FEMA Spends $11.9M on Katrina Temporary Housing Solutions with CH2M Hill
Contract Overview
Contract Amount: $11,933,480 ($11.9M)
Contractor: CH2M Hill Constructors, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2005-09-19
End Date: 2006-03-31
Contract Duration: 193 days
Daily Burn Rate: $61.8K/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. HAUL & INSTALL TRAVEL TRAILERS, MOBILE HOMES, MODULAR HOMES OR OTHER TEMPORARY RESIDENTIAL STRUCTURES
Place of Performance
Location: ENGLEWOOD, DENVER County, COLORADO, 80112
State: Colorado Government Spending
Plain-Language Summary
Department of Homeland Security obligated $11.9 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. HAUL & INSTALL TRAVEL TRAILERS, MOBILE HOMES, MODULAR HOMES OR OTHER TEMPORARY RESIDENTIAL STRUCTURES Key points: 1. Significant federal spending directed towards post-disaster housing relief. 2. Contract awarded to CH2M Hill Constructors, Inc. for temporary housing. 3. High cost associated with emergency response and temporary infrastructure. 4. Focus on rapid deployment of diverse temporary housing options.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure, while common in emergencies, can lead to higher overall costs compared to fixed-price contracts. Benchmarking is difficult due to the unique, urgent nature of disaster relief.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, likely due to the urgent need for disaster relief following Hurricane Katrina. This lack of competition may have limited price discovery and potentially increased costs.
Taxpayer Impact: Taxpayers bore the cost of emergency housing solutions, with the exact efficiency of spending difficult to ascertain without competitive bidding.
Public Impact
Provided essential temporary shelter for thousands displaced by Hurricane Katrina. Demonstrates government's role in disaster response and recovery. Highlights the logistical challenges and costs of large-scale emergency housing. The use of various housing types (trailers, mobile homes) addressed immediate needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Urgent need may have led to inflated pricing
Positive Signals
- Provided critical housing during a major disaster
- Rapid deployment of resources
Sector Analysis
This contract falls under the construction sector, specifically related to commercial and institutional building construction, but with a focus on emergency temporary housing. Spending benchmarks for disaster relief are highly variable.
Small Business Impact
No information available regarding small business participation in this contract. The award was made to a large contractor, CH2M Hill.
Oversight & Accountability
Oversight was likely managed by the Federal Emergency Management Agency (FEMA) to ensure the delivery of temporary housing solutions. Accountability for cost and performance in such urgent situations can be challenging.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Homeland Security Contracting
- Federal Emergency Management Agency Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- Potential for cost overruns
- Urgent need may have compromised thorough vetting
- Limited transparency on unit deployment and duration
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 $11.9 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. HAUL & INSTALL TRAVEL TRAILERS, MOBILE HOMES, MODULAR HOMES OR OTHER TEMPORARY RESIDENTIAL STRUCTURES
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 $11.9 million.
What is the period of performance?
Start: 2005-09-19. End: 2006-03-31.
What was the average cost per temporary housing unit provided under this contract?
The total contract value was $11.9 million over approximately 193 days. Without knowing the exact number of units deployed and their duration of use, calculating a precise per-unit cost is not possible. However, the scale of the spending indicates a significant investment in providing immediate shelter.
What were the primary risks associated with this non-competed contract?
The primary risks included potential overpayment due to the lack of competitive bidding, ensuring the quality and suitability of the temporary housing under urgent timelines, and managing the logistical complexities of deploying and installing units across affected areas. The cost-plus nature also presented a risk of cost overruns.
How effective was this contract in meeting the immediate housing needs post-Katrina?
The contract was likely effective in providing much-needed temporary housing solutions rapidly, which is crucial in disaster scenarios. While the cost and procurement method raise questions about efficiency, the primary goal of sheltering displaced individuals was likely achieved, albeit at a premium.
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: $11,933,480
Exercised Options: $11,933,480
Current Obligation: $11,933,480
Parent Contract
Parent Award PIID: HSFEHQ05D0592
IDV Type: IDC
Timeline
Start Date: 2005-09-19
Current End Date: 2006-03-31
Potential End Date: 2006-03-31 00:00:00
Last Modified: 2010-06-01
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