FEMA awards $23M contract to Pistol Point, LLC for disaster food supply in Texas
Contract Overview
Contract Amount: $22,994,208 ($23.0M)
Contractor: Pistol Point, LLC
Awarding Agency: Department of Homeland Security
Start Date: 2017-12-04
End Date: 2018-01-10
Contract Duration: 37 days
Daily Burn Rate: $621.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
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 $23.0 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 to Pistol Point, LLC for subsistence food supply. 2. Supports disaster relief efforts in Texas (DR-4332 TX). 3. Utilized full and open competition after exclusion of sources. 4. Contract type is a definitive contract with a firm fixed price.
Value Assessment
Rating: fair
The contract value of $22.99M for a 37-day duration appears high for food supply, especially considering the per-unit cost is not readily available. Benchmarking against similar disaster relief food contracts is difficult without more granular data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition. This method may have impacted price discovery, potentially leading to a higher price than a truly open competition.
Taxpayer Impact: Taxpayers are impacted by the $22.99M expenditure for disaster relief food, with the effectiveness of the price relative to market value being a concern.
Public Impact
Ensures food availability during a presidentially declared disaster. Supports affected populations in Texas. Leverages a Food Bank of Houston partnership for distribution.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value for a short duration.
- Limited competition method.
- Lack of clear per-unit cost benchmark.
Positive Signals
- Addresses critical need during disaster.
- Supports a specific geographic region in crisis.
Sector Analysis
This contract falls under general line grocery merchant wholesaling, a sector critical for emergency response. Spending benchmarks for disaster-specific food supply contracts are highly variable due to the unpredictable nature and scale of disasters.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded by FEMA, an agency with established oversight mechanisms. However, the specific oversight applied to this particular contract, especially regarding cost justification and delivery verification, requires further examination.
Related Government Programs
- General Line Grocery Merchant Wholesalers
- Department of Homeland Security Contracting
- Federal Emergency Management Agency Programs
Risk Flags
- Potential for overpricing due to limited competition.
- Lack of transparency in per-unit cost.
- Short contract duration may lead to rushed logistics and higher costs.
- Dependence on a single awardee for critical supplies.
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 $23.0 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 $23.0 million.
What is the period of performance?
Start: 2017-12-04. End: 2018-01-10.
What was the justification for excluding other sources in the 'full and open competition after exclusion of sources' method, and how did this impact the final price?
The justification for excluding other sources is not detailed in the provided data. This procurement method, while allowing for some competition, inherently limits the pool of potential bidders compared to a truly open solicitation. This limitation could affect price discovery, potentially leading to less competitive pricing than if a broader range of suppliers had been considered.
How does the per-unit cost of food items under this contract compare to standard market rates or similar disaster relief efforts?
The provided data does not include per-unit cost breakdowns, making a direct comparison to standard market rates or similar disaster relief efforts impossible. The total contract value of $22.99M for a 37-day duration suggests a significant cost, but without itemized pricing, it's difficult to assess value for money or identify potential cost efficiencies.
What measures were in place to ensure the quality and timely delivery of subsistence food supplies to the affected population in Texas?
While the contract specifies delivery and dispersal by the Food Bank of Houston, the provided data lacks details on specific quality control measures or performance metrics. The effectiveness of the contract hinges on the Food Bank's operational capacity and FEMA's monitoring of delivery timelines and food quality to ensure aid reaches those in need.
Industry Classification
NAICS: Wholesale Trade › Grocery and Related Product Merchant Wholesalers › General Line Grocery Merchant Wholesalers
Product/Service Code: SUBSISTENCE
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SEALED BID
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 909 FM 2094, KEMAH, TX, 77565
Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,994,208
Exercised Options: $22,994,208
Current Obligation: $22,994,208
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2017-12-04
Current End Date: 2018-01-10
Potential End Date: 2018-01-10 00:00:00
Last Modified: 2021-02-22
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