DHS awarded $21.3M for Hurricane Katrina temporary housing solutions in Louisiana
Contract Overview
Contract Amount: $21,258,953 ($21.3M)
Contractor: Shaw Environmental, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2005-09-10
End Date: 2006-10-31
Contract Duration: 416 days
Daily Burn Rate: $51.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IATAC - IDENTIFY POTENTIAL TEMPORARY HOUSING SOLUTIONS, RESOURCES, AND REQUIREMENT IN LOUISANA FOR PEOPLE DISPLACED AS A RESULT OF HURRICANE KATRINA - GROUP SITE DESIGN, CONSTRUCTION, INSTALLATION, AND MAINTENANCE
Place of Performance
Location: BATON ROUGE, EAST BATON ROUGE County, LOUISIANA, 70821
Plain-Language Summary
Department of Homeland Security obligated $21.3 million to SHAW ENVIRONMENTAL, INC. for work described as: IATAC - IDENTIFY POTENTIAL TEMPORARY HOUSING SOLUTIONS, RESOURCES, AND REQUIREMENT IN LOUISANA FOR PEOPLE DISPLACED AS A RESULT OF HURRICANE KATRINA - GROUP SITE DESIGN, CONSTRUCTION, INSTALLATION, AND MAINTENANCE Key points: 1. Contract awarded for temporary housing solutions following Hurricane Katrina. 2. Focus on design, construction, installation, and maintenance of housing. 3. Significant duration of over a year indicates extensive project scope. 4. Awarded to Shaw Environmental, Inc., a single contractor. 5. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 6. Geographic focus on Louisiana highlights regional disaster response needs.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure warrants scrutiny, as it can incentivize higher costs without strict performance controls. Benchmarking against similar disaster relief housing projects is difficult due to the unique and urgent nature of Hurricane Katrina response. The fixed fee component offers some cost predictability, but the overall value for money is uncertain without detailed cost breakdowns and performance metrics.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. In disaster situations, sole-sourcing can be justified for rapid deployment of essential services. However, the lack of competition means there was no opportunity to solicit multiple bids, potentially leading to higher prices and less favorable terms than a competitive process might have yielded.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, as the government did not leverage market forces to secure the best possible price.
Public Impact
Displaced residents of Louisiana affected by Hurricane Katrina benefited from temporary housing solutions. Services included the design, construction, installation, and maintenance of temporary housing. The geographic impact was concentrated in Louisiana, addressing a critical regional need. The contract supported the Federal Emergency Management Agency's (FEMA) disaster relief operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost escalation.
- Sole-source award limits price discovery and potential savings.
- Long contract duration may indicate potential for scope creep or inefficiencies.
Positive Signals
- Addressed urgent housing needs for disaster victims.
- Provided comprehensive services from design to maintenance.
- Focused on a specific, critical geographic area impacted by a major disaster.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically related to disaster recovery and emergency management. The market for such services is often characterized by rapid, urgent needs and can involve specialized construction and logistical capabilities. Benchmarking is challenging due to the unique circumstances of major natural disasters.
Small Business Impact
Information regarding small business participation or set-asides is not available for this contract. Given the sole-source nature and the scale of the project, it is possible that larger firms were engaged, potentially limiting subcontracting opportunities for small businesses in this specific instance.
Oversight & Accountability
Oversight mechanisms for this contract would likely have been managed by the Federal Emergency Management Agency (FEMA). Given the emergency context of Hurricane Katrina, oversight might have been expedited. Transparency and accountability would depend on internal FEMA procedures and any subsequent Inspector General reviews.
Related Government Programs
- Hurricane Katrina Disaster Relief
- Temporary Housing Programs
- FEMA Disaster Response Contracts
- Emergency Management Services
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of competitive bidding
Tags
dhs, fema, disaster-response, temporary-housing, louisiana, sole-source, cost-plus-fixed-fee, emergency-management, construction, professional-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $21.3 million to SHAW ENVIRONMENTAL, INC.. IATAC - IDENTIFY POTENTIAL TEMPORARY HOUSING SOLUTIONS, RESOURCES, AND REQUIREMENT IN LOUISANA FOR PEOPLE DISPLACED AS A RESULT OF HURRICANE KATRINA - GROUP SITE DESIGN, CONSTRUCTION, INSTALLATION, AND MAINTENANCE
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 $21.3 million.
What is the period of performance?
Start: 2005-09-10. End: 2006-10-31.
What was the specific nature of the temporary housing solutions provided under this contract?
The contract focused on providing temporary housing solutions for individuals displaced by Hurricane Katrina in Louisiana. This encompassed the full lifecycle of housing provision, including the design of suitable temporary structures, their construction, installation at designated sites, and ongoing maintenance. The goal was to offer immediate shelter and living facilities to a population severely impacted by the natural disaster, addressing critical needs for safety and stability during the recovery period.
How does the Cost Plus Fixed Fee (CPFF) contract type typically perform in disaster response scenarios?
Cost Plus Fixed Fee contracts are often used in situations where the scope of work is not fully defined or when rapid deployment is critical, such as disaster response. The 'cost plus' portion covers the contractor's allowable costs, while the 'fixed fee' represents their profit, negotiated upfront. While this structure can expedite contract award and execution, it carries a risk of cost overruns if cost controls are not robustly managed. The fixed fee provides some incentive for the contractor to complete the work efficiently, but the primary risk of cost escalation lies with the government. In disaster scenarios, the urgency often outweighs detailed cost scrutiny, making effective oversight paramount.
What are the implications of a sole-source award for disaster relief contracts?
Sole-source awards in disaster relief, like this one, are typically justified by the urgent need for immediate services that cannot be met through a lengthy competitive bidding process. While this allows for rapid deployment of critical resources, it means the government does not benefit from the price competition that could drive down costs. Taxpayers may therefore face higher prices compared to what might have been achieved through open competition. The justification for sole-sourcing in such emergencies is usually based on factors like existing contractor capabilities, proximity, or the time-sensitive nature of the requirement, aiming to prioritize speed and effectiveness of aid delivery.
What was the total spending on temporary housing solutions for Hurricane Katrina?
Comprehensive data on the total federal spending specifically for temporary housing solutions related to Hurricane Katrina is extensive and spread across numerous contracts and agencies. This particular contract with Shaw Environmental, Inc. for $21.3 million represents one component of the broader federal response. The overall federal expenditure for Hurricane Katrina recovery efforts, including housing, infrastructure, and aid, amounted to tens of billions of dollars. Pinpointing an exact figure solely for temporary housing across all federal efforts is complex due to the distributed nature of the response and varying reporting methodologies over time.
What is the typical duration for disaster response contracts of this nature?
The duration for disaster response contracts can vary significantly depending on the scale of the disaster, the type of services required, and the expected recovery timeline. Contracts for immediate relief, such as emergency shelter setup, might last only a few months. However, contracts involving construction, installation, and long-term maintenance, like the one awarded to Shaw Environmental, Inc. (over a year), often extend longer to ensure sustained support during the recovery and rebuilding phases. The 416-day duration of this contract suggests a need for ongoing support beyond initial emergency deployment, encompassing a significant portion of the immediate post-disaster recovery period.
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: $22,216,751
Exercised Options: $22,216,751
Current Obligation: $21,258,953
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSFEHQ05D0573
IDV Type: IDC
Timeline
Start Date: 2005-09-10
Current End Date: 2006-10-31
Potential End Date: 2006-10-31 00:00:00
Last Modified: 2017-07-17
More Contracts from 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) — $430.4M (Department of Homeland Security)
- THE Contractor Shall Perform ALL the Necessary Work and Services Required for Continued Construction Activities of Remedial Action for the Removal of Radioactive Contaminated Waste Located AT the Maywood Superfund Site, Maywood, NEW Jersey. This Task Order Award IS for the Negotiated Work and Services in Accordance With the Statement of Work in the Request for Proposal Dated 12 June 2008, General Decision Number NJ080003 Dated 5 December 2008, Service Contract ACT Wage Determination Number 2005-2347 Revision 6 Dated 11 September 2008 and With the Attached Authority to Proceed #255 Dated 10 December 2008 — $182.1M (Department of Defense)
- 200409!000634!96ce!w912dq!usa Engineer District Kansas Cty!dacw4199d9001 !A!N! !N!0003 ! !20040224!20060331!085333792!085333792!180038382!n!shaw Environmental, Inc !250 W 34TH ST !NEW York !ny!10119!44880!003!34!maywood !bergen !NEW Jersey!+000005500000!n!n!000000000000!f108!hazardous Substance Removal/Cleanup/Disposal Svcs !S1 !services !ZBC !brac !562910!E! !5!B!S! ! ! !99990909!B! ! !B! !a!u!u!2!006!b! !C!N!Z! ! !N!C!N! ! ! !c!c!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $122.3M (Department of Defense)
- 200405!000279!5700!GW05 !hsw/Pkv !FA890304D8676 !A!N! !N!0008 ! !20040128!20050115!083760293!109514559!180038382!n!shaw Environmental, Inc !8081 Royal Ridge Parkway, !irving !TX!75063!00000! !IZ!* !* !iraq !+000046749910!n!n!000000000000!c219!other Architect & Engineering Services !C2 !construction !ZOP !* !562910!E! !5!B!M! !A! !99990909!B! ! !A! !a!n!u!2!006!b! !Z!Y!Z! ! !N!M!N! ! ! ! ! !A!A!00 !A!B!N! ! ! !Y! ! !0001! ! — $90.8M (Department of Defense)
- Fema Requires Manufactured Housing Unit (MHU) Haul and Install-Related Activities in Support of Dr-4277-La, ANY Declared Parish in Louisiana. However, Fema Anticipates That the Majority of Haul and Install Activities, Especially in the Initial Stages of the Mission, Will BE Conducted in the Following (10) Parishes: East Baton Rouge, Livingston, ST. Helena, East Feliciana, Evangeline, ST. Landry, ST. Martin, ST. Tammany, Washington, Tangipahoa — $89.4M (Department of Homeland Security)
Other Department of Homeland Security Contracts
- THE United States Coast Guard HAS a Requirement to Procure UP to Twenty-Six (26) Fast Response Cutters (frcs) on a Firm Fixed Price (FFP) Basis With an Economic Price Adjustment (EPA). Phase II of the FRC Program Will Complete the Fleet for a Total of 58 Cutters — $2.1B (Bollinger Shipyards Lockport, L.L.C.)
- Design and Construct NEW Vertical Barrier and Power Distribution, Lighting, Cameras, Equipment Shelters and Linear Ground Detection System (lgds) in Hildago County, NM — $1.8B (Fisher Sand & Gravel CO)
- Production&delivery of National Security Cutter (NSC) 6 — $1.7B (Huntington Ingalls Incorporated)
- YUM-2 Vertical Border and Waterborne Barrier Construction — $1.7B (Fisher Sand & Gravel CO)
- Construct Vertical Border Barrier — $1.6B (Fisher Sand & Gravel CO)