FEMA awards $41.3M contract to Fluor Federal Services for technical support in North Carolina

Contract Overview

Contract Amount: $41,311,975 ($41.3M)

Contractor: Fluor Federal Services Inc

Awarding Agency: Department of Homeland Security

Start Date: 2024-12-06

End Date: 2026-06-05

Contract Duration: 546 days

Daily Burn Rate: $75.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PA-TAC V - FLUOR - TECHNICAL SPECIALISTS IN SUPPORT OF DR-4827-NC

Place of Performance

Location: HICKORY, CATAWBA County, NORTH CAROLINA, 28602

State: North Carolina Government Spending

Plain-Language Summary

Department of Homeland Security obligated $41.3 million to FLUOR FEDERAL SERVICES INC for work described as: PA-TAC V - FLUOR - TECHNICAL SPECIALISTS IN SUPPORT OF DR-4827-NC Key points: 1. Contract provides essential administrative and management consulting services. 2. Competition was full and open, suggesting a competitive bidding process. 3. Contract duration of 546 days indicates a medium-term engagement. 4. Services are critical for disaster response and recovery efforts. 5. The contract type is Time and Materials, which can pose cost control challenges. 6. Fluor Federal Services Inc. is the sole awardee for this specific delivery order.

Value Assessment

Rating: good

The contract value of $41.3 million for approximately 18 months of support appears reasonable given the scope of disaster response and technical assistance required by FEMA. Benchmarking against similar large-scale support contracts for federal agencies, particularly those involving emergency management, suggests this pricing is within expected ranges. The Time and Materials (T&M) pricing structure, while common for services where scope can evolve, warrants close monitoring to ensure cost efficiency and prevent scope creep.

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. While the specific number of bidders for this delivery order is not detailed, the full and open nature suggests a robust competitive environment. This approach is designed to foster price discovery and ensure the government receives the best value by considering a wide range of potential contractors.

Taxpayer Impact: A full and open competition process generally benefits taxpayers by driving down costs through competitive bidding and encouraging a broader pool of qualified contractors to offer their services.

Public Impact

Residents and businesses in North Carolina affected by disasters will benefit from enhanced technical and administrative support. Services delivered include management consulting and administrative support crucial for FEMA's operational effectiveness. The geographic impact is focused on North Carolina, addressing specific regional needs. The contract supports a workforce of technical specialists, potentially creating or sustaining jobs in the consulting and disaster management sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not managed diligently.
Potential for scope creep in disaster response scenarios could increase final costs beyond initial estimates.
Reliance on a single contractor for this delivery order means performance issues could significantly impact operations.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
Fluor Federal Services Inc. has experience supporting government contracts.
The contract duration allows for sustained support during critical recovery phases.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector (NAICS 541611). This sector is vital for government operations, providing expertise in areas ranging from strategic planning to operational efficiency. The market for these services is substantial, with federal agencies being significant clients. FEMA's reliance on such services, especially during disaster recovery, highlights the sector's importance in supporting national resilience and response efforts. Comparable spending benchmarks for large-scale consulting contracts often run into tens or hundreds of millions of dollars annually.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Fluor Federal Services Inc. is a large business. There is no explicit information provided regarding subcontracting plans for small businesses within this specific delivery order. Therefore, the direct impact on the small business ecosystem through this particular award is likely minimal, though Fluor may engage small businesses as part of its broader subcontracting strategy.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. The contract's performance will be monitored through standard contract management procedures, including regular reporting and performance reviews. Given the nature of the services, there may be oversight from FEMA's Office of Inspector General (OIG) if any irregularities or potential fraud are suspected. Transparency is facilitated through contract award databases like FPDS.

Related Government Programs

FEMA Disaster Relief Fund
Department of Homeland Security - Management and Consulting Services
Federal Emergency Management Agency - Technical Support Contracts
North Carolina Disaster Recovery Initiatives

Risk Flags

Potential for cost overruns due to T&M contract type.
Scope creep risk in disaster response scenarios.
Dependence on a single contractor for critical support.
Need for robust oversight to ensure efficient resource utilization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $41.3 million to FLUOR FEDERAL SERVICES INC. PA-TAC V - FLUOR - TECHNICAL SPECIALISTS IN SUPPORT OF DR-4827-NC

Who is the contractor on this award?

The obligated recipient is FLUOR FEDERAL 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 $41.3 million.

What is the period of performance?

Start: 2024-12-06. End: 2026-06-05.

What is Fluor Federal Services Inc.'s track record with FEMA and similar agencies?

Fluor Federal Services Inc. has a significant history of performing contracts for various U.S. government agencies, including FEMA and the Department of Defense. Their experience often involves large-scale support services, logistics, and technical assistance, particularly in complex environments such as disaster response and contingency operations. Reviewing past performance evaluations and contract histories within federal procurement databases (like FPDS) would provide a detailed understanding of their reliability, quality of service, and adherence to contract terms on previous engagements. Specific to FEMA, their involvement in past disaster recovery efforts would be a key indicator of their capability to handle the demands of this North Carolina-focused contract.

How does the $41.3 million value compare to similar FEMA technical support contracts?

The $41.3 million contract value for approximately 18 months of administrative and management consulting services for disaster support in North Carolina appears to be within the typical range for large-scale federal support contracts of this nature. FEMA frequently awards multi-million dollar contracts for disaster response and recovery operations, which often require extensive technical expertise and logistical coordination. When compared to contracts for similar services provided to other federal agencies or even previous FEMA contracts of comparable scope and duration, this award seems aligned with market rates and agency needs. However, a precise benchmark would require analyzing contracts with identical service descriptions, geographic scope, and contract types (Time and Materials in this case).

What are the primary risks associated with a Time and Materials (T&M) contract for disaster response?

The primary risk associated with a Time and Materials (T&M) contract, especially in a dynamic environment like disaster response, is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual labor hours and material costs incurred. If the scope of work expands unexpectedly, or if project management is not rigorous, the total cost can escalate significantly beyond initial projections. For disaster response, the unpredictable nature of the situation can exacerbate this risk, as unforeseen needs may arise, leading to increased hours and resource utilization. Effective oversight, clear task definitions, and diligent monitoring of labor hours and material usage are crucial to mitigate these risks.

How effective are full and open competitions in ensuring value for taxpayer money in consulting services?

Full and open competitions are generally considered the most effective method for ensuring value for taxpayer money when procuring consulting services. By allowing all responsible sources to compete, the government maximizes the potential for receiving competitive bids, which typically drives down prices. This broad competition also encourages innovation and allows the government to select the offer that provides the best overall value, considering factors beyond just price, such as technical approach, past performance, and management capability. While it requires more administrative effort to manage the solicitation and evaluation process, the long-term benefits of cost savings and higher quality service often outweigh these initial costs.

What historical spending patterns exist for FEMA's technical and administrative support contracts in North Carolina?

Historical spending patterns for FEMA's technical and administrative support contracts in North Carolina would likely show fluctuations tied to the frequency and severity of declared disasters in the state. Following major events like hurricanes or widespread flooding, FEMA's spending on support services typically increases significantly. Analyzing past contract awards in North Carolina would reveal the types of services most frequently procured (e.g., debris removal, temporary housing, engineering assessments, administrative support), the average duration and value of these contracts, and the primary contractors that have historically been awarded such work. This data can help establish a baseline for understanding current spending and identifying any anomalies or trends.

What are the implications of awarding a delivery order under a larger contract vehicle?

Awarding a delivery order (DO) under a larger contract vehicle, such as an Indefinite Delivery/Indefinite Quantity (IDIQ) contract, allows for flexibility and streamlined procurement. The parent contract establishes pre-negotiated terms, conditions, and often labor rates, making it faster to issue specific orders for goods or services as needed. For FEMA, this means they can quickly task Fluor Federal Services Inc. with specific support requirements in North Carolina without initiating a new, full procurement process for each task. The implications include faster response times, potentially lower administrative costs, and the ability to adapt to evolving needs. However, the overall value and scope are defined by the parent contract, and the DO represents a specific call against that established agreement.

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: 70FB8025B00000001

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: $41,311,975

Exercised Options: $41,311,975

Current Obligation: $41,311,975

Actual Outlays: $12,633,518

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FB8024D00000003

IDV Type: IDC

Timeline