DHS FEMA awards $5.8M engineering services contract to STARR II JV for Risk Map program

Contract Overview

Contract Amount: $5,784,322 ($5.8M)

Contractor: Starr II, a Joint Venture

Awarding Agency: Department of Homeland Security

Start Date: 2023-09-21

End Date: 2027-09-21

Contract Duration: 1,461 days

Daily Burn Rate: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: FY23 R8 RISK MAP

Place of Performance

Location: BELTSVILLE, PRINCE GEORGES County, MARYLAND, 20705

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $5.8 million to STARR II, A JOINT VENTURE for work described as: FY23 R8 RISK MAP Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1461 days indicates a long-term need for these engineering services. 3. The Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring to ensure cost control. 4. The award is for the R8 RISK MAP program, crucial for disaster preparedness and mitigation. 5. The geographic focus appears to be Maryland, based on the stated location. 6. No small business set-aside was utilized, indicating the primary awardee is not a small business.

Value Assessment

Rating: good

The contract value of $5.8 million over approximately four years for engineering services related to FEMA's Risk Map program appears reasonable. Benchmarking against similar large-scale engineering support contracts for federal agencies suggests this is within expected ranges, especially considering the specialized nature of risk mapping and disaster preparedness. The CPFF structure, while requiring oversight, allows for flexibility in complex projects. Further analysis would involve comparing specific labor rates and overhead costs to industry standards for similar engineering disciplines.

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 a bid. While the number of bidders is not specified, this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that FEMA sought the best value from a wide pool of qualified engineering firms.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings through a robust bidding process and encourages a wider range of innovative solutions.

Public Impact

The primary beneficiaries are the Department of Homeland Security and the Federal Emergency Management Agency (FEMA), who will receive critical engineering support for the R8 Risk Map program. The services delivered will likely involve technical analysis, mapping, data management, and consulting related to flood risk, hazard identification, and mitigation strategies. The geographic impact is specified as Maryland (MD), suggesting the primary operational area for this specific delivery order. The contract supports a specialized workforce of engineers and technical experts, contributing to the federal government's capacity in disaster management and infrastructure resilience.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently, as the contractor is reimbursed for allowable costs plus a fixed fee.
Lack of specific details on the number of bidders or the evaluation criteria makes it difficult to fully assess the competitive intensity and potential for optimal value.
The duration of the contract (1461 days) necessitates ongoing performance monitoring to ensure continued alignment with program objectives and taxpayer value.

Positive Signals

Awarded through full and open competition, which typically promotes a competitive environment and potentially better pricing.
The contract supports FEMA's critical R8 Risk Map program, essential for national disaster preparedness and mitigation efforts.
The use of a joint venture (STARR II, A JOINT VENTURE) may indicate a collaborative approach to leverage diverse expertise for complex engineering challenges.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to government consulting and technical support for risk assessment and mapping. The market for such services is substantial, driven by federal mandates for disaster preparedness, environmental protection, and infrastructure development. Comparable spending benchmarks would include other large-scale engineering support contracts awarded by agencies like the Army Corps of Engineers, EPA, or other FEMA programs focused on hazard mitigation and resilience.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (sb: false). Therefore, the primary awardee, STARR II, A JOINT VENTURE, is likely a larger entity or a joint venture where the prime contractor is not a small business. There is no explicit information on subcontracting plans for small businesses within this specific delivery order, which could be a missed opportunity to engage the small business ecosystem in supporting FEMA's mission.

Oversight & Accountability

Oversight for this contract will primarily reside with the Federal Emergency Management Agency (FEMA) contracting officers and program managers. The Cost Plus Fixed Fee (CPFF) structure necessitates robust financial oversight to ensure that costs are allowable, reasonable, and allocable. Transparency is facilitated through contract reporting mechanisms, and potential issues could be addressed by FEMA's internal oversight bodies or potentially the DHS Office of Inspector General if significant concerns arise regarding fraud, waste, or abuse.

Related Government Programs

FEMA Risk Mapping, Assessment, and Planning (Risk MAP) Program
National Flood Insurance Program (NFIP)
Disaster Mitigation and Recovery Programs
Engineering and Technical Services Contracts
Federal Emergency Management Agency Support Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Potential
Performance Monitoring Requirement
Quality Assurance of Engineering Deliverables

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $5.8 million to STARR II, A JOINT VENTURE. FY23 R8 RISK MAP

Who is the contractor on this award?

The obligated recipient is STARR II, A JOINT VENTURE.

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 $5.8 million.

What is the period of performance?

Start: 2023-09-21. End: 2027-09-21.

What is the specific scope of work for STARR II, A JOINT VENTURE under this delivery order for the R8 RISK MAP program?

While the provided data specifies the contract is for 'Engineering Services' and relates to the 'R8 RISK MAP' program, the precise scope of work for this $5.8 million delivery order is not detailed. Typically, services under FEMA's Risk MAP program involve activities such as flood hazard analysis, mapping, risk assessment, mitigation planning support, and data management. STARR II, A JOINT VENTURE, as an engineering services provider, would likely be engaged in technical studies, development of flood insurance rate maps (FIRMs), flood risk products, and potentially providing technical assistance to communities for hazard mitigation planning and implementation. The exact deliverables would be defined in the Statement of Work (SOW) within the contract.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types used for similar engineering services by FEMA?

Cost Plus Fixed Fee (CPFF) contracts are often used by agencies like FEMA for complex projects where the scope of work may evolve or is not fully defined at the outset, such as research and development or specialized engineering services. This structure reimburses the contractor for allowable costs plus a predetermined fixed fee, representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but carries a higher risk of cost overruns if not managed closely. Other common types include Cost Plus Incentive Fee (CPIF), which incentivizes performance, or Time and Materials (T&M), used for smaller, less defined tasks. FEMA may use a mix of these depending on project complexity, risk, and the level of definition in the SOW.

What is the historical spending pattern for the R8 RISK MAP program and how does this award fit within it?

The provided data focuses on a single delivery order for FY23 and does not offer historical spending patterns for the R8 RISK MAP program. However, the Risk MAP program itself is a long-standing initiative by FEMA aimed at improving flood risk communication and supporting mitigation efforts nationwide. Historical spending on Risk MAP has been substantial, reflecting the ongoing need for updated flood hazard data and mapping across the country. This $5.8 million award represents a portion of the overall funding allocated to the program for engineering and technical support in a specific region (R8) during FY23. To understand the pattern, one would need to analyze FEMA's budget allocations and contract awards for the Risk MAP program over multiple fiscal years.

What are the potential risks associated with STARR II, A JOINT VENTURE's performance on this contract, given its CPFF structure?

The primary risk associated with a CPFF contract is the potential for cost growth beyond initial estimates, as the contractor is reimbursed for actual costs incurred. If STARR II, A JOINT VENTURE does not effectively manage its resources, labor hours, or subcontracting costs, the total expenditure could exceed projections. Another risk is scope creep, where the project expands beyond its original intent without adequate adjustments to the fixed fee or overall budget. Furthermore, ensuring the quality and accuracy of the engineering services provided is crucial; any deficiencies could lead to rework, delays, and increased costs. FEMA's oversight will be critical in mitigating these risks through diligent monitoring of expenditures, progress, and deliverables.

How does the engineering services market in Maryland compare to national benchmarks, and does this contract reflect market rates?

The engineering services market in Maryland, particularly in regions supporting federal agencies like FEMA, is generally robust and competitive, often reflecting higher labor costs due to the cost of living and demand. National benchmarks for engineering services vary significantly by discipline, experience level, and geographic location. Without specific details on the labor categories, rates, and overhead applied by STARR II, A JOINT VENTURE within this CPFF contract, it is difficult to definitively state if the pricing reflects market rates. However, given the full and open competition, it is presumed that the proposed rates were deemed fair and reasonable by FEMA at the time of award. A detailed cost analysis comparing specific labor categories and overhead rates against industry surveys and government cost databases would be necessary for a precise benchmark.

Industry Classification

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

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3901 CALVERTON BLVD STE 400, CALVERTON, MD, 20705

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,784,322

Exercised Options: $5,784,322

Current Obligation: $5,784,322

Actual Outlays: $2,869,249

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 70FA6021D00000005

IDV Type: IDC

Timeline