DHS FEMA Spends $37.6M on 80M Liters of Bottled Water for Puerto Rico Post-Hurricane Maria

Contract Overview

Contract Amount: $37,579,548 ($37.6M)

Contractor: Team Systems International LLC

Awarding Agency: Department of Homeland Security

Start Date: 2017-09-28

End Date: 2019-05-07

Contract Duration: 586 days

Daily Burn Rate: $64.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PURCHASING 80M LITERS OF BOTTLED WATER TO BE DELIVERED TO PUERTO RICO IN RESPONSE TO HURRICANE MARIA.

Place of Performance

Location: CAGUAS, CAGUAS County, PUERTO RICO, 00725

Plain-Language Summary

Department of Homeland Security obligated $37.6 million to TEAM SYSTEMS INTERNATIONAL LLC for work described as: PURCHASING 80M LITERS OF BOTTLED WATER TO BE DELIVERED TO PUERTO RICO IN RESPONSE TO HURRICANE MARIA. Key points: 1. Significant volume of bottled water procured for disaster relief. 2. Competition method was full and open, suggesting broad market engagement. 3. Contract duration was substantial, spanning nearly two years. 4. FEMA's role highlights critical infrastructure support during emergencies.

Value Assessment

Rating: fair

The total award of $37.6M for 80M liters of water averages to $0.47 per liter. This price point needs to be benchmarked against bulk water purchasing agreements during emergency situations, which can be higher due to logistical complexities and urgency.

Cost Per Unit: $0.47 per liter

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. This method generally promotes competitive pricing, but the urgency of disaster relief can sometimes lead to higher-than-average costs.

Taxpayer Impact: Taxpayers funded the emergency water supply, with the cost reflecting the critical need for immediate relief and the logistical challenges of delivery to Puerto Rico.

Public Impact

Ensured immediate access to safe drinking water for affected populations. Supported recovery efforts by addressing a fundamental human need. Demonstrated federal commitment to disaster response in U.S. territories.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost for bottled water, even in bulk.
Long contract duration may indicate ongoing needs or logistical delays.
Reliance on bottled water suggests potential infrastructure damage to water systems.

Positive Signals

Fulfilled critical need for potable water during a major disaster.
Awarded through full and open competition, promoting fairness.
Provided essential supplies to a U.S. territory in distress.

Sector Analysis

This procurement falls under the broader category of emergency supplies and logistics. Spending benchmarks for disaster relief are highly variable, depending on the scale of the disaster, geographic location, and the specific goods or services required. The volume purchased suggests a significant impact from Hurricane Maria.

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 the extent of small business participation.

Oversight & Accountability

FEMA, as part of DHS, is responsible for coordinating disaster response. Oversight would involve ensuring timely delivery, quality of the product, and adherence to contract terms. The long duration suggests ongoing monitoring was required.

Related Government Programs

Bottled Water Manufacturing
Department of Homeland Security Contracting
Federal Emergency Management Agency Programs

Risk Flags

High unit cost for a commodity item.
Extended contract duration for a seemingly straightforward supply.
Potential for price inflation due to emergency procurement.
Lack of detail on small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $37.6 million to TEAM SYSTEMS INTERNATIONAL LLC. PURCHASING 80M LITERS OF BOTTLED WATER TO BE DELIVERED TO PUERTO RICO IN RESPONSE TO HURRICANE MARIA.

Who is the contractor on this award?

The obligated recipient is TEAM SYSTEMS INTERNATIONAL 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 $37.6 million.

What is the period of performance?

Start: 2017-09-28. End: 2019-05-07.

What was the benchmark price for bottled water during similar emergency procurements around the same time?

Benchmarking the $0.47 per liter cost requires comparing it to other large-scale emergency water procurements. Factors like transportation costs to remote or disaster-stricken areas, expedited delivery requirements, and bulk purchasing discounts significantly influence pricing. Without specific comparative data from similar events, it's difficult to definitively assess if this price was optimal, though it reflects the inherent premium associated with emergency response logistics.

What were the primary logistical challenges that contributed to the contract's duration and cost?

The primary logistical challenges likely included the extensive transportation network required to move 80 million liters of water to Puerto Rico, potential damage to local infrastructure (ports, roads) from Hurricane Maria, and the need for widespread distribution across the island. These factors necessitate significant coordination, time, and resources, contributing to both the contract's duration and its overall cost.

Were there any alternative water solutions considered or implemented alongside this bottled water purchase?

While this contract focused on bottled water, federal disaster response often involves multiple strategies. Agencies like FEMA may also deploy mobile water purification units, support the repair of local water infrastructure, and distribute water purification tablets. The decision to procure such a large volume of bottled water suggests it was deemed the most immediate and feasible solution for widespread potable water access in the aftermath of Hurricane Maria.

Industry Classification

NAICS: Manufacturing › Beverage Manufacturing › Bottled Water Manufacturing

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 822 A1A N STE 310, PONTE VEDRA BEACH, FL, 32082

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $37,579,548

Exercised Options: $37,579,548

Current Obligation: $37,579,548

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSFE7017D0021

IDV Type: IDC

Timeline