FEMA's $38M fueling contract for Puerto Rico awarded to Macro Companies, Inc. amid recovery efforts

Contract Overview

Contract Amount: $38,240,530 ($38.2M)

Contractor: Macro Companies, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2018-01-07

End Date: 2018-02-08

Contract Duration: 32 days

Daily Burn Rate: $1.2M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF BRIDGE CONTRACT FOR FUELING SERVICES DR4339PR

Place of Performance

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

Plain-Language Summary

Department of Homeland Security obligated $38.2 million to MACRO COMPANIES, INC. for work described as: IGF::CT::IGF BRIDGE CONTRACT FOR FUELING SERVICES DR4339PR Key points: 1. Contract awarded for essential fueling services during a critical recovery period. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The short duration of the contract (32 days) indicates a response to an immediate need. 4. The fixed-price nature of the contract provides cost certainty for the government. 5. The contract's value is significant, reflecting the scale of logistical support required. 6. The award to a single contractor highlights the need for specialized capabilities in emergency response.

Value Assessment

Rating: good

The contract's value of approximately $38.2 million for a 32-day period appears substantial, likely reflecting the urgent and large-scale logistical demands of post-disaster recovery in Puerto Rico. Benchmarking this against typical fueling contracts is challenging due to the unique emergency context. However, the fixed-price structure provides a degree of cost control. The absence of detailed performance metrics makes a definitive value-for-money assessment difficult without further context on service delivery and market rates during the emergency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit bids. While the specific number of bidders is not provided, this competition type generally promotes price discovery and allows the government to select the most advantageous offer. The fact that it was competed suggests that multiple companies likely had the capability to provide these services, even in a challenging environment.

Taxpayer Impact: A full and open competition aims to secure the best possible pricing for taxpayers by encouraging a wide range of offers. This process helps prevent inflated costs that might arise from sole-source or limited competition awards.

Public Impact

Residents and essential services in Puerto Rico benefited from the continuity of fuel supply during the recovery period. The contract ensured the availability of fuel for critical infrastructure, transportation, and emergency response vehicles. The geographic impact was focused on Puerto Rico, addressing immediate post-disaster needs. The contract supported the logistical workforce required to deliver and manage fuel supplies in a disaster zone.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price gouging in emergency situations, though mitigated by competition.
Logistical challenges in delivering fuel to remote or damaged areas.
Dependence on a single contractor for a critical resource.

Positive Signals

Awarded through full and open competition, suggesting a fair process.
Fixed-price contract provides cost certainty.
Addresses a critical need during a disaster recovery phase.

Sector Analysis

This contract falls within the broader category of logistics and support services, specifically fuel supply, which is critical for maintaining operations across various sectors, especially during emergencies. The market for fuel distribution is typically competitive, but emergency response situations can introduce unique logistical complexities and demand surges. The value of this contract is substantial for a short-term, specialized need, reflecting the high costs associated with disaster relief operations and the transportation of goods to affected areas.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While Macro Companies, Inc. may engage small businesses as subcontractors, there is no explicit requirement or indication of such in the award details. The focus appears to be on securing the necessary services through the most capable provider under competitive conditions.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. Mechanisms would include contract performance monitoring, financial audits, and potentially reviews by FEMA's Office of Inspector General, especially given the significant dollar amount and the emergency context. Transparency is generally maintained through contract databases like FPDS, where award details are recorded.

Related Government Programs

Disaster Relief Funding
Emergency Fueling Services
Logistics and Transportation Support
Puerto Rico Recovery Efforts

Risk Flags

Potential for price volatility in emergency situations.
Logistical complexities in disaster-affected areas.
Short contract duration may indicate an interim or urgent need.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $38.2 million to MACRO COMPANIES, INC.. IGF::CT::IGF BRIDGE CONTRACT FOR FUELING SERVICES DR4339PR

Who is the contractor on this award?

The obligated recipient is MACRO COMPANIES, 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 $38.2 million.

What is the period of performance?

Start: 2018-01-07. End: 2018-02-08.

What was the specific nature of the fueling services provided under this contract?

The contract, IGF::CT::IGF BRIDGE CONTRACT FOR FUELING SERVICES DR4339PR, was for fueling services. Given the context of the award date (early 2018) and the location (Puerto Rico), it is highly probable that these services were related to the ongoing recovery efforts following Hurricane Maria in late 2017. This would likely include providing fuel for generators, emergency vehicles, transportation fleets, and potentially other critical infrastructure requiring fuel to restore essential services across the island. The 'bridge contract' designation suggests it may have been an interim solution while a more permanent arrangement was being established.

How does the per-gallon cost of fuel under this contract compare to market rates in Puerto Rico during the contract period?

Determining the exact per-gallon cost and comparing it to market rates is not possible with the provided data alone. The contract value is a total amount for a duration, not a unit price. Furthermore, market rates for fuel in Puerto Rico during the immediate post-hurricane period would have been highly volatile due to damaged infrastructure, transportation disruptions, and increased demand. While the contract was competitively awarded, emergency conditions can inflate prices. A detailed analysis would require access to the contract's specific pricing structure and independent market data for fuel in Puerto Rico during January-February 2018.

What is Macro Companies, Inc.'s track record with FEMA and other government agencies for providing similar emergency fueling services?

Information on Macro Companies, Inc.'s specific track record with FEMA or other agencies for emergency fueling services is not detailed in the provided award data. The data only confirms this specific contract award. To assess their track record, one would need to consult government contract databases (like FPDS or SAM.gov) for past awards, performance reviews, and any reported issues or successes related to similar contracts. Their experience in disaster zones and ability to meet stringent delivery timelines would be key factors in evaluating their suitability for such critical services.

What were the key performance indicators (KPIs) or service level agreements (SLAs) for this contract?

The provided award data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for fueling services, especially in an emergency context, KPIs would likely focus on delivery timeliness, fuel availability (uptime), fuel quality, safety compliance during delivery and storage, and accurate reporting. The effectiveness of the contract would be measured against these metrics, ensuring that fuel reached its intended destinations and supported critical operations without interruption. Without these specific details, a full assessment of performance is limited.

How did the short duration (32 days) impact the overall cost and logistical planning for this fueling contract?

The short, 32-day duration of this contract suggests it was intended as an immediate, interim solution to address a critical gap in fueling services, likely in the immediate aftermath of Hurricane Maria. This short timeframe might have led to higher per-day or per-unit costs compared to a longer-term contract, as contractors may factor in mobilization/demobilization costs and the inherent uncertainty of short-term emergency needs. Logistically, it required rapid deployment of resources and personnel to meet the urgent demand, potentially concentrating logistical efforts over a compressed period rather than spreading them out over months.

Were there any specific challenges or risks identified during the performance of this contract, and how were they addressed?

The provided data does not detail specific challenges or risks encountered during the performance of this contract. However, given the context of post-hurricane Puerto Rico in early 2018, potential risks would have included damaged infrastructure hindering fuel transportation, security concerns in affected areas, unpredictable demand fluctuations, and potential shortages of fuel supply chains. Addressing these would typically involve close coordination between the contractor and FEMA, contingency planning, alternative transportation routes, and potentially adjusting delivery schedules based on evolving needs and on-the-ground conditions.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › All Other Miscellaneous Fabricated Metal Product Manufacturing

Product/Service Code: CONSTRUCT/MINE/EXCAVATE/HIGHWY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 101 MILLSTONE RD, BROUSSARD, LA, 70518

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

Financial Breakdown

Contract Ceiling: $38,240,530

Exercised Options: $38,240,530

Current Obligation: $38,240,530

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS07F107GA

IDV Type: FSS

Timeline