FEMA spent over $31M on guard services for Katrina-displaced persons housed in trailers

Contract Overview

Contract Amount: $31,013,551 ($31.0M)

Contractor: Corporate Security Solutions, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2006-01-01

End Date: 2011-10-28

Contract Duration: 2,126 days

Daily Burn Rate: $14.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GUARD SERVICES AT GROUP SITES WHERE FEMA TRAILERS HOUSE PERSONS DISPLACED BY HURRICANE KATRINA

Place of Performance

Location: BATON ROUGE, EAST BATON ROUGE County, LOUISIANA, 70802

State: Louisiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $31.0 million to CORPORATE SECURITY SOLUTIONS, INC. for work described as: GUARD SERVICES AT GROUP SITES WHERE FEMA TRAILERS HOUSE PERSONS DISPLACED BY HURRICANE KATRINA Key points: 1. Contract value of $31M over 5 years suggests significant operational needs for post-disaster housing. 2. The contract was awarded via a competitive delivery order, indicating multiple vendors were considered. 3. A long duration of 2126 days points to sustained support requirements. 4. The fixed-price contract type offers cost certainty for the government. 5. The services were delivered in Louisiana, directly addressing the impact zone of Hurricane Katrina. 6. The absence of small business set-aside flags suggests the primary contractor was not a small business, or the contract scope did not lend itself to such provisions.

Value Assessment

Rating: fair

The total award of over $31 million for guard services over approximately five years indicates a substantial investment. Benchmarking this against similar disaster response contracts is challenging without more specific service level agreements and geographic scope. However, the duration and cost suggest a significant need for security in temporary housing situations. The firm fixed-price nature provides budget predictability, but the overall value for money depends heavily on the effectiveness and efficiency of the security provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, implying that it was competed under a broader contract vehicle where multiple vendors could bid. The presence of two bidders suggests a moderate level of competition for this specific delivery order. While not a sole-source award, the limited number of bidders might indicate a specialized service or a limited pool of qualified contractors for this type of emergency response security.

Taxpayer Impact: A competitive award, even with two bidders, is generally favorable for taxpayers as it allows for price negotiation and selection of the most cost-effective solution among qualified vendors.

Public Impact

Individuals and families displaced by Hurricane Katrina, housed in FEMA trailers, benefited from enhanced security. The services provided were essential for maintaining safety and order within temporary housing sites. The geographic impact was concentrated in Louisiana, the primary state affected by Hurricane Katrina. The contract supported the logistical and security framework for disaster recovery efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of services expanded beyond initial estimates, despite fixed-price.
Ensuring consistent quality of guard services across multiple sites over a long duration.
Dependence on a limited number of bidders could impact future competition and pricing.
Effectiveness of security measures in preventing incidents within temporary housing.

Positive Signals

Competitive award process likely ensured a reasonable price point.
Firm fixed-price contract provides budget certainty for FEMA.
Long contract duration indicates sustained commitment to supporting displaced populations.
Awarded to a specific entity (Corporate Security Solutions, Inc.) suggests a focused provider for the service.

Sector Analysis

This contract falls within the broader security and protective services sector, specifically related to government contracting for emergency response. The market for private security services is substantial, with government contracts forming a significant portion. This particular award addresses a niche within disaster relief operations, requiring rapid deployment and sustained presence. Comparable spending benchmarks would typically be found within other FEMA or Department of Defense contracts for similar security support during national emergencies.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). This suggests that the primary contractor, Corporate Security Solutions, Inc., may not be a small business, or that the contract was competed broadly without specific small business preferences. There is no direct information on subcontracting implications for small businesses from this data alone, but typically larger prime contracts may include subcontracting goals.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security and the Federal Emergency Management Agency. As a delivery order under a larger contract vehicle, oversight mechanisms would be tied to the terms of that vehicle. Transparency is generally facilitated through contract databases like FPDS. Accountability measures would involve performance reviews and adherence to the terms of the firm fixed-price contract. Inspector General jurisdiction would apply to investigate any potential fraud, waste, or abuse.

Related Government Programs

FEMA Disaster Relief Fund
Hurricane Katrina Recovery Efforts
Federal Protective Service Contracts
Emergency Management Support Services

Risk Flags

Long contract duration may increase risk of cost escalation or performance degradation.
Limited competition (2 bidders) could indicate potential market concentration or barriers to entry.
Effectiveness of security in temporary housing settings can be challenging to measure and maintain.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $31.0 million to CORPORATE SECURITY SOLUTIONS, INC.. GUARD SERVICES AT GROUP SITES WHERE FEMA TRAILERS HOUSE PERSONS DISPLACED BY HURRICANE KATRINA

Who is the contractor on this award?

The obligated recipient is CORPORATE SECURITY SOLUTIONS, 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 $31.0 million.

What is the period of performance?

Start: 2006-01-01. End: 2011-10-28.

What was the specific scope of 'guard services' provided under this contract?

The provided data does not detail the specific scope of 'guard services.' However, in the context of housing displaced persons in FEMA trailers post-Hurricane Katrina, these services likely included site security, access control, perimeter patrols, monitoring of temporary housing areas, and potentially response to security incidents. The objective would be to ensure the safety and well-being of residents and protect government property within these temporary settlements. The firm fixed-price nature suggests a defined set of duties was agreed upon at the time of award.

How does the $31 million cost compare to other FEMA guard service contracts during disaster responses?

Direct comparison of the $31 million cost to other FEMA guard service contracts during disaster responses is difficult without more granular data on contract duration, geographic scope, specific security requirements, and the number of personnel or sites covered. However, the substantial amount suggests a significant and prolonged security need, consistent with the scale of displacement caused by Hurricane Katrina. FEMA contracts for disaster support can vary widely, but multi-million dollar awards for essential services like security over several years are not uncommon in major disaster scenarios.

What were the key performance indicators (KPIs) used to evaluate the effectiveness of Corporate Security Solutions, Inc.?

The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate Corporate Security Solutions, Inc. Typically, for guard services, KPIs might include response times to incidents, number of security breaches or incidents reported, adherence to patrol schedules, effectiveness in controlling access, and overall client satisfaction surveys from FEMA site managers. Performance would also be assessed against the terms and conditions of the firm fixed-price contract, ensuring all stipulated duties were met.

Were there any notable incidents or security failures reported at the FEMA trailer sites during the contract period?

The available data does not contain information on specific incidents or security failures at the FEMA trailer sites during the contract period. Such details would typically be found in internal FEMA reports, Inspector General audits, or news archives related to the Hurricane Katrina recovery. The effectiveness of the guard services would be indirectly assessed by the absence of major security breakdowns or the management of any reported issues by Corporate Security Solutions, Inc.

What is the historical spending pattern for guard services by FEMA in post-disaster scenarios?

FEMA's historical spending on guard services in post-disaster scenarios has been significant, particularly following large-scale events like Hurricanes Katrina, Rita, and Sandy. Spending patterns are driven by the need to secure temporary housing sites, disaster relief centers, and damaged infrastructure. Contracts can range from short-term, localized security to multi-year, large-scale operations like the one awarded to Corporate Security Solutions, Inc. The total amount spent often correlates with the severity and duration of the disaster's impact and the number of individuals requiring federal assistance.

What was the rationale for awarding a contract of this duration (over 5 years)?

The rationale for awarding a contract of over five years (2126 days) for guard services at FEMA trailer sites housing Hurricane Katrina evacuees was likely due to the protracted nature of disaster recovery and the long-term need for temporary housing. Following a catastrophic event like Katrina, establishing permanent housing can take years, necessitating sustained support services, including security, for displaced populations. A longer contract duration provides stability and allows the contractor to establish efficient operations, while also potentially offering better value through economies of scale compared to multiple short-term contracts.

Industry Classification

NAICS: Manufacturing › Apparel Accessories and Other Apparel Manufacturing › Other Apparel Accessories and Other Apparel Manufacturing

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: NONE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1147 28TH ST SE, GRAND RAPIDS, MI, 49508

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $31,013,551

Exercised Options: $31,013,551

Current Obligation: $31,013,551

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS07F9157S

IDV Type: FSS

Timeline