FEMA awards $38.7M for housing inspections in Louisiana, with WSP USA Services Inc. securing the contract
Contract Overview
Contract Amount: $38,721,400 ($38.7M)
Contractor: WSP USA Services Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2021-08-30
End Date: 2022-06-13
Contract Duration: 287 days
Daily Burn Rate: $134.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST NO FEE
Sector: Construction
Official Description: HOUSING INSPECTION SERVICES (HIS) - WSP USA SERVICES, INC., 100,000 INSPECTION - DR-4611-LA
Place of Performance
Location: BATON ROUGE, EAST BATON ROUGE County, LOUISIANA, 70801
Plain-Language Summary
Department of Homeland Security obligated $38.7 million to WSP USA SERVICES INC. for work described as: HOUSING INSPECTION SERVICES (HIS) - WSP USA SERVICES, INC., 100,000 INSPECTION - DR-4611-LA Key points: 1. The contract value represents a significant investment in disaster recovery efforts for Louisiana. 2. Competition dynamics for this contract are crucial for ensuring cost-effectiveness in inspection services. 3. Performance context is vital, as the quality and timeliness of inspections directly impact recovery. 4. The sector for building inspection services is characterized by specialized expertise and regulatory compliance. 5. This award falls within the broader category of disaster response and recovery services.
Value Assessment
Rating: good
The contract value of $38.7 million for 100,000 inspections suggests a per-inspection cost of approximately $387. This appears to be within a reasonable range for specialized housing inspection services, especially considering the complexities of disaster-affected areas. Benchmarking against similar FEMA contracts for inspection services would provide a more precise value-for-money assessment. The 'COST NO FEE' contract type indicates that costs are reimbursed, requiring robust oversight to manage expenditures effectively.
Cost Per Unit: $387 per inspection
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is designed to foster price discovery and encourage contractors to offer their best pricing and technical solutions. The number of bidders is not specified, but the 'full and open' designation suggests a robust competitive environment, which is generally favorable for the government.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it is expected to drive down costs and improve the quality of services received, ensuring federal funds are used efficiently.
Public Impact
Residents of Louisiana affected by disaster DR-4611 will benefit from timely and thorough housing inspections. The services delivered include detailed assessments of housing damage to facilitate recovery processes. The geographic impact is concentrated in Louisiana, specifically areas designated under DR-4611. The contract supports a workforce of inspectors and related personnel involved in the assessment process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if 'COST NO FEE' terms are not strictly managed.
- Ensuring consistent quality and adherence to inspection standards across all awarded units.
- Timeliness of inspections is critical to avoid delays in disaster recovery assistance.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing and quality.
- Contract duration of 287 days indicates a focused effort on a specific disaster event.
- The contract is for a defined scope (100,000 inspections), allowing for clear performance metrics.
Sector Analysis
The building inspection services sector is a critical component of the construction and real estate industries, providing essential assessments for safety, compliance, and valuation. Federal spending in this area often spikes during disaster recovery efforts, as seen with FEMA's role. Market size for specialized inspection services can be substantial, particularly when factoring in private sector demand alongside government contracts. This contract fits within the broader federal procurement landscape for professional services related to infrastructure and disaster management.
Small Business Impact
The contract data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this particular award. While WSP USA Services, Inc. is a large entity, the subcontracting opportunities for small businesses are not detailed in this summary. Further analysis would be needed to determine if subcontracting plans were mandated and how effectively small businesses were integrated into the supply chain for this contract.
Oversight & Accountability
Oversight for this contract would primarily fall under the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. Given the 'COST NO FEE' contract type, rigorous financial oversight and performance monitoring are essential to ensure that costs are reasonable and directly related to the services provided. The contract's duration and scope suggest regular reporting requirements and potential site visits or audits by FEMA contracting officers and potentially the DHS Office of Inspector General.
Related Government Programs
- FEMA Disaster Relief Fund
- Post-Disaster Housing Assistance Programs
- Building Code Enforcement Services
- Construction and Engineering Services
Risk Flags
- Potential for cost overruns under 'COST NO FEE' contract.
- Ensuring consistent quality and adherence to inspection standards.
- Timeliness of service delivery to meet disaster recovery needs.
- Adequacy of oversight for a large-scale service contract.
Tags
fema, department-of-homeland-security, louisiana, housing-inspection-services, disaster-response, full-and-open-competition, delivery-order, professional-services, cost-reimbursement, emergency-management
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $38.7 million to WSP USA SERVICES INC.. HOUSING INSPECTION SERVICES (HIS) - WSP USA SERVICES, INC., 100,000 INSPECTION - DR-4611-LA
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 $38.7 million.
What is the period of performance?
Start: 2021-08-30. End: 2022-06-13.
What is the track record of WSP USA Services, Inc. with FEMA or similar disaster response contracts?
WSP USA Services, Inc. is a large engineering and professional services consulting firm with a significant presence in government contracting. While specific details on their FEMA disaster response contract history are not provided in this data snippet, their broad capabilities suggest they likely have experience with similar large-scale projects. A deeper dive into federal procurement databases (like FPDS or SAM.gov) would reveal their past performance ratings, previous awards, and any reported issues on similar contracts. Their ability to secure a contract of this magnitude indicates a level of trust and demonstrated capability, but a thorough review of past performance is always recommended for large awards.
How does the per-inspection cost of $387 compare to industry benchmarks for housing inspections, especially in disaster zones?
The per-inspection cost of approximately $387 for housing inspections under this FEMA contract appears to be within a reasonable range, considering the specialized nature of disaster-related assessments. Standard home inspections in non-disaster areas can range from $300 to $600, but these typically involve routine evaluations. Disaster inspections often require more detailed documentation, assessment of structural integrity under adverse conditions, and adherence to specific federal guidelines, which can increase costs. Benchmarking against other FEMA contracts for similar services in different disaster events would provide a more precise comparison. Factors like the geographic spread of inspections, the severity of damage, and the required turnaround time can significantly influence per-unit costs.
What are the primary risks associated with this type of housing inspection contract for FEMA?
Several risks are associated with this housing inspection contract. Firstly, 'COST NO FEE' contracts, while allowing for cost reimbursement, carry a risk of cost overruns if not managed meticulously. Ensuring that all claimed costs are reasonable, allocable, and allowable is paramount. Secondly, the quality and consistency of inspections are critical; substandard inspections could lead to improper allocation of aid or delayed recovery. Thirdly, the timeliness of inspections is crucial, as delays can exacerbate the hardship for affected residents. Finally, contractor performance and potential for fraud or abuse, though mitigated by competition, remain inherent risks in large-scale service contracts. Effective oversight and clear performance metrics are key to mitigating these risks.
How effective are full and open competitions in ensuring value for money for disaster response services like housing inspections?
Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including for disaster response services. By allowing all responsible sources to compete, it fosters a competitive environment that drives down prices and encourages innovation and efficiency. For housing inspections, this means FEMA is likely to receive proposals offering a balance of cost and quality. However, the effectiveness is contingent on the clarity of the solicitation, the evaluation criteria, and the government's ability to accurately assess proposals. In disaster scenarios, speed is also a factor, and a lengthy competition process could delay critical services, so a balance between thoroughness and expediency is often sought.
What is the historical spending pattern for housing inspection services by FEMA, and how does this award compare?
FEMA's spending on housing inspection services fluctuates significantly based on the frequency and severity of natural disasters. Following major events like hurricanes, floods, or wildfires, FEMA's expenditure on inspections can increase dramatically. This $38.7 million award for Louisiana's DR-4611 event is substantial and reflects the scale of the disaster. To provide historical context, one would need to analyze FEMA's spending data from previous years and compare it to similar-sized disaster declarations. For instance, major hurricanes in Texas, Florida, or Puerto Rico have often resulted in contracts for inspection services in the tens or even hundreds of millions of dollars. This specific award appears to be a significant, but not unprecedented, investment for a large-scale disaster recovery operation.
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: 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: $38,721,400
Exercised Options: $38,721,400
Current Obligation: $38,721,400
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: 2021-08-30
Current End Date: 2022-06-13
Potential End Date: 2022-06-13 00:00:00
Last Modified: 2024-07-25
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