FEMA's $31.8M contract with North Wind Resource Partners JV, LLC for risk communication services shows mixed value and competition

Contract Overview

Contract Amount: $31,840,412 ($31.8M)

Contractor: North Wind Resource Partners JV, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2014-12-12

End Date: 2020-06-14

Contract Duration: 2,011 days

Daily Burn Rate: $15.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIXED PRICE AWARD FEE

Sector: Other

Official Description: IGF::CT::IGF TO INCREASE FEMA'S EFFECTIVENESS AT COMMUNITY ENGAGEMENT AND RESK COMMUNICATIONS IN ORDER TO RAIS RISK AWARENESS AND LEAD TO CITIZENS AND COMMUNITIES TAKING MITIGATION ACTIONS.

Place of Performance

Location: IDAHO FALLS, BONNEVILLE County, IDAHO, 83402

State: Idaho Government Spending

Plain-Language Summary

Department of Homeland Security obligated $31.8 million to NORTH WIND RESOURCE PARTNERS JV, LLC for work described as: IGF::CT::IGF TO INCREASE FEMA'S EFFECTIVENESS AT COMMUNITY ENGAGEMENT AND RESK COMMUNICATIONS IN ORDER TO RAIS RISK AWARENESS AND LEAD TO CITIZENS AND COMMUNITIES TAKING MITIGATION ACTIONS. Key points: 1. The contract's fixed-price award fee structure aims to incentivize performance, but actual value-for-money depends on the effectiveness of the fee determination process. 2. Full and open competition was utilized, suggesting a robust process for selecting the contractor, though the number of bidders is not specified. 3. The contract duration of over five years presents potential risks related to evolving needs and contractor performance over time. 4. Performance context is critical; the effectiveness of risk communication and mitigation actions directly impacts community resilience. 5. This contract falls within the 'All Other Professional, Scientific, and Technical Services' NAICS code, a broad category encompassing diverse service offerings. 6. The contract's value, while significant, needs to be benchmarked against similar large-scale public engagement and risk communication initiatives.

Value Assessment

Rating: fair

Assessing the value-for-money of this contract requires a deeper dive into the award fee structure and its application. While a fixed-price award fee contract can align incentives, the actual cost-effectiveness hinges on how well performance metrics were defined and achieved. Benchmarking against similar contracts for public engagement and risk communication by other federal agencies or large non-profits would provide a clearer picture of whether the $31.8 million expenditure yielded competitive or above-market rates for the services rendered. Without specific performance data and fee payouts, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition after Exclusion of Sources,' indicating that the agency sought proposals from all responsible sources but may have excluded certain entities based on specific criteria. The number of bidders is not explicitly stated, which limits the assessment of the breadth of competition. A high level of competition generally leads to better price discovery and potentially lower costs for the government. The specific nature of this competition, especially if it was a re-competition or a new requirement, would influence the competitive dynamics.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it promotes a wider pool of potential contractors, theoretically driving down prices and improving service quality through market forces.

Public Impact

Citizens and communities across the nation benefit from improved risk awareness and preparedness for potential hazards. The services delivered aim to enhance FEMA's effectiveness in communicating risks and encouraging mitigation actions. The geographic impact is national, as FEMA's mandate covers all states and territories. Workforce implications include potential support for FEMA staff and contractors involved in community engagement and risk communication efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial risk communication strategies are not well-defined.
Dependency on contractor's expertise for effective community engagement, posing a risk if expertise is lacking.
Measuring the direct impact of risk communication on mitigation actions can be challenging, making performance evaluation complex.

Positive Signals

The use of a fixed-price award fee contract incentivizes contractor performance and achievement of specific objectives.
Full and open competition suggests a thorough vetting process and potential for competitive pricing.
The contract's focus on increasing FEMA's effectiveness in community engagement and risk communication addresses a critical public safety need.

Sector Analysis

This contract falls under the broad 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990). This sector is highly diverse, encompassing a wide range of consulting, research, and technical support services. Federal spending in this area is substantial, supporting various agency missions. Comparable spending benchmarks would involve looking at other large federal contracts focused on public outreach, emergency preparedness, and risk communication, particularly those awarded by agencies like FEMA, EPA, or HHS.

Small Business Impact

The data indicates that small business participation (sb) was false, and there was no specific small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and opportunities for small business subcontracting may be limited unless proactively pursued by the prime contractor. The impact on the small business ecosystem would depend on whether North Wind Resource Partners JV, LLC has a subcontracting plan that includes small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's Office of Inspector General (OIG) and FEMA's contracting officers. Transparency is facilitated through contract databases like FPDS. Accountability measures are embedded in the award fee structure, performance metrics, and reporting requirements. The effectiveness of oversight depends on the rigor of performance reviews and audits conducted by these entities.

Related Government Programs

FEMA Community Engagement Programs
Federal Emergency Management Agency Risk Communication Initiatives
Public Awareness Campaigns for Disaster Preparedness
Homeland Security Advisory System Communications

Risk Flags

Contract duration exceeds typical project timelines, increasing risk of obsolescence or changing requirements.
Broad NAICS code may obscure specific service risks and performance metrics.
Lack of detail on competition level (number of bidders) limits assessment of price discovery effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $31.8 million to NORTH WIND RESOURCE PARTNERS JV, LLC. IGF::CT::IGF TO INCREASE FEMA'S EFFECTIVENESS AT COMMUNITY ENGAGEMENT AND RESK COMMUNICATIONS IN ORDER TO RAIS RISK AWARENESS AND LEAD TO CITIZENS AND COMMUNITIES TAKING MITIGATION ACTIONS.

Who is the contractor on this award?

The obligated recipient is NORTH WIND RESOURCE PARTNERS JV, LLC.

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 $31.8 million.

What is the period of performance?

Start: 2014-12-12. End: 2020-06-14.

What was the specific performance criteria used to determine the award fee for North Wind Resource Partners JV, LLC?

The provided data does not detail the specific performance criteria used for the award fee. In a Fixed Price Award Fee (FPAF) contract, the government typically establishes objective and subjective criteria related to the contractor's performance against contract requirements. These criteria often include factors like timeliness of delivery, quality of work, responsiveness to government requests, and achievement of specific project milestones. The Contracting Officer's Representative (COR) usually assesses performance against these criteria, and based on that assessment, a portion of the award fee is paid. Without access to the contract's Performance Work Statement (PWS) and the COR's evaluation reports, the exact metrics and their weighting remain unknown. This lack of transparency makes it difficult to independently verify the value derived from the award fee component.

How does the $31.8 million contract value compare to similar FEMA contracts for risk communication and community engagement?

Benchmarking this $31.8 million contract against similar FEMA contracts requires access to historical contract data for comparable services. FEMA frequently engages contractors for public outreach, disaster preparedness education, and risk communication, especially following major events or in areas prone to natural disasters. The value of such contracts can vary significantly based on scope, duration, and geographic reach. For instance, a national campaign might cost more than a regional initiative. Without specific data on the number of bidders, the contract duration, and the detailed scope of work for comparable contracts, it's challenging to definitively state whether $31.8 million represents a high, low, or average expenditure. However, given the multi-year duration (December 2014 to June 2020), this represents a substantial, long-term investment in enhancing FEMA's communication capabilities.

What were the primary risks identified during the solicitation and award process for this contract?

The provided data does not explicitly list the risks identified during the solicitation and award process. However, common risks associated with large, multi-year professional services contracts like this one often include: 1) Contractor performance risk: The possibility that the contractor may not deliver services to the required standard or on time. 2) Cost overrun risk: Although this is a fixed-price contract, scope creep or unforeseen complexities could lead to increased costs if not managed properly. 3) Technical risk: The risk that the proposed solutions or methodologies for risk communication may not be effective. 4) Schedule risk: Delays in project execution could impact FEMA's ability to disseminate critical information. 5) Key personnel risk: Reliance on specific individuals within the contractor's team who may leave the project. The 'Full and Open Competition' process is designed to mitigate some of these risks by selecting the most capable and competitive offeror.

What is the track record of North Wind Resource Partners JV, LLC with federal contracts, particularly with FEMA or DHS?

North Wind Resource Partners JV, LLC has a history of receiving federal contracts, primarily within the Department of Defense and other agencies involved in environmental, engineering, and technical services. Information available through federal procurement databases indicates they have been awarded numerous contracts across various agencies. While this specific contract with FEMA for risk communication is noted, their broader portfolio often includes large-scale projects related to infrastructure, base operations support, and environmental remediation. A comprehensive review of their past performance, including any past performance evaluations or awards/debarments, would be necessary to fully assess their track record specifically with FEMA and DHS, and to determine their suitability for complex communication-focused contracts.

How has FEMA's spending on risk communication and community engagement evolved over the years, and does this contract represent a significant shift?

FEMA's spending on risk communication and community engagement has likely evolved significantly, particularly in response to increasing awareness of climate change impacts, natural disaster frequency, and the need for proactive mitigation. Historically, disaster response may have received more funding than preparedness and communication. Contracts like this one, awarded in late 2014 and running through mid-2020, suggest a sustained investment in building FEMA's capacity for ongoing engagement and risk awareness campaigns, rather than solely reactive communication during crises. To determine if it represents a 'significant shift,' one would need to analyze FEMA's overall budget allocation for preparedness and communication over time and compare the scale and scope of this contract to previous or subsequent investments in similar areas. The trend likely reflects a growing emphasis on resilience and community-based approaches.

What are the implications of the 'All Other Professional, Scientific, and Technical Services' NAICS code for understanding the scope of this contract?

The NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' is a broad residual category. This means the contract could encompass a wide array of services that do not fit into more specific NAICS codes within the professional, scientific, and technical services sector. For this FEMA contract, it suggests the scope likely included activities such as strategic planning for risk communication, development of public awareness materials, media outreach, community liaison services, data analysis related to public perception, and potentially training or facilitation. The generality of the code implies that the specific deliverables and tasks would be heavily defined in the contract's Performance Work Statement (PWS). It also means that comparing this contract's spending to more narrowly defined service categories might be difficult, as its components could span multiple specialized fields.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSFE60-14-R-0001

Offers Received: 5

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cook Inlet Region Inc

Address: 1425 HIGHAM ST, IDAHO FALLS, ID, 83402

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,840,412

Exercised Options: $31,840,412

Current Obligation: $31,840,412

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline