardee, LIMA CHARLIE, INC, is responsible for delivering essential services in a high-need area.

Value Assessment

Rating: good

The modification adds $2.29 million to the contract, extending services for 454 days. While specific performance metrics for this modification are not detailed, the extension implies satisfactory performance of the base contract. Benchmarking against similar disaster recovery contracts is difficult without more granular data on the scope of services. However, the firm fixed-price nature of the contract suggests a degree of cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders and is used for acquisitions below a certain threshold. This suggests that while competition was sought, it may not have been as broad as in full and open competition. The specific number of bidders is not provided, making a precise assessment of competition dynamics challenging.

Taxpayer Impact: Competition under SAP generally aims for fair pricing by leveraging market research and quotes from a limited pool of vendors. Taxpayers benefit from the efficiency of SAP for smaller procurements, but the potential for broader competition to drive down costs further is reduced.

Public Impact

Residents affected by the Maui wildfires benefit from continued residential property management services. The services provided are crucial for stabilizing and managing housing in the disaster-stricken areas. The geographic impact is concentrated in Hawaii, specifically addressing the needs arising from the DR-4724-HI disaster. The contract supports the ongoing recovery and rebuilding efforts in the affected communities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if the recovery effort extends beyond the modification period.
Reliance on a single contractor for critical recovery services could pose a risk if performance falters.
Limited competition under SAP might not yield the absolute lowest price possible.

Positive Signals

Extension of services ensures continuity of support for wildfire victims.
Firm Fixed Price contract provides budget predictability.
The contract is directly tied to a significant disaster relief effort.

Sector Analysis

This contract falls within the broader category of government support services, specifically related to disaster recovery and property management. The market for such services is often characterized by specialized firms capable of rapid deployment and management in crisis situations. While specific benchmarks for disaster recovery property management are not readily available, government spending in this area typically scales with the severity and scope of natural disasters.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this specific modification is not provided. Given the nature of disaster response, it's possible that larger, specialized firms are contracted, with potential for subcontracting to smaller entities. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight is likely managed by the Federal Emergency Management Agency (FEMA) within the Department of Homeland Security. The firm fixed-price contract type provides a degree of accountability. Transparency would be enhanced by public reporting of performance metrics and any challenges encountered during the extension period. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse.

Related Government Programs

Disaster Relief Fund
Emergency Management Support Services
Federal Assistance to Individuals and Households Program

Risk Flags

Potential for cost overruns if recovery needs exceed the extended period.
Risk of service disruption if contract is not further extended or re-competed.
Dependence on a single contractor for critical recovery functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.3 million to LIMA CHARLIE, INC. LIMA CHARLIE: THE PURPOSE OF THIS MODIFICATION IS TO EXTEND THE POP OUT FOR 3 MONTHS FROM 12/1/2025 THROUGH 02/28/2026 IN SUPPORT DR-4724-HI MAUI WILDFIRES.

Who is the contractor on this award?

The obligated recipient is LIMA CHARLIE, 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 $2.3 million.

What is the period of performance?

Start: 2025-12-01. End: 2027-02-28.

What is the specific scope of 'residential property management' services being provided under this modification?

The provided data indicates the modification is for 'Residential Property Managers' in support of DR-4724-HI Maui Wildfires. While the exact scope isn't detailed in the snippet, typical services for residential property management in a disaster context could include securing damaged properties, coordinating repairs, managing temporary housing solutions for displaced residents, tenant relations, rent collection (if applicable), and ensuring compliance with safety and habitability standards. The extension suggests these services are critical for the ongoing recovery phase, likely involving managing properties that were damaged but not destroyed, or facilitating the transition of residents into new or repaired housing.

How does the $2.29 million modification cost compare to the original contract value or similar disaster recovery efforts?

The provided data does not include the original contract value, making a direct comparison difficult. The modification adds $2.29 million for a 3-month extension. To assess value, one would need to compare this cost against the daily or monthly rate of the original contract and benchmark it against similar disaster recovery property management contracts awarded by FEMA or other agencies. Factors like the specific geographic location (Hawaii's higher cost of living and logistics), the complexity of managing properties post-wildfire, and the urgency of the need would influence cost. Without more data points, a definitive value assessment is challenging, but the amount appears substantial for a 3-month extension, underscoring the ongoing needs in Maui.

What are the key performance indicators (KPIs) used to evaluate LIMA CHARLIE, INC.'s performance during this extension period?

The provided data snippet does not specify the Key Performance Indicators (KPIs) for this contract modification. However, for residential property management in a disaster recovery context, typical KPIs would likely include metrics related to property security (e.g., number of breaches), timely response to resident inquiries or issues, successful coordination of repairs, adherence to budget for maintenance and repairs, resident satisfaction surveys, and compliance with program guidelines set by FEMA. The effectiveness of the contractor would be measured by their ability to maintain safe, habitable conditions and facilitate the recovery process for affected residents.

What is the historical spending pattern for LIMA CHARLIE, INC. with the Department of Homeland Security or FEMA?

The provided data snippet focuses on a single contract modification and does not offer historical spending patterns for LIMA CHARLIE, INC. To assess this, one would need to query federal procurement databases (like USASpending.gov or FPDS) for all contracts awarded to LIMA CHARLIE, INC. by DHS and FEMA. This would reveal the total value of contracts over time, the types of services provided, and the agencies they have served. Understanding their past performance, contract history, and financial size is crucial for assessing their capacity and reliability in handling significant disaster recovery efforts like the Maui wildfires.

What are the potential risks associated with extending this contract for only three months, given the ongoing nature of disaster recovery?

Extending the contract for only three months carries several potential risks. Firstly, it creates uncertainty for both the contractor and the affected residents, as it doesn't provide a long-term solution. This short-term approach might lead to a 'stop-gap' mentality rather than comprehensive recovery planning. Secondly, it necessitates frequent re-competition or further modifications, which can be administratively burdensome and costly for FEMA. If the recovery needs extend beyond this period, the government may face a situation where it needs to rapidly procure services again, potentially at higher costs due to urgency or limited available contractors. This could also disrupt the continuity of services for residents who rely on stable property management.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Activities Related to Real Estate › Residential Property Managers

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2104 PARK RIDGE DR, RIVERBANK, CA, 95367

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,291,902

Exercised Options: $2,291,902

Current Obligation: $2,291,902

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70FBR924A00000004

IDV Type: BPA

Timeline