FEMA awards $55.3M contract for lodging support during disaster relief operations

Contract Overview

Contract Amount: $55,334,199 ($55.3M)

Contractor: Corporate Lodging Consultants, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2023-08-14

End Date: 2024-08-13

Contract Duration: 365 days

Daily Burn Rate: $151.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CLC 1000 ROOM SUBSISTENCE-SUPPORT/LODGING IN SUPPORT OF DR-4724-HI.

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 $55.3 million to CORPORATE LODGING CONSULTANTS, INC. for work described as: CLC 1000 ROOM SUBSISTENCE-SUPPORT/LODGING IN SUPPORT OF DR-4724-HI. Key points: 1. Contract provides essential lodging services for disaster response personnel. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract's fixed-price nature helps control costs for the government. 4. Performance is concentrated in Washington D.C., indicating a specific geographic focus. 5. The award falls under travel arrangement services, a critical support function. 6. A single call against a BPA indicates a pre-negotiated framework for services.

Value Assessment

Rating: good

The contract value of $55.3 million for a one-year period for lodging support appears reasonable given the critical nature of disaster response. While specific benchmarks for disaster lodging are difficult to establish due to variable demand and location, the use of a Business Partner Agreement (BPA) suggests that pricing was likely pre-negotiated and potentially offers some cost efficiencies. Comparing this to other large-scale disaster relief support contracts would provide further context on value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded using full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the use of this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The award was made via a BPA call, suggesting that the underlying BPA itself was competitively sourced.

Taxpayer Impact: Full and open competition maximizes the potential for competitive pricing, which is beneficial for taxpayers by ensuring the government obtains services at the best possible value.

Public Impact

Federal Emergency Management Agency (FEMA) personnel and disaster response teams benefit from secured lodging. Services directly support disaster relief operations (DR-4724-HI), enabling rapid deployment of resources. The primary geographic impact is in the District of Columbia. Workforce implications include ensuring essential personnel have adequate accommodations during critical missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations if demand significantly exceeds initial projections.
Dependence on a single BPA call could limit flexibility if other lodging solutions are needed.
Geographic concentration in D.C. might not cover needs in other disaster-affected regions without additional arrangements.

Positive Signals

Utilizes a pre-competed BPA, likely ensuring favorable terms and conditions.
Firm fixed-price contract provides cost certainty for the government.
Supports critical disaster response missions, aligning with FEMA's core mandate.

Sector Analysis

The travel arrangement and reservation services sector, classified under NAICS code 561599, encompasses a wide range of services supporting government and corporate travel needs. This contract fits within the broader government support services market, where agencies procure specialized services to facilitate operations. Spending in this category can fluctuate significantly based on operational tempo, particularly during emergencies. Comparable spending benchmarks are difficult to pinpoint without more specific service details, but large-scale disaster support contracts can run into tens or hundreds of millions.

Small Business Impact

There is no indication that this contract included a small business set-aside. The contract was awarded under full and open competition. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data but could exist depending on the prime contractor's approach to fulfilling the lodging requirements.

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 firm fixed-price contract awarded via a BPA call, oversight would focus on ensuring timely delivery of services, adherence to agreed-upon rates, and proper utilization of the lodging. Transparency is facilitated through federal procurement databases, and the Inspector General for DHS would have jurisdiction over any potential fraud, waste, or abuse.

Related Government Programs

Disaster Relief Operations
Emergency Management Support Services
Travel and Lodging Services
Federal Emergency Management Agency Contracts
Department of Homeland Security Contracts

Risk Flags

Potential for cost escalation if demand exceeds projections.
Geographic concentration may require supplementary arrangements for wider deployment.
Reliance on a single BPA call could limit alternative sourcing options.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $55.3 million to CORPORATE LODGING CONSULTANTS, INC.. CLC 1000 ROOM SUBSISTENCE-SUPPORT/LODGING IN SUPPORT OF DR-4724-HI.

Who is the contractor on this award?

The obligated recipient is CORPORATE LODGING CONSULTANTS, 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 $55.3 million.

What is the period of performance?

Start: 2023-08-14. End: 2024-08-13.

What is the track record of Corporate Lodging Consultants, Inc. in supporting federal disaster relief efforts?

Corporate Lodging Consultants, Inc. (CLC) has a significant history of providing lodging services to various government agencies, including FEMA. Their experience often involves managing large volumes of temporary housing and accommodations during emergencies and disaster recovery operations. CLC's ability to scale services rapidly and manage logistics in challenging environments is crucial for disaster response. While specific performance metrics for this particular contract are not yet available, their established presence in the government contracting space suggests a capacity to meet demanding requirements. Further analysis would involve reviewing past performance evaluations and any documented successes or challenges in similar federal engagements.

How does the value of this contract compare to similar disaster lodging support contracts awarded by FEMA or other agencies?

Direct comparison of this $55.3 million contract is challenging without granular data on the scope, duration, and specific services included in other disaster lodging contracts. FEMA's needs can vary dramatically based on the scale and location of disasters. Contracts for large-scale, long-term disaster recovery efforts can easily exceed this amount, while smaller, localized events might require significantly less funding. The fact that this is a one-year contract, potentially renewable, suggests it's a significant but not necessarily unprecedented award for critical support. Benchmarking would require analyzing contracts with similar service descriptions (e.g., temporary housing, personnel accommodation) and operational contexts (e.g., major disaster declarations).

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

Key risks include potential cost overruns if demand surges unexpectedly, logistical challenges in securing adequate lodging in affected areas, and ensuring the quality and safety of accommodations. Mitigation strategies likely involve the pre-negotiated rates within the BPA, which provide some cost control. FEMA's oversight and CLC's established processes for managing large-scale lodging are intended to address logistical hurdles. The firm fixed-price nature of the award also shifts some of the financial risk to the contractor. However, unforeseen circumstances in disaster zones can always introduce new risks that require adaptive management.

How effective is the current contract in ensuring timely and adequate lodging for disaster response personnel?

The effectiveness of this contract in ensuring timely and adequate lodging can be assessed by monitoring key performance indicators (KPIs) once operations are underway. These might include the average time to secure lodging, the satisfaction rate of personnel with accommodations, and the geographic coverage provided. Given that this contract supports DR-4724-HI, its effectiveness will be directly tied to the speed and efficiency with which FEMA can deploy personnel to the affected region. Early indicators of success would be the absence of reports regarding personnel being unable to secure necessary accommodations, which would suggest the contract is functioning as intended.

What are the historical spending patterns for disaster lodging support by FEMA, and how does this award fit within them?

FEMA's spending on disaster lodging support can be highly variable year-to-year, directly correlating with the frequency and severity of declared disasters. In years with numerous large-scale events, spending can reach hundreds of millions or even billions of dollars across various contracts for temporary housing and personnel accommodations. This $55.3 million award represents a significant allocation for a specific operation (DR-4724-HI) over a one-year period. It fits within the agency's established need for flexible and responsive lodging solutions during emergencies. Analyzing historical data would reveal trends in contract types, average award values, and the duration of such support services.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Travel Arrangement and Reservation Services › All Other Travel Arrangement and Reservation Services

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Corpay, Inc

Address: 8111 E 32ND ST N, WICHITA, KS, 67226

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

Financial Breakdown

Contract Ceiling: $125,961,696

Exercised Options: $55,334,199

Current Obligation: $55,334,199

Actual Outlays: $55,334,199

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QMCB21A0003

IDV Type: BPA

Timeline