FEMA Spends $131M on Direct Housing Operations Support for Temporary Units

Contract Overview

Contract Amount: $131,140,360 ($131.1M)

Contractor: CH2M Hill Constructors, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2005-09-19

End Date: 2006-09-30

Contract Duration: 376 days

Daily Burn Rate: $348.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Construction

Official Description: TECHNICAL ASSISTANCE FOR THE INDIVIDUAL ASSISTANCE PROGRAM. TA SUPPORT FOR MULTIPLE FUNCTIONS ASSOCIATED WITH IMPLEMENTATION OF THE FEMA DIRECT HOUSING OPERATIONS (DHOPS). INCLUDES HAULING AND INSTALLATION AND LIMITED MAINTENANCE OF, UP TO, AN ADDITIONAL 5500 TEMPORARY HOUSING UNITS IN SUPPORT OF THE RECOVERY MISSION.

Place of Performance

Location: ENGLEWOOD, DENVER County, COLORADO, 80112

State: Colorado Government Spending

Plain-Language Summary

Department of Homeland Security obligated $131.1 million to CH2M HILL CONSTRUCTORS, INC. for work described as: TECHNICAL ASSISTANCE FOR THE INDIVIDUAL ASSISTANCE PROGRAM. TA SUPPORT FOR MULTIPLE FUNCTIONS ASSOCIATED WITH IMPLEMENTATION OF THE FEMA DIRECT HOUSING OPERATIONS (DHOPS). INCLUDES HAULING AND INSTALLATION AND LIMITED MAINTENANCE OF, UP TO, AN ADDITIONAL 5500 TEMPORARY HOUSING U… Key points: 1. Significant investment in temporary housing units post-disaster. 2. Contract awarded to CH2M HILL CONSTRUCTORS, INC. for installation and maintenance. 3. Limited competition raises questions about price discovery and value. 4. Construction sector spending, focused on disaster recovery efforts.

Value Assessment

Rating: questionable

The contract's cost-plus-fixed-fee structure, combined with limited competition, makes a direct pricing assessment difficult. Benchmarking against similar disaster recovery housing contracts is challenging due to unique operational demands and urgency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, indicating a limited source selection process. This lack of competition may have hindered robust price discovery and potentially led to a higher overall cost.

Taxpayer Impact: Taxpayer funds are being utilized for critical disaster recovery infrastructure, but the non-competed nature warrants scrutiny to ensure cost-effectiveness.

Public Impact

Provides essential temporary housing for disaster survivors. Supports FEMA's critical mission in post-disaster recovery. Facilitates the installation and maintenance of up to 5500 housing units. Impacts communities affected by natural disasters.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Cost-plus contract type
Lack of small business participation

Positive Signals

Addresses critical need for temporary housing
Supports disaster recovery mission

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically supporting disaster relief efforts. Benchmarks for such specialized, urgent-need construction are difficult to establish due to variable disaster scales and response requirements.

Small Business Impact

The data indicates no specific small business participation in this contract. Given the scale and nature of the work, opportunities for small businesses may have been overlooked or were not prioritized in the contract award.

Oversight & Accountability

The contract's limited competition and cost-plus structure suggest a need for enhanced oversight to ensure funds are used efficiently and effectively. Post-award reviews would be crucial for accountability.

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
No stated small business participation
Limited transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $131.1 million to CH2M HILL CONSTRUCTORS, INC.. TECHNICAL ASSISTANCE FOR THE INDIVIDUAL ASSISTANCE PROGRAM. TA SUPPORT FOR MULTIPLE FUNCTIONS ASSOCIATED WITH IMPLEMENTATION OF THE FEMA DIRECT HOUSING OPERATIONS (DHOPS). INCLUDES HAULING AND INSTALLATION AND LIMITED MAINTENANCE OF, UP TO, AN ADDITIONAL 5500 TEMPORARY HOUSING UNITS IN SUPPORT OF THE RECOVERY MISSION.

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 $131.1 million.

What is the period of performance?

Start: 2005-09-19. End: 2006-09-30.

What was the justification for not competing this contract, and how was the fixed fee determined?

The justification for not competing this contract is not detailed in the provided data. Typically, non-competed contracts are awarded under specific circumstances like urgent and compelling needs. The determination of the fixed fee would likely involve an analysis of anticipated costs, a reasonable profit margin, and potentially historical data if available, though the lack of competition limits transparency in this process.

What are the risks associated with a cost-plus fixed-fee contract in a disaster recovery scenario?

Cost-plus fixed-fee contracts carry risks for the government, primarily the potential for cost overruns if the contractor's estimated costs are inaccurate or if unforeseen issues arise. While the fixed fee provides some cost certainty for the contractor's profit, the government bears the risk of higher overall project costs. In disaster recovery, the urgency can exacerbate these risks if thorough cost analysis is bypassed.

How effective was the technical assistance provided in ensuring the timely and efficient deployment of temporary housing units?

The provided data does not contain metrics to directly assess the effectiveness of the technical assistance. While the contract aimed to support the deployment of housing units, details on project timelines met, unit quality, or operational efficiency are absent. Further analysis would require performance reports and outcome data from FEMA.

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: $213,926,982

Exercised Options: $207,709,818

Current Obligation: $131,140,360

Parent Contract

Parent Award PIID: HSFEHQ05D0592

IDV Type: IDC

Timeline