FEMA awards $89M for Katrina temporary housing construction to CH2M Hill Constructors
Contract Overview
Contract Amount: $89,163,602 ($89.2M)
Contractor: CH2M Hill Constructors, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2005-09-14
End Date: 2006-03-31
Contract Duration: 198 days
Daily Burn Rate: $450.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Construction
Official Description: CONSTRUCTION; IDENTIFY POTENTIAL TEMPORARY HOUSING SOLUTIONS, RESOURCES, AND REQUIREMENT IN LOUISIANA FOR PEOPLE DISPLACED AS A RESULT OF HURRICANE KATRINA, TO INCL. DESIGN CONSTRUCTION, AND INSTALLATION OF TEMPORARY HOUSING STRUCTURES, AND OPERATE AND MANAGE STAGING AREAS.
Place of Performance
Location: ENGLEWOOD, DENVER County, COLORADO, 80112
State: Colorado Government Spending
Plain-Language Summary
Department of Homeland Security obligated $89.2 million to CH2M HILL CONSTRUCTORS, INC. for work described as: CONSTRUCTION; IDENTIFY POTENTIAL TEMPORARY HOUSING SOLUTIONS, RESOURCES, AND REQUIREMENT IN LOUISIANA FOR PEOPLE DISPLACED AS A RESULT OF HURRICANE KATRINA, TO INCL. DESIGN CONSTRUCTION, AND INSTALLATION OF TEMPORARY HOUSING STRUCTURES, AND OPERATE AND MANAGE STAGING AREAS. Key points: 1. Contract awarded for post-Katrina temporary housing in Louisiana. 2. Significant expenditure of $89.16 million for design, construction, and installation. 3. Sole-source award raises questions about competition and price discovery. 4. Focus on immediate disaster relief housing needs.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure for emergency housing can lead to cost overruns. Benchmarking is difficult due to the unique, urgent nature of disaster relief, but the high total value warrants scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, likely due to the urgent need following Hurricane Katrina. This lack of competition limits price discovery and potentially increases costs for taxpayers.
Taxpayer Impact: Taxpayers bore the full cost of this sole-source award, with potential for inflated prices due to the absence of competitive bidding.
Public Impact
Provided essential temporary housing for thousands displaced by Hurricane Katrina. Facilitated the rapid deployment of housing solutions in a critical disaster zone. Demonstrated federal capacity for large-scale emergency construction management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
Positive Signals
- Met critical housing needs post-disaster
- Rapid deployment of resources
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector, specifically addressing emergency housing needs. Disaster relief construction spending can fluctuate significantly based on natural events, often involving expedited procurements.
Small Business Impact
The data indicates no specific set-aside for small businesses. Given the scale and nature of the contract, it is unlikely that small businesses played a significant prime contracting role.
Oversight & Accountability
The urgency of the situation post-Katrina may have limited traditional oversight. However, the significant expenditure necessitates robust financial tracking and performance monitoring to ensure accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Homeland Security Contracting
- Federal Emergency Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Cost-plus contract type can increase costs.
- Potential for cost overruns due to urgency.
- Lack of transparency in pricing due to no competition.
- Limited small business participation.
Tags
commercial-and-institutional-building-co, department-of-homeland-security, co, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $89.2 million to CH2M HILL CONSTRUCTORS, INC.. CONSTRUCTION; IDENTIFY POTENTIAL TEMPORARY HOUSING SOLUTIONS, RESOURCES, AND REQUIREMENT IN LOUISIANA FOR PEOPLE DISPLACED AS A RESULT OF HURRICANE KATRINA, TO INCL. DESIGN CONSTRUCTION, AND INSTALLATION OF TEMPORARY HOUSING STRUCTURES, AND OPERATE AND MANAGE STAGING AREAS.
Who is the contractor on this award?
The obligated recipient is CH2M HILL CONSTRUCTORS, 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 $89.2 million.
What is the period of performance?
Start: 2005-09-14. End: 2006-03-31.
What was the justification for the sole-source award, and were any alternatives considered?
The sole-source award was likely justified by the extreme urgency and immediate need for housing following Hurricane Katrina. While alternatives might have been explored, the catastrophic scale of the disaster probably necessitated rapid, direct contracting to address the crisis effectively and without delay.
How did the Cost Plus Fixed Fee structure impact the final cost compared to a fixed-price contract?
A Cost Plus Fixed Fee (CPFF) contract allows the contractor to recover all allowable costs plus a fixed fee representing profit. In an emergency, this can expedite work but may lead to higher costs than a fixed-price contract if costs are not tightly controlled, as the government bears the risk of cost overruns.
What mechanisms were in place to ensure the effectiveness and quality of the temporary housing?
Given the emergency context, oversight likely focused on rapid deployment and basic habitability. Mechanisms would have included FEMA's program management, site inspections, and potentially third-party quality assurance to ensure structures met minimum safety and functionality standards for temporary shelter.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: CH2M Hill Companies, Ltd. (UEI: 027620574)
Address: 9191 SOUTH JAMAICA STREET, ENGLEWOOD, CO, 06
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $89,163,602
Exercised Options: $89,163,602
Current Obligation: $89,163,602
Parent Contract
Parent Award PIID: HSFEHQ05D0592
IDV Type: IDC
Timeline
Start Date: 2005-09-14
Current End Date: 2006-03-31
Potential End Date: 2006-03-31 00:00:00
Last Modified: 2011-09-25
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