FEMA spent $54.4M on hurricane relief meals, with Filcor Inc. awarded a definitive contract

Contract Overview

Contract Amount: $54,370,660 ($54.4M)

Contractor: Filcor Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2017-09-29

End Date: 2018-06-30

Contract Duration: 274 days

Daily Burn Rate: $198.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 17

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS CONTRACT IS TO PROCURE MEALS IN SUPPORT OF HURRICANE MARIA.

Place of Performance

Location: FOLEY, BALDWIN County, ALABAMA, 36536

State: Alabama Government Spending

Plain-Language Summary

Department of Homeland Security obligated $54.4 million to FILCOR INC. for work described as: THE PURPOSE OF THIS CONTRACT IS TO PROCURE MEALS IN SUPPORT OF HURRICANE MARIA. Key points: 1. Contract awarded for essential disaster relief services, highlighting FEMA's operational needs. 2. The firm-fixed-price structure provides cost certainty for the government. 3. A single award for perishable food manufacturing indicates a specialized requirement. 4. Contract duration of 274 days aligns with immediate post-disaster response. 5. Geographic focus on Alabama for meal distribution during Hurricane Maria. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: good

The contract value of $54.4 million for disaster relief meals appears reasonable given the scale and urgency of Hurricane Maria response. While specific benchmarks for disaster meal provision are scarce, the firm-fixed-price nature suggests predictable costs. The award to Filcor Inc. for a 274-day period indicates a substantial logistical undertaking. Further analysis would require comparing this cost to similar large-scale emergency food procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 17 bids indicates a competitive marketplace for disaster relief food services. A robust competition level generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition for this essential service likely resulted in a more competitive price, benefiting taxpayers by ensuring funds were used efficiently for disaster relief.

Public Impact

Provides essential sustenance to individuals and communities impacted by Hurricane Maria. Supports the Federal Emergency Management Agency's (FEMA) disaster response operations. Benefits residents in Alabama, the primary distribution area. Contributes to the logistical and operational capacity for emergency preparedness. Ensures continuity of essential services during a critical recovery period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in perishable goods impacting long-term value.
Dependence on a single contractor for a critical, time-sensitive need.
Logistical challenges in ensuring timely and safe delivery of food supplies.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm-fixed-price contract provides cost certainty for the government.
Contract duration aligns with the immediate needs of disaster recovery.

Sector Analysis

The procurement falls within the broader category of government support services, specifically focusing on emergency food supply and logistics. The market for disaster relief services is often characterized by rapid deployment needs and specialized capabilities. While not a typical IT or defense contract, it represents a critical component of national preparedness and response infrastructure. Benchmarking would involve comparing costs to other large-scale emergency food provisions or catering contracts.

Small Business Impact

This contract did not include a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This suggests that the primary award was made to a larger entity capable of fulfilling the extensive requirements of disaster relief meal provision. The impact on the small business ecosystem is likely minimal for this specific contract, as it was not designed to promote small business participation.

Oversight & Accountability

The contract was awarded by the Department of Homeland Security's Federal Emergency Management Agency (FEMA), which has established oversight mechanisms for disaster relief operations. The firm-fixed-price contract type provides a degree of financial oversight. Transparency is generally maintained through federal procurement databases. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse related to the contract.

Related Government Programs

Disaster Relief Funding
Emergency Food Services
Hurricane Response Operations
FEMA Procurement Contracts

Risk Flags

Potential for supply chain disruptions in disaster zones.
Ensuring food safety and quality under emergency conditions.
Logistical complexities of delivering meals across affected areas.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $54.4 million to FILCOR INC.. THE PURPOSE OF THIS CONTRACT IS TO PROCURE MEALS IN SUPPORT OF HURRICANE MARIA.

Who is the contractor on this award?

The obligated recipient is FILCOR 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 $54.4 million.

What is the period of performance?

Start: 2017-09-29. End: 2018-06-30.

What was the specific nature of the meals provided under this contract?

The contract data indicates the procurement was for 'MEALS IN SUPPORT OF HURRICANE MARIA.' While the exact menu or type of meals is not detailed, the classification 'Perishable Prepared Food Manufacturing' suggests ready-to-eat or easily prepared meals requiring specific handling and storage. These would likely be designed to provide essential nutrition to affected populations and emergency responders during a critical period when normal food supply chains were disrupted.

How does the cost per meal compare to industry standards or other disaster relief efforts?

The provided data does not include the number of meals or a per-meal cost, making direct comparison difficult. The total contract value is $54,370,660 over a period of 274 days. To estimate a per-meal cost, one would need to know the total number of meals procured. Without this information, benchmarking against industry standards or other disaster relief efforts is not feasible. However, the firm-fixed-price nature suggests that the cost per meal, once determined, was agreed upon upfront.

What were the key performance indicators (KPIs) for Filcor Inc. under this contract?

Specific Key Performance Indicators (KPIs) are not detailed in the provided contract summary. However, for a contract of this nature, typical KPIs would likely include timely delivery of meals to designated locations, adherence to food safety and quality standards, meeting specified nutritional requirements, and maintaining adequate inventory levels. Compliance with these unstated but implied performance standards would be crucial for successful contract execution and payment.

What is Filcor Inc.'s track record with government contracts, particularly in disaster relief?

The provided data indicates Filcor Inc. was awarded this definitive contract by FEMA. Further research into Filcor Inc.'s contract history would be necessary to assess their broader track record with government contracts, especially in disaster relief. This would involve examining past awards, performance reviews, and any history of contract disputes or terminations. A comprehensive review would provide insight into their capacity and reliability for such critical operations.

Were there any challenges or issues reported during the performance of this contract?

The provided summary data does not detail any specific challenges or issues encountered during the performance of this contract. However, large-scale disaster relief operations are inherently complex and can face numerous obstacles, including logistical hurdles, supply chain disruptions, and rapidly changing needs on the ground. Without access to contract performance reports or official reviews, it is impossible to ascertain if any significant problems arose.

How does this contract's value compare to other FEMA procurements for similar services?

The $54.4 million contract value for disaster relief meals is substantial, reflecting the scale of Hurricane Maria's impact. To compare it to other FEMA procurements, one would need to analyze historical data for similar emergency food supply contracts. Factors such as the number of people served, the duration of the support, and the geographic scope would be critical for a meaningful comparison. Without this comparative data, it's difficult to definitively state if this contract represents a higher or lower cost relative to similar past efforts.

Industry Classification

NAICS: Manufacturing › Other Food Manufacturing › Perishable Prepared Food Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSFE70-17-R-MARIAMEALS

Offers Received: 17

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5001 CYPRESS CREEK AVE E UNIT 1114, TUSCALOOSA, AL, 35405

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $54,370,660

Exercised Options: $54,370,660

Current Obligation: $54,370,660

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline