FEMA spent over $11.4M on Katrina housing support, with C Martin Co Inc awarded a fixed-price delivery order

Contract Overview

Contract Amount: $11,399,324 ($11.4M)

Contractor: C Martin CO Inc

Awarding Agency: Department of Homeland Security

Start Date: 2007-06-01

End Date: 2014-01-22

Contract Duration: 2,427 days

Daily Burn Rate: $4.7K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAINTENANCE AND DEACTIVATION OF TEMPORARY HOUSING IN SUPPORT OF HURRICANE KATRINA RELIEF EFFORTS

Place of Performance

Location: METAIRIE, JEFFERSON County, LOUISIANA, 70001

State: Louisiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $11.4 million to C MARTIN CO INC for work described as: MAINTENANCE AND DEACTIVATION OF TEMPORARY HOUSING IN SUPPORT OF HURRICANE KATRINA RELIEF EFFORTS Key points: 1. The contract focused on essential facilities support services during a critical recovery period. 2. A single delivery order was issued under a competitive contract, suggesting a broader framework. 3. The duration of the contract (over 6 years) indicates a long-term need for these services. 4. The fixed-price contract type likely provided cost certainty for the government. 5. Services were delivered in Louisiana, directly impacting the Hurricane Katrina relief efforts. 6. The contract's value is moderate within the context of large-scale disaster response.

Value Assessment

Rating: good

The total award of $11.4 million for facilities support services over nearly seven years appears reasonable given the scale and duration of the Hurricane Katrina relief efforts. While specific benchmarks for disaster housing maintenance are difficult to establish due to the unique nature of such events, the fixed-price contract type suggests a degree of cost control. Comparing this to other large-scale FEMA contracts for similar disaster recovery operations would provide further context on value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. The specific number of bidders for this particular delivery order is not detailed, but the 'full-and-open' competition suggests a robust process. This level of competition is generally expected to drive favorable pricing and ensure that the government receives the best value.

Taxpayer Impact: A competitive award process for this significant contract means taxpayer funds were likely used more efficiently, as vendors vied to offer the most cost-effective solution for essential disaster relief services.

Public Impact

Displaced residents affected by Hurricane Katrina benefited from the maintenance and deactivation of temporary housing. Essential facilities support services were delivered, ensuring the functionality and eventual closure of temporary housing units. The geographic impact was concentrated in Louisiana, a state heavily impacted by the hurricane. The contract supported the logistical and operational aspects of the federal response to a major natural disaster.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term disaster response contracts.
Ensuring timely and effective deactivation of temporary housing to minimize long-term costs.

Positive Signals

Contract addressed a critical need during a major disaster.
Fixed-price contract provided cost predictability.
Competitive award process likely ensured fair pricing.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services related to the operation and maintenance of buildings and grounds. In the context of disaster relief, such services are critical for managing temporary housing solutions. The market for facilities support is large and diverse, with many providers capable of handling large-scale contracts. This specific contract represents a significant, albeit temporary, demand driven by an extraordinary event.

Small Business Impact

Information regarding small business set-asides or subcontracting is not explicitly provided for this contract. Given the scale and nature of the services required for disaster relief, it is possible that larger, more established firms were better positioned to compete. Further analysis would be needed to determine if small businesses were involved in any capacity, either as prime contractors or subcontractors.

Oversight & Accountability

Oversight for this contract would have been managed by the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. As a federal contract, it would be subject to standard government oversight mechanisms, including contract performance monitoring and financial audits. The Inspector General of the Department of Homeland Security would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Hurricane Katrina Relief Efforts
Temporary Housing Programs
Disaster Response and Recovery Contracts
Facilities Management Services

Risk Flags

Long contract duration may indicate potential for cost escalation if not managed tightly.
Disaster relief contracts can be complex and prone to unforeseen challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11.4 million to C MARTIN CO INC. MAINTENANCE AND DEACTIVATION OF TEMPORARY HOUSING IN SUPPORT OF HURRICANE KATRINA RELIEF EFFORTS

Who is the contractor on this award?

The obligated recipient is C MARTIN CO 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 $11.4 million.

What is the period of performance?

Start: 2007-06-01. End: 2014-01-22.

What was the specific nature of the 'maintenance and deactivation' services provided under this contract?

The 'maintenance and deactivation of temporary housing' services likely encompassed a range of activities necessary to keep temporary housing units functional and safe for residents during the post-Hurricane Katrina period, and then to properly close them down. Maintenance could include basic repairs, cleaning, utility management, and security. Deactivation would involve the process of vacating the units, final cleaning, removal of furnishings or fixtures, and potentially the dismantling or disposal of the temporary structures themselves. The exact scope would be detailed in the contract's statement of work, but the overall goal was to manage the lifecycle of these emergency accommodations.

How does the $11.4 million expenditure compare to other federal spending on Hurricane Katrina relief?

The $11.4 million expenditure for maintenance and deactivation of temporary housing represents a small fraction of the total federal spending on Hurricane Katrina relief, which ran into the tens of billions of dollars. This specific contract addressed a critical but focused aspect of the recovery effort. Broader spending encompassed immediate aid, infrastructure repair, housing assistance programs, and long-term rebuilding initiatives. While significant in its own right, this contract's value highlights the multifaceted and extensive nature of the federal response to such a catastrophic event.

What were the key risks associated with managing temporary housing after a major disaster like Hurricane Katrina?

Key risks associated with managing temporary housing after Hurricane Katrina included ensuring the safety and habitability of the units, preventing fraud and abuse in the distribution and use of housing, managing the logistical challenges of deploying and maintaining thousands of units, addressing environmental or health concerns within the temporary structures, and controlling costs associated with prolonged use. Furthermore, the deactivation phase carried risks related to timely removal, site restoration, and avoiding prolonged government liability or maintenance costs for unused facilities. Effective contract management and oversight were crucial to mitigate these risks.

What was the track record of C Martin Co Inc in handling disaster relief contracts prior to or during this period?

Information regarding C Martin Co Inc's specific track record in handling disaster relief contracts prior to or during the Hurricane Katrina period is not readily available within the provided data. Federal contract databases often contain performance reviews and past performance information, but this level of detail requires deeper investigation beyond the summary data. Assessing their experience with similar large-scale, time-sensitive government contracts would be essential to fully evaluate their capability and reliability for this FEMA award.

How did the fixed-price contract type influence the government's financial exposure and the contractor's performance incentives?

A fixed-price contract type, like the one used here ('FIRM FIXED PRICE'), establishes a ceiling price for the work, transferring most of the cost risk from the government to the contractor. This incentivizes the contractor, C Martin Co Inc, to manage its costs efficiently to maximize profit. For the government, it provides budget certainty, as the total cost is known upfront, barring any contract modifications. This structure is generally preferred when the scope of work is well-defined and risks are manageable, as it helps prevent cost overruns that can occur with cost-reimbursement contracts.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 15

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3395 W CHEYENNE, STE 102, NORTH LAS VEGAS, NV, 04

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Veteran Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $11,399,324

Exercised Options: $11,399,324

Current Obligation: $11,399,324

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: HSFEHQ06D0381

IDV Type: IDC

Timeline