FEMA awards $5.5M for emergency lodging in Kansas, utilizing a broad travel services contract

Contract Overview

Contract Amount: $5,523,260 ($5.5M)

Contractor: Corporate Lodging Consultants, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-10-16

End Date: 2025-08-16

Contract Duration: 304 days

Daily Burn Rate: $18.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRANSITIONAL SHELTERING ASSISTANCE EMERGENCY LODGING SERVICES (DR-4828-FL)

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67226

State: Kansas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $5.5 million to CORPORATE LODGING CONSULTANTS, INC. for work described as: TRANSITIONAL SHELTERING ASSISTANCE EMERGENCY LODGING SERVICES (DR-4828-FL) Key points: 1. Contract value represents a significant portion of the broader travel arrangement and reservation services market. 2. The award was made under a full and open competition, suggesting a competitive bidding process. 3. The contract duration of 304 days indicates a focused, short-term need for services. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The specific NAICS code (561599) covers a wide range of travel services, making direct cost comparisons challenging without further detail. 6. The award is a call against a larger Blanket Purchase Agreement (BPA), indicating a pre-negotiated framework.

Value Assessment

Rating: good

The contract value of $5.52 million for emergency lodging services appears reasonable given the nature of disaster response. Without specific per-unit cost data (e.g., cost per room night), a direct benchmark is difficult. However, the use of a BPA call suggests that pricing was likely negotiated and vetted in a prior, broader competition, which generally leads to better value than ad-hoc contracting. The fixed-price nature further supports value by capping government liability.

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 offers. The specific number of bidders is not provided, but the designation implies a robust competitive process. This level of competition is generally expected to drive down prices and ensure the government receives fair market value for the services procured.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective lodging solutions during critical emergency situations, preventing potential price gouging.

Public Impact

Provides essential temporary shelter for individuals and families displaced by disaster events in Kansas. Supports the Federal Emergency Management Agency's (FEMA) disaster relief operations, specifically DR-4828-FL. Benefits residents of Kansas affected by the declared disaster. Facilitates the logistical operations of emergency response by ensuring available lodging for affected populations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific per-unit cost data makes it difficult to assess granular value for money.
The broad nature of the NAICS code could mask variations in service quality or pricing.
Reliance on a BPA call means the initial competition for the BPA itself is a key factor in overall value, which is not detailed here.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Fixed-price contract type provides cost certainty.
The contract is managed by FEMA, an agency experienced in emergency response procurement.
The award is a call against an existing BPA, implying prior vetting of the contractor and pricing structure.

Sector Analysis

The travel arrangement and reservation services sector (NAICS 561599) is diverse, encompassing online travel agencies, corporate travel management, and specialized services like emergency lodging. Federal spending in this area often spikes during disaster events. This contract fits within the broader category of government support services, particularly those related to logistics and emergency management. Benchmarking is challenging due to the specialized nature of emergency lodging compared to standard corporate travel.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not available for this specific contract award. As the contract was awarded under full and open competition, it is possible that small businesses could have participated if they met the qualifications. Further analysis would be needed to determine if any subcontracting opportunities were mandated or utilized.

Oversight & Accountability

Oversight is primarily conducted by the Department of Homeland Security's Federal Emergency Management Agency (FEMA), which is responsible for managing disaster relief operations. As this is a fixed-price contract, financial oversight will focus on ensuring services are delivered as agreed. Transparency is facilitated by public contract databases, though detailed performance metrics are not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Disaster Relief Fund
Emergency Management and Assistance
Temporary Housing Assistance Programs
Federal Acquisition Regulation (FAR) clauses related to emergency procurements

Risk Flags

Potential for price volatility if demand surges unexpectedly.
Risk of inconsistent service quality under emergency conditions.
Need for robust monitoring to ensure fair pricing and prevent gouging.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $5.5 million to CORPORATE LODGING CONSULTANTS, INC.. TRANSITIONAL SHELTERING ASSISTANCE EMERGENCY LODGING SERVICES (DR-4828-FL)

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 $5.5 million.

What is the period of performance?

Start: 2024-10-16. End: 2025-08-16.

What is the typical cost per room night for transitional sheltering assistance provided by FEMA under similar disaster declarations?

Determining a precise 'typical' cost per room night for FEMA's Transitional Sheltering Assistance (TSA) is complex, as rates vary significantly based on geographic location, market demand, time of year, and the specific disaster's scale. FEMA negotiates rates with lodging providers, often leveraging existing government-wide contracts or agreements like Blanket Purchase Agreements (BPAs). For DR-4828-FL in Kansas, the total award of $5.52 million over approximately 10 months suggests an average monthly expenditure of around $552,000. If we assume an average of 500 rooms are utilized per night (a hypothetical number for illustration), the cost per room night would be approximately $368 ($552,000 / 30 nights / 500 rooms). However, actual utilization and pricing would fluctuate daily. FEMA aims to secure rates comparable to or better than standard government per diem rates, adjusted for emergency conditions and market availability, while avoiding excessive costs.

How does the contractor, Corporate Lodging Consultants, Inc., compare to other providers in terms of past performance with FEMA or other federal agencies?

Assessing Corporate Lodging Consultants, Inc.'s past performance requires access to proprietary federal contracting databases that detail contractor ratings and award histories. Publicly available information suggests the company specializes in providing lodging solutions, often for extended stays or specific needs like corporate relocation or disaster relief. Their ability to secure this contract, awarded under full and open competition by FEMA, indicates they met the agency's requirements and likely possess relevant experience. To provide a comparative analysis, one would need to examine their performance history on similar federal contracts, looking at factors like on-time delivery, quality of service, adherence to budget, and any past disputes or negative performance flags. Without this specific data, it's difficult to benchmark their performance against competitors.

What specific services are included under 'All Other Travel Arrangement and Reservation Services' for emergency lodging?

The NAICS code 561599, 'All Other Travel Arrangement and Reservation Services,' is broad and encompasses services not classified under more specific codes like travel agencies or tour operators. For emergency lodging in a disaster context (DR-4828-FL), this likely includes identifying available hotel rooms or other suitable accommodations, booking these rooms for displaced individuals, managing reservations, potentially coordinating check-in/check-out processes, and providing customer service support to the evacuees. It may also involve reporting occupancy data back to FEMA. The service is focused on facilitating immediate, temporary shelter solutions during a crisis, distinct from routine business or leisure travel arrangements.

What is the significance of this contract being a 'BPA CALL'?

A 'BPA CALL' signifies that this specific award is a task order placed against a pre-existing Blanket Purchase Agreement (BPA). A BPA is a simplified way to fill anticipated repetitive needs for supplies or services by establishing 'charge accounts' with qualified sources. The initial BPA would have been established through a separate competitive process, setting terms and conditions, including pricing structures or rates, for a defined period. This particular call represents a specific order under that established BPA for the transitional sheltering assistance in Kansas. The advantage of this structure is that it streamlines the procurement process for recurring needs, potentially offering better pricing due to the volume and pre-negotiated terms established in the parent BPA.

Are there any specific risk indicators associated with this type of emergency lodging contract?

Yes, several risk indicators are common with emergency lodging contracts. Firstly, demand can be highly unpredictable and surge rapidly, potentially straining the contractor's capacity and leading to price volatility if not adequately controlled by the contract terms. Secondly, the quality of service can be inconsistent, especially when providers are overwhelmed or operating under stressful conditions. Thirdly, there's a risk of price gouging if the competition is limited or if the contract terms do not sufficiently cap rates during emergencies. Finally, ensuring timely availability of suitable accommodations in disaster-stricken areas can be challenging, potentially delaying critical support for affected populations. The fixed-price nature and full and open competition here aim to mitigate some of these risks.

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

Financial Breakdown

Contract Ceiling: $5,523,260

Exercised Options: $5,523,260

Current Obligation: $5,523,260

Actual Outlays: $3,625,556

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QMCB24A0003

IDV Type: BPA

Timeline