HHS awards $175.7M for emergency shelter services to Acuity-CHS, LLC in Florida

Contract Overview

Contract Amount: $175,738,653 ($175.7M)

Contractor: Acuity-Chs, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2019-04-09

End Date: 2019-11-30

Contract Duration: 235 days

Daily Burn Rate: $747.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE PURPOSE OF THIS CONTRACT IS TO PROVIDE SUPPORT SERVICES FOR EMERGENCY TEMPORARY SHELTER OPERATIONS--HOMESTEAD, FL

Place of Performance

Location: CAPE CANAVERAL, BREVARD County, FLORIDA, 32920

State: Florida Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $175.7 million to ACUITY-CHS, LLC for work described as: THE PURPOSE OF THIS CONTRACT IS TO PROVIDE SUPPORT SERVICES FOR EMERGENCY TEMPORARY SHELTER OPERATIONS--HOMESTEAD, FL Key points: 1. Significant federal investment in emergency relief services. 2. Contract awarded to a single vendor, raising questions about competition. 3. Focus on temporary shelter operations highlights critical humanitarian needs. 4. Potential for cost overruns given the Cost Plus Fixed Fee structure.

Value Assessment

Rating: questionable

The contract value of $175.7 million is substantial for emergency support services. Without comparable contract data, it's difficult to definitively assess pricing, but the Cost Plus Fixed Fee structure can sometimes lead to higher costs than fixed-price contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially reduces the incentive for the contractor to offer the most competitive pricing.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competitive bidding for these essential emergency services.

Public Impact

Provides critical temporary shelter for individuals in need during emergencies. Supports disaster relief efforts in Florida, a state prone to natural disasters. Ensures essential services are available during times of crisis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost-plus contract type
High contract value

Positive Signals

Addresses critical need for emergency shelter
Supports disaster relief operations

Sector Analysis

Emergency and Other Relief Services (NAICS 624230) is a sector focused on providing short-term, temporary shelter and relief services. Spending in this sector can fluctuate significantly based on disaster events.

Small Business Impact

The contract was not awarded to small businesses, as indicated by 'sb': false. There is no information provided on subcontracting opportunities for small businesses.

Oversight & Accountability

The 'no' field indicates 1 award, and the 'dur' field shows a duration of 235 days. Further oversight would be needed to ensure efficient use of funds and adherence to contract terms.

Related Government Programs

Emergency and Other Relief Services
Department of Health and Human Services Contracting
Office of the Assistant Secretary for Administration Programs

Risk Flags

Lack of competitive bidding
Potential for cost escalation due to CPFF structure
No indication of small business subcontracting
High contract value without clear benchmarks

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $175.7 million to ACUITY-CHS, LLC. THE PURPOSE OF THIS CONTRACT IS TO PROVIDE SUPPORT SERVICES FOR EMERGENCY TEMPORARY SHELTER OPERATIONS--HOMESTEAD, FL

Who is the contractor on this award?

The obligated recipient is ACUITY-CHS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $175.7 million.

What is the period of performance?

Start: 2019-04-09. End: 2019-11-30.

What was the justification for not competing this significant emergency shelter contract?

The justification for not competing this contract is not provided in the data. Typically, sole-source awards are made when there is a compelling reason, such as a unique capability, an urgent and unforeseen need, or a lack of available sources. Without this information, it's impossible to assess if the lack of competition was warranted or if it resulted in a suboptimal outcome for the government and taxpayers.

How does the Cost Plus Fixed Fee structure impact the overall cost-effectiveness of this emergency shelter contract?

The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. While it allows for flexibility in uncertain environments, it can incentivize cost overruns as the contractor is guaranteed their fee regardless of final costs. This structure requires robust oversight to ensure costs remain reasonable and that the fixed fee is appropriate for the services rendered.

What is the long-term strategy for emergency shelter provision beyond temporary contracts like this one?

This contract addresses immediate, temporary shelter needs. The long-term strategy for emergency shelter provision would likely involve a combination of pre-negotiated agreements with providers, development of government-owned facilities, and partnerships with non-profit organizations. Understanding the agency's broader disaster preparedness and response plan would clarify how this contract fits into a sustainable, long-term approach to emergency housing.

Industry Classification

NAICS: Health Care and Social Assistance › Community Food and Housing, and Emergency and Other Relief Services › Emergency and Other Relief Services

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8600 ASTRONAUT BLVD, CAPE CANAVERAL, FL, 32920

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $175,738,653

Exercised Options: $175,738,653

Current Obligation: $175,738,653

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline