FEMA's $89.4M Louisiana Housing Contract Awarded to Shaw Environmental for Disaster Recovery
Contract Overview
Contract Amount: $89,440,959 ($89.4M)
Contractor: Shaw Environmental, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2016-08-23
End Date: 2017-05-22
Contract Duration: 272 days
Daily Burn Rate: $328.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: IGF::CT::IGF FEMA REQUIRES MANUFACTURED HOUSING UNIT (MHU) HAUL AND INSTALL-RELATED ACTIVITIES IN SUPPORT OF DR-4277-LA, ANY DECLARED PARISH IN LOUISIANA. HOWEVER, FEMA ANTICIPATES THAT THE MAJORITY OF HAUL AND INSTALL ACTIVITIES, ESPECIALLY IN THE INITIAL STAGES OF THE MISSION, WILL BE CONDUCTED IN THE FOLLOWING (10) PARISHES: EAST BATON ROUGE, LIVINGSTON, ST. HELENA, EAST FELICIANA, EVANGELINE, ST. LANDRY, ST. MARTIN, ST. TAMMANY, WASHINGTON, TANGIPAHOA.
Place of Performance
Location: NATCHITOCHES, NATCHITOCHES County, LOUISIANA, 71457
Plain-Language Summary
Department of Homeland Security obligated $89.4 million to SHAW ENVIRONMENTAL, INC. for work described as: IGF::CT::IGF FEMA REQUIRES MANUFACTURED HOUSING UNIT (MHU) HAUL AND INSTALL-RELATED ACTIVITIES IN SUPPORT OF DR-4277-LA, ANY DECLARED PARISH IN LOUISIANA. HOWEVER, FEMA ANTICIPATES THAT THE MAJORITY OF HAUL AND INSTALL ACTIVITIES, ESPECIALLY IN THE INITIAL STAGES OF THE MISSION… Key points: 1. Significant contract value for disaster relief housing support. 2. Shaw Environmental, Inc. is the primary contractor. 3. Potential for cost overruns given the Time and Materials pricing structure. 4. Services are concentrated in Louisiana for DR-4277-LA.
Value Assessment
Rating: questionable
The contract is Time and Materials, which can lead to higher costs than fixed-price contracts if not managed closely. The award amount is substantial, and the duration suggests significant work, making cost control critical.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the Time and Materials (T&M) pricing model may not be the most effective for price discovery and cost containment in a disaster response scenario.
Taxpayer Impact: Taxpayer funds are being used for disaster recovery, which is a necessary but potentially costly expenditure. The T&M structure necessitates careful oversight to ensure funds are used efficiently.
Public Impact
Provides essential housing support for disaster victims in Louisiana. Supports recovery efforts following Hurricane Delta (DR-4277-LA). Contract duration of 272 days indicates a significant, ongoing need. Focus on 10 specific parishes highlights concentrated impact.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing model
- Potential for cost overruns
- Limited visibility into specific unit costs
Positive Signals
- Full and open competition awarded
- Supports critical disaster relief mission
- Clear geographic focus for services
Sector Analysis
This contract falls under Facilities Support Services, a broad category that includes a wide range of services for maintaining and managing facilities. The value is significant for this sector, especially given the disaster relief context.
Small Business Impact
The data indicates the contract was awarded to Shaw Environmental, Inc. There is no explicit mention of small business participation or subcontracting in the provided data. Further investigation would be needed to determine if small businesses were involved.
Oversight & Accountability
The Time and Materials contract type requires robust oversight from FEMA to ensure that costs are reasonable and allocable to the contract. Regular reviews of labor hours and material costs are essential for accountability.
Related Government Programs
- Facilities Support Services
- Department of Homeland Security Contracting
- Federal Emergency Management Agency Programs
Risk Flags
- Time and Materials pricing model
- Potential for cost overruns
- Lack of specific performance metrics
- Limited information on small business utilization
Tags
facilities-support-services, department-of-homeland-security, la, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $89.4 million to SHAW ENVIRONMENTAL, INC.. IGF::CT::IGF FEMA REQUIRES MANUFACTURED HOUSING UNIT (MHU) HAUL AND INSTALL-RELATED ACTIVITIES IN SUPPORT OF DR-4277-LA, ANY DECLARED PARISH IN LOUISIANA. HOWEVER, FEMA ANTICIPATES THAT THE MAJORITY OF HAUL AND INSTALL ACTIVITIES, ESPECIALLY IN THE INITIAL STAGES OF THE MISSION, WILL BE CONDUCTED IN THE FOLLOWING (10) PARISHES: EAST BATON ROUGE, LIVINGSTON, ST. HELENA, EAST FELICIANA, EVANGELINE, ST. LANDRY, ST. MARTIN, ST. TAMMANY, WASHINGTON, TANGIPAHOA.
Who is the contractor on this award?
The obligated recipient is SHAW ENVIRONMENTAL, 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 $89.4 million.
What is the period of performance?
Start: 2016-08-23. End: 2017-05-22.
What was the average cost per manufactured housing unit (MHU) haul and install?
The provided data does not specify the number of units or the total cost breakdown for haul and install activities. The total award is $89.44 million for a 272-day period, covering various activities. To determine the per-unit cost, more granular data on the quantity of MHUs serviced and the specific costs associated with each phase of the operation would be required.
What risks were identified during the contract's performance, especially concerning the T&M structure?
The primary risk associated with a Time and Materials contract in a disaster scenario is the potential for cost escalation due to unforeseen circumstances and the difficulty in precisely estimating labor and material needs. Without detailed performance reports, it's hard to quantify specific risks encountered, but FEMA would need to actively monitor hours, rates, and material markups to mitigate overspending.
How effectively did this contract support the long-term recovery needs of the affected Louisiana parishes?
The contract's effectiveness in supporting long-term recovery is difficult to assess solely from the award data. While it provided immediate support for haul and install activities, the T&M nature suggests a focus on immediate needs rather than fixed, long-term solutions. The success would depend on the quality of work, timely completion, and FEMA's ability to manage costs and transition to more permanent housing solutions.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Chicago Bridge & Iron Company N.V. (UEI: 386491765)
Address: 1725 DUKE ST STE 400, ALEXANDRIA, VA, 22314
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $89,440,959
Exercised Options: $89,440,959
Current Obligation: $89,440,959
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSFEHQ09D0698
IDV Type: IDC
Timeline
Start Date: 2016-08-23
Current End Date: 2017-05-22
Potential End Date: 2017-05-22 00:00:00
Last Modified: 2022-01-24
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