FEMA awarded over $141M for bottled water delivery to Puerto Rico post-Hurricane Maria

Contract Overview

Contract Amount: $141,583,967 ($141.6M)

Contractor: Composite Analysis Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2017-09-30

End Date: 2018-06-30

Contract Duration: 273 days

Daily Burn Rate: $518.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BOTTLED WATER DELIVERY TO PUERTO RICO IN RESPONSE TO HURRICANE MARIA

Place of Performance

Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00901

Plain-Language Summary

Department of Homeland Security obligated $141.6 million to COMPOSITE ANALYSIS GROUP, INC. for work described as: BOTTLED WATER DELIVERY TO PUERTO RICO IN RESPONSE TO HURRICANE MARIA Key points: 1. Significant expenditure highlights the critical need for disaster relief supplies. 2. The contract was awarded under full and open competition, suggesting broad market engagement. 3. Delivery orders indicate a need for flexible, on-demand logistical support. 4. The contract duration of 273 days reflects the extended recovery period. 5. The firm-fixed-price structure aimed to control costs for essential goods. 6. The award value is substantial, underscoring the scale of the disaster response.

Value Assessment

Rating: fair

The total award of $141.6 million for bottled water delivery is a substantial sum, reflecting the immense logistical challenge and scale of need following Hurricane Maria. Benchmarking this against typical disaster relief contracts is difficult due to the unique circumstances and scale of the event. However, the per-unit cost, if calculable, would be the key metric to assess value for money. Without specific unit volume data, a direct comparison to market rates for bottled water is challenging, but the overall expenditure suggests a high cost associated with emergency distribution in a severely impacted region.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The fact that multiple bids were likely received (indicated by 'no': 3, though this may refer to delivery orders) suggests a competitive environment. This level of competition is generally favorable for price discovery and can lead to more reasonable pricing for the government, as vendors vie for the contract.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure essential goods and services at the best possible price, reducing the risk of overpayment during a critical emergency.

Public Impact

Residents of Puerto Rico received essential hydration and sustenance following the devastation of Hurricane Maria. The contract facilitated the distribution of bottled water, a critical necessity for public health and survival. The geographic impact was focused on Puerto Rico, addressing immediate needs across the island. Logistical and delivery workforces were likely engaged to support the distribution efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High dollar value could indicate potential for cost inefficiencies if not tightly managed.
Reliance on a single contract for such a critical resource warrants close monitoring of delivery and quality.
The urgency of disaster response can sometimes lead to less rigorous vetting of all potential cost factors.

Positive Signals

Awarded under full and open competition, suggesting a robust market response.
Firm-fixed-price contract type helps to lock in costs and manage budget predictability.
The contract addressed a critical, life-sustaining need during a major disaster.

Sector Analysis

The bottled water manufacturing and distribution sector is a mature industry, but disaster relief operations present unique logistical and cost challenges. This contract falls under the broader category of emergency response and logistics services. Comparable spending benchmarks are difficult to establish precisely due to the ad-hoc nature of disaster relief, but large-scale federal procurements for essential goods during crises often run into tens or hundreds of millions of dollars.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses. Given the scale and nature of the requirement (large-volume delivery of essential goods in a disaster zone), it is likely that larger, established logistics and distribution companies were the primary bidders. Subcontracting opportunities for small businesses might have existed within the logistics and transportation network, but this is not explicitly detailed.

Oversight & Accountability

Oversight would typically be managed by FEMA, a component of the Department of Homeland Security. Mechanisms would include contract performance monitoring, delivery verification, and financial audits. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply to investigate any potential fraud, waste, or abuse related to the contract.

Related Government Programs

Hurricane Relief Efforts
Emergency Preparedness and Response
Logistics and Transportation Services
Department of Homeland Security Contracts
Federal Emergency Management Agency (FEMA) Procurements

Risk Flags

Logistical Complexity
Geographic Isolation
Urgency of Need
Potential for Price Volatility
Supply Chain Disruption

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $141.6 million to COMPOSITE ANALYSIS GROUP, INC.. BOTTLED WATER DELIVERY TO PUERTO RICO IN RESPONSE TO HURRICANE MARIA

Who is the contractor on this award?

The obligated recipient is COMPOSITE ANALYSIS GROUP, 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 $141.6 million.

What is the period of performance?

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

What was the specific unit cost for bottled water delivered under this contract?

The provided data does not include the specific quantity of bottled water delivered, making it impossible to calculate a precise per-unit cost. The total award amount of $141,583,967.42 covers the delivery of bottled water to Puerto Rico between September 30, 2017, and June 30, 2018, in response to Hurricane Maria. To determine the unit cost, one would need the total volume (e.g., number of cases or gallons) procured. Without this, we can only assess the overall expenditure, which was substantial due to the scale of the disaster and the logistical complexities of distribution in Puerto Rico during the recovery period.

How did the pricing compare to standard market rates for bottled water at the time?

Directly comparing the pricing to standard market rates is challenging without knowing the specific volume and type of bottled water procured, as well as the delivery logistics involved. Disaster relief operations often incur higher costs due to expedited shipping, specialized distribution networks, and the urgency required. While the contract was awarded under full and open competition, suggesting competitive pricing, the 'market rate' in a disaster-stricken area with disrupted supply chains would likely differ significantly from normal conditions. A detailed cost analysis would require comparing the contract's line-item costs against emergency supply chain benchmarks rather than typical retail or wholesale prices.

What were the primary risks associated with this contract, and how were they mitigated?

Key risks included logistical challenges in delivering water to remote or damaged areas of Puerto Rico, potential price gouging due to high demand, quality control of the delivered water, and ensuring timely delivery. Mitigation strategies likely involved the firm-fixed-price contract type to control costs, the full and open competition to encourage multiple bidders and potentially better pricing, and FEMA's oversight mechanisms to monitor delivery performance and address issues promptly. The extended delivery period also suggests an understanding of the ongoing recovery challenges. However, the sheer scale of the operation meant that some level of risk in execution was inherent.

What was the track record of Composite Analysis Group, Inc. in disaster relief contracting prior to this award?

Information regarding Composite Analysis Group, Inc.'s specific track record in disaster relief contracting prior to this $141.6 million award is not detailed in the provided data. Federal procurement databases would typically show past performance information, including previous contracts, their values, and performance ratings. A comprehensive assessment would require reviewing these records to understand their experience with similar large-scale, time-sensitive logistical operations, particularly in challenging environments like Puerto Rico post-hurricane. Without this historical context, it's difficult to fully evaluate their capability and past performance reliability for this specific contract.

How effective was this contract in meeting the immediate needs of the affected population?

The effectiveness of this contract in meeting immediate needs is primarily indicated by the substantial volume of bottled water delivered over a significant period. FEMA's role in disaster response is to ensure the provision of essential life-sustaining resources. While the $141.6 million award signifies a major effort, the true measure of effectiveness would involve assessing the reach of the distribution, the satisfaction of the population's needs, and the impact on public health outcomes. Reports from the ground, news archives, and FEMA's own after-action reviews would provide a more nuanced picture of how well this specific contract contributed to the overall relief effort's success.

What was the historical spending pattern for bottled water delivery by FEMA in similar disaster scenarios?

This specific contract represents a significant expenditure, likely one of the larger awards for bottled water delivery in recent FEMA history, given the scale of Hurricane Maria's impact on Puerto Rico. FEMA's spending on bottled water varies greatly depending on the number, scale, and location of disasters. While FEMA procures water regularly for disaster relief, awards of this magnitude are typically associated with major hurricanes or widespread natural disasters affecting large populations and critical infrastructure. Historical data would show fluctuations, with higher spending in years marked by significant hurricane seasons or other large-scale emergencies requiring extensive logistical support.

Industry Classification

NAICS: Manufacturing › Beverage Manufacturing › Bottled Water Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1701 OAKBROOK DR STE D, NORCROSS, GA, 30093

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

Financial Breakdown

Contract Ceiling: $141,583,967

Exercised Options: $141,583,967

Current Obligation: $141,583,967

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: HSFE7017D0019

IDV Type: IDC

Timeline