FEMA awarded Fluor Enterprises $26.1M for disaster operations support in Louisiana

Contract Overview

Contract Amount: $26,165,470 ($26.2M)

Contractor: Fluor Enterprises, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2012-06-02

End Date: 2014-09-30

Contract Duration: 850 days

Daily Burn Rate: $30.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TO PROVIDE TECHNICAL SPECIALISTS TO SUPPORT DISASTER OPERATIONS FEMA-1603-DR-LA.

Place of Performance

Location: BATON ROUGE, EAST BATON ROUGE County, LOUISIANA, 70802

State: Louisiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $26.2 million to FLUOR ENTERPRISES, INC. for work described as: TO PROVIDE TECHNICAL SPECIALISTS TO SUPPORT DISASTER OPERATIONS FEMA-1603-DR-LA. Key points: 1. Contract value represents a significant investment in disaster response capabilities. 2. Full and open competition suggests a robust bidding process. 3. Delivery order structure indicates a need for specific, time-bound support. 4. The contract duration of 850 days highlights the sustained nature of disaster recovery efforts. 5. Engineering services are critical for assessing damage and planning reconstruction. 6. The contract's focus on Louisiana points to a specific regional disaster event.

Value Assessment

Rating: good

The contract value of $26.1 million for engineering services to support disaster operations appears reasonable given the scale and duration of disaster recovery efforts. Benchmarking against similar large-scale disaster response contracts would provide further context, but the price per day (approximately $30,783) suggests a substantial commitment. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging, but the competitive nature of the award implies a degree of price discovery.

Cost Per Unit: $30,783 per day

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service quality. The agency likely sought proposals that demonstrated technical expertise, capacity, and cost-effectiveness for disaster support.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of potential contractors to bid, driving down costs and increasing the likelihood of selecting the most capable and cost-efficient provider.

Public Impact

Residents and businesses in Louisiana affected by disasters benefit from the technical expertise provided. Services delivered include crucial support for disaster operations, likely involving damage assessment, planning, and recovery coordination. The geographic impact is concentrated in Louisiana, addressing specific regional needs. The contract supports a workforce of technical specialists, contributing to employment in engineering and related fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if disaster scope expands beyond initial estimates.
Dependence on a single contractor for critical disaster support functions.
Challenges in ensuring consistent quality of services across a prolonged disaster recovery period.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Contractor has experience in large-scale engineering and construction projects.
Clear definition of services required for disaster operations support.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330), a critical component of infrastructure development and disaster recovery. The market for such services is substantial, particularly in regions prone to natural disasters. FEMA's spending in this area is essential for its mission to respond to and recover from catastrophic events. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by government agencies for disaster relief or infrastructure projects.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Fluor Enterprises, Inc. is a large business. There is no information on subcontracting plans for small businesses. The focus on a large prime contractor may limit direct opportunities for small businesses unless they are specifically subcontracted by Fluor.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. Mechanisms likely include contract performance monitoring, regular reporting requirements from Fluor Enterprises, and potentially site inspections. The Inspector General of the Department of Homeland Security would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

FEMA Disaster Relief Fund
Engineering and Architectural Services
Emergency Management Support Contracts
Post-Disaster Reconstruction Services

Risk Flags

Potential for cost overruns due to unpredictable disaster scope.
Performance monitoring challenges in disaster-stricken environments.
Contract duration may exceed initial disaster impact timeline.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $26.2 million to FLUOR ENTERPRISES, INC.. TO PROVIDE TECHNICAL SPECIALISTS TO SUPPORT DISASTER OPERATIONS FEMA-1603-DR-LA.

Who is the contractor on this award?

The obligated recipient is FLUOR ENTERPRISES, 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 $26.2 million.

What is the period of performance?

Start: 2012-06-02. End: 2014-09-30.

What specific disaster event in Louisiana prompted this contract award?

The contract was awarded in June 2012, with a performance period extending through September 2014. While the specific disaster is not explicitly stated in the provided data, the timing and location (Louisiana) suggest it could be related to recovery efforts from major hurricanes or other significant natural disasters that impacted the state in the years preceding the award. Louisiana is highly susceptible to hurricanes, and recovery efforts can often span multiple years, requiring sustained technical support for infrastructure assessment and rebuilding.

How does the daily rate of $30,783 compare to industry benchmarks for disaster response engineering services?

The daily rate of approximately $30,783 for engineering services supporting disaster operations is substantial. Benchmarking this rate requires detailed comparison with similar contracts awarded by FEMA or other agencies for large-scale disaster response. Factors influencing this rate include the complexity of the engineering tasks, the required expertise (e.g., structural, civil, environmental engineers), the urgency of the response, and the overhead associated with mobilizing and managing a technical team in a disaster-affected area. Without specific service details and market data for comparable contracts, it's difficult to definitively state if this rate is high or low, but it reflects the significant resources needed for sustained disaster recovery support.

What is Fluor Enterprises, Inc.'s track record with FEMA and disaster response contracts?

Fluor Enterprises, Inc. is a large multinational engineering and construction firm with extensive experience in managing complex projects, including those related to disaster recovery and infrastructure. They have a history of working with government agencies on large-scale contracts. While specific details of their past FEMA contracts are not provided here, their general profile suggests they possess the capacity and expertise to handle significant disaster support operations. A deeper dive into their contract history with FEMA would reveal specific performance records, past issues, and successful outcomes on similar engagements.

What are the primary risks associated with this type of disaster operations support contract?

Key risks include scope creep, where the extent of disaster damage necessitates additional services beyond the initial contract scope, potentially leading to cost overruns. There's also a risk of contractor performance issues, where the quality or timeliness of services may not meet FEMA's expectations, especially under challenging disaster conditions. Furthermore, reliance on a single contractor for critical support functions can pose a risk if the contractor faces unforeseen operational challenges or if their capacity is stretched thin by multiple concurrent events. Ensuring adequate oversight and clear performance metrics are crucial to mitigating these risks.

How has FEMA's spending on disaster operations support evolved over time, and where does this contract fit?

FEMA's spending on disaster operations support has generally increased over time, reflecting the growing frequency and severity of natural disasters, as well as changes in federal policy and disaster declarations. This $26.1 million contract, awarded in 2012, represents a significant, but not unprecedented, investment for a specific regional disaster recovery effort. Analyzing FEMA's historical spending patterns would show fluctuations based on major events (e.g., Hurricanes Katrina, Sandy, Harvey) and highlight the agency's reliance on large engineering and support contracts to manage complex, long-term recovery operations across affected areas.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Fluor Corporation (UEI: 006907190)

Address: 100 FLUOR DANIEL DR, GREENVILLE, SC, 29607

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

Financial Breakdown

Contract Ceiling: $26,891,907

Exercised Options: $26,891,907

Current Obligation: $26,165,470

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSFEHQ12D0880

IDV Type: IDC

Timeline