FEMA's $10M contract for commodity storage and support awarded to Americold Logistics, LLC

Contract Overview

Contract Amount: $10,018,584 ($10.0M)

Contractor: Americold Logistics, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2006-08-31

End Date: 2010-11-23

Contract Duration: 1,545 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMODITY STORAGE AND SUPPORT

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30328

State: Georgia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $10.0 million to AMERICOLD LOGISTICS, LLC for work described as: COMMODITY STORAGE AND SUPPORT Key points: 1. Value for money appears fair given the duration and scope of services. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a long performance period and fixed-price contract. 4. Performance context shows a multi-year commitment to essential logistics support. 5. Sector positioning is within the critical supply chain and logistics services for disaster relief.

Value Assessment

Rating: fair

The contract's value of approximately $10 million over its performance period suggests a moderate annual spend. Benchmarking against similar logistics support contracts is challenging without more granular data on the specific services provided (e.g., warehousing space, handling, transportation). However, the fixed-price nature of the contract provides cost certainty for the government. The award amount of $10,018,583.90 seems reasonable for a multi-year contract supporting critical national needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of a single award suggests that Americold Logistics, LLC was selected as the best value offeror. The level of competition, while not explicitly detailed in terms of the number of bidders, is generally positive for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality.

Public Impact

Beneficiaries include the Federal Emergency Management Agency (FEMA) and, by extension, disaster-affected populations. Services delivered encompass essential commodity storage and support, crucial for emergency preparedness and response. Geographic impact is centered in Georgia (ST='GA', SN='GEORGIA'), serving as a key logistical hub. Workforce implications may include direct and indirect employment opportunities within the logistics sector in the contract's performance region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (1545 days) could lead to potential cost increases if market conditions change significantly.
Reliance on a single contractor for critical storage could pose a risk if performance issues arise.
Fixed-price contract may limit flexibility if unforeseen operational requirements emerge.

Positive Signals

Award to an established entity suggests a degree of contractor reliability.
Full and open competition indicates a robust selection process.
Contract supports critical government functions, aligning with national security and disaster preparedness objectives.

Sector Analysis

The contract falls within the broader logistics and supply chain management sector, which is vital for government operations, particularly in emergency response. This sector involves warehousing, transportation, and inventory management. Comparable spending benchmarks for similar government logistics contracts can vary widely based on the scale and specific services required, but this $10 million award represents a significant investment in maintaining essential supply chain capabilities.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Americold Logistics, LLC is likely a large business. There is no explicit information on subcontracting plans for small businesses, which could represent a missed opportunity to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under FEMA's contracting officer and program managers. Accountability measures are inherent in the firm fixed-price structure, requiring the contractor to deliver services within the agreed-upon cost. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

FEMA Disaster Relief Fund
Department of Homeland Security Logistics Support Contracts
Federal Supply Chain Management
Emergency Preparedness and Response Services

Risk Flags

Potential NAICS code misclassification
Long contract duration may expose government to market volatility
Lack of detailed performance metrics in public data

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $10.0 million to AMERICOLD LOGISTICS, LLC. COMMODITY STORAGE AND SUPPORT

Who is the contractor on this award?

The obligated recipient is AMERICOLD LOGISTICS, LLC.

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 $10.0 million.

What is the period of performance?

Start: 2006-08-31. End: 2010-11-23.

What specific types of commodities were stored under this contract, and what were the key performance indicators (KPIs) for Americold Logistics, LLC?

The provided data does not specify the exact types of commodities stored. However, given the context of FEMA, these likely included essential supplies for disaster relief, such as food, water, medical supplies, shelter materials, and equipment. Key performance indicators (KPIs) for such contracts typically revolve around inventory accuracy, timely delivery, proper storage conditions (temperature, humidity control), security of goods, and responsiveness to FEMA's logistical requests. Without access to the contract's statement of work or performance reports, specific KPIs and Americold's performance against them cannot be detailed. The contract's duration and value suggest a significant operational scope requiring robust performance management.

How does the $10 million award compare to historical FEMA spending on similar commodity storage and support services?

Comparing this $10 million award to historical FEMA spending requires access to detailed historical contract data for similar services. FEMA's spending on logistics and storage can fluctuate significantly year-to-year, heavily influenced by the frequency and severity of natural disasters. A $10 million contract over its performance period (approximately 4.25 years) represents an average annual spend of roughly $2.35 million. This figure needs to be contextualized against FEMA's overall budget and the specific needs during the contract's performance years (2006-2010). Without a broader dataset of comparable contracts, it's difficult to definitively state if this represents high, low, or average spending for such services.

What is Americold Logistics, LLC's track record with government contracts, particularly with FEMA or other disaster response agencies?

Americold Logistics, LLC is a major player in the cold storage and logistics industry. While this specific contract was awarded in 2006, Americold has a history of working with various government entities, often providing warehousing and distribution services. Their experience typically involves managing large volumes of perishable and non-perishable goods. Information on their specific track record with FEMA or other disaster response agencies prior to or during this contract period would require a deeper dive into government contract databases and performance reviews. However, their established presence in the industry suggests a capacity to handle significant government contracts.

What are the potential risks associated with a firm fixed-price contract for commodity storage over a multi-year period?

Firm fixed-price (FFP) contracts offer cost certainty to the government, as the price is set regardless of the contractor's actual costs. However, for long-term contracts like this one (1545 days), risks can emerge. If the cost of labor, utilities, or other operational expenses increases significantly over the contract period, Americold Logistics, LLC might face reduced profit margins or pressure to cut corners on service quality to maintain profitability. Conversely, if costs decrease, the government misses out on potential savings. The primary risk for the government is that the contractor may have less incentive to control costs beyond what is necessary to meet the contract's minimum requirements, potentially impacting efficiency or innovation if not managed closely.

How does the 'Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing' (ND code) relate to the 'Commodity Storage and Support' contract?

The North American Industry Classification System (NAICS) code '333924' (Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing) appears to be a misclassification or an outdated code associated with this contract. The contract description clearly states 'COMMODITY STORAGE AND SUPPORT,' and the awardee is 'AMERICOLD LOGISTICS, LLC,' a logistics and warehousing company. NAICS code 333924 pertains to manufacturers of specific types of machinery. It is highly probable that the correct NAICS code for commodity storage and support services should fall under warehousing and storage categories (e.g., 493110 - General Warehousing and Storage). This discrepancy suggests a potential data entry error in the system where this information was sourced.

Industry Classification

NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Industrial Truck, Tractor, Trailer, and Stacker Machinery Manufacturing

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Yucaipa Companies LLC (UEI: 196925077)

Address: 10 GLENLAKE PKWY NE # 800, ATLANTA, GA, 90

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

Financial Breakdown

Contract Ceiling: $47,185,085

Exercised Options: $47,185,085

Current Obligation: $10,018,584

Timeline