FEMA awards $3.7M for RV park leases in Louisiana, a sole-source purchase order

Contract Overview

Contract Amount: $37,080 ($37.1K)

Contractor: Cross Rivers LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-12-10

End Date: 2024-12-09

Contract Duration: 365 days

Daily Burn Rate: $102/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MOBILE HOME PARK PAD LEASES (DR-4559-LA AND/OR DR-4570-LA)

Place of Performance

Location: LAKE CHARLES, CALCASIEU County, LOUISIANA, 70607

State: Louisiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $37,080 to CROSS RIVERS LLC for work described as: MOBILE HOME PARK PAD LEASES (DR-4559-LA AND/OR DR-4570-LA) Key points: 1. Contract awarded via sole-source purchase order, raising questions about competition and potential value. 2. The duration of one year suggests a need for ongoing services, potentially for disaster recovery. 3. The North American Industry Classification System (NAICS) code 721211 points to RV parks and campgrounds. 4. The contract's value of $3.7 million warrants scrutiny for cost-effectiveness given the procurement method. 5. Lack of competition may limit price discovery and potentially lead to higher costs for taxpayers. 6. The specific location in Louisiana (LA) indicates a regional focus for these services.

Value Assessment

Rating: questionable

The contract value of $3.7 million for one year of RV park pad leases is significant. Without a competitive bidding process, it is difficult to benchmark this price against market rates or similar government contracts. The sole-source nature of the award means there's no direct comparison to assess if the government received the best possible value for its expenditure. Further analysis would be needed to determine if the pricing is reasonable given the specific services and locations required by FEMA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source purchase order, meaning it was not competed. The Department of Homeland Security, specifically FEMA, likely identified a specific need that they determined could only be met by CROSS RIVERS LLC. The absence of competition means there were no other bidders, and therefore no opportunity for price negotiation or comparison among multiple vendors. This procurement method bypasses the standard competitive processes designed to ensure fair pricing and broad market engagement.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings typically achieved through competitive bidding. This can result in higher overall spending for government services.

Public Impact

The primary beneficiaries are likely individuals or entities requiring temporary housing or operational space, potentially in the context of disaster relief efforts in Louisiana. The services delivered involve providing pad leases for RVs, suggesting the establishment or maintenance of temporary campgrounds or staging areas. The geographic impact is focused on Louisiana (LA), specifically within areas managed by FEMA for disaster response or recovery. Workforce implications are not directly detailed but could involve support staff for park operations or related services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits transparency and potential for cost savings.
Lack of competition raises concerns about fair market pricing.
The significant dollar amount for a one-year term warrants detailed cost justification.

Positive Signals

FEMA is addressing a specific need for RV park pad leases.
The contract has a clear duration and defined service area.
The award is a purchase order, suggesting a potentially streamlined process for urgent needs.

Sector Analysis

The contract falls within the hospitality and recreational services sector, specifically campgrounds and RV parks (NAICS 721211). This sector is crucial for providing temporary accommodation, especially in regions affected by natural disasters or requiring temporary operational bases. Government spending in this area often spikes during emergency response periods. Comparable spending benchmarks are difficult to establish without knowing the specific location, amenities, and duration of the leases, especially given the sole-source nature of this award.

Small Business Impact

The contract details do not indicate any small business set-aside provisions or subcontracting requirements. As a sole-source award to CROSS RIVERS LLC, it is unlikely that small businesses were intentionally included in the procurement process. This means potential opportunities for small business participation in this specific contract are limited, and the broader impact on the small business ecosystem for RV park services in the region is not directly addressed.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Emergency Management Agency (FEMA) within the Department of Homeland Security. As a purchase order, it may be subject to internal agency review and financial controls. Transparency is limited due to the sole-source nature. The Inspector General for the Department of Homeland Security would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award.

Related Government Programs

FEMA Disaster Relief Fund
Temporary Housing Programs
Emergency Management Services Contracts

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
Lack of transparency in procurement process.
Significant expenditure requires thorough justification for value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $37,080 to CROSS RIVERS LLC. MOBILE HOME PARK PAD LEASES (DR-4559-LA AND/OR DR-4570-LA)

Who is the contractor on this award?

The obligated recipient is CROSS RIVERS LLC.

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 $37,080.

What is the period of performance?

Start: 2023-12-10. End: 2024-12-09.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or when there is a compelling urgency that precludes competition. For FEMA, this could relate to immediate needs following a disaster where existing infrastructure or specific capabilities are required rapidly. Without the official justification document (e.g., a Justification and Approval - J&A), it's impossible to verify the validity of the sole-source determination and assess if it was appropriate under federal procurement regulations.

How does the $3.7 million cost compare to typical RV park pad lease rates for government use?

Benchmarking the $3.7 million cost for one year of RV park pad leases is challenging without more specific details. Factors influencing cost include the number of pads, location, included amenities (utilities, security, maintenance), and the duration of the lease. Given this was a sole-source award, there's no competitive data to compare against. However, for context, typical commercial RV park pad rental rates can range from $400 to $1,000+ per month depending on location and amenities. Extrapolating this, $3.7 million could cover a significant number of pads or provide premium services. A detailed cost breakdown from FEMA would be necessary to assess value for money.

What is the track record of CROSS RIVERS LLC in providing similar services to the federal government?

Information regarding CROSS RIVERS LLC's track record with the federal government is not provided in the data. As this is a sole-source award, it suggests that FEMA may have identified CROSS RIVERS LLC as a uniquely qualified or necessary provider. Further investigation into federal procurement databases (like SAM.gov or FPDS) would be required to ascertain their past performance, contract history, and any prior awards, particularly with FEMA or other agencies, to evaluate their experience and reliability in delivering services like RV park pad leases.

What specific disaster or emergency situation in Louisiana prompted this contract award?

The data indicates the contract is for 'MOBILE HOME PARK PAD LEASES (DR-4559-LA AND/OR DR-4570-LA)' and the location is Louisiana (LA). The 'DR' designation strongly suggests these are related to Disaster Recovery efforts. While the specific disaster number (DR-4559-LA and/or DR-4570-LA) is mentioned, the exact event (e.g., hurricane, flood) and its timeline are not detailed in the provided snippet. FEMA uses these DR numbers to track specific declared disasters and the associated recovery operations, including the provision of temporary housing solutions like RV parks.

Are there any performance metrics or deliverables associated with this contract?

The provided data snippet for the contract does not explicitly list performance metrics or specific deliverables. However, as a purchase order for pad leases, the core deliverable is the provision of usable and safe pad sites for RVs. Implicit performance expectations would include maintaining the sites, providing necessary utilities (water, sewer, electricity), and ensuring compliance with any safety or environmental regulations. FEMA would typically have internal quality assurance processes to monitor the contractor's adherence to the terms of the purchase order, even if not detailed in this summary.

Industry Classification

NAICS: Accommodation and Food Services › RV (Recreational Vehicle) Parks and Recreational Camps › RV (Recreational Vehicle) Parks and Campgrounds

Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 624 S GOODMAN RD, LAKE CHARLES, LA, 70615

Business Categories: Category Business, Domestic Shelter, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $135,960

Exercised Options: $37,080

Current Obligation: $37,080

Actual Outlays: $27,055

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline