FEMA awards $33.7M for disaster recovery technical support, highlighting administrative management consulting needs

Contract Overview

Contract Amount: $33,692,599 ($33.7M)

Contractor: CH2M Hill - CDM Pa-Tac Recovery Services

Awarding Agency: Department of Homeland Security

Start Date: 2020-06-01

End Date: 2024-05-01

Contract Duration: 1,430 days

Daily Burn Rate: $23.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: CH2M HILL-CDM PA-TAC RECOVERY SVCS (PA-TAC IV TECHNICAL SUPPORT FOR DR-4340-VI. HYBRID - TIME&MATERIALS AND COST REIMBURSEMENT).

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $33.7 million to CH2M HILL - CDM PA-TAC RECOVERY SERVICES for work described as: CH2M HILL-CDM PA-TAC RECOVERY SVCS (PA-TAC IV TECHNICAL SUPPORT FOR DR-4340-VI. HYBRID - TIME&MATERIALS AND COST REIMBURSEMENT). Key points: 1. Contract provides essential technical support for disaster recovery operations, aligning with FEMA's mission. 2. The hybrid contract structure (Time & Materials and Cost Reimbursement) allows flexibility for evolving disaster needs. 3. Competition was full and open, suggesting a robust market for these specialized services. 4. The contract duration of approximately 4 years indicates a significant, ongoing requirement. 5. Spending aligns with administrative management and general management consulting services, a common federal need. 6. The contract's value is moderate within the context of large-scale disaster response efforts.

Value Assessment

Rating: good

The contract value of $33.7 million over roughly four years for technical support in disaster recovery appears reasonable. Benchmarking against similar contracts for FEMA's technical assistance during disaster events would provide a more precise value-for-money assessment. The hybrid Time & Materials and Cost Reimbursement structure can sometimes lead to cost overruns if not closely monitored, but it also offers necessary flexibility for unpredictable disaster scenarios. The contract's base award amount of $23.6 million suggests a significant portion of the potential value was awarded upfront.

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 specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and encourages vendors to offer their best value. The open competition suggests that the market for disaster recovery technical support services is sufficiently developed to support multiple providers.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and ensures that the government receives competitive pricing for essential services.

Public Impact

Citizens impacted by federally declared disasters benefit from enhanced recovery support. Services delivered include technical assistance and management consulting for disaster response and recovery. The primary geographic impact is within Virginia, where the contractor is located, but services likely extend to disaster-affected areas nationwide. The contract supports a workforce skilled in disaster management and administrative consulting. FEMA's operational capacity is strengthened, enabling more effective response to crises.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation with Time & Materials and Cost Reimbursement elements if not rigorously managed.
Dependence on a single contractor for critical technical support during potentially extended recovery periods.
The broad scope of 'Administrative Management and General Management Consulting Services' could lead to scope creep if not clearly defined.

Positive Signals

Awarded through full and open competition, indicating a healthy market and competitive pricing potential.
Contract duration suggests a stable, long-term need that FEMA is prepared to address.
The hybrid contract type offers flexibility to adapt to the dynamic nature of disaster recovery.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative and management consulting. This sector is a significant component of federal spending, supporting a wide array of government functions. The market for disaster recovery services is specialized, often involving firms with expertise in emergency management, engineering, and logistics. Comparable spending benchmarks would involve looking at other large-scale support contracts awarded by agencies like FEMA, HUD, or the Army Corps of Engineers for disaster-related services.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, CH2M HILL - CDM PA-TAC RECOVERY SERVICES, is likely a large business. There is no explicit information on subcontracting plans for small businesses within this data snippet. Without this information, it's difficult to assess the direct impact on the small business ecosystem, though large prime contracts often include subcontracting goals.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Emergency Management Agency (FEMA) contracting officers and program managers. The contract type (Time & Materials/Cost Reimbursement) necessitates close monitoring of hours, costs, and deliverables to ensure compliance and prevent overspending. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General oversight may be involved if specific concerns regarding fraud, waste, or abuse arise.

Related Government Programs

FEMA Disaster Relief Fund
FEMA Public Assistance Program
Management and Consulting Services
Emergency Management Support Contracts

Risk Flags

Cost Overrun Risk (T&M/CR)
Scope Creep Potential
Contractor Performance Monitoring
Dependence on External Expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $33.7 million to CH2M HILL - CDM PA-TAC RECOVERY SERVICES. CH2M HILL-CDM PA-TAC RECOVERY SVCS (PA-TAC IV TECHNICAL SUPPORT FOR DR-4340-VI. HYBRID - TIME&MATERIALS AND COST REIMBURSEMENT).

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 $33.7 million.

What is the period of performance?

Start: 2020-06-01. End: 2024-05-01.

What is the track record of CH2M HILL - CDM PA-TAC RECOVERY SERVICES with FEMA or similar agencies?

CH2M HILL, and its subsequent entities like CDM Smith, has a significant history of performing large-scale engineering, environmental, and program management services for government agencies, including FEMA. They have been involved in numerous disaster recovery efforts, providing technical assistance, program management, and construction management. Their experience often spans complex projects requiring expertise in areas like infrastructure repair, environmental remediation, and debris removal. While this specific contract is for technical support under PA-TAC IV, their broader portfolio suggests a substantial capacity to handle such requirements. A deeper dive into their past performance ratings and any past performance issues on similar FEMA contracts would be necessary for a complete assessment.

How does the $33.7 million contract value compare to other FEMA technical support contracts?

The $33.7 million total potential value for this contract is substantial, reflecting the significant resources required for disaster recovery technical support. FEMA frequently awards large contracts in this domain due to the unpredictable nature and scale of natural disasters. Comparing this to other FEMA technical support contracts requires analyzing the specific services rendered, the duration, and the scale of the disaster event being supported. For instance, contracts supporting major hurricanes (like Katrina, Harvey, Maria) often reach hundreds of millions or even billions. This $33.7 million contract appears to be a significant, but not exceptionally large, award within FEMA's overall disaster response spending portfolio, likely supporting specific recovery phases or regions.

What are the primary risks associated with this Time & Materials / Cost Reimbursement contract?

The primary risks associated with a hybrid Time & Materials (T&M) and Cost Reimbursement (CR) contract structure for disaster recovery technical support revolve around cost control and scope management. T&M contracts can lead to cost overruns if labor hours are not closely monitored and justified. Cost Reimbursement contracts, while offering flexibility, require rigorous auditing of incurred costs to prevent improper charges. For disaster recovery, the unpredictable nature of the work can exacerbate these risks, making it challenging to establish firm cost ceilings or accurately forecast labor needs. Effective oversight, detailed reporting requirements, and clear task definitions are crucial to mitigate these risks and ensure value for taxpayer money.

How effective is FEMA's use of administrative management consulting services for disaster recovery?

FEMA's reliance on administrative management consulting services for disaster recovery is generally considered effective and necessary. These services provide specialized expertise that FEMA may not possess internally or have readily available during surge periods. Consultants help streamline complex processes, manage large-scale operations, ensure regulatory compliance, and improve the efficiency of aid distribution. The effectiveness hinges on the quality of the contractors selected, the clarity of the SOW, and robust program oversight. While consultants can be costly, their specialized knowledge and ability to rapidly scale support during crises often prove invaluable in accelerating recovery efforts and ensuring accountability.

What are the historical spending patterns for disaster recovery technical support by FEMA?

FEMA's historical spending on disaster recovery technical support has been substantial and often fluctuates significantly year-to-year, driven by the frequency and severity of natural disasters. The agency consistently requires support for its Public Assistance (PA) and Individual Assistance (IA) programs, which involve complex logistical, engineering, and administrative challenges. Spending trends show an increasing reliance on external contractors for specialized expertise, particularly in areas like debris removal management, infrastructure assessment, and program oversight. The use of indefinite-delivery/indefinite-quantity (IDIQ) contracts and large-scale task orders, similar to the PA-TAC IV structure, is common for managing these ongoing and unpredictable needs. Overall, FEMA's budget allocation for technical support services reflects the growing demands of disaster response and recovery in a changing climate.

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: $33,692,599

Exercised Options: $33,692,599

Current Obligation: $33,692,599

Actual Outlays: $11,447

Subaward Activity

Number of Subawards: 70

Total Subaward Amount: $12,002,711

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