FEMA awards $25M for Hurricane Ian housing inspections, with WSP USA Services Inc. leading disaster relief efforts

Contract Overview

Contract Amount: $24,925,798 ($24.9M)

Contractor: WSP USA Services Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2022-09-30

End Date: 2023-05-29

Contract Duration: 241 days

Daily Burn Rate: $103.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Other

Official Description: THE PURPOSE OF THIS TASK ORDER IS FOR HOUSING INSPECTION SERVICES IN SUPPORT OF HURRICANE IAN DISASTER RELIEF EFFORTS IN FLORIDA, DR-4673-FL

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $24.9 million to WSP USA SERVICES INC. for work described as: THE PURPOSE OF THIS TASK ORDER IS FOR HOUSING INSPECTION SERVICES IN SUPPORT OF HURRICANE IAN DISASTER RELIEF EFFORTS IN FLORIDA, DR-4673-FL Key points: 1. Contract focused on critical post-disaster housing inspections, directly supporting hurricane relief. 2. Awarded under a broad category for Building Inspection Services, indicating a need for specialized expertise. 3. The contract duration of 241 days aligns with the immediate aftermath and recovery phase of a major disaster. 4. Performance is located in Florida, the primary affected region for Hurricane Ian. 5. The cost-plus-fixed-fee contract type suggests that while costs are reimbursed, a fixed fee is paid for the work. 6. This task order is part of a larger disaster response framework managed by FEMA.

Value Assessment

Rating: good

The contract value of approximately $25 million for housing inspection services appears reasonable given the scale of Hurricane Ian's impact in Florida. While direct comparisons to similar disaster relief inspection contracts are difficult due to the unique nature of each event, the pricing structure (Cost No Fee) suggests that FEMA is reimbursing the contractor for allowable costs plus a fixed fee. This is a common approach for emergency response where the full scope of work may not be precisely defined upfront. Benchmarking against typical construction or inspection service rates would require more granular data on the specific types and volume of inspections performed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, are not provided in the summary data. However, the use of full and open competition generally promotes a competitive environment, which can lead to better pricing and service quality for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of potential contractors to submit bids, potentially driving down costs and improving the efficiency of service delivery for disaster relief efforts.

Public Impact

Residents in Florida affected by Hurricane Ian benefit from timely housing inspections, crucial for assessing damage and initiating recovery. The services delivered include essential housing inspections to support disaster relief operations. The geographic impact is concentrated in Florida, specifically areas devastated by Hurricane Ian. This contract supports a workforce of inspectors and related personnel needed for disaster response.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in disaster response scenarios, requiring diligent oversight to manage costs.
Ensuring the quality and accuracy of inspections is critical for effective disaster relief distribution.
Coordination with other federal, state, and local agencies is essential for seamless operations.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
The contract is directly tied to a critical national event (Hurricane Ian disaster relief), indicating a clear and urgent need.
The contractor, WSP USA SERVICES INC., likely has experience in large-scale engineering and professional services, relevant to inspection tasks.

Sector Analysis

The Building Inspection Services sector (NAICS 541350) encompasses firms that provide on-site inspections of commercial and industrial buildings, as well as residential and other structures. This contract falls within the broader professional, scientific, and technical services industry. Spending in this sector can fluctuate significantly based on economic conditions, regulatory requirements, and disaster events. FEMA's reliance on such services during major disasters highlights the critical role these firms play in national response and recovery efforts.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, it is unlikely that small businesses were specifically targeted for this award. However, the prime contractor, WSP USA SERVICES INC., may engage small businesses as subcontractors to perform portions of the work, which would be a positive outcome for the small business ecosystem if such subcontracting occurs.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. FEMA is responsible for ensuring that the contractor meets the terms and conditions of the task order, including the quality and timeliness of housing inspections. Transparency is facilitated through contract award data, and the Inspector General for the Department of Homeland Security would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Hurricane Ian Disaster Relief
FEMA Housing Assistance Programs
Disaster Recovery and Resilience
Federal Emergency Management Agency Contracts
Building Inspection Services Contracts

Risk Flags

Potential for cost overruns due to the nature of disaster response.
Ensuring consistent quality of inspections across a large geographic area.
Coordination challenges with multiple agencies and stakeholders.
Timeliness of service delivery critical for disaster recovery timelines.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $24.9 million to WSP USA SERVICES INC.. THE PURPOSE OF THIS TASK ORDER IS FOR HOUSING INSPECTION SERVICES IN SUPPORT OF HURRICANE IAN DISASTER RELIEF EFFORTS IN FLORIDA, DR-4673-FL

Who is the contractor on this award?

The obligated recipient is WSP USA SERVICES 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 $24.9 million.

What is the period of performance?

Start: 2022-09-30. End: 2023-05-29.

What is the track record of WSP USA SERVICES INC. in performing disaster response and inspection services for federal agencies?

WSP USA SERVICES INC. is a large, multinational engineering and professional services consulting firm with extensive experience in infrastructure, buildings, and environmental services. They have a significant history of working with federal agencies, including FEMA, on various projects, often involving large-scale disaster recovery and resilience efforts. Their portfolio includes post-disaster assessments, engineering design, program management, and construction management. While specific details on past FEMA housing inspection contracts are not provided here, their general capabilities suggest they are well-equipped for such tasks. A deeper dive into their past performance ratings and any specific disaster response contracts would provide a more precise assessment of their track record in this niche.

How does the cost structure (Cost No Fee) compare to other disaster relief inspection contracts?

The Cost No Fee (CNF) contract type is often utilized by government agencies, particularly FEMA, for emergency response and disaster relief efforts where the exact scope and cost are difficult to determine upfront. In a CNF contract, the government reimburses the contractor for all allowable costs incurred in performing the work, plus a fixed fee that represents the contractor's profit. This differs from fixed-price contracts where the price is set in advance, or cost-plus-incentive-fee contracts where profit is adjusted based on performance. For disaster relief, CNF allows for flexibility in adapting to evolving needs on the ground. Compared to other disaster relief contracts, CNF is a common and accepted method for managing uncertainty, though it places a strong emphasis on government oversight to control costs and ensure efficiency.

What are the potential risks associated with a contract of this nature and duration for disaster relief?

Several risks are associated with a contract of this nature and duration for disaster relief. Firstly, there's the risk of scope creep, where the initial requirements may expand significantly as the full extent of the disaster becomes clearer, potentially leading to cost overruns if not managed tightly. Secondly, ensuring the quality and accuracy of a high volume of housing inspections under time pressure is critical; inaccurate assessments could lead to improper allocation of aid. Thirdly, coordination challenges with numerous federal, state, and local agencies involved in disaster response can impede efficiency. Finally, contractor performance risk exists; while WSP USA SERVICES INC. is a large firm, unforeseen operational challenges in a disaster zone could impact their ability to deliver services as expected. Robust oversight and clear communication protocols are essential to mitigate these risks.

What is the historical spending pattern for housing inspection services by FEMA, particularly in response to major hurricanes?

FEMA's spending on housing inspection services typically escalates significantly following major hurricanes or other large-scale natural disasters. For instance, after Hurricane Harvey, Irma, and Maria in 2017, and more recently Ian in 2022, FEMA has awarded numerous contracts for inspection services to assess damage to residential properties. These contracts can range from tens of millions to hundreds of millions of dollars depending on the geographic area affected and the number of properties requiring inspection. Historical data shows a pattern of utilizing both large, established engineering firms and specialized inspection companies, often through task orders under larger indefinite-delivery/indefinite-quantity (IDIQ) contracts or through full and open competition for specific disaster events. The spending is directly correlated with the severity and geographic spread of the disaster.

How does the geographic focus on Florida for Hurricane Ian relief compare to FEMA's typical disaster response operations?

Florida is a state highly susceptible to hurricanes, and FEMA's disaster response operations frequently involve significant activity in this region. Hurricane Ian, being a major Category 4 storm that made landfall in Southwest Florida, necessitated a large-scale response. FEMA's operations in Florida are often extensive due to the state's extensive coastline, population density, and vulnerability to tropical cyclones. This contract, focusing on housing inspections in Florida, is therefore consistent with FEMA's historical and ongoing engagement in the state during major disaster events. The scale of the response, however, is dictated by the specific impact of the hurricane, which in the case of Ian, was substantial.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Building Inspection Services

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › QUALITY CONTROL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 70FBR422R00000021

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Enterra Holdings Ltd

Address: 13530 DULLES TECHNOLOGY DR STE 300, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $25,239,060

Exercised Options: $25,239,060

Current Obligation: $24,925,798

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FB8020D00000002

IDV Type: IDC

Timeline