FEMA awards $11.1M for COVID-19 support, with CH2M HILL - CDM PA-TAC RECOVERY SERVICES managing regional operations

Contract Overview

Contract Amount: $11,120,633 ($11.1M)

Contractor: CH2M Hill - CDM Pa-Tac Recovery Services

Awarding Agency: Department of Homeland Security

Start Date: 2024-05-01

End Date: 2025-10-08

Contract Duration: 525 days

Daily Burn Rate: $21.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PA TAC V COVID-19 SUPPORT REGION IX (DR-4482-CA, DR-4495-GU, DR-4510-HI, DR-4511-MP, DR-4523-NV, DR-4524-AZ, DR-4537-AS, AND DR-4582-AZ

Place of Performance

Location: GREENWOOD VILLAGE, ARAPAHOE County, COLORADO, 80111

State: Colorado Government Spending

Plain-Language Summary

Department of Homeland Security obligated $11.1 million to CH2M HILL - CDM PA-TAC RECOVERY SERVICES for work described as: PA TAC V COVID-19 SUPPORT REGION IX (DR-4482-CA, DR-4495-GU, DR-4510-HI, DR-4511-MP, DR-4523-NV, DR-4524-AZ, DR-4537-AS, AND DR-4582-AZ Key points: 1. Contract focuses on administrative management and general management consulting services for COVID-19 recovery. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. Performance period extends over 525 days, indicating a medium-term engagement. 4. The contract type is Time and Materials, which can pose cost control challenges if not closely monitored. 5. This award is part of a larger effort by FEMA to manage disaster recovery operations. 6. The geographic scope covers multiple regions including California, Guam, Hawaii, and others, highlighting broad operational needs.

Value Assessment

Rating: fair

The contract value of $11.1 million for administrative management and consulting services over approximately 1.75 years appears reasonable given the broad geographic scope and the nature of disaster recovery support. Benchmarking against similar large-scale disaster recovery contracts managed by FEMA would provide a clearer picture of value for money. The Time and Materials (T&M) contract type, while flexible, necessitates robust oversight to prevent cost overruns and ensure efficient resource utilization. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding process where multiple companies likely vied for the opportunity. The level of competition is generally positive for price discovery and can lead to more favorable terms for the government. However, the specific number of bidders and the details of the evaluation process are not provided, which limits a deeper analysis of the competitive dynamics.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by driving down costs through market forces. It increases the likelihood that the government is receiving services at a fair market price.

Public Impact

Citizens in Regions IX (including California, Guam, Hawaii, Northern Mariana Islands, American Samoa, Nevada, and Arizona) benefit from coordinated COVID-19 recovery efforts. Services delivered include administrative management and general management consulting to support disaster relief operations. The geographic impact is significant, spanning multiple states and territories within FEMA's Region IX. The contract supports a workforce involved in disaster response and recovery management, potentially including consultants and administrative staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type carries inherent risks of cost escalation if not managed with strict oversight and clear task definitions.
The broad geographic scope may present logistical and coordination challenges for the contractor.
Reliance on a single contractor for such a wide-ranging support role could create dependency and limit flexibility in adapting to evolving needs.

Positive Signals

Award through full and open competition suggests a competitive environment that should drive efficiency and fair pricing.
The contractor, CH2M HILL - CDM PA-TAC RECOVERY SERVICES, likely possesses specialized expertise in disaster recovery and management consulting.
The contract duration provides a stable period for consistent support to the affected regions.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative and management consulting. This sector is crucial for government operations, particularly in managing complex, large-scale initiatives like disaster recovery. The market for such services is competitive, with numerous firms offering expertise. FEMA's spending in this area is substantial, reflecting the ongoing need for specialized support in managing federal emergency responses and recovery efforts across various regions.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor is a large entity, and any subcontracting would be at their discretion, not mandated by a small business set-aside.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. As a Time and Materials contract, rigorous monitoring of labor hours, rates, and direct costs is essential. FEMA's internal oversight mechanisms, contract officers, and potentially the DHS Office of Inspector General (OIG) would be responsible for ensuring accountability, transparency, and compliance with contract terms. Regular reporting and performance reviews are standard procedures for such engagements.

Related Government Programs

FEMA COVID-19 Disaster Relief Fund
FEMA Public Assistance Program
FEMA Individual Assistance Program
Disaster Recovery and Resilience Programs
Federal Management Agency Contracts
COVID-19 Federal Response Spending

Risk Flags

Cost Overrun Risk (T&M Contract)
Scope Creep Potential
Geographic Coordination Complexity
Contractor Performance Monitoring
Dependency on Single Contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11.1 million to CH2M HILL - CDM PA-TAC RECOVERY SERVICES. PA TAC V COVID-19 SUPPORT REGION IX (DR-4482-CA, DR-4495-GU, DR-4510-HI, DR-4511-MP, DR-4523-NV, DR-4524-AZ, DR-4537-AS, AND DR-4582-AZ

Who is the contractor on this award?

The obligated recipient is CH2M HILL - CDM PA-TAC RECOVERY SERVICES.

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 $11.1 million.

What is the period of performance?

Start: 2024-05-01. End: 2025-10-08.

What is the track record of CH2M HILL - CDM PA-TAC RECOVERY SERVICES with FEMA or similar disaster recovery contracts?

CH2M HILL, and its subsequent integrations/acquisitions including CDM Smith's recovery services, has a significant history of supporting federal agencies, particularly FEMA, on large-scale disaster recovery and environmental projects. They have been involved in numerous post-disaster operations, providing technical, engineering, and management consulting services. Their experience often includes managing complex logistics, coordinating with multiple stakeholders, and ensuring compliance with federal regulations. While specific contract performance details are often proprietary, their sustained presence in this market suggests a generally satisfactory performance history with agencies like FEMA, enabling them to secure subsequent awards.

How does the $11.1 million contract value compare to similar FEMA disaster recovery support contracts?

The $11.1 million value for this specific contract, covering administrative and management consulting for COVID-19 support across multiple regions, appears to be within a typical range for medium-to-large scale disaster recovery engagements. FEMA often awards multi-million dollar contracts for comprehensive support services that can span several years and extensive geographic areas. For instance, contracts for debris removal, temporary housing, or infrastructure repair can reach hundreds of millions or even billions. This $11.1 million award is likely for a focused set of services, and its value should be assessed relative to the scope, duration, and specific deliverables required, rather than as an absolute measure against all FEMA contracts.

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

The primary risk with a Time and Materials (T&M) contract, like this one, is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the scope of work is not clearly defined, or if project duration extends unexpectedly, costs can escalate beyond initial estimates. For disaster recovery, where the situation can be fluid and unpredictable, this risk is amplified. Effective oversight, detailed task orders, and robust reporting mechanisms are crucial to mitigate these risks and ensure the government only pays for necessary and efficient work.

How effective are FEMA's oversight mechanisms for contracts of this nature?

FEMA employs a multi-layered oversight approach for its contracts, including those for disaster recovery. This typically involves Contracting Officers, Contract Specialists, and Technical Monitors who are responsible for ensuring contractor performance, compliance, and proper billing. For T&M contracts, the emphasis is on diligent monitoring of labor hours, resource utilization, and justification of costs. FEMA also utilizes its Office of Inspector General (OIG) to conduct audits and investigations into contract management and performance, providing an independent layer of accountability. The effectiveness hinges on adequate staffing, clear communication channels, and proactive risk management by the contracting agency.

What is the historical spending pattern for administrative and management consulting services by FEMA?

FEMA's historical spending on administrative and management consulting services has been substantial, particularly in the wake of major disasters. These services are critical for the agency's operational capacity, enabling it to manage complex logistics, coordinate response efforts, process claims, and oversee recovery projects. Spending in this category tends to fluctuate based on the frequency and severity of declared disasters. Post-disaster periods often see an increase in demand for these consulting services to augment FEMA's internal resources and expertise, leading to significant contract awards in this domain.

What are the implications of the broad geographic scope (Regions IX) for contract performance?

The broad geographic scope, encompassing multiple states and territories within FEMA's Region IX, presents both opportunities and challenges. It allows for a consolidated approach to COVID-19 recovery support, potentially leading to economies of scale and consistent application of strategies across the region. However, it also necessitates robust logistical planning, effective communication across diverse locations, and the ability to adapt to varying local conditions and needs. The contractor must manage a distributed team and ensure seamless coordination to deliver effective support throughout the designated areas, which can increase administrative overhead and complexity.

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: 70FB8023R00000011

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jacobs Engineering Group Inc.

Address: 6312 S FIDDLERS GREEN CIR STE 300, GREENWOOD VILLAGE, CO, 80111

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

Financial Breakdown

Contract Ceiling: $11,120,633

Exercised Options: $11,120,633

Current Obligation: $11,120,633

Actual Outlays: $11,120,633

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $1,278,351

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FB8024D00000004

IDV Type: IDC

Timeline