FEMA awards $53M contract for disaster operations support, exceeding initial estimates

Contract Overview

Contract Amount: $53,025,122 ($53.0M)

Contractor: Nistac E, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2012-11-30

End Date: 2014-10-25

Contract Duration: 694 days

Daily Burn Rate: $76.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SEVENTEEN (17) TECHNICAL SPECIALISTS TO SUPPORT PUBLIC ASSISTANCE DISASTER OPERATIONS FOR FEMA-4085-DR-NY THROUGH FEBRUARY 28, 2013.

Place of Performance

Location: BROOKLYN, KINGS County, NEW YORK, 11201, UNITED STATES OF AMERICA

State: New York Government Spending

Plain-Language Summary

Department of Homeland Security obligated $53.0 million to NISTAC E, LLC for work described as: SEVENTEEN (17) TECHNICAL SPECIALISTS TO SUPPORT PUBLIC ASSISTANCE DISASTER OPERATIONS FOR FEMA-4085-DR-NY THROUGH FEBRUARY 28, 2013. Key points: 1. Contract value significantly higher than initial benchmark, suggesting potential for cost overruns or scope expansion. 2. Sole contractor indicates limited market engagement or specialized capabilities required for disaster response. 3. Long contract duration (694 days) may increase risk of cost escalation and performance degradation. 4. Time and Materials pricing structure can incentivize longer project durations and higher costs. 5. Focus on disaster operations highlights critical government need for rapid response capabilities. 6. Geographic focus on New York for disaster relief operations.

Value Assessment

Rating: fair

The contract value of $53,012,121.90 for 17 technical specialists over approximately two years appears high when benchmarked against typical professional services contracts. The per-diem rate implied by the total value and duration is substantial, especially considering the nature of disaster support. Without more granular data on the specific skill sets and hours required, it is difficult to definitively assess value for money, but the overall cost warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, the award to a single entity suggests that either NISTAC E, LLC was the only responsive bidder, or it offered the best value proposition among the competitors. The level of competition is not explicitly detailed, but the 'full and open' designation is a positive sign for price discovery.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it encourages competitive pricing and potentially leads to lower overall costs for government services.

Public Impact

Citizens of New York impacted by disasters benefit from enhanced support for public assistance operations. The contract delivers essential technical expertise to FEMA for managing disaster relief efforts. Geographic impact is concentrated in New York, addressing specific disaster recovery needs. The contract supports a team of 17 technical specialists, implying a direct impact on the workforce in this specialized field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials contract type.
High total contract value may indicate a lack of competitive pressure or scope creep.
Long contract duration increases exposure to market fluctuations and performance risks.
Limited information on specific technical expertise required makes value assessment challenging.

Positive Signals

Awarded through full and open competition, suggesting a fair bidding process.
Addresses a critical government function: disaster response and public assistance.
Contract provides specialized technical support essential for complex operations.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically engineering services. The market for disaster response support is often characterized by specialized firms capable of rapid deployment and technical expertise. While specific market size data for this niche is not readily available, FEMA's consistent need for such services indicates a significant and ongoing demand within the federal government.

Small Business Impact

The contract indicates that small business participation was not a primary consideration, as the 'small business' flag is false. There is no explicit mention of subcontracting goals for small businesses. This suggests that the prime contractor is expected to perform the majority of the work, and opportunities for small businesses to participate in this specific contract may be limited unless proactively sought by the prime.

Oversight & Accountability

Oversight for this contract would typically fall under FEMA's program management and contracting officers. The Department of Homeland Security's Office of Inspector General (OIG) would have jurisdiction for audits and investigations into potential fraud, waste, or abuse. Transparency is facilitated through contract award databases, but detailed performance metrics and spending breakdowns may not be publicly accessible.

Related Government Programs

FEMA Disaster Relief Fund
Public Assistance Program
Emergency Management Services
Technical Support Services

Risk Flags

High contract value relative to duration and number of personnel.
Time and Materials pricing structure.
Sole awardee despite full and open competition.
Long contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $53.0 million to NISTAC E, LLC. SEVENTEEN (17) TECHNICAL SPECIALISTS TO SUPPORT PUBLIC ASSISTANCE DISASTER OPERATIONS FOR FEMA-4085-DR-NY THROUGH FEBRUARY 28, 2013.

Who is the contractor on this award?

The obligated recipient is NISTAC E, 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 $53.0 million.

What is the period of performance?

Start: 2012-11-30. End: 2014-10-25.

What is the typical cost range for similar disaster response technical support contracts awarded by FEMA?

Assessing the typical cost range for similar disaster response technical support contracts is challenging without access to a comprehensive database of FEMA's historical awards for specialized disaster operations. However, contracts for technical support personnel, especially those requiring rapid deployment and specific expertise during emergencies, can command significant daily rates. Given the $53 million value over nearly two years for 17 specialists, the implied daily rate per specialist is substantial. Benchmarking would require comparing this to contracts for similar skill sets (e.g., engineering, logistics, IT support) during disaster events, factoring in duration, location, and the urgency of the need. The Time and Materials (T&M) pricing structure, while flexible, can also lead to higher overall costs compared to fixed-price contracts if not managed closely.

How does the Time and Materials (T&M) pricing structure impact the overall cost-effectiveness of this contract?

The Time and Materials (T&M) pricing structure for this FEMA contract introduces inherent risks to cost-effectiveness. T&M contracts pay the contractor for the actual labor hours at specified hourly rates and for the cost of materials used. While this structure offers flexibility and is often used when the scope of work is not clearly defined or is expected to change, it can incentivize longer project durations and higher costs, as the contractor is compensated for time spent. For taxpayers, this means less predictability in final costs. Effective oversight by FEMA is crucial to ensure that hours are reasonable, rates are fair, and materials are necessary and cost-effective. Without stringent monitoring, T&M contracts can become significantly more expensive than fixed-price alternatives.

What specific technical expertise is required for the 17 technical specialists supporting FEMA disaster operations?

The provided data indicates the contract is for 'SEVENTEEN (17) TECHNICAL SPECIALISTS TO SUPPORT PUBLIC ASSISTANCE DISASTER OPERATIONS'. While the specific technical disciplines are not detailed, such roles typically require expertise in areas critical to disaster recovery and public assistance management. This could include civil engineering, structural assessment, environmental science, project management, financial analysis related to disaster claims, information technology support for emergency systems, or logistics coordination. The 'Engineering Services' NAICS code (541330) suggests a strong emphasis on engineering-related skills. The exact nature of the expertise would dictate the required qualifications and influence the appropriate compensation rates.

What is the historical spending pattern for similar disaster support contracts by FEMA?

Analyzing FEMA's historical spending patterns for similar disaster support contracts requires access to detailed procurement data over multiple fiscal years. FEMA consistently requires technical support during and after declared disasters, leading to recurring contracts for a variety of services. Spending can fluctuate significantly year-to-year based on the number, scale, and severity of declared disasters. Contracts for technical specialists, particularly those involving engineering assessments, damage evaluation, and public assistance processing, are common. The total value of such contracts can range from hundreds of thousands to tens or hundreds of millions of dollars, depending on the scope and duration needed to address the disaster's impact. This specific $53 million award for New York disaster operations fits within the expected range for significant disaster recovery efforts.

What are the potential risks associated with a sole contractor (NISTAC E, LLC) for this type of specialized support?

While the contract was awarded under full and open competition, the fact that only one contractor, NISTAC E, LLC, received the award presents potential risks. A sole awardee might indicate a highly specialized niche where few companies possess the required capabilities, potentially leading to less competitive pricing over time if future needs arise. It could also suggest that other potential bidders found the requirements too demanding, the pricing too low, or the administrative burden too high. For taxpayers, this could mean paying a premium for services. Furthermore, reliance on a single contractor can create dependency and limit flexibility if performance issues arise or if the contractor's capacity is stretched thin by other commitments.

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

Address: 12420 MILESTONE CENTER DRIVE STE 150, GERMANTOWN, MD, 20876

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

Financial Breakdown

Contract Ceiling: $53,025,122

Exercised Options: $53,025,122

Current Obligation: $53,025,122

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSFEHQ12D0882

IDV Type: IDC

Timeline