DHS FEMA Awards $98.7M for Hermit Peak Fire Claims Support to CH2M HILL
Contract Overview
Contract Amount: $98,692,123 ($98.7M)
Contractor: CH2M Hill - CDM Pa-Tac Recovery Services
Awarding Agency: Department of Homeland Security
Start Date: 2023-02-15
End Date: 2025-08-15
Contract Duration: 912 days
Daily Burn Rate: $108.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: THIS REQUIREMENT IS TO PROVIDE PROFESSIONAL AND TECHNICAL SERVICES SUPPORTING THE HERMIT PEAK CALF CANYON FIRE CLAIMS OFFICE.
Place of Performance
Location: SANTA FE, SANTA FE County, NEW MEXICO, 87508
Plain-Language Summary
Department of Homeland Security obligated $98.7 million to CH2M HILL - CDM PA-TAC RECOVERY SERVICES for work described as: THIS REQUIREMENT IS TO PROVIDE PROFESSIONAL AND TECHNICAL SERVICES SUPPORTING THE HERMIT PEAK CALF CANYON FIRE CLAIMS OFFICE. Key points: 1. Significant award for post-disaster claims processing. 2. CH2M HILL, a known entity in environmental services, is the contractor. 3. Risk of cost overruns in long-term disaster recovery. 4. Services fall under management consulting, a broad category.
Value Assessment
Rating: fair
The award amount is substantial, reflecting the complexity of disaster claims. Benchmarking is difficult without specific task details, but the duration suggests a significant effort. The Time and Materials contract type introduces potential for cost escalation.
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 specific award mechanism (Delivery Order) implies it might be against an existing contract vehicle, potentially limiting the initial competition scope.
Taxpayer Impact: Taxpayers bear the cost of disaster recovery efforts, with this contract funding essential claims processing to aid affected individuals and communities.
Public Impact
Supports individuals and communities impacted by the Hermit Peak Calf Canyon Fire. Facilitates the processing of insurance and compensation claims. Aims to expedite recovery and financial relief for affected parties. Government's role in managing and mitigating disaster consequences.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns.
- Long contract duration increases exposure to scope creep.
- Complexity of disaster claims can be underestimated.
Positive Signals
- Full and open competition utilized.
- Contract supports critical disaster recovery functions.
- Established contractor with relevant experience.
Sector Analysis
This contract falls under professional services, specifically management consulting, supporting a critical government function. Spending in this area often spikes post-disaster, with benchmarks varying widely based on the scale and nature of the event.
Small Business Impact
The contract was awarded to CH2M HILL - CDM PA-TAC RECOVERY SERVICES. There is no indication of small business participation in this specific award, suggesting it was likely awarded to a large business prime contractor.
Oversight & Accountability
The Federal Emergency Management Agency (FEMA) is responsible for overseeing this contract. Given the significant funding and duration, robust oversight is crucial to ensure efficient and effective claims processing and prevent potential waste.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Homeland Security Contracting
- Federal Emergency Management Agency Programs
Risk Flags
- Potential for cost overruns due to T&M contract.
- Long contract duration increases risk of scope creep.
- Complexity of disaster claims processing.
- Lack of specific performance metrics in award data.
- No clear indication of small business subcontracting.
Tags
administrative-management-and-general-ma, department-of-homeland-security, nm, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $98.7 million to CH2M HILL - CDM PA-TAC RECOVERY SERVICES. THIS REQUIREMENT IS TO PROVIDE PROFESSIONAL AND TECHNICAL SERVICES SUPPORTING THE HERMIT PEAK CALF CANYON FIRE CLAIMS OFFICE.
Who is the contractor on this award?
The obligated recipient is CH2M HILL - CDM PA-TAC RECOVERY SERVICES.
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 $98.7 million.
What is the period of performance?
Start: 2023-02-15. End: 2025-08-15.
What is the estimated cost per claim processed under this contract, and how does it compare to industry benchmarks for similar disaster recovery efforts?
Determining the cost per claim requires access to detailed task orders and performance metrics not available in this summary. However, given the Time and Materials nature and the $98.7M award, the agency should actively track this metric. Comparing it to benchmarks for large-scale disaster recovery operations would reveal efficiency and potential areas for cost savings.
What specific risks are associated with the Time and Materials contract type for disaster claims processing, and what mitigation strategies are in place?
The primary risk of T&M is cost escalation due to undefined scope or extended timelines. Mitigation strategies should include strict monitoring of labor hours, defined task order ceilings, regular performance reviews, and clear deliverables. FEMA should ensure robust project management to control scope and prevent unnecessary work.
How effectively is this contract enabling timely and equitable distribution of funds to Hermit Peak fire victims, and what metrics are used to measure success?
Effectiveness is measured by the speed and fairness of claim resolution. FEMA should track metrics such as average claim processing time, claimant satisfaction rates, and the accuracy of awarded compensation. Regular reporting and independent audits would provide insights into how well the contract is meeting its objectives for victim support.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 70FB8023R00000005
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc.
Address: 2411 DULLES CORNER PARK STE 500, HERNDON, VA, 20171
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $98,692,123
Exercised Options: $98,692,123
Current Obligation: $98,692,123
Actual Outlays: $88,083,223
Subaward Activity
Number of Subawards: 114
Total Subaward Amount: $64,826,882
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70FB8018D00000003
IDV Type: IDC
Timeline
Start Date: 2023-02-15
Current End Date: 2025-08-15
Potential End Date: 2025-08-15 00:00:00
Last Modified: 2025-03-27
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