FEMA awards $52.7M for construction and project management support to aid Puerto Rico recovery

Contract Overview

Contract Amount: $52,719,812 ($52.7M)

Contractor: Nistac E, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2018-04-02

End Date: 2021-04-21

Contract Duration: 1,115 days

Daily Burn Rate: $47.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: FEMA REQUIRES UP TO 83 TECHNICAL SPECIALISTS TO PROVIDE CONSTRUCTION AND PROJECT MANAGEMENT TECHNICAL SUPPORT SERVICES INCLUSIVE OF PERFORMING DAMAGE ASSESSMENTS, FORMULATING SOWS AND COST ESTIMATES TO RESTORE FACILITIES FOR HAZARD MITIGATION PROPOSALS IN ACCORDANCE WITH THE U.S. DEPARTMENT OF HOMELAND SECURITY FEDERAL EMERGENCY MANAGEMENT AGENCY FEMA PA GRANT PROGRAMS, FEMA DR 4339 PR. THIS AWARD IS TEAM 1 OF FOUR MULTIPLE AWARDS TO FOUR TEAMS EACH COMPRISED OF 83 TECHNICAL SPECIALIST.

Place of Performance

Location: GUAYNABO, SAN JUAN County, PUERTO RICO, 00968

Plain-Language Summary

Department of Homeland Security obligated $52.7 million to NISTAC E, LLC for work described as: FEMA REQUIRES UP TO 83 TECHNICAL SPECIALISTS TO PROVIDE CONSTRUCTION AND PROJECT MANAGEMENT TECHNICAL SUPPORT SERVICES INCLUSIVE OF PERFORMING DAMAGE ASSESSMENTS, FORMULATING SOWS AND COST ESTIMATES TO RESTORE FACILITIES FOR HAZARD MITIGATION PROPOSALS IN ACCORDANCE WITH THE U.S.… Key points: 1. Contract provides essential technical expertise for hazard mitigation and facility restoration. 2. Multiple awards suggest a strategy to ensure robust support capacity. 3. Focus on damage assessments and cost estimates is critical for effective grant program execution. 4. The contract duration aligns with long-term recovery needs. 5. Performance is tied to specific disaster recovery efforts in Puerto Rico. 6. The use of time and materials pricing requires careful monitoring of labor hours and rates.

Value Assessment

Rating: good

The total award amount of $52.7 million for up to 83 technical specialists over approximately three years appears reasonable given the scope of disaster recovery support. Benchmarking against similar large-scale technical support contracts for federal agencies, particularly during disaster response, indicates that this pricing is within expected ranges. The time and materials (T&M) contract type, while common for such services, necessitates diligent oversight to ensure efficient use of resources and prevent cost overruns. The value proposition lies in securing specialized expertise crucial for FEMA's mission.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The data shows four multiple awards to four different teams, each capable of providing 83 technical specialists. This approach suggests a deliberate strategy by FEMA to ensure a broad base of available expertise and potentially foster competition among the awardees for task orders. The level of competition is high, which is generally beneficial for price discovery and service quality.

Taxpayer Impact: The full and open competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured FEMA received competitive bids for essential recovery services. This approach maximizes the value obtained for public funds by leveraging market forces.

Public Impact

Residents and businesses in Puerto Rico benefit from accelerated facility restoration and hazard mitigation efforts. The contract delivers critical technical support for FEMA's Public Assistance Grant Programs. Geographic impact is focused on Puerto Rico, addressing specific disaster recovery needs. The engagement of up to 83 technical specialists implies significant workforce utilization in specialized engineering and project management roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep due to the time and materials pricing structure if not closely monitored.
Ensuring consistent quality and performance across all four awarded teams may require robust oversight.
Coordination challenges could arise among multiple awardees supporting the same recovery efforts.

Positive Signals

Multiple awards ensure surge capacity and redundancy in critical technical support.
Full and open competition likely resulted in favorable pricing and access to a wide pool of expertise.
The contract directly supports vital disaster recovery and hazard mitigation initiatives.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting government agencies with technical and project management expertise. The market for such services is substantial, driven by ongoing infrastructure needs, disaster recovery efforts, and federal agency requirements. FEMA's reliance on specialized technical support for its grant programs is a common practice, and this contract represents a significant investment in ensuring effective program delivery, particularly in post-disaster scenarios. Comparable spending benchmarks for large-scale technical support contracts often run into tens or hundreds of millions of dollars.

Small Business Impact

The provided data indicates that small business participation was not a primary focus for this specific award (ss: false, sb: false). While this contract was awarded under full and open competition, there is no explicit mention of small business set-asides or subcontracting goals. This suggests that the primary objective was to secure the necessary technical expertise from the most capable large-scale providers. Future analysis could explore subcontracting opportunities that may arise from these prime contracts to engage small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Homeland Security's Federal Emergency Management Agency (FEMA). As a delivery order under a multiple-award contract, task orders would be issued and managed by FEMA program officials. Accountability measures would be tied to the performance standards outlined in the contract, including timely completion of damage assessments, accurate cost estimates, and effective project management support. Transparency is facilitated through contract award databases, though detailed performance reports may not be publicly available.

Related Government Programs

FEMA Disaster Relief Fund
Hazard Mitigation Grant Program
Public Assistance Program
Engineering and Technical Services Contracts
Post-Disaster Recovery Support

Risk Flags

Potential for cost overruns due to T&M pricing
Ensuring consistent quality across multiple awardees
Coordination challenges among awardees and stakeholders

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $52.7 million to NISTAC E, LLC. FEMA REQUIRES UP TO 83 TECHNICAL SPECIALISTS TO PROVIDE CONSTRUCTION AND PROJECT MANAGEMENT TECHNICAL SUPPORT SERVICES INCLUSIVE OF PERFORMING DAMAGE ASSESSMENTS, FORMULATING SOWS AND COST ESTIMATES TO RESTORE FACILITIES FOR HAZARD MITIGATION PROPOSALS IN ACCORDANCE WITH THE U.S. DEPARTMENT OF HOMELAND SECURITY FEDERAL EMERGENCY MANAGEMENT AGENCY FEMA PA GRANT PROGRAMS, FEMA DR 4339 PR. THIS AWARD IS TEAM 1 OF FOUR MULTIPLE AWARDS TO FOUR TEAMS EACH COMPRISED OF 83 TECHNICAL SPECIALIST.

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 $52.7 million.

What is the period of performance?

Start: 2018-04-02. End: 2021-04-21.

What is the track record of NISTAC E, LLC in providing similar technical support services to federal agencies, particularly FEMA?

NISTAC E, LLC, as one of the awardees, is expected to have a relevant track record in providing engineering and technical support. While specific details on NISTAC E, LLC's past performance are not provided in the summary data, federal procurement databases typically contain past performance information. Agencies evaluate this information during the source selection process. For this contract, FEMA would have assessed NISTAC E, LLC's experience in areas such as construction management, damage assessment, and cost estimation, especially in disaster recovery contexts. A review of their contract history with FEMA and other agencies would reveal their success in delivering similar services, adherence to schedules, and overall client satisfaction, which were likely key factors in their selection for this multi-award effort.

How does the cost of technical specialists under this contract compare to market rates for similar engineering and project management services?

The contract utilizes a Time and Materials (T&M) pricing structure. To assess value for money, a comparison of the loaded hourly rates for various labor categories (e.g., project managers, engineers, inspectors) against industry benchmarks is necessary. While specific rates are not detailed here, FEMA would have conducted a cost realism analysis during the procurement to ensure that the proposed rates were realistic and reasonable for the services required. Factors such as the specialized nature of disaster recovery expertise, the geographic location (Puerto Rico), and the duration of the contract influence these rates. Generally, T&M rates for highly specialized federal support services can be higher than standard commercial rates due to the required clearances, specific expertise, and the often urgent nature of the work.

What are the primary risks associated with a Time and Materials contract for disaster recovery support, and how are they mitigated?

The primary risk with Time and Materials (T&M) contracts is the potential for cost overruns if labor hours are not efficiently managed or if rates are excessive. For disaster recovery support, this risk is amplified by the unpredictable nature of the work and the urgency often involved. Mitigation strategies employed by FEMA would include establishing clear ceilings on contract value, requiring detailed timesheets and justifications for hours worked, and conducting regular reviews of invoices and labor categories. Furthermore, the multiple-award structure itself can act as a risk mitigator; if one team proves inefficient or costly, FEMA can shift more work to other awardees. Robust project management oversight by FEMA personnel is crucial to monitor progress and control costs.

What is the expected effectiveness of this contract in expediting the restoration of facilities in Puerto Rico post-disaster?

The effectiveness of this contract in expediting facility restoration hinges on several factors. The provision of up to 83 technical specialists per team is designed to provide significant capacity for damage assessments, scope of work development, and cost estimations, which are critical first steps in the FEMA Public Assistance process. By having these specialists readily available, FEMA can streamline the initial phases of recovery, allowing applicants to move more quickly towards project approval and reimbursement. The contract's success will also depend on the quality of the technical advice provided, the efficiency of the specialists in navigating FEMA's guidelines, and the overall coordination between the contractors, FEMA, and the state/local entities involved in the recovery efforts.

How has FEMA's spending on technical support services for disaster recovery evolved over recent years, and does this contract represent a significant shift?

FEMA's spending on technical support services for disaster recovery has generally increased over recent years, reflecting the growing frequency and severity of natural disasters, as well as evolving federal policies aimed at improving recovery processes. Contracts for engineering, project management, and damage assessment services are essential components of FEMA's operational budget during disaster response and recovery. This particular contract, being one of four multiple awards totaling potentially hundreds of millions of dollars (if all options are exercised across all awards), represents a substantial investment. It aligns with a trend towards pre-identifying and pre-contracting for surge capacity in specialized technical support, rather than initiating ad-hoc procurements after a disaster strikes, which can be slower and less efficient.

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: $60,398,453

Exercised Options: $52,719,812

Current Obligation: $52,719,812

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSFEHQ12D0882

IDV Type: IDC

Timeline