FEMA Awards $33.6M for Housing Inspection Services to WSP USA SERVICES INC
Contract Overview
Contract Amount: $33,563,642 ($33.6M)
Contractor: WSP USA Services Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2019-10-04
End Date: 2026-01-26
Contract Duration: 2,306 days
Daily Burn Rate: $14.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST NO FEE
Sector: Other
Official Description: AWARD OF INITIAL OPERATIONS TASK ORDER FUNDING RECURRING COST THAT ENABLE HOUSING INSPECTION SERVICES.
Place of Performance
Location: WINCHESTER, WINCHESTER CITY County, VIRGINIA, 22601
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $33.6 million to WSP USA SERVICES INC. for work described as: AWARD OF INITIAL OPERATIONS TASK ORDER FUNDING RECURRING COST THAT ENABLE HOUSING INSPECTION SERVICES. Key points: 1. Contract awarded for recurring operational costs to enable housing inspection services. 2. WSP USA SERVICES INC. is the contractor for this task order. 3. The contract spans over 2306 days, indicating a long-term need. 4. The North American Industry Classification System (NAICS) code 541350 suggests building inspection services.
Value Assessment
Rating: fair
The contract type is 'COST NO FEE', which means the government reimburses costs but does not pay a fee. This is unusual for a service contract of this magnitude and warrants further investigation into the pricing structure and value proposition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the 'COST NO FEE' structure may limit the number of bidders willing to participate.
Taxpayer Impact: Taxpayer funds are being used to cover the operational costs of housing inspection services, with the exact value derived from the cost reimbursement mechanism.
Public Impact
Ensures continued housing inspection services, crucial for disaster recovery and housing programs. Supports FEMA's mission in providing essential services to affected communities. The long duration of the contract suggests a sustained need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Unusual 'COST NO FEE' contract type for a service award.
- Lack of clarity on profit margins or fee structure for the contractor.
Positive Signals
- Awarded under full and open competition.
- Addresses a critical operational need for housing inspections.
Sector Analysis
The spending falls under professional, scientific, and technical services, specifically building inspection. Benchmarks for similar contracts would typically involve a fee structure, making this 'COST NO FEE' award stand out.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract award, either as prime contractors or subcontractors.
Oversight & Accountability
Oversight is crucial given the cost-reimbursement nature of the contract to ensure that all costs incurred are reasonable, allocable, and allowable.
Related Government Programs
- Building Inspection Services
- Department of Homeland Security Contracting
- Federal Emergency Management Agency Programs
Risk Flags
- Unusual contract type ('COST NO FEE').
- Potential lack of contractor incentive for optimal performance.
- Need for strong oversight to manage cost reimbursements.
- Long contract duration requires sustained monitoring.
Tags
building-inspection-services, department-of-homeland-security, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $33.6 million to WSP USA SERVICES INC.. AWARD OF INITIAL OPERATIONS TASK ORDER FUNDING RECURRING COST THAT ENABLE HOUSING INSPECTION SERVICES.
Who is the contractor on this award?
The obligated recipient is WSP USA SERVICES 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 $33.6 million.
What is the period of performance?
Start: 2019-10-04. End: 2026-01-26.
What is the justification for the 'COST NO FEE' contract type for a service award of this size, and how is the contractor's performance and value being ensured without a fee incentive?
The 'COST NO FEE' contract type is typically used when the contractor is performing a service for which they receive no direct payment or profit, often in specific government-mandated scenarios or for non-profit entities. For a commercial entity like WSP USA SERVICES INC. performing housing inspection services, this structure is highly unusual and raises questions about the underlying agreement and the contractor's motivation. Further details on the specific circumstances and the government's oversight mechanisms are needed to understand how value is being ensured and performance incentivized.
What are the specific housing inspection services covered under this task order, and how do they align with FEMA's core mission and current operational needs?
This task order funds recurring operational costs for housing inspection services. These services are likely critical for FEMA's disaster response and recovery efforts, including assessing damage, ensuring housing quality, and verifying eligibility for assistance programs. Understanding the precise scope of these inspections and their direct contribution to FEMA's mission is key to evaluating the necessity and effectiveness of this significant expenditure.
Given the long duration (2306 days) and substantial funding, what mechanisms are in place to monitor contractor performance and ensure cost control under this 'COST NO FEE' arrangement?
With a long-term, cost-reimbursed contract without a fee, robust oversight is paramount. FEMA must have stringent processes for monitoring WSP USA SERVICES INC.'s performance against defined metrics and for auditing all incurred costs. Regular reviews, performance evaluations, and potentially independent cost analyses would be necessary to ensure that taxpayer funds are being used efficiently and effectively, and that the contractor is meeting all contractual obligations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Building Inspection Services
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › QUALITY CONTROL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: Enterra Holdings Ltd
Address: 13530 DULLES TECHNOLOGY DR STE 300, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $34,392,339
Exercised Options: $34,392,339
Current Obligation: $33,563,642
Actual Outlays: $9,012,559
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70FB8020D00000002
IDV Type: IDC
Timeline
Start Date: 2019-10-04
Current End Date: 2026-01-26
Potential End Date: 2026-01-26 00:00:00
Last Modified: 2025-12-04
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