FEMA awards $62.9M for construction and project management support to aid Puerto Rico recovery

Contract Overview

Contract Amount: $62,865,629 ($62.9M)

Contractor: CH2M Hill - CDM Pa-Tac Recovery Services

Awarding Agency: Department of Homeland Security

Start Date: 2018-04-02

End Date: 2020-02-15

Contract Duration: 684 days

Daily Burn Rate: $91.9K/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 2 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 $62.9 million to CH2M HILL - CDM PA-TAC RECOVERY SERVICES 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. The contract's duration and scope indicate a significant, long-term recovery effort. 4. Performance is tied to FEMA's Public Assistance Grant Programs, highlighting critical disaster response functions. 5. The use of Time and Materials pricing warrants scrutiny for cost control. 6. Focus on Puerto Rico underscores the geographic concentration of recovery needs.

Value Assessment

Rating: fair

The total award amount of $62.9 million for up to 83 technical specialists over approximately two years appears substantial. Benchmarking against similar disaster recovery support contracts is challenging due to the unique nature of disaster response and the specific geographic focus on Puerto Rico. The Time and Materials (T&M) pricing structure, while common for evolving needs, carries inherent risks of cost overruns if not closely managed and monitored. Without detailed breakdowns of labor categories and rates, a precise value-for-money assessment is difficult, but the scale suggests a significant investment in expertise.

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. The data shows this is one of four multiple awards to four different teams, each comprising 83 technical specialists. This approach suggests FEMA sought to establish a broad base of qualified contractors to ensure sufficient capacity and potentially leverage competitive dynamics among the awardees for task orders or specific support needs.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and a wider range of innovative solutions. The multiple award strategy further enhances this by providing options and potentially driving down costs through ongoing performance comparisons.

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 concentrated in Puerto Rico, addressing specific disaster recovery needs. The engagement of up to 83 technical specialists implies significant workforce utilization in engineering and project management fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not managed diligently.
The large number of specialists (83 per team) requires robust oversight to ensure efficient resource allocation.
The specific focus on Puerto Rico may limit broader application of lessons learned to other disaster scenarios.
Dependence on technical specialists highlights the need for continuity planning and knowledge transfer.

Positive Signals

Multiple awards ensure surge capacity and redundancy in critical support services.
Full and open competition suggests a commitment to leveraging the best available talent and market competition.
The contract directly supports vital disaster recovery and hazard mitigation efforts.
Clear objectives related to FEMA PA Grant Programs provide a defined scope for performance.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of infrastructure development and disaster recovery. The market for such services is substantial, driven by government needs for technical expertise in project management, construction oversight, and damage assessment, particularly following natural disasters. FEMA's reliance on these services underscores the importance of a robust private sector capacity to support federal response and recovery operations. Comparable spending benchmarks are difficult to establish precisely due to the unique, event-driven nature of disaster recovery contracts.

Small Business Impact

The provided data indicates that small business participation (SB = false, SS = false) was not a primary focus for this specific contract award. There is no mention of small business set-asides or subcontracting plans. This suggests that the prime contractor is likely a large entity, and the focus was on securing the necessary technical expertise through open competition rather than specifically targeting small business participation.

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 managed by specific FEMA program offices overseeing the Puerto Rico recovery efforts. Accountability measures would be tied to performance metrics outlined in the contract and task orders, focusing on the timely and effective delivery of technical support. Transparency is facilitated through federal contract databases, though detailed performance reports may be internal to FEMA.

Related Government Programs

FEMA Public Assistance Grant Programs
Hazard Mitigation Assistance
Disaster Recovery Support Services
Construction Management Services
Engineering Consulting Services

Risk Flags

Potential for cost overruns due to T&M contract type.
Complexity of managing large teams (83 specialists) effectively.
Geographic concentration may limit broader applicability of lessons learned.
Dependence on contractor expertise requires strong oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $62.9 million to CH2M HILL - CDM PA-TAC RECOVERY SERVICES. 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 2 OF FOUR MULTIPLE AWARDS TO FOUR TEAMS EACH COMPRISED OF 83 TECHNICAL SPECIALIST.

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 $62.9 million.

What is the period of performance?

Start: 2018-04-02. End: 2020-02-15.

What is the track record of CH2M HILL - CDM PA-TAC RECOVERY SERVICES in handling large-scale disaster recovery contracts?

CH2M HILL, and its subsequent entities like CDM Smith, have a significant history of involvement in large-scale infrastructure projects and disaster recovery efforts. They have been awarded numerous contracts by federal agencies, including FEMA, for post-disaster support, environmental remediation, and engineering services. Their experience often includes managing complex logistics, coordinating diverse teams, and providing technical expertise in challenging environments. However, the specific "PA-TAC RECOVERY SERVICES" designation suggests a specialized team or joint venture formed for this particular recovery effort, likely leveraging the broader capabilities of its parent organizations. Assessing their specific track record requires examining performance on similar FEMA PA contracts, particularly those involving extensive construction and project management support in geographically dispersed or complex operational areas like Puerto Rico.

How does the cost of technical specialists compare to similar disaster recovery support contracts?

Directly comparing the cost per specialist ($62.9M / 83 specialists = ~$757,831 per specialist over the contract duration) is difficult without knowing the exact duration and the mix of labor categories (e.g., engineers, project managers, inspectors). However, disaster recovery contracts often command premium rates due to the urgency, specialized skills required, and the challenging operating environments. Time and Materials (T&M) contracts, like this one, can also lead to higher overall costs compared to fixed-price contracts if not managed tightly. Benchmarking would require access to detailed pricing data from comparable FEMA contracts awarded around the same period for similar services, considering factors like geographic location, scope of work, and required security clearances.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks include potential cost overruns due to the Time and Materials (T&M) pricing structure, which lacks a fixed ceiling for labor hours. Inefficient resource allocation or underutilization of the 83 specialists per team could also inflate costs without proportional benefit. Furthermore, the complexity of coordinating recovery efforts in Puerto Rico, potentially compounded by logistical challenges and local conditions, poses operational risks. Mitigation strategies likely involve robust oversight from FEMA, including detailed review of timesheets, regular progress reporting, performance monitoring against defined objectives, and potentially implementing cost controls or ceilings within task orders. Strong project management by the contractor is also crucial.

How effective has FEMA's strategy of multiple awards for technical support been in past disaster recovery operations?

FEMA's strategy of using multiple awards for technical support, as seen with this contract (Team 2 of four), is designed to ensure sufficient capacity and flexibility during large-scale disaster responses. This approach allows FEMA to rapidly scale up support by drawing from several pre-vetted contractors, reducing the time needed to procure services during emergencies. It also fosters competition among awardees for specific task orders, potentially leading to better performance and pricing. Past operations suggest this model can be effective in providing necessary expertise across various domains, from damage assessment to project management. However, the effectiveness hinges on FEMA's ability to manage these multiple contracts efficiently, assign work appropriately, and monitor performance across all awardees to ensure cohesive and timely recovery.

What is the historical spending pattern for construction and project management support services by FEMA in Puerto Rico?

FEMA's spending in Puerto Rico has significantly increased following major disasters like Hurricane Maria in 2017. Prior to 2017, spending on construction and project management support in Puerto Rico would have been relatively modest, primarily related to smaller-scale disaster events or ongoing mitigation projects. Post-Hurricane Maria, FEMA obligated billions of dollars towards recovery efforts, a substantial portion of which would have been allocated to contracts for engineering, construction management, debris removal, and facility restoration. This $62.9 million award represents a component of that larger, post-disaster spending surge, reflecting the extensive needs for rebuilding and enhancing infrastructure resilience in the territory.

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

Parent Company: Jacobs Engineering Group Inc.

Address: 15010 CONFERENCE CENTER DR STE 200, CHANTILLY, VA, 20151

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

Financial Breakdown

Contract Ceiling: $62,865,629

Exercised Options: $62,865,629

Current Obligation: $62,865,629

Actual Outlays: $53,272

Subaward Activity

Number of Subawards: 99

Total Subaward Amount: $26,317,765

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSFEHQ12D0881

IDV Type: IDC

Timeline