FEMA awards $22.2M for 25,000 housing inspections in Michigan, a significant delivery order under a larger contract
Contract Overview
Contract Amount: $22,237,678 ($22.2M)
Contractor: WSP USA Services Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2024-02-12
End Date: 2024-12-10
Contract Duration: 302 days
Daily Burn Rate: $73.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: HOUSING INSPECTION SERVICES (HIS) - WSP USA SERVICES, INC. - DR-4757-MI 25,000 HOUSING INSPECTIONS.
Place of Performance
Location: DETROIT, WAYNE County, MICHIGAN, 48201
State: Michigan Government Spending
Plain-Language Summary
Department of Homeland Security obligated $22.2 million to WSP USA SERVICES INC. for work described as: HOUSING INSPECTION SERVICES (HIS) - WSP USA SERVICES, INC. - DR-4757-MI 25,000 HOUSING INSPECTIONS. Key points: 1. The contract value represents a substantial investment in disaster recovery support. 2. Competition dynamics for this delivery order are not detailed, but the parent contract was fully competed. 3. Risk indicators are moderate, given the fixed-price nature and defined scope, but performance hinges on WSP USA's execution. 4. Performance context is critical, as timely and accurate inspections are vital for disaster relief. 5. This contract falls within professional services, specifically building inspection, supporting FEMA's disaster response mission.
Value Assessment
Rating: good
The cost per inspection is approximately $889.51. This appears reasonable given the complexity of disaster housing inspections, which often involve detailed assessments of damage, habitability, and safety. Benchmarking against similar large-scale inspection contracts would provide further clarity, but the fixed-price nature suggests a degree of cost control.
Cost Per Unit: Approximately $889.51 per inspection.
Competition Analysis
Competition Level: full-and-open
This delivery order was issued under a contract that was awarded through full and open competition. While the specific competition for this particular delivery order is not detailed, the initial award suggests a competitive environment that likely drove favorable pricing. The number of bidders for the parent contract would be a key indicator of the breadth of competition.
Taxpayer Impact: A fully competed parent contract generally benefits taxpayers by ensuring a competitive landscape that can lead to better pricing and service quality.
Public Impact
Homeowners and residents in Michigan affected by disasters will benefit from timely housing inspections. The services delivered include detailed assessments of housing damage and habitability. The geographic impact is focused on Michigan, specifically areas designated for disaster relief. This contract supports a workforce of inspectors and administrative staff involved in the inspection process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for delays in inspection timelines impacting disaster relief.
- Quality control of a large volume of inspections across a wide geographic area.
- Ensuring accurate damage assessments to prevent over or under-payment of aid.
Positive Signals
- Clear scope of work and fixed-price contract structure provide cost predictability.
- Experienced contractor (WSP USA) with a track record in large-scale projects.
- Defined delivery period helps manage project timeline and resource allocation.
Sector Analysis
The building inspection services sector is crucial for ensuring safety and compliance across various industries, including disaster recovery. This contract fits within the broader professional services market, specifically focusing on specialized inspection capabilities. Comparable spending benchmarks for disaster response services can vary significantly based on the scale and nature of the disaster.
Small Business Impact
The contract was awarded through full and open competition, and there is no indication of a small business set-aside for this specific delivery order. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data. The primary focus appears to be on the prime contractor's capabilities.
Oversight & Accountability
Oversight is likely managed by FEMA program officials responsible for disaster response and recovery. Accountability measures are tied to the contract's performance requirements and fixed-price terms. Transparency is generally maintained through federal contract databases, though specific inspection reports may be internal.
Related Government Programs
- Disaster Housing Assistance Program
- Public Assistance Program
- Individual Assistance Program
Risk Flags
- Potential for performance delays impacting disaster relief timelines.
- Ensuring consistent quality and accuracy across a large volume of inspections.
- Geographic challenges in reaching all affected housing units promptly.
Tags
fema, housing-inspection, disaster-response, michigan, delivery-order, professional-services, full-and-open-competition, firm-fixed-price, federal-emergency-management-agency, department-of-homeland-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $22.2 million to WSP USA SERVICES INC.. HOUSING INSPECTION SERVICES (HIS) - WSP USA SERVICES, INC. - DR-4757-MI 25,000 HOUSING INSPECTIONS.
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 $22.2 million.
What is the period of performance?
Start: 2024-02-12. End: 2024-12-10.
What is WSP USA's track record with FEMA or similar disaster response contracts?
WSP USA is a large, multinational engineering and professional services consulting firm with extensive experience in infrastructure, disaster recovery, and program management. They have a history of working with government agencies, including FEMA, on various disaster response and recovery efforts. Their involvement in large-scale projects suggests a capacity to handle significant contracts like this housing inspection services award. Specific details on past FEMA performance, including any past issues or commendations, would require a deeper dive into contract performance reports and agency records.
How does the cost per inspection compare to historical FEMA housing inspection contracts?
The cost per inspection of approximately $889.51 is a key metric for comparison. Without direct access to historical contract data for similar FEMA housing inspection services, a precise benchmark is difficult. However, factors such as the scope of inspection (e.g., detailed damage assessment vs. basic habitability check), geographic dispersion, and urgency of the need can significantly influence per-unit costs. Generally, larger volumes and more comprehensive inspections tend to increase the per-unit cost. A thorough analysis would involve comparing this rate against similar disaster declarations and inspection scopes awarded in the past.
What are the primary risks associated with this contract and how are they being mitigated?
Key risks include potential delays in inspection completion, which could impede disaster relief efforts, and ensuring the quality and accuracy of a high volume of inspections across Michigan. Mitigation strategies likely involve robust project management by WSP USA, clear performance standards outlined in the contract, and oversight by FEMA. The fixed-price nature of the contract also incentivizes the contractor to manage costs and timelines efficiently. Quality assurance processes, such as random audits of inspection reports, are common mitigation tactics for such large-scale service contracts.
How effective is the current contract in meeting FEMA's disaster housing inspection needs in Michigan?
The effectiveness of this contract hinges on its execution. FEMA's need is to rapidly and accurately assess housing damage to facilitate aid distribution. The contract's success will be measured by the timely completion of the 25,000 inspections within the specified timeframe and the quality of the data collected. Positive indicators include the contractor's experience and the fixed-price structure. Negative outcomes could arise from delays or inaccurate assessments, which would necessitate corrective actions by FEMA and potentially impact the speed of recovery for affected residents.
What are the historical spending patterns for housing inspection services by FEMA?
FEMA's spending on housing inspection services fluctuates significantly based on the frequency and severity of natural disasters. In years with major hurricanes, floods, or wildfires, spending on inspections can increase dramatically. These services are a critical component of FEMA's Individual Assistance (IA) program, aimed at helping individuals and households recover. Historical data would likely show peaks in spending following large-scale disaster declarations. The use of indefinite-delivery/indefinite-quantity (IDIQ) contracts or large delivery orders, as seen here, is common for managing these unpredictable needs.
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
Pricing Type: FIRM FIXED PRICE (J)
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: $22,256,265
Exercised Options: $22,256,265
Current Obligation: $22,237,678
Actual Outlays: $22,237,515
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
Start Date: 2024-02-12
Current End Date: 2024-12-10
Potential End Date: 2024-12-10 00:00:00
Last Modified: 2025-11-20
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