FEMA's $26.2M disaster operations contract for Virgin Islands awarded to CH2M HILL - CDM PA-TAC RECOVERY SERVICES

Contract Overview

Contract Amount: $26,244,689 ($26.2M)

Contractor: CH2M Hill - CDM Pa-Tac Recovery Services

Awarding Agency: Department of Homeland Security

Start Date: 2019-06-01

End Date: 2023-08-09

Contract Duration: 1,530 days

Daily Burn Rate: $17.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THE GOVERNMENT REQUIRES TECHNICAL ASSISTANCE IN SUPPORT OF PUBLIC ASSISTANCE DISASTER OPERATION FOR DR-4340-VI (VIRGIN ISLANDS). THE PERIOD OF PERFORMANCE: JUNE 1, 2019 THROUGH NOVEMBER 30, 2019. OPTION I: DECEMBER 1, 2019 THROUGH MAY 31, 2020.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $26.2 million to CH2M HILL - CDM PA-TAC RECOVERY SERVICES for work described as: THE GOVERNMENT REQUIRES TECHNICAL ASSISTANCE IN SUPPORT OF PUBLIC ASSISTANCE DISASTER OPERATION FOR DR-4340-VI (VIRGIN ISLANDS). THE PERIOD OF PERFORMANCE: JUNE 1, 2019 THROUGH NOVEMBER 30, 2019. OPTION I: DECEMBER 1, 2019 THROUGH MAY 31, 2020. Key points: 1. Contract provides critical technical assistance for disaster operations in the U.S. Virgin Islands. 2. Performance period spans from June 2019 to November 2020, including an option period. 3. The contract type is Time and Materials, indicating payment based on labor hours and material costs. 4. Awarded under full and open competition, suggesting a competitive bidding process. 5. The North American Industry Classification System (NAICS) code 541611 points to management consulting services. 6. The contract was awarded by the Department of Homeland Security, Federal Emergency Management Agency (FEMA).

Value Assessment

Rating: fair

The contract value of $26.2 million for a period of 18 months (including the option) for disaster recovery technical assistance appears to be within a reasonable range for such critical support. However, without specific benchmarks for disaster operations technical assistance in the Virgin Islands or comparable contracts, a precise value-for-money assessment is challenging. The Time and Materials pricing structure can sometimes lead to cost overruns if not closely monitored, but it is often necessary for the unpredictable nature of disaster response.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, which typically involves a broad solicitation to all eligible bidders. The specific number of bidders is not provided, but this method generally fosters price discovery and encourages multiple companies to offer their services. The competitive nature suggests that FEMA sought the best value proposition available in the market for the required technical assistance.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is intended to drive down costs through market forces and ensure that the government receives competitive pricing.

Public Impact

Residents and businesses in the U.S. Virgin Islands benefit from essential technical assistance during disaster recovery operations. The contract supports the Federal Emergency Management Agency (FEMA) in managing and executing disaster relief efforts. Services delivered are crucial for the restoration of public assistance and infrastructure following a disaster. The geographic impact is focused on the U.S. Virgin Islands, addressing specific regional needs. The contract supports the administrative and management consulting sector, indirectly impacting the workforce in that field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials pricing structure if not rigorously managed.
Limited transparency on the specific metrics used to evaluate contractor performance beyond basic delivery.
Geographic remoteness of the Virgin Islands could present logistical challenges impacting service delivery efficiency.
The duration of the contract, while necessary for disaster recovery, may not fully capture long-term needs without extensions or new solicitations.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Contract supports critical disaster relief operations, aligning with FEMA's core mission.
The contractor, CH2M HILL - CDM PA-TAC RECOVERY SERVICES, likely possesses specialized expertise in disaster management.
The contract period includes an option, providing flexibility for continued support if needed.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector (NAICS 541611). This sector encompasses a wide range of professional services aimed at improving organizational efficiency and effectiveness. Federal spending in this area often supports complex program management, policy development, and operational support, particularly in specialized fields like disaster response. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of disaster recovery, but consulting services for large-scale government programs can range from millions to billions of dollars.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor is likely a large entity capable of handling the scope and complexity of disaster recovery operations.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's Office of Inspector General (OIG), which is responsible for auditing and investigating fraud, waste, and abuse in DHS programs, including FEMA. FEMA itself would have program managers responsible for monitoring contractor performance, ensuring adherence to contract terms, and verifying the necessity and reasonableness of costs incurred under the Time and Materials structure. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics may not always be publicly detailed.

Related Government Programs

FEMA Disaster Relief Fund
Public Assistance Program
Hurricane Recovery Efforts
Emergency Management Consulting Services

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Geographic challenges impacting logistics and response times.
Need for robust oversight to ensure efficient service delivery.
Limited public information on specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $26.2 million to CH2M HILL - CDM PA-TAC RECOVERY SERVICES. THE GOVERNMENT REQUIRES TECHNICAL ASSISTANCE IN SUPPORT OF PUBLIC ASSISTANCE DISASTER OPERATION FOR DR-4340-VI (VIRGIN ISLANDS). THE PERIOD OF PERFORMANCE: JUNE 1, 2019 THROUGH NOVEMBER 30, 2019. OPTION I: DECEMBER 1, 2019 THROUGH MAY 31, 2020.

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 $26.2 million.

What is the period of performance?

Start: 2019-06-01. End: 2023-08-09.

What specific technical assistance services were provided under this contract?

The contract required technical assistance in support of public assistance disaster operations for DR-4340-VI (Virgin Islands). While the specific deliverables are not detailed in the provided data, this typically includes services such as damage assessment, cost estimation, program management support, policy interpretation, and guidance to state and local officials on navigating FEMA's public assistance processes. The goal is to ensure efficient and effective delivery of federal aid to disaster-affected areas, helping to restore infrastructure and essential services.

How does the Time and Materials (T&M) contract type impact cost control for disaster operations?

Time and Materials contracts, like this one, pay the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure offers flexibility, which is often necessary in dynamic disaster environments where the scope of work can evolve rapidly. However, it also presents a higher risk of cost overruns if not managed diligently. FEMA would need robust oversight to ensure that labor hours are reasonable and necessary, and that material costs are fair and properly documented. Without strict monitoring, T&M can be less cost-effective than fixed-price contracts.

What is the significance of the contract being awarded to CH2M HILL - CDM PA-TAC RECOVERY SERVICES?

The award to CH2M HILL - CDM PA-TAC RECOVERY SERVICES suggests that this entity possesses specialized expertise and experience in disaster recovery and management consulting. Large firms like this often have established teams and methodologies for responding to large-scale emergencies. Their selection indicates that FEMA assessed them as capable of providing the necessary technical support efficiently and effectively. The specific track record of this joint venture or its parent companies in similar federal disaster response contracts would be a key factor in evaluating their past performance and suitability.

What were the historical spending patterns for similar disaster operations support in the Virgin Islands prior to DR-4340-VI?

Historical spending data for similar disaster operations support in the Virgin Islands prior to DR-4340-VI is not provided in this data snippet. However, understanding past expenditures for disaster recovery assistance, especially following major events like hurricanes, would be crucial for benchmarking the $26.2 million awarded here. FEMA's spending fluctuates significantly based on the frequency and severity of declared disasters. Analyzing previous contracts for technical assistance, debris removal, or infrastructure repair in the region would offer context on typical cost ranges and the duration of recovery efforts.

What are the potential risks associated with a contract supporting disaster operations in a remote island territory?

Supporting disaster operations in a remote island territory like the U.S. Virgin Islands presents several risks. Logistical challenges related to transportation of personnel and equipment can increase costs and delay response times. Limited local resources and infrastructure may necessitate bringing in external support, further complicating operations. Communication infrastructure can be fragile and susceptible to damage during disasters, hindering coordination. Furthermore, the unique regulatory and cultural environment may require specialized knowledge. The contractor's ability to navigate these challenges effectively is critical to successful mission accomplishment and efficient use of taxpayer funds.

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

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: $26,244,689

Exercised Options: $26,244,689

Current Obligation: $26,244,689

Subaward Activity

Number of Subawards: 43

Total Subaward Amount: $10,905,467

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