FEMA awards $19.8M contract for disaster recovery services in Puerto Rico and USVI

Contract Overview

Contract Amount: $19,853,167 ($19.9M)

Contractor: CH2M Hill - CDM Pa-Tac Recovery Services

Awarding Agency: Department of Homeland Security

Start Date: 2024-01-01

End Date: 2026-03-31

Contract Duration: 820 days

Daily Burn Rate: $24.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PATAC IV: USVI-PR CCPRS (DR-4339/4473-PR & DR-4335/4340-USVI)

Place of Performance

Location: ADJUNTAS, ADJUNTAS County, PUERTO RICO, 00601

Plain-Language Summary

Department of Homeland Security obligated $19.9 million to CH2M HILL - CDM PA-TAC RECOVERY SERVICES for work described as: PATAC IV: USVI-PR CCPRS (DR-4339/4473-PR & DR-4335/4340-USVI) Key points: 1. Contract focuses on essential administrative and management consulting for disaster recovery. 2. Full and open competition suggests a competitive bidding process. 3. Time and Materials pricing model introduces potential cost variability. 4. Contract duration extends over two years, indicating a significant recovery effort. 5. Services are critical for post-disaster resilience and rebuilding. 6. No small business set-aside noted, potentially limiting direct small business participation.

Value Assessment

Rating: fair

The contract value of $19.8 million for disaster recovery services appears reasonable given the scope and duration. However, the Time and Materials (T&M) pricing structure warrants close monitoring for cost efficiency. Without specific benchmarks for similar T&M disaster recovery contracts, a definitive value-for-money assessment is challenging. The contractor, CH2M HILL - CDM PA-TAC RECOVERY SERVICES, has experience in this domain, which can be a positive indicator, but the T&M nature means actual costs could fluctuate significantly from the initial award amount.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this approach generally fosters price discovery and encourages competitive pricing. The agency sought a broad range of potential contractors, which should theoretically lead to a more favorable outcome for the government in terms of cost and quality.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, driving down prices through rivalry and ensuring the government receives competitive bids.

Public Impact

Residents and businesses in Puerto Rico and the U.S. Virgin Islands will benefit from improved disaster recovery coordination and management. Services will support the ongoing recovery efforts following hurricanes. The contract's geographic focus is on the U.S. territories of Puerto Rico and the U.S. Virgin Islands. The contract aims to bolster the administrative capacity for managing federal disaster relief funds and projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not managed diligently.
The broad scope of disaster recovery may present unforeseen challenges impacting project timelines and costs.
Dependence on a single contractor for critical recovery services could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Contractor has prior experience in disaster recovery services.
Contract duration allows for sustained support during a prolonged recovery period.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector, specifically applied to disaster recovery. This is a critical niche within the broader professional services market, often seeing increased demand following natural disasters. The market size for such services can fluctuate significantly based on the frequency and severity of events. FEMA's reliance on such contracts highlights the importance of specialized expertise in managing complex, large-scale recovery operations.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses within the provided data. This suggests that the primary award went to a larger entity, and opportunities for small businesses may be limited to potential subcontracting roles, the extent of which is not detailed. Further investigation into subcontracting plans would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Emergency Management Agency (FEMA) contracting officers and program managers. The Time and Materials (T&M) nature of the contract necessitates rigorous monitoring of labor hours and material costs to ensure compliance and prevent overcharging. Transparency will depend on FEMA's reporting practices and the availability of performance data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

FEMA Disaster Relief Fund
Public Assistance Program
Hazard Mitigation Grant Program
Community Disaster Loan Program

Risk Flags

Time and Materials pricing model
Potential for cost overruns
Complexity of disaster recovery operations
Geographic challenges in remote territories

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $19.9 million to CH2M HILL - CDM PA-TAC RECOVERY SERVICES. PATAC IV: USVI-PR CCPRS (DR-4339/4473-PR & DR-4335/4340-USVI)

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 $19.9 million.

What is the period of performance?

Start: 2024-01-01. End: 2026-03-31.

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

CH2M HILL, and its subsequent integrations/acquisitions including CDM Smith's involvement in PA-TAC, has a significant history with FEMA, particularly in large-scale disaster recovery operations. They have been involved in numerous post-hurricane recovery efforts, including those in Puerto Rico and the U.S. Virgin Islands following Hurricanes Irma and Maria. Their experience encompasses providing technical, management, and administrative support for FEMA's Public Assistance program, which aligns with the services described in this PATAC IV contract. While specific performance metrics for past contracts are not detailed here, their continued selection for such critical roles suggests a level of competence and reliability recognized by the agency. However, like many large contractors, they have also faced scrutiny and challenges in past engagements, underscoring the need for ongoing oversight.

How does the Time and Materials (T&M) pricing structure compare to other disaster recovery contracts awarded by FEMA?

FEMA utilizes various contract types, including Firm-Fixed-Price (FFP), Cost-Plus-Fixed-Fee (CPFF), and Time and Materials (T&M). T&M contracts are often used when the scope of work is not clearly defined or when the level of effort is uncertain, which can be common in disaster recovery scenarios where the full extent of damage and required work may evolve. While T&M offers flexibility, it carries a higher risk of cost overruns for the government compared to FFP contracts. Benchmarking T&M contracts is complex as the 'value' is highly dependent on the actual hours and materials expended. However, for well-defined tasks within disaster recovery, FEMA often prefers FFP to ensure cost certainty. The use of T&M here suggests a need for adaptability but necessitates stringent oversight to control costs.

What are the primary risks associated with this specific contract, beyond general disaster recovery challenges?

Beyond the inherent complexities of disaster recovery, the primary risks for this PATAC IV contract center on the Time and Materials (T&M) pricing structure. This model, while flexible, can lead to cost escalation if not meticulously managed and monitored by FEMA. Unforeseen scope creep, inefficient labor utilization, or inflated material costs can significantly increase the total expenditure beyond initial projections. Another risk is the potential for contractor performance issues, such as delays or quality deficiencies, which could impede the recovery process in the affected territories. Given the critical nature of disaster response, any performance lapse could have substantial negative consequences for the affected populations and infrastructure.

What historical spending patterns exist for similar disaster recovery support contracts in Puerto Rico and the U.S. Virgin Islands?

Following major disasters like Hurricanes Irma and Maria, federal spending on recovery support contracts in Puerto Rico and the U.S. Virgin Islands has been substantial. FEMA, through various contract vehicles such as PA-TAC (Public Assistance Technical Assistance Contracts), has awarded billions of dollars cumulatively for debris removal, infrastructure repair, management consulting, and other essential recovery services. These contracts often span multiple years due to the long-term nature of rebuilding. Historical data indicates a significant reliance on large, experienced contractors to manage these complex operations. Spending patterns show a concentration of awards in the years immediately following the disaster, tapering off as recovery progresses, though long-term resilience and mitigation efforts can sustain spending.

How does the $19.8 million award compare to the total federal spending on disaster recovery in the region since the relevant disasters?

The $19.8 million award for PATAC IV is a component of the broader federal disaster recovery effort in Puerto Rico and the U.S. Virgin Islands following DR-4339/4473-PR and DR-4335/4473-USVI. Total federal spending for these disaster declarations, encompassing FEMA's Public Assistance, Individual Assistance, and other programs, has amounted to billions of dollars. For instance, FEMA's Public Assistance obligations alone for these events have reached tens of billions. Therefore, this specific $19.8 million contract represents a relatively small, albeit important, portion dedicated to specific administrative and management consulting services under the PA-TAC umbrella. It is one of many contracts supporting the vast recovery operation.

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

Solicitation ID: 70FB8024R00000003

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: $19,868,105

Exercised Options: $19,853,169

Current Obligation: $19,853,167

Actual Outlays: $16,553,762

Subaward Activity

Number of Subawards: 55

Total Subaward Amount: $9,957,871

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