FEMA Awards $41M for Hurricane Irma Technical Support to NISTAC E, LLC

Contract Overview

Contract Amount: $40,991,583 ($41.0M)

Contractor: Nistac E, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2017-10-31

End Date: 2019-02-28

Contract Duration: 485 days

Daily Burn Rate: $84.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF:: PUBLIC ASSISTANCE PROGRAM REQUIREMENTS FOR 194 TECHNICAL SPECIALISTS FOR SUPPORT OF DR-4337-FL TEAM #3 - HURRICANE IRMA.

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 $41.0 million to NISTAC E, LLC for work described as: IGF::OT::IGF:: PUBLIC ASSISTANCE PROGRAM REQUIREMENTS FOR 194 TECHNICAL SPECIALISTS FOR SUPPORT OF DR-4337-FL TEAM #3 - HURRICANE IRMA. Key points: 1. Contract awarded to NISTAC E, LLC for technical specialists supporting Hurricane Irma relief. 2. The contract value is $41,009,158.26 over 485 days. 3. Competition was full and open, suggesting a competitive bidding process. 4. The sector is primarily Public Assistance/Emergency Management, with engineering services. 5. Potential risks include the time and materials pricing structure and the duration of the contract.

Value Assessment

Rating: fair

The contract's value of $41M for 485 days of technical support appears substantial. Benchmarking against similar disaster response contracts would be necessary to fully assess value, but the time and materials pricing could lead to cost overruns if not managed carefully.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the time and materials (T&M) pricing model can make precise price discovery challenging upfront, relying on effective oversight to control costs.

Taxpayer Impact: Taxpayer funds are being used for essential disaster recovery support. The competitive award aims for efficiency, but T&M pricing necessitates vigilance to ensure cost-effectiveness and prevent waste.

Public Impact

Supports critical Hurricane Irma recovery efforts in Florida. Provides specialized technical expertise to FEMA. Ensures timely and effective delivery of public assistance programs. Highlights the government's reliance on external contractors for disaster response.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing structure
Contract duration of 485 days
Potential for scope creep without strong oversight

Positive Signals

Awarded under full and open competition
Supports a critical national need (disaster relief)
Experienced contractor likely involved

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), specifically supporting public assistance and disaster relief operations for the Federal Emergency Management Agency (FEMA). Spending in this area is often reactive and driven by natural disasters, making benchmarks difficult to establish due to variable demand.

Small Business Impact

The data indicates this contract was not awarded to a small business (ss: false, sb: false). This suggests that the scale or specialized nature of the requirement may have favored larger, established firms.

Oversight & Accountability

Effective oversight is crucial for Time and Materials contracts to ensure costs remain within budget and that services provided are necessary and efficient. FEMA's management of this contract will determine its overall success and taxpayer value.

Related Government Programs

Engineering Services
Department of Homeland Security Contracting
Federal Emergency Management Agency Programs

Risk Flags

Time and Materials pricing risk
Potential for cost overruns
Contract duration may exceed actual need
Lack of small business participation
Oversight effectiveness is critical

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $41.0 million to NISTAC E, LLC. IGF::OT::IGF:: PUBLIC ASSISTANCE PROGRAM REQUIREMENTS FOR 194 TECHNICAL SPECIALISTS FOR SUPPORT OF DR-4337-FL TEAM #3 - HURRICANE IRMA.

Who is the contractor on this award?

The obligated recipient is NISTAC E, 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 $41.0 million.

What is the period of performance?

Start: 2017-10-31. End: 2019-02-28.

What specific technical expertise was required that necessitated a $41M contract for 194 specialists?

The contract required 194 technical specialists for support of FEMA's Public Assistance Program related to Hurricane Irma DR-4337-FL. This likely involved complex engineering assessments, damage evaluations, cost estimations, and program management support to expedite aid distribution and reconstruction efforts in the affected areas.

How did FEMA ensure cost control with a Time and Materials contract for such a large sum?

FEMA would typically implement robust oversight mechanisms, including detailed work requirement tracking, regular progress reviews, and potentially establishing ceiling rates or not-to-exceed clauses within the contract. Strong project management and clear communication channels with the contractor are essential to prevent scope creep and manage expenditures effectively.

What is the long-term effectiveness of relying on external contractors for disaster response specialists?

While contractors provide surge capacity and specialized skills during emergencies, long-term reliance raises questions about institutional knowledge retention and potential cost inefficiencies compared to building in-house capabilities. However, the unpredictable nature of disasters often necessitates flexible, external support to meet immediate needs effectively.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 12420 MILESTONE CENTER DRIVE STE 150, GERMANTOWN, MD, 20876

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

Financial Breakdown

Contract Ceiling: $95,747,148

Exercised Options: $40,991,583

Current Obligation: $40,991,583

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSFEHQ12D0882

IDV Type: IDC

Timeline