FEMA awards $63.1M for A&E services to COMPASS PTS JV, highlighting engineering support needs

Contract Overview

Contract Amount: $63,108,678 ($63.1M)

Contractor: Compass PTS JV, the

Awarding Agency: Department of Homeland Security

Start Date: 2024-03-30

End Date: 2026-03-29

Contract Duration: 729 days

Daily Burn Rate: $86.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: FEMA ZONE 2 STANDARD OPERATIONS 3 (SO 3) ARCHITECT AND ENGINEERING SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20472

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $63.1 million to COMPASS PTS JV, THE for work described as: FEMA ZONE 2 STANDARD OPERATIONS 3 (SO 3) ARCHITECT AND ENGINEERING SERVICES Key points: 1. Contract value represents significant investment in essential engineering and architectural services for disaster response. 2. Full and open competition suggests a robust market for these specialized services. 3. The contract duration of 729 days indicates a long-term need for ongoing support. 4. Cost-plus-fixed-fee pricing structure requires careful monitoring to ensure cost control. 5. The award to a joint venture may indicate a strategy to leverage diverse expertise. 6. Performance context is critical given the agency's mission-critical role in emergency management.

Value Assessment

Rating: good

The contract value of $63.1 million for engineering and architectural services appears reasonable given the scope and duration. Benchmarking against similar large-scale A&E contracts for federal agencies, particularly those involved in disaster response or infrastructure, would provide a more precise value-for-money assessment. The cost-plus-fixed-fee structure necessitates diligent oversight to manage costs effectively and ensure the fixed fee remains appropriate for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified firms had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and encourages a wide range of technical solutions. The agency's decision to use full and open competition suggests confidence in the market's ability to meet its requirements effectively.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down prices through market forces and encourage innovation from a broad base of contractors.

Public Impact

The primary beneficiaries are the Federal Emergency Management Agency (FEMA) and, by extension, communities affected by disasters, who will receive enhanced architectural and engineering support for response and recovery. Services delivered include critical architectural and engineering expertise necessary for planning, designing, and overseeing recovery and mitigation projects. The geographic impact is likely nationwide, supporting FEMA's broad mandate across all disaster-prone regions of the United States. Workforce implications may include the direct employment of engineers, architects, and support staff by the prime contractor and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously managed.
Ensuring the joint venture partners maintain effective collaboration and deliver integrated services.
Dependence on a single contract for critical A&E services could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a fair price.
The contract's duration indicates a stable, long-term partnership for consistent support.
The joint venture structure may bring specialized expertise and capacity to meet complex requirements.

Sector Analysis

The architecture and engineering services sector is a critical component of the federal procurement landscape, supporting a wide array of government functions from infrastructure development to defense and emergency management. This contract falls within the broader engineering services industry, which is characterized by specialized expertise and project-based work. Federal spending in this sector is substantial, reflecting the government's ongoing need for technical design and planning support across various agencies.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement for this particular award (ss: false, sb: false). While the prime contractor is a joint venture, the extent to which small businesses will be involved as subcontractors is not detailed. Analysis of subcontracting plans would be necessary to determine the impact on the small business ecosystem and whether opportunities are being created for smaller firms within this significant contract.

Oversight & Accountability

Oversight for this contract will primarily reside with the Federal Emergency Management Agency (FEMA) contracting officers and program managers. Accountability measures are embedded within the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through federal procurement databases, though specific performance metrics and oversight reports may not be publicly accessible. The Inspector General for the Department of Homeland Security would have jurisdiction over potential fraud, waste, or abuse.

Related Government Programs

FEMA Disaster Relief Fund
Architectural and Engineering Services Contracts
Emergency Management Support Services
Federal Infrastructure Design Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
Long contract duration necessitates ongoing performance monitoring to ensure sustained quality.
Joint venture structure requires clear delineation of roles and responsibilities for seamless execution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $63.1 million to COMPASS PTS JV, THE. FEMA ZONE 2 STANDARD OPERATIONS 3 (SO 3) ARCHITECT AND ENGINEERING SERVICES

Who is the contractor on this award?

The obligated recipient is COMPASS PTS JV, THE.

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 $63.1 million.

What is the period of performance?

Start: 2024-03-30. End: 2026-03-29.

What is the track record of COMPASS PTS JV as a contractor, particularly on similar FEMA or DHS contracts?

Information regarding the specific track record of COMPASS PTS JV on similar FEMA or DHS contracts is not directly available in the provided data. As a joint venture, its performance history may be a composite of its constituent firms or a newly established record. A thorough review would require examining past performance evaluations (e.g., CPARS) for this specific entity or its predecessor firms on relevant federal contracts. Understanding their experience with large-scale, mission-critical projects, especially those related to disaster response and recovery, is crucial for assessing their capability to execute this contract successfully. Past performance is a key indicator of a contractor's reliability and ability to meet contractual obligations.

How does the awarded amount of $63.1 million compare to historical spending on similar A&E services by FEMA?

To compare the $63.1 million award to historical FEMA spending on similar A&E services, one would need to analyze FEMA's procurement data for contracts with comparable scopes of work, such as architectural design, engineering consulting, and project management for disaster recovery or mitigation efforts. This analysis should account for inflation and the scale of projects. Without access to a comprehensive historical database of FEMA's A&E procurements, a precise benchmark is difficult. However, given FEMA's significant role in national disaster response, a contract of this magnitude for specialized A&E support is not unexpected, reflecting the substantial resources required for post-disaster recovery and preparedness.

What are the primary risk indicators associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?

The primary risk indicator for a CPFF contract of this magnitude is the potential for cost overruns. While the fixed fee provides a ceiling for the contractor's profit, the government bears the risk of increased costs for labor, materials, and other direct expenses. Effective oversight is paramount to ensure that costs are reasonable, allocable, and allowable. Other risks include scope creep, where the project's requirements expand beyond the initial agreement, potentially increasing costs without a corresponding adjustment to the fixed fee or requiring a contract modification. Ensuring the fixed fee accurately reflects the complexity and effort involved is also critical to avoid under- or over-compensation.

How effective is the 'full and open competition' strategy likely to be in ensuring value for money for this specific contract?

The 'full and open competition' strategy is generally considered the most effective method for ensuring value for money in federal contracting, as it maximizes the pool of potential bidders and fosters a competitive environment. For this $63.1 million A&E services contract, this approach likely encouraged multiple firms to submit proposals, driving down prices and encouraging innovative solutions. The success in achieving value for money will ultimately depend on the clarity of the solicitation's requirements, the evaluation criteria used, and the rigor of post-award contract management. If the competition was robust with a sufficient number of qualified bidders, it significantly increases the probability of a favorable outcome for taxpayers.

What are the implications of the contract duration (729 days) on program effectiveness and contractor performance?

A contract duration of 729 days (approximately two years) suggests a long-term need for the architectural and engineering services being procured. This extended period allows for sustained support, potentially leading to greater program effectiveness through continuity and deep institutional knowledge development by the contractor. It also provides ample time for the contractor to demonstrate consistent performance and for FEMA to build a strong working relationship. However, a longer duration also increases the risk of contractor performance degradation over time or the need for contract modifications if requirements evolve significantly. Regular performance reviews and clear communication channels are essential to maintain effectiveness throughout the contract period.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3101 WILSON BLVD, SUITE 900, ARLINGTON, VA, 22201

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $77,655,538

Exercised Options: $66,520,619

Current Obligation: $63,108,678

Actual Outlays: $26,976,744

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $3,197,846

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 70FA6021D00000004

IDV Type: IDC

Timeline