FEMA Spends $25M on Generator Sets for Disaster Relief, Awarded to MULTIQUIP INC

Contract Overview

Contract Amount: $25,096,995 ($25.1M)

Contractor: Multiquip Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2019-04-25

End Date: 2020-06-24

Contract Duration: 426 days

Daily Burn Rate: $58.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FEMA IS PROCURING GENERATOR SETS TO SUPPORT DISASTER RELIEF OPERATIONS IN ORDER TO PROTECT AGAINST, RESPOND TO, RECOVER FROM, OR MITIGATE AGAINST THREATENED OR ACTUAL MAJOR OR CATASTROPHIC DISASTERS AND EMERGENCIES BOTH NATURAL AND MAN-MADE, INCLUDING ACTS OF TERROR. THIS SPECIFIC REQUIREMENT IS FOR DC FREDERICK, DC ATLANTA, DC CARIBBEAN, DC FORT WORTH AND DC MOFFETT, WHICH MAINTAIN THEIR RESPECTIVE GENERATOR FLEETS TO SUPPORT EMERGENCY RESPONSE OPERATIONS; AND WOULD FILL SHORTFALLS AT EACH LOCATION WITHIN THEIR FLEET DUE TO THE LIFECYCLE OF GENERATORS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20472

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $25.1 million to MULTIQUIP INC. for work described as: FEMA IS PROCURING GENERATOR SETS TO SUPPORT DISASTER RELIEF OPERATIONS IN ORDER TO PROTECT AGAINST, RESPOND TO, RECOVER FROM, OR MITIGATE AGAINST THREATENED OR ACTUAL MAJOR OR CATASTROPHIC DISASTERS AND EMERGENCIES BOTH NATURAL AND MAN-MADE, INCLUDING ACTS OF TERROR. THIS SPECIF… Key points: 1. Significant investment in critical disaster response infrastructure. 2. Sole awardee suggests potential for limited competition or strong incumbent advantage. 3. Risk of over-reliance on a single supplier for essential equipment. 4. Spending aligns with national security and emergency preparedness goals. 5. Focus on maintaining operational readiness for FEMA's distributed data centers.

Value Assessment

Rating: good

The contract value of $25.1 million for 8 generator sets appears reasonable given the specialized nature and immediate need for disaster relief support. Benchmarking against similar large-scale generator procurements for government agencies would provide a more precise assessment.

Cost Per Unit: $3,137,124.38

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. However, the single award to MULTIQUIP INC. warrants further investigation into the bidding process and evaluation criteria to ensure optimal price discovery.

Taxpayer Impact: Taxpayers are funding essential equipment for disaster preparedness, ensuring continuity of operations for critical government functions during emergencies.

Public Impact

Ensures continued operation of critical FEMA data centers during power outages. Enhances national resilience against natural and man-made disasters. Supports rapid deployment of resources for emergency response. Maintains operational readiness for vital government services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for single-source dependency if future needs arise.
Limited visibility into specific generator model performance and maintenance history.
Risk of price escalation in future procurements if competition is not sustained.

Positive Signals

Addresses critical infrastructure gap for disaster response.
Supports multiple key operational locations.
Procured under a firm-fixed-price contract, providing cost certainty.

Sector Analysis

This procurement falls within the IT and General Services sector, specifically related to critical infrastructure and operational support for government agencies. Spending benchmarks for similar generator set procurements vary widely based on size, capacity, and features, but $25 million for multiple high-capacity units is substantial.

Small Business Impact

The data indicates that this contract was not awarded to small businesses, as indicated by 'sb': false. Future procurements should explore opportunities for small business participation where feasible to promote economic diversity.

Oversight & Accountability

The Federal Emergency Management Agency (FEMA), under the Department of Homeland Security, is responsible for this procurement. Oversight should focus on ensuring the generators meet specifications, are deployed effectively, and that the competition process was robust and fair.

Related Government Programs

Motor and Generator Manufacturing
Department of Homeland Security Contracting
Federal Emergency Management Agency Programs

Risk Flags

Potential for limited competition despite 'full and open' designation.
Dependency on a single supplier for critical infrastructure.
Lack of detailed long-term cost and performance data.
No small business participation noted in this award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $25.1 million to MULTIQUIP INC.. FEMA IS PROCURING GENERATOR SETS TO SUPPORT DISASTER RELIEF OPERATIONS IN ORDER TO PROTECT AGAINST, RESPOND TO, RECOVER FROM, OR MITIGATE AGAINST THREATENED OR ACTUAL MAJOR OR CATASTROPHIC DISASTERS AND EMERGENCIES BOTH NATURAL AND MAN-MADE, INCLUDING ACTS OF TERROR. THIS SPECIFIC REQUIREMENT IS FOR DC FREDERICK, DC ATLANTA, DC CARIBBEAN, DC FORT WORTH AND DC MOFFETT, WHICH MAINTAIN THEIR RESPECTIVE GENERATOR FLEETS TO SUPPORT EMERGENCY RESPONSE OPERATIONS; AND WOULD FILL SHORTFALLS AT EACH LOC

Who is the contractor on this award?

The obligated recipient is MULTIQUIP 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 $25.1 million.

What is the period of performance?

Start: 2019-04-25. End: 2020-06-24.

What is the expected lifespan and maintenance cost of these generator sets to assess long-term value?

The expected lifespan and ongoing maintenance costs are crucial for a comprehensive value assessment. Without this data, it's difficult to determine the total cost of ownership beyond the initial procurement price. Future contracts should include detailed specifications on expected operational life and mandated maintenance schedules to ensure sustained readiness and control long-term expenditures.

Were there any technical or performance requirements that limited the number of potential bidders, potentially impacting competition?

Understanding if highly specific technical or performance requirements inadvertently limited the pool of eligible bidders is essential for evaluating the 'full and open' competition claim. If the specifications were overly restrictive, it could suggest a de facto sole-source situation, potentially leading to higher prices than a broader competition might yield. Further review of the solicitation's technical specifications is warranted.

How effectively will these generators integrate with existing FEMA disaster response protocols and infrastructure?

The effectiveness of these generators hinges on their seamless integration into FEMA's existing disaster response infrastructure and protocols. This includes compatibility with power distribution systems, fuel supply chains, and communication networks at each data center. Successful integration ensures rapid deployment and reliable power during critical emergency operations, maximizing the return on taxpayer investment.

Industry Classification

NAICS: Manufacturing › Electrical Equipment Manufacturing › Motor and Generator Manufacturing

Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 70FB7018R00000017

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Itochu Corporation (UEI: 690535638)

Address: 18910 WILMINGTON AVE, CARSON, CA, 90746

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,096,995

Exercised Options: $25,096,995

Current Obligation: $25,096,995

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline