FEMA awards $80M for disaster housing inspections in Texas following Hurricane Harvey

Contract Overview

Contract Amount: $80,110,692 ($80.1M)

Contractor: WSP USA Services Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2017-08-26

End Date: 2019-12-31

Contract Duration: 857 days

Daily Burn Rate: $93.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF - PERFORM DISASTER HOUSING INSPECTION SERVICES (HIS) IN SUPPORT OF THE DISASTER DECLARATION IN THE STATE OF TEXAS DUE TO SEVERE STORMS AND FLOODING FROM HURRICANE HARVEY.

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77001

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $80.1 million to WSP USA SERVICES INC. for work described as: IGF::OT::IGF - PERFORM DISASTER HOUSING INSPECTION SERVICES (HIS) IN SUPPORT OF THE DISASTER DECLARATION IN THE STATE OF TEXAS DUE TO SEVERE STORMS AND FLOODING FROM HURRICANE HARVEY. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 857 days indicates a significant, long-term need for inspection services. 3. The firm-fixed-price contract type aims to provide cost certainty for the government. 4. The award was a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar pre-negotiated framework. 5. The services provided are critical for disaster recovery efforts, directly impacting affected populations. 6. The geographic focus on Texas highlights the specific needs arising from Hurricane Harvey.

Value Assessment

Rating: good

The total award amount of approximately $80.1 million for disaster housing inspection services over a period of 857 days appears reasonable given the scale of disaster response. Without specific benchmarks for disaster inspection services post-Hurricane Harvey, a direct comparison is difficult. However, the firm-fixed-price nature of the contract suggests that the pricing was established upfront, which can be advantageous for cost control. The number of bids received (2) is on the lower side for a full and open competition, which might warrant further investigation into pricing competitiveness.

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 bids. However, only two bids were received. While full and open competition is generally preferred for maximizing competition and achieving best value, a low number of bidders can sometimes suggest potential barriers to entry, limited market capacity, or that the solicitation may not have reached a sufficiently broad audience. This could potentially impact price discovery.

Taxpayer Impact: A low number of bidders in a full and open competition means taxpayers may not have benefited from the most competitive pricing possible. While the process was open, the limited participation suggests that more robust competition could have potentially driven down costs further.

Public Impact

Residents in Texas affected by severe storms and flooding from Hurricane Harvey benefit from the inspection of disaster-damaged housing. The services delivered are crucial for assessing housing damage, which is a prerequisite for receiving federal disaster assistance. The geographic impact is concentrated in Texas, specifically areas declared disaster zones due to Hurricane Harvey. The contract supports a workforce of inspectors and related personnel necessary for conducting these assessments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) for a full and open solicitation may indicate potential issues with market reach or barriers to entry.
The significant dollar value of the contract warrants close monitoring of performance and cost-effectiveness throughout its duration.

Positive Signals

The use of a firm-fixed-price contract provides cost certainty for the government.
Awarding through full and open competition aligns with best practices for maximizing potential competition.
The contract directly addresses a critical need for disaster recovery support in a major disaster area.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically focusing on building inspection services. This sector is vital for government operations, particularly in areas like disaster management and regulatory compliance. The market for disaster response services can be specialized, with a limited number of firms possessing the capacity and expertise to handle large-scale, rapid deployments. Benchmarking this contract's value would ideally involve comparing it to similar disaster inspection contracts awarded by FEMA or other agencies in response to comparable events.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there is no information regarding small business set-asides (ss). This suggests that the contract was not specifically targeted towards small businesses, nor does it appear to have included explicit subcontracting goals for small businesses. Further analysis would be needed to determine if WSP USA Services Inc. has a subcontracting plan that includes small businesses, or if the nature of the services inherently limited small business involvement.

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 delivery order under a potentially larger IDIQ or framework, oversight would likely involve contract officers, program managers, and potentially the FEMA Office of the Inspector General (OIG). The OIG plays a crucial role in auditing and investigating federal contracts to ensure efficiency, prevent fraud, and promote accountability. Transparency would be facilitated through contract award databases and reporting requirements.

Related Government Programs

Disaster Housing Assistance Programs
Hurricane Harvey Recovery Efforts
FEMA Inspection Services
Post-Disaster Housing Assessments

Risk Flags

Limited competition despite full and open solicitation.
Potential for performance delays impacting disaster recovery timelines.
Need for verification of inspection accuracy and quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $80.1 million to WSP USA SERVICES INC.. IGF::OT::IGF - PERFORM DISASTER HOUSING INSPECTION SERVICES (HIS) IN SUPPORT OF THE DISASTER DECLARATION IN THE STATE OF TEXAS DUE TO SEVERE STORMS AND FLOODING FROM HURRICANE HARVEY.

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 $80.1 million.

What is the period of performance?

Start: 2017-08-26. End: 2019-12-31.

What is the track record of WSP USA Services Inc. in performing disaster inspection services for federal agencies?

WSP USA Services Inc. is a large, multinational engineering and professional services consultancy. They have a significant history of engaging in various government contracts, including those related to infrastructure, environmental services, and disaster recovery. While specific details on their performance for this particular FEMA contract (disaster housing inspections post-Hurricane Harvey) require deeper investigation into performance reports and any associated contract actions (e.g., modifications, disputes), their general profile suggests they possess the organizational capacity for such work. To fully assess their track record for this specific service, one would need to review past performance evaluations, any documented issues or commendations, and their experience with similar large-scale disaster response operations.

How does the cost per inspection compare to similar contracts or industry benchmarks?

Determining a precise cost per inspection is challenging without knowing the total number of inspections performed under this $80.1 million contract. The contract value is for the overall service delivery over 857 days. To benchmark, we would need the total number of housing units inspected. If, for example, 100,000 inspections were completed, the cost per inspection would be approximately $801. However, without the actual inspection count, a direct per-unit cost comparison to industry benchmarks or similar FEMA contracts is not feasible. Factors influencing cost per inspection include the complexity of damage, geographic dispersion of properties, and the specific scope of work required for each assessment.

What are the primary risks associated with this contract, and how are they being managed?

Primary risks for this contract include potential cost overruns if the scope of work expands beyond initial estimates (though mitigated by firm-fixed-price), performance issues leading to delays in disaster recovery assistance, contractor performance deficiencies (e.g., quality of inspections, timeliness), and potential for fraud or improper payments. Management strategies likely involve robust contract oversight by FEMA, clear performance metrics and deliverables, regular progress reporting, site visits, and potentially audits by the Inspector General. The firm-fixed-price nature helps control cost risks, while performance standards and quality control measures address execution risks.

How effective has this contract been in expediting disaster housing assessments and subsequent aid distribution in Texas?

The effectiveness of this contract in expediting assessments and aid distribution is directly tied to the timeliness and accuracy of the inspections conducted by WSP USA Services Inc. Prompt and thorough inspections are critical for homeowners to access FEMA assistance and begin repairs. While the contract's duration (857 days) suggests a sustained effort, its ultimate effectiveness would be measured by metrics such as the average time from inspection request to completion, the accuracy rate of damage assessments, and the correlation between these inspections and the timely disbursement of aid. Without specific performance data and outcome metrics, a definitive assessment of effectiveness is difficult, but the contract's existence points to a recognized need for these services in the recovery process.

What is the historical spending trend for disaster housing inspection services by FEMA, and how does this award fit within that trend?

FEMA's spending on disaster housing inspection services fluctuates significantly year-to-year, heavily influenced by the frequency and severity of natural disasters. Following major events like Hurricane Harvey, spending in this category typically surges. This $80.1 million award for Hurricane Harvey response is substantial and aligns with the expected expenditure for a disaster of that magnitude impacting a large state like Texas. Historical data would show peaks in spending following major hurricanes (e.g., Katrina, Sandy, Harvey, Maria) and lower baseline spending in years with fewer significant disasters. This contract represents a significant, but likely proportional, investment for a large-scale disaster response.

Were there any challenges or disputes during the performance of this contract?

Information regarding specific challenges or disputes during the performance of this particular contract (FEMA's disaster housing inspections post-Hurricane Harvey awarded to WSP USA Services Inc.) is not readily available in the provided summary data. Contract performance issues, modifications, or disputes are typically documented in contract management systems and may be detailed in reports from the agency's Office of Inspector General or in contract award databases that track modifications and claims. A thorough review of FEMA's contract performance records and any OIG reports related to Hurricane Harvey recovery efforts would be necessary to identify any such challenges.

Industry Classification

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

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › INSPECTION SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Parsons Brinckerhoff Holdings Inc.

Address: 465 SPRINGPARK PL, HERNDON, VA, 20170

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

Financial Breakdown

Contract Ceiling: $80,110,692

Exercised Options: $80,110,692

Current Obligation: $80,110,692

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSFE8013D0070

IDV Type: IDC

Timeline