FEMA obligated $34.7M for Hurricane Harvey emergency response services, awarded via full and open competition

Contract Overview

Contract Amount: $34,670,818 ($34.7M)

Contractor: American Medical Response, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2017-09-28

End Date: 2017-09-28

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF, EMERGENCY MANAGEMENT SUPPORT SERVICES IN RESPONSE TO HURRICANE HARVEY IN THE STATE OF TEXAS

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78201

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $34.7 million to AMERICAN MEDICAL RESPONSE, INC. for work described as: IGF::OT::IGF, EMERGENCY MANAGEMENT SUPPORT SERVICES IN RESPONSE TO HURRICANE HARVEY IN THE STATE OF TEXAS Key points: 1. The contract provided critical emergency medical services during a major disaster, demonstrating responsiveness to immediate needs. 2. Awarded through full and open competition, suggesting a broad market search for qualified providers. 3. The contract's short duration and specific purpose indicate a tactical response rather than a long-term strategic investment. 4. Performance context is tied to disaster relief, a high-pressure environment where rapid deployment is paramount. 5. Sector positioning is within emergency management and disaster response, a specialized area of public service. 6. The use of Time and Materials pricing warrants scrutiny for cost control in emergency situations.

Value Assessment

Rating: fair

Benchmarking the value for emergency response contracts is challenging due to the unpredictable nature and urgency of disaster situations. The $34.7 million obligated amount for a short-term response to Hurricane Harvey appears substantial, but its appropriateness depends heavily on the scope of services rendered and the prevailing market rates for such critical support during a crisis. Without detailed service delivery data and comparable disaster response contract costs, a definitive value assessment is difficult. However, the Time and Materials (T&M) pricing structure can sometimes lead to higher costs if not closely managed, raising questions about cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the solicitation was made available to all responsible sources. The specific number of bidders is not provided, but the designation suggests a competitive process was intended to identify the best value. Full and open competition is generally expected to foster price discovery and encourage competitive pricing among potential offerors.

Taxpayer Impact: A full and open competition process aims to ensure that taxpayer dollars are used efficiently by leveraging market forces to obtain services at competitive prices. This approach increases the likelihood of securing necessary services at a reasonable cost, even in urgent disaster scenarios.

Public Impact

The primary beneficiaries were the residents of Texas affected by Hurricane Harvey, who received essential emergency medical services. Services delivered included critical medical support and transportation during a large-scale natural disaster. The geographic impact was concentrated in Texas, specifically areas devastated by Hurricane Harvey. Workforce implications involved the mobilization of emergency medical personnel and resources by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not meticulously monitored and controlled, especially in high-pressure emergency response scenarios.
Lack of specific performance metrics or detailed service delivery data makes it difficult to fully assess the efficiency and effectiveness of the services provided.
The urgency of disaster response may have limited the ability for extensive pre-contract negotiation or detailed cost analysis, potentially impacting overall value.
The contract's short duration and single-purpose nature (disaster response) mean it doesn't reflect ongoing operational needs or long-term cost efficiencies.

Positive Signals

Awarded through full and open competition, suggesting a robust process to select a qualified provider.
The contract addressed a critical and immediate need for emergency medical services during a major natural disaster.
The contractor, American Medical Response, Inc., is a known entity in emergency medical services, implying relevant experience.
The rapid obligation of funds indicates a swift response to a critical situation, prioritizing immediate aid.

Sector Analysis

The emergency management and disaster response sector is characterized by its reactive nature, often involving rapid procurement and deployment of resources in response to unforeseen events. This contract fits within the broader category of government support services, specifically focusing on public health and safety during crises. Comparable spending benchmarks are difficult to establish due to the unique circumstances of each disaster, but FEMA's overall budget for disaster relief is substantial, with significant portions allocated to contracted services for response and recovery.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. The nature of large-scale emergency response services often requires significant resources and capabilities that may favor larger, established companies. There is no explicit information provided regarding subcontracting plans or their impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would fall under the purview of the Department of Homeland Security's Office of Inspector General (OIG), which is responsible for auditing and investigating federal programs to prevent waste, fraud, and abuse. The Federal Emergency Management Agency (FEMA) itself would also have internal oversight mechanisms to monitor contract performance and expenditures. Transparency is generally enhanced through public contract databases, though detailed operational oversight specifics are often internal.

Related Government Programs

FEMA Disaster Relief Fund
Emergency Medical Services Contracts
Hurricane Response Operations
Public Health Emergency Preparedness

Risk Flags

Time and Materials Pricing
Lack of Detailed Performance Metrics
Urgency of Disaster Response

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $34.7 million to AMERICAN MEDICAL RESPONSE, INC.. IGF::OT::IGF, EMERGENCY MANAGEMENT SUPPORT SERVICES IN RESPONSE TO HURRICANE HARVEY IN THE STATE OF TEXAS

Who is the contractor on this award?

The obligated recipient is AMERICAN MEDICAL RESPONSE, 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 $34.7 million.

What is the period of performance?

Start: 2017-09-28. End: 2017-09-28.

What is the track record of American Medical Response, Inc. in handling large-scale disaster response contracts for federal agencies?

American Medical Response, Inc. (AMR) is a major provider of emergency medical services in the United States, frequently engaged in disaster response efforts. They have a history of contracting with federal, state, and local agencies for services during major events, including hurricanes, wildfires, and public health emergencies. Their experience often involves mobilizing large fleets of ambulances, personnel, and establishing temporary medical facilities. While specific contract details and performance reviews are not always publicly available, AMR's consistent involvement in disaster response suggests a recognized capacity to meet the demands of such critical situations. However, like any large contractor, they may have faced scrutiny or challenges in specific past operations, underscoring the importance of ongoing performance monitoring by the contracting agency.

How does the $34.7 million obligated amount compare to typical costs for similar emergency medical support during major disasters?

Comparing the $34.7 million obligated amount for this specific Hurricane Harvey response contract to 'typical' costs is challenging due to the highly variable nature of disaster response. Factors such as the scale of the disaster, the duration of the required services, the geographic area impacted, the specific types of medical support needed (e.g., basic transport, advanced life support, mass casualty incident management), and the urgency of deployment all significantly influence costs. Large-scale events like Hurricane Harvey necessitate rapid mobilization of extensive resources, often at premium rates due to the immediate need and limited availability of providers during a crisis. While $34.7 million is a substantial sum, it may be within the expected range for a comprehensive, short-term emergency medical support operation during a catastrophic event, especially when considering the mobilization and operational costs involved. A more precise comparison would require detailed service delivery data and cost breakdowns from multiple similar disaster response contracts.

What are the primary risks associated with Time and Materials (T&M) contracts in emergency response scenarios?

Time and Materials (T&M) contracts, while offering flexibility, carry inherent risks, particularly in high-pressure emergency response scenarios. The primary risk is the potential for cost escalation, as the government pays for the actual labor hours and material costs incurred by the contractor. Without stringent oversight and well-defined task orders, contractors may have less incentive to control costs or optimize efficiency, leading to expenditures exceeding initial estimates. In disaster response, the urgency can sometimes overshadow rigorous cost management, making T&M contracts susceptible to overbilling or inefficient resource allocation. Furthermore, accurately estimating the total cost upfront is difficult, making budget planning challenging. To mitigate these risks, agencies must implement robust monitoring of labor hours, material usage, and require detailed justifications for all costs incurred.

What was the overall effectiveness of the emergency medical services provided during Hurricane Harvey in Texas?

Assessing the overall effectiveness of the emergency medical services provided during Hurricane Harvey requires detailed performance reports and outcome data, which are not fully detailed in the provided contract information. However, the fact that FEMA obligated $34.7 million for these services suggests a recognized need and an effort to provide critical support. Emergency medical services during major disasters are crucial for saving lives, stabilizing patients, facilitating transport to medical facilities, and supporting public health infrastructure overwhelmed by the event. The effectiveness is typically measured by factors such as response times, patient outcomes, the number of individuals served, and the ability to maintain operations under challenging conditions. Given the scale of Hurricane Harvey, the services provided by American Medical Response, Inc. likely played a significant role in mitigating the immediate health impacts on the affected population, contributing to the overall disaster response effort.

How has FEMA's spending on emergency management support services evolved over the years, particularly in response to major hurricanes?

FEMA's spending on emergency management support services, especially in response to major hurricanes, has generally trended upwards over the years, influenced by factors such as increasing frequency and intensity of extreme weather events, evolving federal response strategies, and the scale of disasters. Following major hurricanes like Katrina, Sandy, and Harvey, there has been a heightened focus on preparedness, response capabilities, and the procurement of essential support services. This includes contracts for medical support, debris removal, temporary housing, and logistical assistance. The specific amounts obligated for individual contracts fluctuate based on the unique demands of each event. However, the overall trend indicates a significant and often increasing reliance on contracted services to supplement federal and state resources during large-scale disaster recovery operations. This evolution reflects a strategic shift towards leveraging private sector capabilities to enhance response capacity and efficiency.

Industry Classification

NAICS: Health Care and Social Assistance › Other Ambulatory Health Care Services › Ambulance Services

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: American Medical Response Inc. (UEI: 080459317)

Address: 6363 S FIDDLERS GREEN CIR 14TH FL, GREENWOOD VILLAGE, CO, 80111

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

Financial Breakdown

Contract Ceiling: $34,670,818

Exercised Options: $34,670,818

Current Obligation: $34,670,818

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSFE7017D0014

IDV Type: IDC

Timeline