FEMA awarded $50M contract for fuel services in Puerto Rico following Hurricane Maria

Contract Overview

Contract Amount: $49,995,755 ($50.0M)

Contractor: LA Casa DEL Camionero, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2018-01-18

End Date: 2019-06-30

Contract Duration: 528 days

Daily Burn Rate: $94.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF FUEL EQUIPMENT, LABOR AND DELIVERY ISO HURRICANE MARIA DR4339PR

Place of Performance

Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00910

Plain-Language Summary

Department of Homeland Security obligated $50.0 million to LA CASA DEL CAMIONERO, INC. for work described as: IGF::CT::IGF FUEL EQUIPMENT, LABOR AND DELIVERY ISO HURRICANE MARIA DR4339PR Key points: 1. Contract value of $49.9M for fuel equipment, labor, and delivery. 2. Awarded to LA CASA DEL CAMIONERO, INC. under a definitive contract. 3. Full and open competition after exclusion of sources was utilized. 4. Contract duration was 528 days, from January 2018 to June 2019. 5. The North American Industry Classification System (NAICS) code is 424720 for Petroleum and Petroleum Products Merchant Wholesalers. 6. The contract was not set aside for small businesses. 7. The contract type was Firm Fixed Price. 8. The place of performance was Puerto Rico.

Value Assessment

Rating: fair

The contract value of approximately $50 million for fuel services in Puerto Rico appears substantial, especially considering the emergency context following Hurricane Maria. Benchmarking this against similar disaster relief fuel contracts is challenging due to the unique circumstances and specific needs. However, the firm fixed-price structure suggests an attempt to control costs, but the overall value for money depends heavily on the actual services rendered and the prevailing market rates for fuel and delivery in a post-disaster environment. Without more granular data on unit costs or comparison to other emergency procurements, a definitive assessment of value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, certain sources may have been excluded prior to the solicitation, or the exclusion was justified post-award. The presence of 6 bidders suggests a reasonable level of competition, which is generally positive for price discovery. However, the 'after exclusion of sources' clause warrants further investigation to understand if it limited the competitive pool unnecessarily.

Taxpayer Impact: The use of full and open competition, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to bid, potentially leading to lower prices. The fact that six bids were received suggests that the market was responsive, which is a positive sign for cost-effectiveness.

Public Impact

Residents and businesses in Puerto Rico benefited from the availability of fuel for essential services and recovery efforts. Services included the provision of fuel equipment, labor for distribution, and delivery. The geographic impact was focused on Puerto Rico, a critical area for disaster relief. The contract supported the logistical needs of emergency response and recovery operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inflated pricing due to emergency procurement conditions.
Lack of transparency regarding the 'exclusion of sources' could mask limited competition.
Dependence on a single contractor for critical fuel supply in a disaster zone.

Positive Signals

Awarded through a competitive process, indicating multiple interested parties.
Firm fixed-price contract type helps to establish cost certainty.
Contract duration aligns with the extended recovery needs post-hurricane.

Sector Analysis

The petroleum and petroleum products wholesale sector is a critical component of the energy supply chain. This contract falls under the 'Petroleum and Petroleum Products Merchant Wholesalers' category (NAICS 424720). In the context of disaster response, the demand for fuel and related services can surge significantly, making this a specialized niche within the broader energy sector. Comparable spending benchmarks are difficult to establish without specific data on emergency fuel provisioning contracts, which are often highly variable based on the scale and duration of the disaster.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that the primary award went to a larger entity, and the direct economic benefit to the small business ecosystem through this specific contract is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security (DHS) and the Federal Emergency Management Agency (FEMA). The Inspector General's office within DHS would have jurisdiction to investigate potential fraud, waste, or abuse. Transparency is enhanced by the public nature of contract awards, but detailed performance metrics and oversight reports are not readily available in this summary.

Related Government Programs

Hurricane Maria Disaster Relief Efforts
Emergency Fuel Procurement
Federal Emergency Management Agency Contracts
Department of Homeland Security Contracts
Puerto Rico Recovery Operations

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Lack of detailed performance metrics makes value assessment difficult.
Emergency procurement context may lead to higher-than-normal costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $50.0 million to LA CASA DEL CAMIONERO, INC.. IGF::CT::IGF FUEL EQUIPMENT, LABOR AND DELIVERY ISO HURRICANE MARIA DR4339PR

Who is the contractor on this award?

The obligated recipient is LA CASA DEL CAMIONERO, 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 $50.0 million.

What is the period of performance?

Start: 2018-01-18. End: 2019-06-30.

What was the specific justification for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' award?

The provided data does not specify the exact justification for excluding certain sources under this contract. Typically, such exclusions might be based on factors like prior performance issues, inability to meet specific technical requirements, or national security concerns. In disaster relief scenarios, agencies might also exclude sources that cannot guarantee rapid deployment or meet stringent logistical demands. A deeper dive into the contract's solicitation documents or award justification would be necessary to ascertain the precise reasons for any source exclusion and to evaluate if it unduly limited competition or impacted taxpayer value.

How does the unit cost of fuel and delivery under this contract compare to market rates in Puerto Rico during the contract period?

The provided data does not include specific unit costs for fuel or delivery, making a direct comparison to market rates impossible. The contract's firm fixed-price nature suggests that prices were negotiated upfront. However, assessing value requires knowing these unit costs and comparing them against prevailing market prices for similar fuel products and delivery services in Puerto Rico between January 2018 and June 2019, particularly in the context of post-hurricane conditions which could have inflated prices due to supply chain disruptions and increased demand. Without this granular cost data, the value-for-money assessment remains incomplete.

What was the track record of LA CASA DEL CAMIONERO, INC. with federal contracts prior to this award?

Information regarding the prior federal contract track record of LA CASA DEL CAMIONERO, INC. is not included in the provided data. To assess this aspect, a review of the System for Award Management (SAM) database or other federal procurement databases would be necessary. Examining past performance, including contract history, types of awards, and any past performance evaluations or disputes, would provide insight into the contractor's reliability and experience in fulfilling government obligations, which is crucial for evaluating the risk associated with this significant award.

Were there any performance issues or contract modifications during the execution of this $50 million contract?

The provided data summary does not detail any performance issues or contract modifications that occurred during the execution of this contract. A comprehensive review of contract modification history, performance reports, and any associated documentation would be required to identify any deviations from the original terms, reasons for modifications (e.g., scope changes, unforeseen circumstances), and their financial impact. Such information is vital for a complete understanding of the contract's lifecycle and overall effectiveness.

What was the total federal spending on fuel procurement and delivery services in Puerto Rico in the years surrounding Hurricane Maria (e.g., 2017-2020)?

The provided data focuses solely on this specific $50 million contract awarded to LA CASA DEL CAMIONERO, INC. It does not offer a broader picture of federal spending on fuel procurement and delivery in Puerto Rico during the relevant period. To determine total spending, one would need to query federal procurement databases (like USASpending.gov) for all contracts related to fuel and delivery services in Puerto Rico, filtered by agencies like FEMA and DHS, and spanning the years 2017 through 2020. This would provide context on the scale of federal investment in such services, especially in the aftermath of major disasters.

Industry Classification

NAICS: Wholesale Trade › Petroleum and Petroleum Products Merchant Wholesalers › Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals)

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSFE02DR4339PRFUELEQUIP-1

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: LA Casa DEL Camionero Inc (UEI: 556500783)

Address: RD 2 KM 147.3 SEC EL MANI, MAYAGUEZ, PR, 00680

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $49,995,755

Exercised Options: $49,995,755

Current Obligation: $49,995,755

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline