FEMA's $31.7M contract for disaster recovery support awarded to Fluor Enterprises, Inc

Contract Overview

Contract Amount: $31,709,495 ($31.7M)

Contractor: Fluor Enterprises, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2020-09-22

End Date: 2021-09-20

Contract Duration: 363 days

Daily Burn Rate: $87.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO SUPPORT CONSOLIDATED RESOURCES CENTER (CRC) EAST(DR-4339-FL AND DR-4337-FL). THE PERIOD OF PERFORMANCE: SEPTEMBER 22, 2020 THROUGH MARCH 21, 2021 OPTION I: MARCH 22, 2021 THROUGH SEPTEMBER 21, 2121.

Place of Performance

Location: GREENVILLE, GREENVILLE County, SOUTH CAROLINA, 29607

State: South Carolina Government Spending

Plain-Language Summary

Department of Homeland Security obligated $31.7 million to FLUOR ENTERPRISES, INC. for work described as: THE PURPOSE OF THIS TASK ORDER IS TO SUPPORT CONSOLIDATED RESOURCES CENTER (CRC) EAST(DR-4339-FL AND DR-4337-FL). THE PERIOD OF PERFORMANCE: SEPTEMBER 22, 2020 THROUGH MARCH 21, 2021 OPTION I: MARCH 22, 2021 THROUGH SEPTEMBER 21, 2121. Key points: 1. Contract focused on supporting disaster recovery operations for FEMA's Consolidated Resources Center East. 2. Performance period spans nearly one year, encompassing initial support and an option period. 3. Awarded under full and open competition, suggesting a broad market solicitation. 4. Services fall under Administrative Management and General Management Consulting. 5. Contract type is Time and Materials, which can pose cost control challenges. 6. The contract value is substantial, reflecting the scale of disaster response needs.

Value Assessment

Rating: fair

The contract value of $31.7 million for a period of approximately one year for disaster recovery support appears significant. Benchmarking against similar contracts for large-scale disaster response management is difficult without more specific service details. However, the Time and Materials (T&M) contract type, while flexible, can lead to higher costs if not closely managed, potentially impacting overall value for money compared to fixed-price arrangements for well-defined scopes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the government solicited bids from all responsible sources. The specific number of bidders is not provided, but this approach generally fosters a competitive environment, allowing for price discovery and potentially leading to more favorable pricing for the government. The open competition suggests that multiple firms were capable of providing the required administrative and management consulting services for disaster recovery.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and thus potentially lower prices.

Public Impact

Directly benefits the Federal Emergency Management Agency (FEMA) by providing essential support for disaster recovery operations. Services delivered are administrative and general management consulting, crucial for coordinating and executing response efforts. Geographic impact is focused on supporting the Consolidated Resources Center East, likely in South Carolina. Workforce implications include the potential for direct hires by Fluor Enterprises and indirect support to the broader disaster response community.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not meticulously managed.
Lack of specific performance metrics makes it difficult to assess efficiency and effectiveness.
The broad nature of 'Administrative Management and General Management Consulting Services' could allow for scope creep.

Positive Signals

Awarded through full and open competition, suggesting a robust market response.
Supports critical disaster recovery functions for a key federal agency.
Clear period of performance with an option period for extended support.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative and management consulting. This sector is vital for government operations, particularly in areas requiring specialized expertise like disaster management. The market for such services is competitive, with numerous firms capable of supporting federal agencies. The contract's value is significant, reflecting the critical nature and scale of FEMA's disaster response requirements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses like Fluor Enterprises, Inc. were the primary recipients. There is no explicit information on subcontracting plans for small businesses within this award notice. This suggests that the primary focus was on securing the necessary expertise from established providers, potentially limiting direct opportunities for small businesses on this specific task order.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Emergency Management Agency (FEMA) contracting officers and program managers. As a task order under a larger contract vehicle, it is subject to the oversight mechanisms of that vehicle. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

FEMA Disaster Relief Fund
Emergency Management Services
Government Consulting Services
Federal Contract Management

Risk Flags

Cost Overrun Risk (T&M Contract)
Scope Creep Potential
Performance Monitoring Challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $31.7 million to FLUOR ENTERPRISES, INC.. THE PURPOSE OF THIS TASK ORDER IS TO SUPPORT CONSOLIDATED RESOURCES CENTER (CRC) EAST(DR-4339-FL AND DR-4337-FL). THE PERIOD OF PERFORMANCE: SEPTEMBER 22, 2020 THROUGH MARCH 21, 2021 OPTION I: MARCH 22, 2021 THROUGH SEPTEMBER 21, 2121.

Who is the contractor on this award?

The obligated recipient is FLUOR ENTERPRISES, INC..

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 $31.7 million.

What is the period of performance?

Start: 2020-09-22. End: 2021-09-20.

What specific disaster events or recovery phases does this contract support?

The provided data indicates the contract supports 'Consolidated Resources Center (CRC) East (DR-4339-FL and DR-4337-FL)'. While the specific disaster events (DR-4339-FL and DR-4337-FL) are not detailed in this snippet, these likely refer to specific federally declared disasters impacting Florida. The contract's purpose is to provide administrative and general management consulting services to aid in the recovery process for these events, which could include logistical support, financial management assistance, resource coordination, and operational planning for the CRC East.

How does the Time and Materials (T&M) contract type compare to other potential contract types for this service?

A Time and Materials (T&M) contract pays the contractor for direct labor hours at specified fixed hourly rates and for the actual cost of materials. For administrative and management consulting, T&M offers flexibility, which can be advantageous when the scope of work is not fully defined or is expected to evolve, as is often the case in disaster recovery. However, T&M contracts carry a higher risk of cost overruns for the government compared to Firm-Fixed-Price (FFP) contracts, where the price is set regardless of the contractor's actual costs. Without a ceiling on T&M, the government may end up paying more than anticipated if the effort takes longer or requires more resources than initially estimated. This necessitates robust oversight and management to control costs.

What is the typical cost range for similar disaster recovery support contracts?

Determining a precise 'typical' cost range for disaster recovery support contracts is challenging due to the highly variable nature of disasters, their scale, duration, and the specific services required. Contracts can range from thousands to billions of dollars. For administrative and management consulting services supporting large-scale recovery operations, contracts in the tens of millions of dollars, like this $31.7 million award, are not uncommon, especially when they span extended periods and significant geographic areas. Benchmarking requires detailed comparison of the scope of work, performance period, and the specific recovery needs addressed.

What are the potential risks associated with Fluor Enterprises, Inc. performing this contract?

Potential risks associated with Fluor Enterprises, Inc. performing this contract are not unique to the company but are inherent in large-scale government contracts, especially those under a Time and Materials (T&M) structure. Key risks include potential cost overruns due to the T&M nature if not managed tightly, scope creep where the services extend beyond the original intent, and performance issues if the contractor fails to deliver adequate support. Given Fluor's extensive experience in government contracting and large projects, their track record suggests a capacity to manage such complexities, but diligent oversight by FEMA remains crucial to mitigate these risks.

What is the historical spending pattern for FEMA's disaster recovery consulting services?

FEMA's spending on disaster recovery consulting services fluctuates significantly year-to-year, heavily influenced by the frequency and severity of natural disasters. In years with major hurricanes, floods, or wildfires, spending on support services, including administrative and management consulting, can surge into the hundreds of millions or even billions of dollars. This $31.7 million contract is one component of FEMA's broader expenditure on disaster response and recovery. Historical data would show peaks following significant disaster events and lower spending in quieter periods. Analyzing trends requires examining annual reports and contract databases over multiple years.

How does the NAICS code 541611 (Administrative Management and General Management Consulting Services) apply to disaster recovery?

The NAICS code 541611 is broadly applicable to disaster recovery because these events require extensive administrative and management coordination. This includes planning, organizing, and directing operations; managing resources and personnel; developing and implementing recovery strategies; advising on organizational changes; and improving efficiency. For FEMA, consultants under this code can assist in streamlining the complex processes of damage assessment, aid distribution, debris removal coordination, temporary housing solutions, and long-term rebuilding efforts, essentially providing the management expertise needed to navigate the multifaceted challenges of post-disaster recovery.

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: Fluor Corporation

Address: 100 FLUOR DANIEL DR, GREENVILLE, SC, 29607

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,709,495

Exercised Options: $31,709,495

Current Obligation: $31,709,495

Subaward Activity

Number of Subawards: 26

Total Subaward Amount: $31,989,086

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FB8018D00000001

IDV Type: IDC

Timeline