FEMA's $24M contract for hurricane response housing awarded to FOSS Maritime Company, LLC

Contract Overview

Contract Amount: $24,069,553 ($24.1M)

Contractor: Foss Maritime Company, LLC.

Awarding Agency: Department of Homeland Security

Start Date: 2017-09-19

End Date: 2018-02-14

Contract Duration: 148 days

Daily Burn Rate: $162.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FOSS MARITIME VESSEL WILL PROVIDE HOUSING ACCOMMODATION FOR FEMA FIRST RESPONDER AND SURVIVORS OF HURRICANE IRMA AND MARIA.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20472

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $24.1 million to FOSS MARITIME COMPANY, LLC. for work described as: FOSS MARITIME VESSEL WILL PROVIDE HOUSING ACCOMMODATION FOR FEMA FIRST RESPONDER AND SURVIVORS OF HURRICANE IRMA AND MARIA. Key points: 1. Contract aimed to provide essential housing for first responders and survivors during critical hurricane recovery efforts. 2. The award was made under a full and open competition, suggesting a broad market search. 3. The contract duration was relatively short, aligning with immediate disaster relief needs. 4. The firm fixed-price structure likely provided cost certainty for the government. 5. The contract was awarded to a single entity, FOSS Maritime Company, LLC. 6. The value of the contract was approximately $24 million for the specified period.

Value Assessment

Rating: good

The contract value of approximately $24 million for 148 days of vessel accommodation appears reasonable given the urgent and specialized nature of disaster response. Benchmarking against similar emergency housing or vessel charter contracts during major disaster events would provide further context, but the price seems aligned with the critical services provided. The firm fixed-price nature of the award suggests a degree of cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the government sought proposals from all responsible sources. The presence of four bids suggests a competitive process, which typically leads to better price discovery and value for the government. The specific details of the bidding process and the number of responsive bids would offer more insight into the intensity of the competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by ensuring that the government explores the widest possible range of solutions and pricing, potentially leading to more cost-effective outcomes.

Public Impact

Provides immediate housing solutions for FEMA first responders and survivors impacted by Hurricanes Irma and Maria. Supports critical disaster relief operations in affected regions. Ensures personnel have safe and stable accommodation, enabling efficient response and recovery efforts. Facilitates the continuity of essential government services during a natural disaster.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if unforeseen operational challenges arise with vessel deployment.
Dependence on a single contractor for a critical emergency service.

Positive Signals

Contract awarded through full and open competition, indicating a robust selection process.
Firm fixed-price contract provides cost predictability.
Short duration aligns with immediate disaster relief needs, minimizing long-term financial commitment.

Sector Analysis

This contract falls within the broader category of government support services, specifically emergency response and logistics. The market for specialized maritime services, such as vessel charter for accommodation, is often niche and critical during large-scale disaster events. Comparable spending would involve other emergency response contracts for temporary housing or logistical support, which can fluctuate significantly based on the scale and frequency of natural disasters.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. As it was awarded under full and open competition, it is possible that small businesses could have bid, but the primary contractor, FOSS Maritime Company, LLC, is likely a larger entity. Further analysis would be needed to determine if any subcontracting opportunities were directed towards small businesses.

Oversight & Accountability

The contract is managed by the Department of Homeland Security (FEMA), which has established oversight mechanisms for disaster response contracts. Transparency is generally maintained through contract award databases. Inspector General oversight would apply to ensure the proper use of funds and adherence to contract terms, particularly in emergency situations where rapid deployment is critical.

Related Government Programs

FEMA Disaster Relief Fund
Emergency Preparedness and Response
Maritime Transportation Services
Hurricane Recovery Operations

Risk Flags

Potential for cost overruns if unforeseen operational issues arise.
Dependence on a single contractor for critical emergency services.
Ensuring compliance with all safety and habitability standards for temporary housing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $24.1 million to FOSS MARITIME COMPANY, LLC.. FOSS MARITIME VESSEL WILL PROVIDE HOUSING ACCOMMODATION FOR FEMA FIRST RESPONDER AND SURVIVORS OF HURRICANE IRMA AND MARIA.

Who is the contractor on this award?

The obligated recipient is FOSS MARITIME COMPANY, 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 $24.1 million.

What is the period of performance?

Start: 2017-09-19. End: 2018-02-14.

What is the track record of FOSS Maritime Company, LLC in providing similar emergency response services?

FOSS Maritime Company, LLC is a well-established maritime services provider. While their primary operations often involve offshore support, towing, and transportation, they have experience in providing vessel-based solutions that can be adapted for emergency accommodation. Their ability to rapidly deploy assets and manage complex logistical operations is crucial for disaster response. Specific past performance on contracts directly comparable to this FEMA award would require a deeper dive into their contract history and client feedback, but their general operational capacity suggests they are equipped for such tasks. The successful execution of this contract indicates their capability in meeting FEMA's urgent needs during a critical period.

How does the cost of this contract compare to other emergency housing solutions during major disasters?

The approximate $24 million cost for 148 days of vessel accommodation represents a daily rate of roughly $162,632. Comparing this to other emergency housing solutions is complex, as costs vary widely based on the type of housing, duration, location, and scale of the disaster. For instance, temporary housing units (like FEMA trailers) have different cost structures. Hotel accommodations, while often used, can become prohibitively expensive in disaster zones due to high demand. Vessel accommodation offers a unique solution for large numbers of personnel in areas where land-based infrastructure is compromised. Without specific data on the number of individuals housed and the exact services provided, a precise cost-per-person benchmark is difficult. However, for providing immediate, large-scale, and self-contained accommodation in a disaster zone, this contract's value appears within a plausible range for specialized maritime support.

What were the primary risks associated with this contract, and how were they mitigated?

Key risks for this contract likely included the rapid deployment and operational readiness of the vessel, potential weather-related disruptions affecting deployment or service, and ensuring the vessel met all safety and habitability standards for responders and survivors. Mitigation strategies would have involved thorough vetting of FOSS Maritime's capabilities, pre-deployment inspections, clear contractual requirements for vessel condition and services, and contingency planning for weather. The firm fixed-price nature of the contract also shifts some financial risk to the contractor regarding operational costs. The relatively short duration of the contract also limits long-term exposure to unforeseen issues.

How effective was this contract in supporting FEMA's response to Hurricanes Irma and Maria?

The effectiveness of this contract is directly tied to its ability to provide timely and adequate housing for essential personnel and survivors during a critical recovery period. By securing dedicated vessel accommodation, FEMA could ensure that first responders had a stable base of operations and that survivors had access to shelter when land-based options were scarce or destroyed. The contract's success would be measured by its contribution to the overall efficiency and speed of the relief efforts, enabling personnel to focus on recovery tasks rather than logistical challenges related to their own accommodation. The short, defined period suggests it was intended to fill an immediate gap.

What is the historical spending pattern for similar maritime accommodation contracts by FEMA or DHS?

Historical spending on similar maritime accommodation contracts by FEMA or DHS can be highly variable, largely dependent on the frequency and severity of natural disasters requiring such specialized support. Large-scale hurricanes, floods, or other events that disrupt land-based infrastructure often necessitate the use of vessels for housing. Spending in this category is typically project-based and reactive rather than a consistent, predictable expenditure. Analyzing past disaster responses, particularly major hurricane seasons, would reveal patterns of utilizing maritime assets for logistical and housing support. However, these are often awarded under emergency procurement procedures, which may differ from standard contracting.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Water Transportation › Navigational Services to Shipping

Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSFE70-17-R-0049

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Saltchuk Resources, Inc. (UEI: 075108902)

Address: 1151 FAIRVIEW AVE N, SEATTLE, WA, 98109

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

Financial Breakdown

Contract Ceiling: $24,069,553

Exercised Options: $24,069,553

Current Obligation: $24,069,553

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline