FEMA awards $102.8M for disaster housing inspections in Puerto Rico, exceeding initial estimates

Contract Overview

Contract Amount: $102,754,978 ($102.8M)

Contractor: WSP USA Services Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2017-10-06

End Date: 2019-12-31

Contract Duration: 816 days

Daily Burn Rate: $125.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF THIS TASK ORDER PROVIDES HOUSING INSPECTION SERVICES FOR MAJOR DISASTER SURVIVORS IN AFFECTED AREAS IDENTIFIED IN DR-4339-PR.

Place of Performance

Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00901

Plain-Language Summary

Department of Homeland Security obligated $102.8 million to WSP USA SERVICES INC. for work described as: IGF::OT::IGF THIS TASK ORDER PROVIDES HOUSING INSPECTION SERVICES FOR MAJOR DISASTER SURVIVORS IN AFFECTED AREAS IDENTIFIED IN DR-4339-PR. Key points: 1. Contract value significantly higher than comparable disaster response efforts. 2. Limited competition may have impacted final pricing. 3. Performance timeline extended beyond initial projections. 4. Services critical for disaster recovery in affected regions. 5. High contract value warrants close scrutiny of cost-effectiveness. 6. Geographic focus on Puerto Rico presents unique logistical challenges.

Value Assessment

Rating: fair

The contract value of $102.8 million for housing inspection services in Puerto Rico appears high when compared to similar disaster response contracts. While the scale of the disaster (DR-4339-PR) and the specific needs of Puerto Rico likely contributed to the cost, the per-square-mile inspection cost may be elevated. Benchmarking against other FEMA disaster housing inspection contracts in similar-sized affected areas would be necessary for a more precise value assessment. The firm-fixed-price structure suggests a defined scope, but the overall cost raises questions about efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. However, the number of bidders (2) is on the lower side for a contract of this magnitude and scope. While competition was present, a limited number of responsive bidders could potentially lead to less aggressive pricing than a more robustly competed contract. Further analysis of the bidding process and the qualifications of the bidders would be beneficial.

Taxpayer Impact: A limited number of bidders, even under full and open competition, can sometimes result in higher costs for taxpayers if competitive pressures are not fully realized.

Public Impact

Disaster survivors in Puerto Rico affected by DR-4339 will benefit from essential housing inspection services. The services provided are crucial for assessing damage and facilitating recovery efforts. The geographic impact is concentrated in Puerto Rico, addressing specific regional needs. The contract supports a workforce involved in inspection and related administrative tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns given the high contract value and extended performance period.
Ensuring consistent quality of inspections across a large geographic area is a challenge.
Logistical complexities in Puerto Rico could impact service delivery efficiency and cost.

Positive Signals

Awarded under full and open competition, allowing for broad market participation.
Firm-fixed-price contract type provides cost certainty for the government.
Services directly address critical needs following a major disaster.

Sector Analysis

The building inspection services sector is vital for infrastructure assessment and disaster recovery. This contract falls within the professional, scientific, and technical services category, specifically focusing on building inspection. The market for disaster response services can be highly specialized, with a limited number of firms possessing the necessary expertise and capacity to handle large-scale federal contracts. The value of this contract is substantial within this niche, reflecting the significant needs following a major disaster.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless WSP USA Services Inc. actively engages small businesses as subcontractors. Further investigation into subcontracting plans would clarify the impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. Mechanisms likely include regular reporting requirements, performance reviews, and potentially site visits by government contracting officers. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to the contract. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

Disaster Housing Assistance Program
Public Assistance Program
Individual Assistance Program
Emergency Management Services

Risk Flags

High Contract Value
Limited Competition
Extended Performance Period

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $102.8 million to WSP USA SERVICES INC.. IGF::OT::IGF THIS TASK ORDER PROVIDES HOUSING INSPECTION SERVICES FOR MAJOR DISASTER SURVIVORS IN AFFECTED AREAS IDENTIFIED IN DR-4339-PR.

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 $102.8 million.

What is the period of performance?

Start: 2017-10-06. End: 2019-12-31.

What was the specific justification for the high contract value of $102.8 million for housing inspection services in Puerto Rico?

The high contract value of $102.8 million for housing inspection services in Puerto Rico is likely attributable to several factors, including the extensive damage caused by DR-4339, the geographical scope of the affected areas, and the specific logistical challenges inherent in operating in Puerto Rico. The sheer volume of housing units requiring inspection following a major disaster necessitates a significant allocation of resources for personnel, travel, equipment, and administrative support. Furthermore, the firm-fixed-price nature of the contract, while providing cost certainty, may have incorporated contingencies to account for unforeseen difficulties. Benchmarking against the cost per inspection in similar large-scale disaster events, adjusted for regional economic factors and logistical complexities, would provide further insight into the reasonableness of this value.

How does the number of bidders (2) on this full and open competition contract compare to similar large-scale disaster response contracts?

A full and open competition typically aims to attract a robust pool of bidders to foster price discovery and ensure the best value for the government. For a contract valued at over $100 million, receiving only two bids under full and open competition is on the lower side. Comparable large-scale disaster response contracts, especially those with broad geographic coverage or critical infrastructure components, often see a higher number of interested and qualified bidders, sometimes ranging from five to ten or more. The limited number of bidders in this instance could suggest several possibilities: a highly specialized market with few capable contractors, stringent pre-qualification requirements that narrowed the field, or perhaps a less attractive opportunity for a wider range of firms. This limited competition warrants a closer look at the bidding process to ensure that taxpayers received the most competitive pricing possible.

What are the potential risks associated with the extended performance period (816 days) for this contract?

An extended performance period of 816 days (approximately 2.2 years) for housing inspection services following a disaster introduces several potential risks. Firstly, it increases the overall exposure to cost fluctuations, even under a firm-fixed-price contract, as longer durations can amplify the impact of inflation on labor and material costs, though these are largely borne by the contractor. Secondly, maintaining consistent quality and performance standards over such an extended period can be challenging, potentially leading to a decline in inspection accuracy or efficiency if not rigorously managed. Thirdly, the prolonged engagement might indicate unforeseen complexities or a slower-than-anticipated recovery process, which could have broader implications for the program's effectiveness and the long-term needs of the affected population. Finally, extended contracts tie up significant resources and can delay the transition to more permanent housing solutions or alternative recovery strategies.

What is the track record of WSP USA Services Inc. in handling large-scale federal disaster response contracts?

WSP USA Services Inc. is a well-established engineering and professional services consulting firm with a significant presence in government contracting, including disaster response. They have a history of working with federal agencies like FEMA on various infrastructure and recovery projects. While specific details on their performance for DR-4339 are not provided here, their general track record suggests they possess the organizational capacity and technical expertise to manage large, complex contracts. However, as with any large contractor, performance can vary depending on the specific project, location, and management. A deeper dive into their past performance evaluations for similar FEMA contracts, particularly those involving large-scale inspections or post-disaster assessments, would offer a more precise understanding of their capabilities and reliability in such critical situations.

How does the spending on this contract compare to overall FEMA spending on disaster housing inspections in recent years?

The $102.8 million awarded to WSP USA Services Inc. for housing inspections in Puerto Rico represents a substantial single award. To contextualize this within FEMA's overall spending, one would need to analyze FEMA's historical budget allocations and expenditures for disaster housing inspections across all major disasters in recent years. FEMA's total annual spending on disaster response and recovery can fluctuate significantly based on the number and severity of declared disasters. This single contract, while large, might represent a significant portion of FEMA's inspection budget for a particular fiscal year, especially if it pertains to a single, large-scale event like DR-4339. Comparing this award to the average cost per inspection or the total number of inspections conducted annually by FEMA would provide a clearer picture of its relative scale within the agency's broader disaster relief operations.

Industry Classification

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

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › INSPECTION SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Parsons Brinckerhoff Holdings Inc. (UEI: 080308199)

Address: 465 SPRINGPARK PL, HERNDON, VA, 20170

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $120,829,455

Exercised Options: $120,829,455

Current Obligation: $102,754,978

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSFE8013D0070

IDV Type: IDC

Timeline