FEMA's $24.8M transportation contract for disaster relief awarded to Crowley Logistics, Inc

Contract Overview

Contract Amount: $24,848,372 ($24.8M)

Contractor: Crowley Logistics, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2017-09-06

End Date: 2018-02-05

Contract Duration: 152 days

Daily Burn Rate: $163.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: THE PURPOSE OF THIS TASK ORDER IS PROCURE TRANSPORTATION AND LOGISTICS SERVICES, INCLUDING LEASING OF OCEAN SHIPPING CONTAINERS, PROVIDING INTERMODAL TRANSPORTATION SERVICES OF CONTAINERIZED COMMODITIES, CROSS-DOCK SERVICES, OCEAN TRANSPORTATION, CONTAINER HANDLING EQUIPMENT (CHE) AT PORTS OF EMBARKATION AND DEBARKATION, SURFACE LINE HAUL SERVICES, AND DRAYAGE. THESE SERVICES ARE REQUIRED TO SUPPORT FEMA TO SHIP LIFE SUSTAINING COMMODITIES AND BREAKBULK EQUIPMENT FOR RESPONSE AND RECOVERY EFFORTS FOR DR-4339.

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32225

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $24.8 million to CROWLEY LOGISTICS, INC. for work described as: THE PURPOSE OF THIS TASK ORDER IS PROCURE TRANSPORTATION AND LOGISTICS SERVICES, INCLUDING LEASING OF OCEAN SHIPPING CONTAINERS, PROVIDING INTERMODAL TRANSPORTATION SERVICES OF CONTAINERIZED COMMODITIES, CROSS-DOCK SERVICES, OCEAN TRANSPORTATION, CONTAINER HANDLING EQUIPMENT (CHE… Key points: 1. Contract focused on critical transportation and logistics for disaster response and recovery. 2. Services include ocean shipping, intermodal transport, and port handling for life-sustaining commodities. 3. Awarded under full and open competition, suggesting a competitive bidding process. 4. Contract duration of 152 days indicates a short-term, urgent need. 5. Primarily supports FEMA's response to DR-4339, highlighting its role in emergency management. 6. Fixed-price contract type helps manage cost certainty for the government.

Value Assessment

Rating: good

The contract value of approximately $24.8 million for a 152-day period for transportation and logistics services appears reasonable given the critical nature of disaster relief support. Benchmarking against similar large-scale logistics contracts for emergency response is challenging due to the unique and often urgent demands. However, the firm fixed-price structure suggests an effort to control costs upfront. The scope of services, including ocean shipping and intermodal transport for life-sustaining commodities, aligns with the needs of disaster recovery operations.

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 bids. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings. The agency sought proposals from a wide range of potential providers, aiming to secure the most advantageous terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining competitive pricing and high-quality services, maximizing the value of federal dollars spent on essential disaster relief operations.

Public Impact

Beneficiaries include individuals and communities affected by disasters requiring life-sustaining commodities. Services delivered ensure the timely movement of essential goods and equipment for response and recovery. Geographic impact is focused on areas designated for disaster relief efforts, supporting FEMA's mission. Workforce implications may involve port workers, truck drivers, and logistics personnel involved in the supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen logistical challenges arise, despite fixed-price structure.
Dependence on a single contractor for critical disaster relief logistics could pose a risk if performance issues emerge.
Ensuring timely delivery of sensitive life-sustaining commodities requires robust oversight and contingency planning.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely secured favorable terms.
Firm fixed-price contract type provides cost certainty for the government.
Contract directly supports FEMA's critical mission for disaster response and recovery efforts.

Sector Analysis

The transportation and logistics sector is a vital component of the U.S. economy, encompassing freight movement across various modes. This contract falls within the deep-sea freight transportation sub-sector, specifically addressing the complex needs of emergency response. The market for disaster logistics is specialized, often requiring rapid deployment capabilities and adherence to strict timelines. Comparable spending benchmarks are difficult to establish due to the ad-hoc and urgent nature of disaster relief contracting, but the scale of this award reflects significant logistical requirements.

Small Business Impact

This contract was not specifically set aside for small businesses, nor is there an indication of significant subcontracting opportunities for small businesses within the provided data. The primary contractor, Crowley Logistics, Inc., is a large entity. The focus appears to be on securing the necessary capacity and expertise for large-scale disaster relief operations, which may limit direct participation by smaller firms in this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. As a delivery order under a larger contract vehicle, its execution is monitored by the contracting officer and relevant program managers. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

FEMA Disaster Relief Fund
Department of Homeland Security Logistics Contracts
Ocean Freight Transportation Services
Emergency Preparedness and Response

Risk Flags

Potential for performance delays due to external factors (weather, port congestion).
Ensuring timely delivery of critical life-sustaining commodities.
Contract duration is relatively short, requiring efficient execution.
Reliance on ocean freight can be subject to global shipping dynamics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $24.8 million to CROWLEY LOGISTICS, INC.. THE PURPOSE OF THIS TASK ORDER IS PROCURE TRANSPORTATION AND LOGISTICS SERVICES, INCLUDING LEASING OF OCEAN SHIPPING CONTAINERS, PROVIDING INTERMODAL TRANSPORTATION SERVICES OF CONTAINERIZED COMMODITIES, CROSS-DOCK SERVICES, OCEAN TRANSPORTATION, CONTAINER HANDLING EQUIPMENT (CHE) AT PORTS OF EMBARKATION AND DEBARKATION, SURFACE LINE HAUL SERVICES, AND DRAYAGE. THESE SERVICES ARE REQUIRED TO SUPPORT FEMA TO SHIP LIFE SUSTAINING COMMODITIES AND BREAKBULK EQUIPMENT FOR RESPONSE AND RECOVERY EFFOR

Who is the contractor on this award?

The obligated recipient is CROWLEY LOGISTICS, 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 $24.8 million.

What is the period of performance?

Start: 2017-09-06. End: 2018-02-05.

What is the track record of Crowley Logistics, Inc. in supporting FEMA or similar disaster relief operations?

Crowley Logistics, Inc. has a significant history of providing logistics and transportation services, including to government agencies. They are known for their capabilities in ocean transportation, port operations, and supply chain management. While specific details of their past performance with FEMA for DR-4339 are not detailed in this data, their general expertise in handling complex, large-scale logistics, including during crisis situations, suggests a capacity to meet FEMA's requirements. Government contract databases often contain performance evaluations, which would provide a more granular view of their past successes and challenges in similar roles. Their experience in operating in challenging environments and their extensive fleet and infrastructure are key assets for disaster response.

How does the cost of this contract compare to similar disaster relief transportation efforts?

Direct cost comparisons for disaster relief transportation contracts are inherently difficult due to the unique, urgent, and often unpredictable nature of these operations. Factors such as the specific commodities being shipped, the affected geographic areas, the required speed of delivery, and the prevailing market conditions at the time of the disaster all influence pricing. This $24.8 million contract for a 152-day period supports FEMA's response to DR-4339. While the firm fixed-price structure aims for cost control, the actual value-for-money assessment would require detailed analysis of the services rendered, the efficiency of delivery, and comparisons to any available benchmarks for similar emergency logistics operations, which are scarce.

What are the primary risks associated with this transportation and logistics contract for disaster relief?

The primary risks associated with this contract revolve around the inherent uncertainties of disaster response. These include potential delays due to weather, damaged infrastructure, or port congestion, which could impact the timely delivery of life-sustaining commodities. There's also a risk of scope creep if the disaster's needs evolve beyond initial projections. Furthermore, reliance on a single contractor for critical logistics necessitates robust performance monitoring to ensure service quality and prevent disruptions. Geopolitical factors or unforeseen global supply chain issues could also impact ocean freight services. Finally, ensuring the security and integrity of the transported goods throughout the supply chain presents an ongoing challenge.

How effective is this contract in supporting FEMA's overall mission for disaster response and recovery?

This contract is designed to be highly effective in supporting FEMA's mission by providing essential transportation and logistics services crucial for disaster response and recovery. By ensuring the movement of life-sustaining commodities and breakbulk equipment, it directly addresses the immediate needs of affected populations and facilitates recovery efforts. The scope of services, including ocean shipping and intermodal transport, covers critical links in the supply chain. The contract's focus on supporting a specific disaster declaration (DR-4339) indicates a targeted approach to resource allocation. Its effectiveness is contingent on the contractor's performance and FEMA's management of the operation.

What are the historical spending patterns for transportation and logistics services by FEMA or DHS?

FEMA and the Department of Homeland Security (DHS) historically spend significant amounts on transportation and logistics, particularly during and after major disaster declarations. Spending patterns fluctuate based on the frequency, scale, and geographic distribution of natural disasters. Contracts in this category often involve emergency procurements, including ocean freight, air cargo, and ground transportation, to move personnel, equipment, and relief supplies. While specific historical figures for FEMA's logistics spending require detailed analysis of past budgets and contract awards, it is a consistent and substantial area of expenditure, especially in years marked by significant disaster activity. The nature of these services means they are often reactive and critical for immediate response.

What is the significance of the 'Deep Sea Freight Transportation' (NAICS 483111) classification for this contract?

The NAICS code 483111, 'Deep Sea Freight Transportation,' signifies that the core service procured under this contract involves the movement of goods via ocean-going vessels across international waters or along coastlines. This classification highlights the reliance on maritime shipping for the transportation of potentially large volumes of life-sustaining commodities and equipment for disaster relief. It indicates that the contract encompasses the chartering of vessels, management of cargo loading and unloading at ports, and potentially related services like port handling and drayage to connect ocean transport with inland distribution networks. This is crucial for reaching affected areas that may be geographically distant or require bulk shipments.

Industry Classification

NAICS: Transportation and Warehousing › Deep Sea, Coastal, and Great Lakes Water Transportation › Deep Sea Freight Transportation

Product/Service Code: CONTAINERS/PACKAGING/PACKING SUPPL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSFE70-16-R-0007

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Crowley Alaska Inc

Address: 9487 REGENCY SQUARE BLVD, JACKSONVILLE, FL, 32225

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

Financial Breakdown

Contract Ceiling: $24,848,372

Exercised Options: $24,848,372

Current Obligation: $24,848,372

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSFE7016D0204

IDV Type: IDC

Timeline