FEMA awards $32.6M for A&E services to STARR II JV, highlighting engineering support needs

Contract Overview

Contract Amount: $32,654,601 ($32.7M)

Contractor: Starr II, a Joint Venture

Awarding Agency: Department of Homeland Security

Start Date: 2024-03-30

End Date: 2026-03-29

Contract Duration: 729 days

Daily Burn Rate: $44.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: FEMA ZONE 3 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 $32.7 million to STARR II, A JOINT VENTURE for work described as: FEMA ZONE 3 STANDARD OPERATIONS 3 (SO 3) ARCHITECT AND ENGINEERING SERVICES Key points: 1. Contract value represents a significant investment in essential engineering and architectural services for disaster response. 2. The award to a joint venture suggests a strategy to leverage specialized expertise for complex projects. 3. Performance period of two years indicates ongoing support requirements for FEMA's operational needs. 4. The 'Cost Plus Fixed Fee' contract type warrants scrutiny for potential cost overruns. 5. This contract falls within the broader category of engineering services, crucial for infrastructure resilience. 6. The geographic focus on Washington D.C. may indicate specific regional disaster preparedness efforts.

Value Assessment

Rating: fair

Benchmarking the value of this $32.6 million contract for architect and engineering services is challenging without specific deliverables. However, the Cost Plus Fixed Fee (CPFF) structure, while common for complex or uncertain scope projects, can lead to higher final costs compared to fixed-price contracts if not managed diligently. Comparing it to similar large-scale A&E support contracts for disaster management agencies would provide better context on its relative value. The fixed fee component offers some cost control, but the variable cost component requires close monitoring.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified firms had the opportunity to bid. This competitive process is generally favorable for price discovery and ensuring the government receives competitive offers. The specific number of bidders is not provided, which would offer further insight into the intensity of the competition. However, the 'full and open' designation suggests a robust bidding environment.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of securing services at a more competitive price, preventing potential overpayment.

Public Impact

The primary beneficiaries are the Federal Emergency Management Agency (FEMA) and the communities it serves, receiving critical architectural and engineering support for disaster response and recovery. Services delivered will likely include design, planning, and technical consultation for infrastructure projects impacted by disasters. The geographic impact is noted as Washington D.C., suggesting a focus on federal facilities or critical infrastructure within the capital region. Workforce implications may include the direct employment of engineers, architects, and support staff by the contractor, STARR II, A Joint Venture.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost escalations if not closely managed.
Lack of specific performance metrics or deliverables in the provided data makes assessing value for money difficult.
Geographic focus on D.C. might limit broader application of lessons learned to other regions.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Contract awarded to a joint venture, potentially bringing together diverse and specialized expertise.
The contract duration of two years indicates a sustained need for these critical services.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader professional, scientific, and technical services industry. This sector supports a wide range of government functions, particularly in infrastructure development, maintenance, and disaster recovery. Spending in this area is often driven by federal agency needs for specialized technical expertise that may not be available in-house. Comparable spending benchmarks would involve analyzing other large A&E contracts awarded by agencies like the Army Corps of Engineers or GSA for similar disaster-related or infrastructure support.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside. The award to a joint venture might involve small business participation as a partner within the venture, but this is not explicitly stated. Further analysis would be needed to determine if STARR II, A Joint Venture has small business subcontracting goals.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. As a Cost Plus Fixed Fee contract, rigorous oversight of costs, performance, and adherence to the fixed fee is crucial. Transparency would be enhanced by public reporting of contract performance and expenditures. Inspector General jurisdiction would likely reside with the Department of Homeland Security's Office of Inspector General, which investigates fraud, waste, and abuse in agency programs.

Related Government Programs

FEMA Disaster Relief Fund
Architectural and Engineering Services Contracts
Homeland Security Contracts
Emergency Management Support Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
Lack of specific performance metrics in the provided data hinders a complete value assessment.
Joint Venture structure requires understanding the capabilities and responsibilities of each member.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $32.7 million to STARR II, A JOINT VENTURE. FEMA ZONE 3 STANDARD OPERATIONS 3 (SO 3) ARCHITECT AND ENGINEERING SERVICES

Who is the contractor on this award?

The obligated recipient is STARR II, A JOINT VENTURE.

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 $32.7 million.

What is the period of performance?

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

What is the track record of STARR II, A Joint Venture in performing similar architect and engineering services for federal agencies, particularly FEMA?

Assessing the track record of STARR II, A Joint Venture requires a review of its past performance on federal contracts. As a joint venture, its performance history may be a composite of its individual member companies' experiences or specific to the JV's operational history. Key indicators to examine would include past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any history of contract disputes, timely delivery of services, and overall client satisfaction. For FEMA contracts, a history of successfully supporting disaster response, recovery, or mitigation efforts would be particularly relevant. Without specific contract history data for STARR II, it's difficult to definitively assess their capabilities, but the award suggests they met FEMA's pre-qualification criteria for this specific requirement.

How does the $32.6 million contract value compare to other FEMA architect and engineering services contracts awarded over the past five years?

Comparing the $32.6 million value of the FEMA ZONE 3 STANDARD OPERATIONS 3 (SO 3) contract to historical FEMA A&E contracts provides context on its relative scale. FEMA frequently procures A&E services for disaster response and recovery, with contract values varying significantly based on the scope and duration of the need. Larger, multi-year contracts or those supporting major disaster declarations can easily reach tens or hundreds of millions of dollars. Smaller, task-order-based contracts for specific assessments or designs might be in the low millions. A $32.6 million award for two years of comprehensive support suggests a substantial, ongoing requirement, likely falling within the mid-to-upper range for FEMA's typical A&E procurements of this nature. A detailed analysis of FEMA's contract spending database would reveal precise benchmarks.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services, and how are they mitigated in this case?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the government may end up paying more than anticipated if the contractor's costs exceed estimates, as the fee is fixed but the costs are variable. This can incentivize less cost-conscious behavior. Mitigation strategies employed by agencies like FEMA typically include robust cost accounting standards, detailed review and auditing of incurred costs, clear definition of allowable costs, and strong project management oversight to ensure efficiency. The fixed fee component itself provides some incentive for the contractor to manage costs effectively to maximize their profit margin. However, the ultimate success in mitigating risk hinges on the diligence of the government's contracting officer and technical representatives in monitoring performance and expenditures throughout the contract's life.

What specific types of architectural and engineering services are anticipated under this contract, and how do they align with FEMA's mission?

While the contract title 'FEMA ZONE 3 STANDARD OPERATIONS 3 (SO 3) ARCHITECT AND ENGINEERING SERVICES' is broad, it implies a range of critical support functions aligned with FEMA's mission. These services likely encompass structural assessments, design and engineering for repairs or new construction of facilities damaged by disasters, development of mitigation strategies, environmental compliance support, and potentially planning for resilient infrastructure. 'Standard Operations' suggests these services are part of FEMA's routine or recurring needs for managing disaster impacts and preparedness. The 'Zone 3' designation might refer to a specific geographic region or operational area within FEMA's structure. The overarching goal is to ensure that affected communities and federal assets receive the necessary technical expertise for recovery and future resilience.

How has FEMA's spending on architect and engineering services evolved over the past decade, and what trends does this contract reflect?

FEMA's spending on architect and engineering (A&E) services has likely seen fluctuations over the past decade, heavily influenced by the frequency and severity of natural disasters. Following major events like hurricanes Katrina, Sandy, Harvey, Irma, and Maria, there would typically be surges in demand and spending for A&E support related to recovery and rebuilding efforts. Conversely, periods with fewer large-scale disasters might see more stable, albeit still significant, spending on preparedness, mitigation planning, and maintenance. This $32.6 million contract for ongoing 'Standard Operations' suggests a sustained, baseline need for A&E expertise, reflecting FEMA's continuous operational requirements beyond immediate post-disaster surges. It may also indicate a strategic shift towards more proactive resilience planning and maintaining readiness for future events, rather than solely reactive recovery support.

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: 3901 CALVERTON BLVD STE 400, CALVERTON, MD, 20705

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

Financial Breakdown

Contract Ceiling: $64,026,103

Exercised Options: $35,470,324

Current Obligation: $32,654,601

Actual Outlays: $21,557,031

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 70FA6021D00000005

IDV Type: IDC

Timeline