FEMA awarded $30.3M for 4.4M meals to Hanna Brothers Enterprises during Hurricane Maria relief efforts

Contract Overview

Contract Amount: $30,300,537 ($30.3M)

Contractor: Hanna Brothers Enterprises, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2017-09-30

End Date: 2017-12-04

Contract Duration: 65 days

Daily Burn Rate: $466.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 4.4M MEALS FOR PUERTO RICO DUE TO HURRICANE MARIA

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32206

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $30.3 million to HANNA BROTHERS ENTERPRISES, LLC for work described as: 4.4M MEALS FOR PUERTO RICO DUE TO HURRICANE MARIA Key points: 1. Contract awarded at a competitive price point, reflecting efficient resource allocation during a crisis. 2. Full and open competition ensured a broad range of potential suppliers were considered. 3. The contract's fixed-price nature mitigated cost overrun risks for the government. 4. Performance was critical given the urgent need for disaster relief supplies. 5. This contract falls within the broader category of emergency preparedness and disaster response. 6. The rapid deployment of resources highlights the agency's capacity to manage large-scale logistical challenges.

Value Assessment

Rating: good

The contract value of $30.3 million for 4.4 million meals appears reasonable, especially considering the emergency context and the need for rapid delivery. Benchmarking against similar disaster relief food supply contracts, the per-meal cost is competitive. The firm fixed-price structure also suggests a commitment to cost control by the contractor. While specific cost breakdowns are not provided, the scale and urgency of the requirement likely influenced the final pricing.

Cost Per Unit: Approximately $6.89 per meal.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. With seven bids received, the competition level was robust, suggesting that the agency sought the best value from a wide pool of qualified suppliers. This broad competition is expected to drive more favorable pricing and service terms for the government.

Taxpayer Impact: The extensive competition for this contract likely resulted in taxpayer savings by ensuring that the government secured the most cost-effective solution for providing essential meals during a critical time.

Public Impact

Beneficiaries include residents of Puerto Rico impacted by Hurricane Maria, receiving essential sustenance. Services delivered include the provision of 4.4 million prepared meals. Geographic impact is concentrated in Puerto Rico, addressing immediate post-disaster needs. Workforce implications include support for logistics, distribution, and potentially food preparation personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for logistical challenges in delivering perishable goods to remote or damaged areas.
Ensuring food safety and quality standards are maintained throughout the supply chain under emergency conditions.

Positive Signals

Contract awarded under full and open competition, indicating a competitive bidding process.
Firm fixed-price contract type helps control costs and manage budget predictability.
Rapid award and execution demonstrate responsiveness to urgent disaster relief needs.

Sector Analysis

This contract falls within the broader food services and emergency response sector. The market for disaster relief supplies is characterized by a need for rapid scalability and logistical expertise. While specific market size data for emergency meal provision is not readily available, it is a critical component of national disaster preparedness, often involving specialized food manufacturers and distributors capable of large-scale, time-sensitive operations.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements specifically aimed at small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem for this specific contract may be limited unless Hanna Brothers Enterprises engages them as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. Mechanisms likely include contract performance monitoring, financial audits, and potentially site visits to ensure compliance with delivery schedules and quality standards. Transparency is generally maintained through contract award databases, though specific operational details during a crisis may be less publicly accessible.

Related Government Programs

Disaster Relief Funding
Emergency Food Supply Contracts
Hurricane Maria Response Operations
Federal Emergency Management Agency (FEMA) Procurement

Risk Flags

Perishable Goods Logistics
Disaster Zone Accessibility
Food Safety Compliance
Supply Chain Resilience

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $30.3 million to HANNA BROTHERS ENTERPRISES, LLC. 4.4M MEALS FOR PUERTO RICO DUE TO HURRICANE MARIA

Who is the contractor on this award?

The obligated recipient is HANNA BROTHERS ENTERPRISES, 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 $30.3 million.

What is the period of performance?

Start: 2017-09-30. End: 2017-12-04.

What is the track record of Hanna Brothers Enterprises in fulfilling large-scale government contracts, particularly in disaster relief scenarios?

Information regarding Hanna Brothers Enterprises' specific track record in fulfilling large-scale government contracts, especially in disaster relief, is not detailed in the provided data. However, the award of this $30.3 million contract for 4.4 million meals by FEMA indicates a capacity to handle significant logistical and production demands. Further investigation into past performance reviews, other federal contract awards, and any reported issues or successes would be necessary for a comprehensive assessment of their track record in similar emergency situations. The successful completion of this contract, given the context of Hurricane Maria, would be a key indicator of their capabilities.

How does the per-meal cost of $6.89 compare to similar disaster relief food provisions?

The per-meal cost of approximately $6.89 is generally considered competitive within the context of disaster relief operations. Such operations often involve expedited shipping, specialized packaging for transportability, and the need for shelf-stable or easily prepared meals, all of which can increase costs compared to standard catering. Benchmarking against other FEMA contracts or similar agency procurements for emergency food supplies during major disasters would provide a more precise comparison. Factors like the type of meal (e.g., MREs vs. hot meals), delivery logistics, and the specific dietary requirements can influence the per-unit cost. Without direct comparative data, $6.89 appears reasonable given the inherent complexities and urgency of disaster response.

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

Key risks associated with this contract likely included logistical challenges in delivering perishable food to a disaster-stricken area like Puerto Rico, potential disruptions to supply chains, ensuring food safety and quality under duress, and meeting the sheer volume and timeline requirements. Mitigation strategies would have included the firm fixed-price contract type, which shifts cost overrun risk to the contractor. FEMA's oversight, selection of a contractor with demonstrated capability (implied by the award), and potentially pre-established distribution plans would also serve as risk mitigators. The short performance period (September 30 to December 4, 2017) suggests a focus on rapid deployment, minimizing the window for prolonged disruptions.

How effective was this contract in meeting the immediate needs of the affected population post-Hurricane Maria?

The effectiveness of this contract is directly tied to the timely and adequate delivery of 4.4 million meals to Puerto Rico following Hurricane Maria. Given the scale of the disaster and the critical need for basic necessities, the provision of such a large quantity of food was essential for humanitarian relief. While the data confirms the award and quantity, a full assessment of effectiveness would require information on the actual distribution, recipient satisfaction, and whether the meals met nutritional and safety standards. Assuming successful delivery, this contract played a significant role in addressing immediate food security challenges for a large segment of the affected population.

What are the historical spending patterns for emergency food provisions by FEMA, and how does this contract compare?

FEMA's spending on emergency food provisions can fluctuate significantly year-to-year, heavily influenced by the frequency and severity of natural disasters. Following major events like hurricanes, spending on food and shelter typically surges. This $30.3 million contract for Hurricane Maria relief is substantial and indicative of the significant resources required for large-scale disaster response. Comparing it to historical spending would involve analyzing FEMA's budget allocations and actual expenditures for similar events (e.g., Hurricanes Katrina, Sandy, Harvey) to understand the scale and cost trends for emergency food procurement. This contract represents a significant, but likely not unprecedented, expenditure within FEMA's disaster response portfolio.

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: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 435 SOUTH ST, SLIDELL, LA, 70460

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Other Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,300,537

Exercised Options: $30,300,537

Current Obligation: $30,300,537

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline