FEMA awards $63.6M contract to Bechtel National, Inc. for unspecified professional services

Contract Overview

Contract Amount: $63,596,353 ($63.6M)

Contractor: Bechtel National, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2005-10-08

End Date: 2007-04-23

Contract Duration: 562 days

Daily Burn Rate: $113.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE)

Sector: Other

Official Description: ADDITIONAL FUNDS AND POP EXT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $63.6 million to BECHTEL NATIONAL, INC. for work described as: ADDITIONAL FUNDS AND POP EXT Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies. 2. Limited competition may have impacted price discovery and value for taxpayer dollars. 3. The contract duration of 562 days suggests a significant scope of work. 4. The broad NAICS code (541990) indicates a wide range of potential services, making specific performance assessment difficult. 5. The contract was awarded in 2005, with performance concluding in 2007, indicating historical spending patterns. 6. No small business set-aside was utilized, suggesting larger prime contractors were anticipated.

Value Assessment

Rating: questionable

Without detailed service descriptions or performance metrics, it is difficult to benchmark the value for money. The sole-source award mechanism inherently limits comparative analysis against other potential providers or pricing structures. The total award amount of $63.6 million for a period of 562 days requires further scrutiny to determine if it represents a fair price for the services rendered, especially given the lack of competitive bidding.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities or when urgency dictates a rapid award. The lack of competition means there was no opportunity for price negotiation based on multiple bids, potentially leading to higher costs for the government.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government does not benefit from the price reductions typically achieved through competitive bidding processes.

Public Impact

The primary beneficiary of this contract is Bechtel National, Inc., which received the funding. The services delivered are broadly categorized under 'All Other Professional, Scientific, and Technical Services,' indicating a wide range of potential support to FEMA. The contract was awarded to a company based in the District of Columbia, suggesting a potential focus on services within that geographic area or national-level support. The contract likely supported federal emergency management operations, potentially impacting disaster response and recovery efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer funds.
The broad nature of the NAICS code makes it challenging to ascertain the specific services performed and their effectiveness.
Sole-source awards can limit opportunities for smaller businesses to participate in federal contracting.

Positive Signals

Bechtel National, Inc. is a large, established company with significant experience in government contracting, suggesting a capacity to deliver complex services.
The contract was awarded by FEMA, an agency critical to national disaster response and recovery, implying the services were likely of high importance.

Sector Analysis

The professional, scientific, and technical services sector is a vast and diverse market within the federal contracting landscape. NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' encompasses a wide array of specialized services not classified elsewhere. Federal spending in this category often supports critical government functions, research, and specialized project management. Benchmarking this contract's value is challenging without specific service details, but the overall federal expenditure on professional services runs into billions annually.

Small Business Impact

This contract does not appear to have included a small business set-aside. The sole-source nature of the award further suggests that opportunities for small businesses, either as prime contractors or through subcontracting, may have been limited. Without specific subcontracting plans or data, the impact on the small business ecosystem remains unclear, but typically, sole-source awards to large prime contractors do not prioritize small business participation.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) at FEMA, responsible for monitoring performance and ensuring compliance with contract terms. Transparency is limited due to the sole-source award and the broad service description. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arose during the contract's lifecycle.

Related Government Programs

Federal Emergency Management Agency Operations
Professional and Technical Services Contracts
Sole-Source Contract Awards
Disaster Relief and Recovery Support

Risk Flags

Sole-source award limits transparency and competitive pricing.
Broad NAICS code obscures specific service details and performance evaluation.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $63.6 million to BECHTEL NATIONAL, INC.. ADDITIONAL FUNDS AND POP EXT

Who is the contractor on this award?

The obligated recipient is BECHTEL NATIONAL, 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 $63.6 million.

What is the period of performance?

Start: 2005-10-08. End: 2007-04-23.

What specific services were rendered under this contract, and how were they aligned with FEMA's mission?

The contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This broad classification suggests a wide range of potential activities, such as consulting, research, technical support, or project management. Without a more detailed statement of work or performance reports, it is impossible to specify the exact services provided. However, given the awarding agency (FEMA), it is likely these services supported disaster preparedness, response, recovery, or mitigation efforts. The lack of specificity in the contract's public record hinders a precise alignment assessment with FEMA's mission objectives.

How does the $63.6 million award compare to similar FEMA contracts for professional services during that period?

Comparing this $63.6 million award to similar FEMA contracts from 2005-2007 is challenging due to the broad NAICS code and the sole-source nature of this award. FEMA utilizes a variety of contract types and scopes for professional services, ranging from small, specialized consulting engagements to large-scale support contracts. Sole-source awards, by definition, lack direct competitive benchmarks. To provide a meaningful comparison, one would need to identify contracts with similar durations (562 days) and service categories, ideally those awarded competitively, to establish a price-per-day or price-per-service benchmark. Without such comparable data, assessing whether $63.6 million was a competitive price is not feasible.

What were the justifications for awarding this contract on a sole-source basis?

The justification for a sole-source award typically stems from specific circumstances outlined in federal acquisition regulations (FAR). Common reasons include the urgency of the requirement, the unavailability of other sources, or the existence of a unique capability held by a single contractor. For this FEMA contract, awarded in 2005, potential justifications could have included an immediate need for specialized expertise related to an ongoing or anticipated disaster, or a situation where Bechtel National, Inc. was the only entity possessing the required skills or resources. The specific documentation justifying the sole-source nature of this award would reside within FEMA's contracting office records.

What is Bechtel National, Inc.'s track record with federal contracts, particularly with FEMA?

Bechtel National, Inc. is a subsidiary of Bechtel Corporation, a major global engineering, construction, and project management company with extensive experience in government contracting. They have a long history of working with various U.S. federal agencies, including the Department of Defense, Department of Energy, and FEMA. Their portfolio often includes large-scale infrastructure projects, disaster recovery efforts, and complex program management. While specific details of their past performance with FEMA would require a deeper dive into contract databases and performance reviews, their established presence suggests a significant capacity and experience in handling government requirements, including those of an emergency management nature.

What were the historical spending patterns for 'All Other Professional, Scientific, and Technical Services' by FEMA in the years leading up to and following this contract?

Analyzing FEMA's historical spending patterns for NAICS code 541990 requires access to detailed federal procurement data. In the mid-2000s, FEMA's spending was significantly influenced by major disaster events and evolving homeland security requirements. Spending on professional services, including those under 541990, likely saw fluctuations tied to disaster declarations and the scale of federal response. It would be expected that spending in this category might have increased during periods of heightened disaster activity or in the aftermath of significant events, requiring specialized expertise for recovery and rebuilding efforts. A comprehensive analysis would involve tracking annual obligations for this NAICS code over several years to identify trends and significant shifts.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HSFEHQ05R0045

Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE) (2)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bechtel Group, Inc. (UEI: 094878980)

Address: 5275 WESTVIEW DRIVE, FREDERICK, MD, 06

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $89,602,722

Exercised Options: $89,602,722

Current Obligation: $63,596,353

Parent Contract

Parent Award PIID: HSFEHQ05D0572

IDV Type: IDC

Timeline