FEMA Spends $62.5M on Katrina Housing, Awarded Sole-Source to Bechtel National
Contract Overview
Contract Amount: $62,465,593 ($62.5M)
Contractor: Bechtel National, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2005-09-20
End Date: 2006-02-16
Contract Duration: 149 days
Daily Burn Rate: $419.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IDENTIFY AND PROVIDE TEMPORARY HOUSING SOLUTIONS FOR ALL PEOPLE DISPLACED BECAUSE OF HURRICANE KATRINA TO INCL. ASSESSING SITES IDENTIFIED WITHIN THE STATE OF MISSISSIPPI; DESIGN, DEVELOP AND CONSTRUCT GROUP SITES AND EGS AS DETERMINED BY FEMA.
Place of Performance
Location: FREDERICK, FREDERICK County, MARYLAND, 21703
State: Maryland Government Spending
Plain-Language Summary
Department of Homeland Security obligated $62.5 million to BECHTEL NATIONAL, INC. for work described as: IDENTIFY AND PROVIDE TEMPORARY HOUSING SOLUTIONS FOR ALL PEOPLE DISPLACED BECAUSE OF HURRICANE KATRINA TO INCL. ASSESSING SITES IDENTIFIED WITHIN THE STATE OF MISSISSIPPI; DESIGN, DEVELOP AND CONSTRUCT GROUP SITES AND EGS AS DETERMINED BY FEMA. Key points: 1. Significant expenditure of $62.5 million for emergency housing post-Katrina. 2. Sole-source award to Bechtel National suggests limited competition and potential urgency. 3. Contract duration of 149 days indicates a rapid, short-term response. 4. Focus on Mississippi highlights regional impact and specific needs. 5. NAICS code 541990 covers 'All Other Professional, Scientific, and Technical Services', a broad category.
Value Assessment
Rating: questionable
The total award of $62.5 million for temporary housing and site development is substantial. Without comparable contracts for similar disaster relief efforts, assessing its value is difficult. The cost-plus-fixed-fee structure can lead to cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This approach is often used in emergency situations where speed is critical, but it bypasses competitive bidding processes, potentially impacting price discovery and overall value for taxpayer dollars.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price due to the lack of competition.
Public Impact
Provided essential temporary housing for thousands displaced by Hurricane Katrina. Addressed critical infrastructure needs by designing and constructing group sites. Focused on a specific, high-need region in Mississippi. Demonstrates government's role in disaster response and recovery. Highlights the challenges of rapid deployment of services during crises.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Emergency procurement
Positive Signals
- Rapid deployment of essential services
- Directly addressed critical post-disaster needs
- Focused on a specific geographic area
Sector Analysis
This contract falls under professional, scientific, and technical services, specifically related to disaster management and construction. Spending in this sector during emergencies can be highly variable and often involves expedited procurement methods.
Small Business Impact
There is no indication that small businesses were involved in this contract, as it was awarded sole-source to a large prime contractor.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny regarding the justification for bypassing competition. Oversight would be crucial to ensure funds were used effectively and efficiently for their intended purpose.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Homeland Security Contracting
- Federal Emergency Management Agency Programs
Risk Flags
- Sole-source award lacks transparency and competitive pricing.
- Cost-plus contract type carries inherent risk of cost overruns.
- Emergency procurement may bypass standard due diligence.
- Limited duration suggests a short-term fix, not a permanent solution.
Tags
all-other-professional-scientific-and-te, department-of-homeland-security, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $62.5 million to BECHTEL NATIONAL, INC.. IDENTIFY AND PROVIDE TEMPORARY HOUSING SOLUTIONS FOR ALL PEOPLE DISPLACED BECAUSE OF HURRICANE KATRINA TO INCL. ASSESSING SITES IDENTIFIED WITHIN THE STATE OF MISSISSIPPI; DESIGN, DEVELOP AND CONSTRUCT GROUP SITES AND EGS AS DETERMINED BY FEMA.
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 $62.5 million.
What is the period of performance?
Start: 2005-09-20. End: 2006-02-16.
What was the specific justification for awarding this contract sole-source?
Sole-source awards are typically justified by urgent and compelling circumstances, such as immediate disaster relief needs where a competitive process would cause unacceptable delays. FEMA would have needed to document that only Bechtel National, Inc. could meet the critical timeline for providing temporary housing solutions post-Hurricane Katrina.
How were costs controlled under the Cost Plus Fixed Fee structure?
In a Cost Plus Fixed Fee (CPFF) contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. Cost control relies heavily on robust oversight from the contracting agency (FEMA) to ensure all costs incurred are reasonable, allocable, and necessary for the project's completion.
What was the long-term impact of the temporary housing provided?
The temporary housing provided was critical for immediate relief, offering shelter to displaced individuals. However, the long-term effectiveness depends on the transition to more permanent solutions. The success of these temporary measures is measured by their ability to stabilize the affected population during the recovery phase.
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: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Bechtel Group, Inc. (UEI: 094878980)
Address: 5275 WESTVIEW DRIVE, FREDERICK, MD, 21703
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $62,532,592
Exercised Options: $62,532,592
Current Obligation: $62,465,593
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSFEHQ05D0572
IDV Type: IDC
Timeline
Start Date: 2005-09-20
Current End Date: 2006-02-16
Potential End Date: 2016-03-24 00:00:00
Last Modified: 2016-03-28
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