FEMA spent over $430M on Hurricane Katrina temporary housing solutions and site inspections
Contract Overview
Contract Amount: $430,356,264 ($430.4M)
Contractor: Shaw Environmental, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2005-09-12
End Date: 2006-01-15
Contract Duration: 125 days
Daily Burn Rate: $3.4M/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: MAINTENANCE FOR TRAVEL TRAILERS AND MANUFACTURED HOMES; IDENTIFY AND PROVIDE TEMPORARY HOUSING SOLUTIONS FOR PEOPLE DISPLACED BECAUSE OF HURRICANE KATRINA - INSPECTIONS OF SITES IDENTIFIED BY FEMA FOR PLACEMENT OF TEMPORARY SHELTERS, INCLUDING TRAVEL TRAILERS (TT) AND MANUFACTURED HOMES (MH), AND PARK MODELS (PM)
Place of Performance
Location: BATON ROUGE, EAST BATON ROUGE County, LOUISIANA, 70817
Plain-Language Summary
Department of Homeland Security obligated $430.4 million to SHAW ENVIRONMENTAL, INC. for work described as: MAINTENANCE FOR TRAVEL TRAILERS AND MANUFACTURED HOMES; IDENTIFY AND PROVIDE TEMPORARY HOUSING SOLUTIONS FOR PEOPLE DISPLACED BECAUSE OF HURRICANE KATRINA - INSPECTIONS OF SITES IDENTIFIED BY FEMA FOR PLACEMENT OF TEMPORARY SHELTERS, INCLUDING TRAVEL TRAILERS (TT) AND MANUFACTURE… Key points: 1. Contract focused on immediate disaster response for displaced individuals. 2. Significant expenditure reflects the scale of Hurricane Katrina's impact. 3. Services included site identification and inspections for temporary shelters. 4. Contract duration was relatively short, aligning with emergency needs. 5. Sole-source award indicates urgent, time-sensitive requirements. 6. Primary geographic focus was Louisiana, heavily impacted by the hurricane.
Value Assessment
Rating: questionable
Assessing the value for money is challenging due to the emergency nature of the contract and the lack of competitive bidding. The total obligated amount of over $430 million is substantial, reflecting the immense need for temporary housing post-Hurricane Katrina. Without comparable contracts or detailed cost breakdowns, it's difficult to benchmark pricing effectively. However, the urgency of the situation likely influenced cost considerations, potentially leading to higher expenses than in a standard procurement environment.
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 in emergency situations where there is a critical and immediate need that cannot be met through a competitive process. The lack of competition means that FEMA did not benefit from price discovery or a range of technical solutions that a competitive bidding process would typically provide.
Taxpayer Impact: For taxpayers, a sole-source award in an emergency context means that the government may not have secured the most cost-effective solution. While necessary for rapid response, it bypasses the competitive pressures that normally drive down prices and encourage innovation.
Public Impact
Displaced residents of Louisiana received temporary housing solutions. FEMA was able to identify and prepare sites for temporary shelters. The contract directly addressed the immediate needs of individuals affected by Hurricane Katrina. The geographic impact was concentrated in Louisiana, the state most severely affected by the hurricane.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits transparency and potential cost savings.
- High dollar value for a short-term emergency response contract.
- Lack of competition may have resulted in less favorable pricing.
- Scope of services focused on immediate needs, not long-term solutions.
Positive Signals
- Addressed critical, immediate need for housing for disaster victims.
- Rapid deployment of services was essential in disaster recovery.
- Focused on essential site preparation and inspection for temporary shelters.
Sector Analysis
This contract falls within the 'All Other Professional, Scientific, and Technical Services' sector, specifically addressing disaster response and temporary housing solutions. The market for such services is highly specialized and often activated during national emergencies. The scale of spending reflects the unprecedented nature of Hurricane Katrina and the immediate, widespread need for shelter and support services in the affected region.
Small Business Impact
Information regarding small business participation, including set-asides or subcontracting, is not available for this contract. Given the sole-source nature and the emergency context, it is possible that large, specialized firms were engaged to meet immediate demands, potentially limiting opportunities for small businesses in this specific instance.
Oversight & Accountability
Oversight for this contract would have been managed by the Federal Emergency Management Agency (FEMA). Given the emergency procurement, standard oversight mechanisms might have been expedited. Transparency is limited due to the sole-source award. Inspector General jurisdiction would apply to ensure proper use of funds and prevent fraud, waste, and abuse.
Related Government Programs
- Hurricane Katrina Disaster Relief Efforts
- FEMA Temporary Housing Programs
- Emergency Disaster Response Contracts
- Site Inspection Services
Risk Flags
- Sole-source award raises concerns about competition and potential cost-effectiveness.
- High dollar value for an emergency response contract requires scrutiny.
- Lack of detailed cost breakdown hinders value assessment.
Tags
other, fema, louisiana, sole-source, emergency-response, disaster-relief, professional-scientific-technical-services, temporary-housing, site-inspection, cost-plus-fixed-fee, hurricane-katrina
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $430.4 million to SHAW ENVIRONMENTAL, INC.. MAINTENANCE FOR TRAVEL TRAILERS AND MANUFACTURED HOMES; IDENTIFY AND PROVIDE TEMPORARY HOUSING SOLUTIONS FOR PEOPLE DISPLACED BECAUSE OF HURRICANE KATRINA - INSPECTIONS OF SITES IDENTIFIED BY FEMA FOR PLACEMENT OF TEMPORARY SHELTERS, INCLUDING TRAVEL TRAILERS (TT) AND MANUFACTURED HOMES (MH), AND PARK MODELS (PM)
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 $430.4 million.
What is the period of performance?
Start: 2005-09-12. End: 2006-01-15.
What was the specific breakdown of costs for site inspections versus temporary housing solutions?
The provided data does not offer a specific breakdown of costs between site inspections and the provision of temporary housing solutions. The total obligated amount of $430,356,263.61 encompasses all services rendered under this contract by Shaw Environmental, Inc. for FEMA's Hurricane Katrina response. Typically, such contracts would detail line items for different service categories, but this summary data does not allow for that level of granularity. Understanding the precise allocation would require access to the detailed contract award files and financial reports.
How did the pricing for these services compare to pre-disaster market rates?
Direct comparison of pricing to pre-disaster market rates is not feasible with the provided data. This contract was awarded on a sole-source basis due to the emergency nature of Hurricane Katrina, which often leads to expedited procurements and potentially higher costs than standard competitive bids. Market rates for disaster response services can fluctuate significantly based on demand, urgency, and the availability of resources. Without specific cost data and market benchmarks for emergency services at that time, a precise comparison is not possible.
What were the key performance indicators (KPIs) for Shaw Environmental, Inc. under this contract?
The provided data does not specify the Key Performance Indicators (KPIs) established for Shaw Environmental, Inc. under this contract. In emergency response contracts, KPIs often focus on timeliness of site inspections, speed of identifying suitable locations for temporary housing, and adherence to safety and environmental standards during site preparation. Given the contract's focus on immediate needs following Hurricane Katrina, metrics related to rapid deployment and effective site assessment would have been critical. Detailed performance reports would be necessary to assess adherence to these potential KPIs.
Were there any challenges or disputes encountered during the execution of this contract?
The provided data does not indicate any specific challenges or disputes encountered during the execution of this contract. However, contracts of this magnitude, especially those awarded under emergency conditions for disaster relief, can often face logistical hurdles, unforeseen site conditions, or coordination issues with multiple agencies and stakeholders. Without access to contract performance reports or official records of disputes, it is impossible to confirm whether any significant challenges arose or were formally addressed.
What is the historical spending pattern for FEMA's temporary housing and site inspection services?
The provided data focuses on a single, large contract related to Hurricane Katrina. To understand FEMA's historical spending patterns for temporary housing and site inspection services, a broader analysis of multiple contracts over several years, particularly those related to various disaster events, would be necessary. This specific contract's $430 million expenditure is exceptionally high, likely due to the unprecedented scale of Hurricane Katrina. Typical spending for such services outside of major disasters might be significantly lower and more consistently competed.
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: $993,329,959
Exercised Options: $894,532,716
Current Obligation: $430,356,264
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSFEHQ05D0573
IDV Type: IDC
Timeline
Start Date: 2005-09-12
Current End Date: 2006-01-15
Potential End Date: 2006-01-15 00:00:00
Last Modified: 2016-05-20
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