FEMA awarded Shaw Environmental $24.6M for Hurricane Katrina temporary housing solutions in Louisiana

Contract Overview

Contract Amount: $24,630,952 ($24.6M)

Contractor: Shaw Environmental, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2005-09-10

End Date: 2006-09-30

Contract Duration: 385 days

Daily Burn Rate: $64.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: SUPPORT FOR THE RECOVERY DIVISION MISSION; IDENTIFY POTENTIAL TEMPORARY HOUSING SOLUTIONS, RESOURCES, AND REQUIREMENT FOR PEOPLE DISPLACED AS A RESULT OF HURRICANE KATRINA (LA) - DESIGN AND DEVELOP THE GROOM RD AND OLD SCENIC HWY GROUP SITE IN ACCORDANCE WITH THE APPROVED GROUP SITE DESIGN AND TIME LINE

Place of Performance

Location: BATON ROUGE, EAST BATON ROUGE County, LOUISIANA, 70817

State: Louisiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $24.6 million to SHAW ENVIRONMENTAL, INC. for work described as: SUPPORT FOR THE RECOVERY DIVISION MISSION; IDENTIFY POTENTIAL TEMPORARY HOUSING SOLUTIONS, RESOURCES, AND REQUIREMENT FOR PEOPLE DISPLACED AS A RESULT OF HURRICANE KATRINA (LA) - DESIGN AND DEVELOP THE GROOM RD AND OLD SCENIC HWY GROUP SITE IN ACCORDANCE WITH THE APPROVED GROUP S… Key points: 1. Contract focused on immediate post-disaster housing needs, highlighting rapid response capabilities. 2. Sole-source award suggests limited pre-existing vendor relationships or urgent, specific expertise required. 3. Performance period of approximately one year indicates a project-based, time-sensitive requirement. 4. The contract's scope involved site development and resource identification for displaced individuals. 5. This award falls under professional, scientific, and technical services, a broad but critical category for disaster response.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specific, emergency-response nature and sole-source award. The fixed fee component suggests some cost control, but the overall price reflects the urgency and unique circumstances of Hurricane Katrina recovery. Without comparable sole-source contracts for similar disaster housing solutions, a precise value-for-money assessment is difficult. The cost-plus aspect, while necessary for unforeseen challenges, can introduce variability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that FEMA likely identified Shaw Environmental, Inc. as the only capable or available vendor for the specific requirements of developing temporary housing solutions post-Hurricane Katrina. The lack of competition means that price discovery through market forces was bypassed, potentially leading to a higher cost than if multiple bids had been solicited.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. The sole-source nature limits the government's ability to leverage market competition to secure the best possible price and terms.

Public Impact

Directly benefits individuals and families displaced by Hurricane Katrina in Louisiana. Services delivered include the design and development of temporary housing sites. Geographic impact is concentrated in Louisiana, specifically addressing needs arising from the hurricane's devastation. Workforce implications include potential employment for construction, engineering, and project management personnel involved in site development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits transparency and potential for cost savings through competition.
Cost-plus contract type can lead to cost overruns if not managed tightly.
Emergency nature of the award may have necessitated expediency over thorough vetting.

Positive Signals

Contract awarded to a single, potentially specialized vendor for urgent needs.
Focus on critical post-disaster housing addresses immediate humanitarian concerns.
Defined performance period suggests a focused, time-bound effort.

Sector Analysis

This contract falls within the 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990). This sector is broad and encompasses a wide range of specialized services. In the context of disaster recovery, it includes critical support functions like site assessment, planning, and development, which are essential for providing immediate relief. The market for such services during large-scale disasters is often characterized by rapid mobilization and specialized expertise, making pre-established relationships or unique capabilities highly valuable.

Small Business Impact

The data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As a sole-source award to a large contractor (Shaw Environmental, Inc.), it is less likely to have direct provisions for small business participation unless subcontracted by the prime. The focus was on immediate, large-scale disaster response, which may prioritize established capabilities over small business set-aside goals.

Oversight & Accountability

Oversight for this contract would fall under the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. Given the cost-plus nature and the emergency context, rigorous oversight would be crucial to monitor expenditures and ensure the effective development of temporary housing. Transparency might be limited due to the sole-source award, but performance metrics and financial reporting would be key accountability measures. Inspector General jurisdiction would apply for investigations into fraud, waste, or abuse.

Related Government Programs

Hurricane Katrina Disaster Relief Efforts
Federal Emergency Management Agency (FEMA) Contracts
Temporary Housing Solutions
Disaster Recovery Services
Department of Homeland Security Procurement

Risk Flags

Sole-source award raises concerns about competition and potential cost efficiencies.
Cost-plus contract type necessitates robust oversight to manage expenditures.
Emergency procurement context may limit detailed pre-award analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $24.6 million to SHAW ENVIRONMENTAL, INC.. SUPPORT FOR THE RECOVERY DIVISION MISSION; IDENTIFY POTENTIAL TEMPORARY HOUSING SOLUTIONS, RESOURCES, AND REQUIREMENT FOR PEOPLE DISPLACED AS A RESULT OF HURRICANE KATRINA (LA) - DESIGN AND DEVELOP THE GROOM RD AND OLD SCENIC HWY GROUP SITE IN ACCORDANCE WITH THE APPROVED GROUP SITE DESIGN AND TIME LINE

Who is the contractor on this award?

The obligated recipient is SHAW ENVIRONMENTAL, 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 $24.6 million.

What is the period of performance?

Start: 2005-09-10. End: 2006-09-30.

What was the specific expertise Shaw Environmental, Inc. brought to this contract that justified a sole-source award?

While the provided data does not detail Shaw Environmental, Inc.'s specific expertise, sole-source awards are typically justified when a particular contractor possesses unique capabilities, specialized knowledge, or critical resources essential for the requirement that cannot be readily obtained from other sources. In the context of Hurricane Katrina recovery, this could have included pre-existing knowledge of Louisiana's terrain, established relationships with local authorities, specialized engineering skills for rapid site development, or the immediate availability of personnel and equipment crucial for emergency housing solutions. FEMA would have had to document these justifications to proceed with a sole-source procurement.

How did the 'Cost Plus Fixed Fee' (CPFF) contract type function in this emergency scenario?

A Cost Plus Fixed Fee (CPFF) contract is a hybrid type where the contractor is reimbursed for all allowable costs plus a predetermined fixed fee representing profit. In an emergency like Hurricane Katrina, CPFF can be advantageous because it allows for flexibility in addressing unforeseen challenges and scope changes inherent in disaster response. The 'cost' portion covers direct and indirect expenses incurred, while the 'fixed fee' provides a stable profit margin. This structure incentivizes the contractor to control costs while ensuring they are compensated for their efforts, though it requires diligent oversight from the agency to prevent cost escalation beyond what is reasonable and necessary for the mission.

What were the key performance indicators (KPIs) for this contract?

Specific KPIs for this contract are not detailed in the provided data. However, for a contract focused on identifying and developing temporary housing solutions post-disaster, key performance indicators would likely have included the speed of site identification and readiness, the number of housing units made available or ready for occupancy, adherence to timelines for site development milestones, compliance with environmental and safety regulations, and the overall cost-effectiveness of the solutions implemented. FEMA would have monitored these metrics to ensure the contractor met the urgent needs of displaced populations.

Were there any follow-on contracts or related work awarded to Shaw Environmental, Inc. for Hurricane Katrina recovery?

The provided data only pertains to this specific delivery order. To determine if there were follow-on contracts or related work awarded to Shaw Environmental, Inc. for Hurricane Katrina recovery, a broader search of federal procurement databases (like FPDS or USASpending) would be necessary. Given the scale of the disaster and the duration of recovery efforts, it is plausible that the agency would engage contractors for extended periods or multiple phases of work, potentially including Shaw Environmental, Inc. if their performance was satisfactory.

How does the $24.6 million award compare to other disaster housing contracts?

Comparing this $24.6 million award requires context regarding the scale and duration of the disaster, the specific services required, and the time period. Hurricane Katrina was a catastrophic event, necessitating massive and rapid deployment of resources. Contracts for temporary housing solutions can vary significantly; some might focus solely on logistics and distribution, while others, like this one, involve site development. Without knowing the exact deliverables and timeframe of comparable contracts, a direct comparison is difficult. However, for a year-long project involving site design and development in a major disaster zone, $24.6 million represents a substantial but potentially justifiable investment given the circumstances.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HSFEHQ05R0046

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chicago Bridge & Iron Company N.V. (UEI: 386491765)

Address: 1725 DUKE STREET, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,630,952

Exercised Options: $24,630,952

Current Obligation: $24,630,952

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSFEHQ05D0573

IDV Type: IDC

Timeline