DHS FEMA Awards $38.5M for Fuel Tanks Amid Hurricane Maria Threat

Contract Overview

Contract Amount: $38,511,732 ($38.5M)

Contractor: Macro Companies, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2017-09-30

End Date: 2018-01-06

Contract Duration: 98 days

Daily Burn Rate: $393.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF OTHER FUNCTIONS - FUEL TANKS NEEDED AT ST. CROIX-USVI AS HURRICANE MARIA IS SCHEDULED FOR LANDFALL 9/20/17; FUEL IS A CRITICAL COMPONENT IN ENABLING RESOURCES TO SUPPORT INCIDENT RESPONSE.

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10007

State: New York Government Spending

Plain-Language Summary

Department of Homeland Security obligated $38.5 million to MACRO COMPANIES, INC. for work described as: IGF::OT::IGF OTHER FUNCTIONS - FUEL TANKS NEEDED AT ST. CROIX-USVI AS HURRICANE MARIA IS SCHEDULED FOR LANDFALL 9/20/17; FUEL IS A CRITICAL COMPONENT IN ENABLING RESOURCES TO SUPPORT INCIDENT RESPONSE. Key points: 1. Critical infrastructure procurement under urgent conditions. 2. Significant award to Macro Companies, Inc. for fabricated metal products. 3. Potential for price escalation due to emergency procurement. 4. Focus on enabling incident response capabilities.

Value Assessment

Rating: questionable

The award amount of $38.5M for fuel tanks is substantial. Without comparable contract data for emergency fuel tank procurements, it's difficult to definitively assess pricing. The urgency of the situation may have limited negotiation leverage.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition. However, the urgency driven by Hurricane Maria's impending landfall likely compressed the timeline for bidding and negotiation, potentially impacting price discovery and the ability to secure the most competitive offers.

Taxpayer Impact: Taxpayer funds are being utilized for critical emergency preparedness, ensuring essential resources are available for disaster response. The cost-effectiveness is contingent on the necessity and timely delivery of these fuel tanks.

Public Impact

Ensures critical fuel supply for disaster response operations in St. Croix, USVI. Supports FEMA's mission to prepare for, protect against, respond to, recover from, and mitigate all hazards. Highlights the importance of pre-positioned resources for hurricane season preparedness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Urgent need may lead to premium pricing.
Limited time for competitive bidding.
Geographic remoteness of delivery location.

Positive Signals

Addresses a critical operational need.
Supports disaster preparedness.
Awarded under full and open competition.

Sector Analysis

This procurement falls under the Miscellaneous Fabricated Metal Product Manufacturing sector. Spending in this sector can vary widely based on defense, infrastructure, and emergency needs. The $38.5M award is significant for this specific product category, especially given the emergency context.

Small Business Impact

The data indicates this award went to Macro Companies, Inc. There is no specific information provided regarding small business participation or subcontracting in this award notice.

Oversight & Accountability

The award was made by FEMA, an agency within DHS, which has established oversight mechanisms for disaster relief spending. However, the emergency nature of this procurement warrants close monitoring to ensure funds are used efficiently and effectively.

Related Government Programs

All Other Miscellaneous Fabricated Metal Product Manufacturing
Department of Homeland Security Contracting
Federal Emergency Management Agency Programs

Risk Flags

Potential for inflated pricing due to emergency.
Limited time for thorough vendor vetting.
Geographic isolation of delivery site.
Lack of post-award maintenance details.
Dependence on a single large awardee.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $38.5 million to MACRO COMPANIES, INC.. IGF::OT::IGF OTHER FUNCTIONS - FUEL TANKS NEEDED AT ST. CROIX-USVI AS HURRICANE MARIA IS SCHEDULED FOR LANDFALL 9/20/17; FUEL IS A CRITICAL COMPONENT IN ENABLING RESOURCES TO SUPPORT INCIDENT RESPONSE.

Who is the contractor on this award?

The obligated recipient is MACRO COMPANIES, 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 $38.5 million.

What is the period of performance?

Start: 2017-09-30. End: 2018-01-06.

What was the specific justification for the urgency of this fuel tank procurement, and how did it impact the final price?

The urgency stemmed from the imminent landfall of Hurricane Maria, necessitating immediate fuel storage capabilities for incident response in St. Croix, USVI. This critical timing likely limited the negotiation period, potentially leading to a higher price than if procured under normal circumstances, as the government prioritized rapid acquisition over extensive price vetting.

How does the $38.5M cost compare to typical emergency fuel tank procurements of similar scale and complexity?

Benchmarking this $38.5M award against similar emergency fuel tank procurements is challenging without access to specific historical data for urgent, disaster-related acquisitions. Factors like material costs, transportation to a remote location, and the compressed timeline significantly influence pricing, making direct comparisons difficult and potentially masking inefficiencies.

What measures are in place to ensure the long-term effectiveness and maintenance of these fuel tanks post-incident response?

The provided data focuses solely on the procurement award and does not detail post-delivery oversight, maintenance schedules, or long-term asset management plans for the fuel tanks. Ensuring their continued operational readiness and proper upkeep after the immediate emergency response phase would require separate accountability and maintenance protocols.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › All Other Miscellaneous Fabricated Metal Product Manufacturing

Product/Service Code: CONSTRUCT/MINE/EXCAVATE/HIGHWY EQPT

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: 101 MILLSTONE RD, BROUSSARD, LA, 70518

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

Financial Breakdown

Contract Ceiling: $38,511,732

Exercised Options: $38,511,732

Current Obligation: $38,511,732

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS07F107GA

IDV Type: FSS

Timeline