FEMA awards $37M contract to Pistol Point, LLC for disaster food supply in Texas

Contract Overview

Contract Amount: $37,084,640 ($37.1M)

Contractor: Pistol Point, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2017-10-13

End Date: 2017-12-09

Contract Duration: 57 days

Daily Burn Rate: $650.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF SUBSISTENCE FOOD SUPPLY TO BE DELIVERED&DISPERSED BY THE FOOD BANK OF HOUSTON IN SUPPORT OF PRESIDENTIALLY DECLARED DISASTER DR-4332 TX

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77029

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $37.1 million to PISTOL POINT, LLC for work described as: IGF::OT::IGF SUBSISTENCE FOOD SUPPLY TO BE DELIVERED&DISPERSED BY THE FOOD BANK OF HOUSTON IN SUPPORT OF PRESIDENTIALLY DECLARED DISASTER DR-4332 TX Key points: 1. Contract awarded for subsistence food supply delivery and dispersal. 2. Pistol Point, LLC is the contractor for this $37M award. 3. The contract supports disaster relief efforts in Texas (DR-4332 TX). 4. This is a firm-fixed-price contract with a duration of 57 days.

Value Assessment

Rating: fair

The contract value of $37,084,639.50 appears high for a 57-day delivery of food supplies. Benchmarking against similar disaster relief food contracts would be necessary to determine if this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific price discovery mechanisms and the number of bids received are not detailed, making it difficult to assess the full impact on price.

Taxpayer Impact: Taxpayer funds are being used for disaster relief, which is a necessary expenditure. The efficiency of this spending depends on the fairness of the price and the effectiveness of the food distribution.

Public Impact

Provides essential food supplies to disaster-stricken areas. Supports the Food Bank of Houston in their relief operations. Aims to alleviate food insecurity for affected populations. Funds are allocated for emergency response and recovery efforts.

Waste & Efficiency Indicators

Waste Risk Score: 65 / 10

Warning Flags

  • Potential for overpricing given the short duration and nature of the service.
  • Lack of detailed cost breakdown makes price validation difficult.

Positive Signals

  • Supports a critical disaster relief mission.
  • Awarded through full and open competition.

Sector Analysis

This contract falls under the General Line Grocery Merchant Wholesalers (NAICS 424410) sector, specifically for disaster relief food supply. Spending in this sector during emergencies can fluctuate significantly based on need and availability.

Small Business Impact

The data indicates this contract was not awarded to small businesses (SB = false). Further analysis would be needed to determine if small businesses had opportunities to participate in the subcontracting process.

Oversight & Accountability

Oversight would involve ensuring timely and accurate delivery of food supplies as per contract terms and verifying that funds are used appropriately for disaster relief purposes. The Federal Emergency Management Agency (FEMA) is responsible for this oversight.

Related Government Programs

  • General Line Grocery Merchant Wholesalers
  • Department of Homeland Security Contracting
  • Federal Emergency Management Agency Programs

Risk Flags

  • High contract value for a short duration.
  • Lack of detailed cost breakdown.
  • No information on number of bids received.
  • Potential for price inflation during disaster events.

Tags

general-line-grocery-merchant-wholesaler, department-of-homeland-security, tx, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $37.1 million to PISTOL POINT, LLC. IGF::OT::IGF SUBSISTENCE FOOD SUPPLY TO BE DELIVERED&DISPERSED BY THE FOOD BANK OF HOUSTON IN SUPPORT OF PRESIDENTIALLY DECLARED DISASTER DR-4332 TX

Who is the contractor on this award?

The obligated recipient is PISTOL POINT, 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 $37.1 million.

What is the period of performance?

Start: 2017-10-13. End: 2017-12-09.

What was the total number of bids received for this full and open competition, and how did the winning bid compare to others?

The provided data does not specify the number of bids received for this contract. While it was awarded under full and open competition, details on the bidding landscape and the specific comparison of the winning bid against others are absent. This information is crucial for a comprehensive assessment of price competitiveness and the effectiveness of the procurement process.

Are there any benchmarks or historical data available for similar disaster food supply contracts to assess the reasonableness of the $37M price?

Without access to a database of comparable disaster relief food supply contracts, it is difficult to definitively assess the reasonableness of the $37M price. Factors such as the quantity and type of food, logistical challenges in the disaster zone, and the specific services provided by the Food Bank of Houston would need to be considered against historical data for similar emergency procurements.

What mechanisms are in place to ensure the efficient and effective distribution of these food supplies to the affected population in Texas?

The contract specifies delivery and dispersal by the Food Bank of Houston, implying they are responsible for the logistical execution. FEMA's role would involve monitoring the Food Bank's performance against the contract requirements and ensuring that the food reaches the intended recipients in a timely and organized manner, thereby maximizing the effectiveness of the taxpayer funds.

Industry Classification

NAICS: Wholesale TradeGrocery and Related Product Merchant WholesalersGeneral Line Grocery Merchant Wholesalers

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 4332DRTXJ01077

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 408 WEST 17TH STREET OFC 101, AUSTIN, TX, 78701

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,084,640

Exercised Options: $37,084,640

Current Obligation: $37,084,640

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline

Start Date: 2017-10-13

Current End Date: 2017-12-09

Potential End Date: 2017-12-09 00:00:00

Last Modified: 2018-06-18

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