DHS FEMA Awards $39.2M for Virgin Islands First Responder Housing, Exceeding Initial Estimate by $10.3M
Contract Overview
Contract Amount: $39,229,389 ($39.2M)
Contractor: Paradise Cruise Line Operator Ltd. Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2017-09-20
End Date: 2018-02-03
Contract Duration: 136 days
Daily Burn Rate: $288.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: LIVING QUARTER FOR THE FIRST RESPONDERS AND SURVIVORS IN THE VIRGIN ISLAND.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20472
Plain-Language Summary
Department of Homeland Security obligated $39.2 million to PARADISE CRUISE LINE OPERATOR LTD. INC. for work described as: LIVING QUARTER FOR THE FIRST RESPONDERS AND SURVIVORS IN THE VIRGIN ISLAND. Key points: 1. Contract awarded for emergency housing in the Virgin Islands following a disaster. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract value significantly exceeded the initial estimate, raising questions about cost control. 4. The sector is emergency response and disaster relief, a critical but often costly area.
Value Assessment
Rating: questionable
The final award of $39.2M is substantially higher than the initial estimate of $28.8M, an increase of over 35%. This significant overage warrants scrutiny of the cost estimation process and potential scope creep.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the substantial increase in the final award over the estimate suggests that either the initial estimate was inaccurate or unforeseen costs arose during the contract period.
Taxpayer Impact: Taxpayers bore the cost of the significant increase over the initial estimate, highlighting the need for more accurate initial budgeting and cost management in emergency response contracts.
Public Impact
Provides essential temporary housing for first responders and survivors in the Virgin Islands after a disaster. Supports critical infrastructure and personnel during a time of urgent need. The significant cost overrun could impact the availability of funds for other disaster relief efforts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Overrun
- Estimate Accuracy
Positive Signals
- Emergency Need Addressed
- Competitive Bidding Process
Sector Analysis
This contract falls within the emergency management and disaster relief sector, often characterized by urgent needs and potentially higher costs due to rapid deployment and limited planning time. Benchmarks are difficult due to the unique nature of disaster response.
Small Business Impact
No information is available regarding the participation of small businesses in this contract. Further analysis would be needed to determine if small business goals were set or met.
Oversight & Accountability
The significant difference between the estimated and awarded amounts suggests a potential gap in initial oversight or a need for more robust cost tracking throughout the contract lifecycle. FEMA's oversight mechanisms should be reviewed for this contract.
Related Government Programs
- Navigational Services to Shipping
- Department of Homeland Security Contracting
- Federal Emergency Management Agency Programs
Risk Flags
- Significant cost overrun compared to initial estimate.
- Potential for inaccurate initial cost estimation.
- Lack of transparency on factors driving cost increase.
- Need for enhanced oversight on emergency contract spending.
Tags
navigational-services-to-shipping, department-of-homeland-security, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $39.2 million to PARADISE CRUISE LINE OPERATOR LTD. INC.. LIVING QUARTER FOR THE FIRST RESPONDERS AND SURVIVORS IN THE VIRGIN ISLAND.
Who is the contractor on this award?
The obligated recipient is PARADISE CRUISE LINE OPERATOR LTD. 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 $39.2 million.
What is the period of performance?
Start: 2017-09-20. End: 2018-02-03.
What factors contributed to the 35% cost increase from the initial estimate to the final award for the Virgin Islands housing contract?
The substantial cost increase could be attributed to several factors, including underestimation of material and labor costs in the initial bid, unforeseen logistical challenges in the Virgin Islands, increased demand for services, or scope adjustments made during the contract performance period. A detailed review of contract modifications and change orders would be necessary to pinpoint the exact drivers of the overrun.
How effectively did the full and open competition process ensure the best value for taxpayer dollars, given the significant cost overrun?
While full and open competition is designed to achieve best value, the significant overrun suggests potential issues. It's possible the initial estimate was flawed, leading to a competitive bid that was still too low. Alternatively, unforeseen circumstances may have necessitated cost increases that were approved post-competition. A post-award review of the pricing and justification for increases is crucial.
What measures can FEMA implement to improve the accuracy of cost estimates for future disaster relief housing contracts?
FEMA can enhance estimate accuracy by incorporating historical data from similar disaster events, utilizing more sophisticated cost-estimating software, conducting thorough site assessments before finalizing estimates, and engaging with experienced contractors during the pre-award phase to refine cost projections. Establishing clearer contingency planning and risk assessment protocols would also be beneficial.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Water Transportation › Navigational Services to Shipping
Product/Service Code: SHIP AND MARINE EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HSFE70-17-R-0049
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2419 E COMMERCIAL BLVD STE 302, FORT LAUDERDALE, FL, 33308
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $39,229,389
Exercised Options: $39,229,389
Current Obligation: $39,229,389
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2017-09-20
Current End Date: 2018-02-03
Potential End Date: 2018-12-03 00:00:00
Last Modified: 2018-11-26
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