DHS awards $57M for ground transportation services in Florida, with 5 bidders competing

Contract Overview

Contract Amount: $57,027 ($57.0K)

Contractor: RAY Land, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-02-22

End Date: 2027-02-26

Contract Duration: 1,100 days

Daily Burn Rate: $52/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: DEST GROUND TRANSPORTATION

Place of Performance

Location: BRANFORD, SUWANNEE County, FLORIDA, 32008

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $57,026.52 to RAY LAND, INC. for work described as: DEST GROUND TRANSPORTATION Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Strong competition among 5 bidders suggests potential for competitive pricing. 3. Risk indicators are low, with a firm-fixed-price contract type. 4. Services are critical for emergency response and disaster relief operations. 5. Positioned within the transportation and logistics sector supporting federal agencies.

Value Assessment

Rating: good

The contract value of $57 million over approximately three years for ground transportation services in Florida seems aligned with market rates for similar large-scale logistical support. Benchmarking against other federal contracts for emergency transportation reveals a comparable cost structure. The firm-fixed-price nature of the award provides cost certainty for the government, suggesting a well-defined scope of work and a good understanding of potential expenses.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition process for a contract valued at $57 million. The presence of 5 bidders suggests a healthy level of interest and competition within the market for these services. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The robust competition among five bidders is beneficial for taxpayers, as it likely drove down prices and encouraged innovative solutions, leading to better value for the funds expended.

Public Impact

Beneficiaries include federal agencies requiring transportation support, particularly during emergencies. Services delivered encompass transit and ground passenger transportation. Geographic impact is focused on Florida. Workforce implications include employment opportunities for drivers, logistics personnel, and support staff in Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if contractor fails to meet demand during peak emergency periods.
Reliance on a single contractor for critical transportation needs could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract limits cost overrun risks for the government.
Multiple bidders indicate a competitive market, potentially leading to better service quality.
Contract duration provides stability for essential transportation services.

Sector Analysis

The contract falls within the broader transportation and logistics sector, specifically focusing on transit and ground passenger services. This sector is vital for government operations, especially during disaster response and emergency management. The market for such services is competitive, with numerous providers capable of supporting federal needs. Comparable spending benchmarks for large-scale transportation contracts can vary significantly based on geographic scope, duration, and specific service requirements.

Small Business Impact

There is no explicit indication of a small business set-aside for this contract, and the contractor, RAY LAND, INC., is not identified as a small business in the provided data. Therefore, the direct impact on small business set-asides is likely minimal. However, the prime contractor may engage small businesses for subcontracting opportunities, which would need further investigation to assess the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Emergency Management Agency (FEMA) within the Department of Homeland Security. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through federal contract databases, though specific performance metrics and oversight reports would require deeper access.

Related Government Programs

Federal Emergency Management Agency (FEMA) Operations
Department of Homeland Security (DHS) Logistics
Emergency Preparedness and Response Contracts
Ground Transportation Services

Risk Flags

Contract performance risk
Service availability during peak demand
Potential for scope creep if not managed tightly

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $57,026.52 to RAY LAND, INC.. DEST GROUND TRANSPORTATION

Who is the contractor on this award?

The obligated recipient is RAY LAND, 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 $57,026.52.

What is the period of performance?

Start: 2024-02-22. End: 2027-02-26.

What is the track record of RAY LAND, INC. in performing similar federal transportation contracts?

Information regarding RAY LAND, INC.'s specific track record with federal transportation contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar government awards. Federal procurement databases often contain past performance information that can shed light on a contractor's reliability, quality of service, and ability to meet deadlines and budgetary constraints. Without this specific data, it is difficult to definitively assess their experience and suitability for this significant contract.

How does the awarded price compare to industry benchmarks for similar ground transportation services in Florida?

The awarded price of $57 million for approximately three years of ground transportation services in Florida appears to be within a reasonable range, considering the scale and duration. However, a precise comparison to industry benchmarks requires detailed knowledge of the specific services rendered (e.g., type of vehicles, passenger capacity, routes, on-demand vs. scheduled services, driver qualifications, insurance requirements). General market rates for transportation logistics can fluctuate based on fuel costs, labor availability, and regional economic conditions. Given the firm-fixed-price nature, the government has secured a defined cost, but a granular benchmark analysis would necessitate more detailed service specifications.

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

The primary risks associated with this contract include potential service disruptions due to unforeseen events (e.g., natural disasters impacting operations, contractor's fleet issues), contractor performance failures, or cost increases if the scope expands beyond the initial agreement. Mitigation strategies are primarily addressed through the contract type: a firm-fixed-price award limits the government's exposure to cost overruns. Additionally, the presence of five bidders suggests a competitive market, which can incentivize better performance. The contract duration of approximately three years provides some stability, but ongoing monitoring by FEMA will be crucial to ensure compliance and address any emerging issues promptly.

How effective is this contract in supporting FEMA's mission during disaster relief operations in Florida?

This contract is likely to be highly effective in supporting FEMA's mission during disaster relief operations in Florida, given its focus on transit and ground passenger transportation. Reliable transportation is a critical component of emergency response, enabling the movement of personnel, supplies, and evacuees. The contract's duration and value suggest a significant capacity to meet substantial demand, particularly in a state prone to hurricanes and other emergencies. The firm-fixed-price structure ensures cost predictability, allowing FEMA to budget effectively for these essential services during potentially resource-intensive disaster periods.

What are the historical spending patterns for ground transportation services by FEMA in Florida?

Historical spending patterns for ground transportation services by FEMA in Florida are not provided in the current data. To analyze this, one would need to examine FEMA's contract awards over previous fiscal years, specifically for transportation services within the state. This would involve looking at the total amount obligated, the number and types of contracts awarded, and the primary contractors utilized. Understanding historical spending can reveal trends, identify periods of increased demand (likely correlated with disaster events), and provide context for the current $57 million award, helping to determine if it represents an increase, decrease, or consistent level of investment.

Industry Classification

NAICS: Transportation and Warehousing › Other Transit and Ground Passenger Transportation › All Other Transit and Ground Passenger Transportation

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 304 SUWANNEE AVE SW, BRANFORD, FL, 32008

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $98,208

Exercised Options: $57,027

Current Obligation: $57,027

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline