FEMA awarded $1.4M for transportation services, with a significant portion allocated to a single vendor

Contract Overview

Contract Amount: $14,265,689 ($14.3M)

Contractor: Cusa, GCT, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2007-05-30

End Date: 2011-01-21

Contract Duration: 1,332 days

Daily Burn Rate: $10.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: TRANSPORTATION SERVICES

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77029

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $14.3 million to CUSA, GCT, LLC for work described as: TRANSPORTATION SERVICES Key points: 1. The contract's value, while substantial, requires further analysis to determine its efficiency relative to market rates. 2. Competition dynamics appear limited, potentially impacting price discovery and value for taxpayer dollars. 3. The contract duration and fixed-price nature suggest a predictable cost structure, but potential for cost overruns exists. 4. Performance context is limited without specific delivery metrics or quality assessments. 5. This contract falls within the broader category of transportation and logistics support for federal agencies. 6. The lack of a small business set-aside indicates a focus on larger, potentially specialized providers.

Value Assessment

Rating: fair

The contract value of $1.4 million over its period of performance is moderate. Benchmarking against similar transportation service contracts is challenging without more detailed service descriptions. The fixed-price nature suggests a defined cost, but the absence of specific performance metrics makes a definitive value-for-money assessment difficult. Further analysis of the specific services rendered and their necessity would be required for a more robust evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required services, or in emergency situations. The lack of competition means there was no opportunity for price negotiation through a bidding process, which could lead to higher costs for the government compared to a competitive award.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible pricing through competitive bidding, potentially resulting in less favorable terms for taxpayers.

Public Impact

The primary beneficiary of this contract is the Federal Emergency Management Agency (FEMA), receiving essential transportation services. Services delivered likely include the movement of personnel, equipment, or supplies critical for disaster response and recovery operations. The geographic impact is centered in Texas, as indicated by the state code 'TX'. Workforce implications are not explicitly detailed but would involve personnel for operating and managing transportation assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Lack of detailed performance metrics makes it difficult to assess the true value and effectiveness of the services.
The contract's duration and scope require careful monitoring to ensure continued necessity and efficiency.

Positive Signals

Fixed-price contract provides cost certainty for the government, assuming services are delivered as specified.
Award to a single vendor may indicate specialized capabilities or a critical need met efficiently.
The contract supports essential government functions, likely related to emergency response and logistics.

Sector Analysis

This contract falls within the broader transportation and logistics sector, which is crucial for government operations, especially during emergencies. The market for transportation services is diverse, ranging from large logistics firms to specialized carriers. FEMA's reliance on such services highlights the importance of a robust and responsive transportation network for national security and disaster management. Comparable spending benchmarks would depend on the specific type and volume of transportation services procured.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the services procured were either beyond the scope of typical small business capabilities or that larger, established prime contractors were deemed more suitable for this particular award. The absence of small business involvement may limit opportunities for smaller enterprises in this specific procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Emergency Management Agency (FEMA) and potentially the Department of Homeland Security's Inspector General. Accountability measures would be tied to the contract's terms and conditions, including delivery schedules and service quality. Transparency is facilitated through contract databases, but detailed performance reports are not always publicly available.

Related Government Programs

FEMA Disaster Relief Fund
Department of Homeland Security Logistics Support
Federal Transportation Contracts
Emergency Response Services

Risk Flags

Sole-source award may indicate limited competition and potentially higher costs.
Lack of detailed performance metrics hinders assessment of value for money.
Extended contract duration increases exposure to market fluctuations and potential obsolescence of services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $14.3 million to CUSA, GCT, LLC. TRANSPORTATION SERVICES

Who is the contractor on this award?

The obligated recipient is CUSA, GCT, 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 $14.3 million.

What is the period of performance?

Start: 2007-05-30. End: 2011-01-21.

What specific transportation services were provided under this contract?

The contract data indicates 'Transportation Equipment and Supplies (except Motor Vehicle) Merchant Wholesalers' as the product service code, and the description is 'TRANSPORTATION SERVICES'. However, the precise nature of these services is not detailed in the provided data. It could encompass a wide range of activities, such as the transportation of emergency supplies, equipment, personnel, or vehicles. Without more granular information, it's difficult to ascertain the exact scope of work performed. Further investigation into FEMA's operational needs during the contract period would be necessary to fully understand the services rendered.

How does the contract value compare to similar transportation service contracts awarded by FEMA or other agencies?

Direct comparison of the $1.4 million contract value is challenging without knowing the specific services rendered and their scale. FEMA procures a variety of transportation services, from ad-hoc emergency logistics to long-term fleet management. Contracts can range from tens of thousands to millions of dollars depending on the duration, scope, and urgency. To benchmark this contract effectively, one would need to identify comparable contracts for similar types of transportation services, geographic areas, and contract durations. The sole-source nature of this award also complicates direct price comparisons with competitively bid contracts.

What are the potential risks associated with a sole-source award for transportation services?

The primary risk of a sole-source award is the lack of competitive pressure, which can lead to inflated prices and reduced value for money. Without competing bids, the government may not secure the most cost-effective solution. Additionally, sole-source awards can sometimes indicate a lack of market research or a failure to identify potential qualified vendors. For transportation services, risks could also include potential disruptions in service if the sole provider faces operational issues, and a lack of flexibility to adapt to changing needs if the contract terms are rigid.

What was the justification for awarding this contract on a sole-source basis?

The provided data states the contract type as 'NOT AVAILABLE FOR COMPETITION', which is often synonymous with sole-source. The specific justification for this sole-source award is not detailed in the data. Typically, sole-source justifications are based on factors such as urgency of need (e.g., disaster response), unique capabilities of a single vendor, or the unavailability of other sources. For FEMA, especially during periods of significant need, sole-source awards might be deemed necessary to ensure rapid deployment of resources. A formal justification document would normally be on file with the contracting agency.

What is the track record of CUSA, GCT, LLC as a government contractor?

Information regarding the track record of CUSA, GCT, LLC as a government contractor is limited based solely on the provided data. This contract represents one award from the Federal Emergency Management Agency (FEMA) totaling approximately $1.4 million. To assess their broader track record, one would need to examine their contract history across all federal agencies, including past performance ratings, any contract disputes or terminations, and the types and values of other contracts they have held. A deeper dive into federal procurement databases would be necessary to form a comprehensive view of their performance and reliability.

How does the contract duration (1332 days) impact the overall value and risk?

A contract duration of 1332 days (approximately 3.6 years) is substantial for transportation services. This extended period can offer stability and predictability for both the government and the contractor, potentially leading to better planning and resource allocation. For the government, it could secure consistent service delivery. However, a long duration also increases the risk of price escalation if market conditions change significantly, or if the initial pricing was not adequately adjusted for long-term inflation. It also means the government is committed to this vendor for an extended period, potentially missing out on more innovative or cost-effective solutions that may emerge during the contract term.

Industry Classification

NAICS: Wholesale Trade › Machinery, Equipment, and Supplies Merchant Wholesalers › Transportation Equipment and Supplies (except Motor Vehicle) Merchant Wholesalers

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Coach America Group, Inc. (UEI: 139211275)

Address: 950 MCCARTY ST, HOUSTON, TX, 90

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

Financial Breakdown

Contract Ceiling: $14,265,690

Exercised Options: $14,265,690

Current Obligation: $14,265,689

Timeline