FEMA charters Carnival cruise ship for $49M to house disaster relief personnel in St. Croix

Contract Overview

Contract Amount: $49,066,581 ($49.1M)

Contractor: Carnival Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2017-10-11

End Date: 2018-06-05

Contract Duration: 237 days

Daily Burn Rate: $207.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FEMA WILL CHARTER THE VESSEL CARNIVAL FASCINATION TO SERVE AS A "FLOATING HOTEL" FOR A FOUR MONTH PERIOD OF PERFORMANCE. THE VESSEL WILL PROVIDE TEMPORARY HOUSING FOR FEMA PERSONNEL, OTHER FEDERAL EMPLOYEES, AND OTHER FIRST RESPONDERS SUPPORTING THE DISASTER RELIEF EFFORTS IN ST. CROIX. CARNIVAL WOULD REMAINED DOCKED IN PORT IN ST. CROIX DURING THE CHARTER PERIOD AND PROVIDE "TURN-KEY" HOUSING FOR RELIEF WORKER, INCLUDING ACCOMMODATIONS, MEALS, HOUSEKEEPING SERVICES, WATER, AND WASTE STREAM REMOVAL.

Place of Performance

Location: CHRISTIANSTED, SAINT CROIX County, VIRGIN ISLANDS OF THE U.S., 00823

Plain-Language Summary

Department of Homeland Security obligated $49.1 million to CARNIVAL CORPORATION for work described as: FEMA WILL CHARTER THE VESSEL CARNIVAL FASCINATION TO SERVE AS A "FLOATING HOTEL" FOR A FOUR MONTH PERIOD OF PERFORMANCE. THE VESSEL WILL PROVIDE TEMPORARY HOUSING FOR FEMA PERSONNEL, OTHER FEDERAL EMPLOYEES, AND OTHER FIRST RESPONDERS SUPPORTING THE DISASTER RELIEF EFFORTS IN ST.… Key points: 1. Contract provides essential "turn-key" housing, meals, and services for relief workers. 2. Significant cost for temporary housing, raising questions about value for money. 3. Full and open competition suggests potential for competitive pricing, but specific benchmarks are needed. 4. Contract duration of 237 days highlights the extended need for disaster support. 5. Geographic focus on St. Croix indicates a response to specific regional disaster events. 6. FEMA's reliance on commercial charters for housing is a recurring strategy in disaster response.

Value Assessment

Rating: fair

The contract's value is difficult to assess without comparable charter rates for similar vessels and service packages. The $49 million cost for four months of "turn-key" housing, including accommodations, meals, and services, appears substantial. Benchmarking against typical hotel rates for disaster relief personnel or alternative temporary housing solutions would be necessary to determine if this represents a cost-effective approach. The fixed-price nature provides cost certainty but may not reflect the most economical solution.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 8 bidders suggests a reasonably competitive process. This level of competition is generally favorable for price discovery and potentially achieving better value for the government. However, the specific details of the bidding process and the final pricing relative to initial proposals are not publicly available.

Taxpayer Impact: Full and open competition increases the likelihood that taxpayer funds were used efficiently by fostering a competitive environment among potential service providers.

Public Impact

Disaster relief personnel and first responders benefit from immediate and comprehensive temporary housing. Services delivered include accommodations, meals, housekeeping, water, and waste removal. Geographic impact is concentrated in St. Croix, supporting federal disaster relief efforts in the U.S. Virgin Islands. Workforce implications include providing essential support for federal and local emergency response teams.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High cost for temporary housing could be scrutinized for value.
Reliance on a single large vessel may present logistical challenges if issues arise.
Potential for cost overruns if the period of performance is extended beyond initial estimates.

Positive Signals

Provides essential "turn-key" solutions, simplifying logistics for relief efforts.
Full and open competition suggests a robust bidding process.
Supports critical disaster response operations in a timely manner.

Sector Analysis

This contract falls within the broader category of government services and logistics support, specifically related to disaster response. The market for chartering large vessels for temporary housing is niche, often involving specialized maritime companies. FEMA's use of such contracts highlights the need for flexible and rapid deployment of resources during emergencies. Comparable spending might include other large-scale temporary housing solutions or logistical support contracts for federal agencies operating in remote or disaster-affected areas.

Small Business Impact

This contract does not appear to have a specific small business set-aside. Given the nature of chartering a large cruise vessel, it is unlikely that small businesses would be primary contractors. However, there may be opportunities for small businesses to subcontract for specific services such as catering, local transportation, or specialized support, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight of this contract would primarily fall under FEMA's contracting and program management divisions. The fixed-price nature of the contract provides a degree of cost control. Transparency regarding the specific performance metrics and any potential disputes or modifications would be key to assessing accountability. The Inspector General for the Department of Homeland Security would have jurisdiction over any potential fraud, waste, or abuse.

Related Government Programs

FEMA Disaster Relief Fund
Emergency Management and Assistance
Temporary Housing Programs
Government Charter Services

Risk Flags

High Cost
Single Source of Housing
Extended Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $49.1 million to CARNIVAL CORPORATION. FEMA WILL CHARTER THE VESSEL CARNIVAL FASCINATION TO SERVE AS A "FLOATING HOTEL" FOR A FOUR MONTH PERIOD OF PERFORMANCE. THE VESSEL WILL PROVIDE TEMPORARY HOUSING FOR FEMA PERSONNEL, OTHER FEDERAL EMPLOYEES, AND OTHER FIRST RESPONDERS SUPPORTING THE DISASTER RELIEF EFFORTS IN ST. CROIX. CARNIVAL WOULD REMAINED DOCKED IN PORT IN ST. CROIX DURING THE CHARTER PERIOD AND PROVIDE "TURN-KEY" HOUSING FOR RELIEF WORKER, INCLUDING ACCOMMODATIONS, MEALS, HOUSEKEEPING SERVICES, WATER, AND WASTE STREAM REMO

Who is the contractor on this award?

The obligated recipient is CARNIVAL CORPORATION.

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 $49.1 million.

What is the period of performance?

Start: 2017-10-11. End: 2018-06-05.

What was the specific justification for chartering a cruise ship versus other temporary housing solutions?

The justification for chartering the Carnival Fascination likely stemmed from the need for rapid, large-scale, and self-contained temporary housing for a significant number of disaster relief personnel. Cruise ships offer a "turn-key" solution, providing not only accommodation but also essential services like meals, sanitation, and utilities, which can be difficult and time-consuming to establish independently in a disaster-stricken area. This approach allows FEMA to quickly deploy personnel without the logistical complexities of securing and managing individual hotel rooms or constructing temporary facilities, thereby accelerating the disaster response effort.

How does the per-person, per-day cost of this charter compare to typical hotel rates for disaster relief personnel?

To compare the per-person, per-day cost, we would need to estimate the capacity of the Carnival Fascination and divide the total contract value by the number of personnel housed and the duration. Assuming the vessel can house a substantial number of personnel (e.g., 1,000-2,000), the daily rate per person could range significantly. Without specific capacity figures and a breakdown of services included, a precise comparison is difficult. However, chartering a large vessel with full services is often more expensive per person than standard hotel rooms, but it offers a more comprehensive and immediate solution in situations where hotel availability is scarce or non-existent.

What were the key performance indicators (KPIs) for the "turn-key" housing services provided?

The provided data does not specify the key performance indicators (KPIs) for the "turn-key" housing services. Typically, for such contracts, KPIs would include metrics related to accommodation quality (e.g., room readiness, cleanliness), meal satisfaction (e.g., variety, quality, timeliness), service availability (e.g., housekeeping response times, waste removal schedules), and overall personnel satisfaction. FEMA would likely have established standards for these services to ensure the well-being and operational effectiveness of the deployed personnel.

What is the historical spending pattern for FEMA's use of chartered vessels for disaster response?

FEMA has utilized chartered vessels, including cruise ships, in response to major disasters, particularly in recent years. This strategy became more prominent following events like Hurricanes Harvey, Irma, and Maria. While specific historical spending figures for vessel charters are not readily available in aggregate, the use of such assets indicates a recurring need for large-scale, rapid temporary housing solutions. The cost of these charters can be substantial, often running into tens of millions of dollars, depending on the vessel size, duration, and services provided.

What are the potential risks associated with relying on a single chartered vessel for extended disaster relief operations?

Relying on a single chartered vessel for extended disaster relief operations carries several potential risks. These include operational risks, such as mechanical failures or unforeseen maintenance issues that could render the vessel unusable. There are also logistical risks, including the potential for delays in port, issues with waste management or provisioning, and the challenge of accommodating personnel if the vessel becomes overcrowded or if specific needs arise. Furthermore, a single point of failure means that any disruption to the vessel's operations could significantly impact the housing and support for a large number of relief workers, potentially hindering the overall disaster response effort.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Water Transportation › Navigational Services to Shipping

Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 70FB70-18-R-00000006

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3655 NW 87TH AVE, MIAMI, FL, 33178

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

Financial Breakdown

Contract Ceiling: $49,066,581

Exercised Options: $49,066,581

Current Obligation: $49,066,581

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline