FEMA's $12.8M contract for Hurricane Rita housing shelter support awarded to Shaw Environmental, Inc
Contract Overview
Contract Amount: $12,837,230 ($12.8M)
Contractor: Shaw Environmental, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2005-10-07
End Date: 2006-06-30
Contract Duration: 266 days
Daily Burn Rate: $48.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IA TAC SUPPORT; TECHNICAL ASSISTANCE TO SUPPORT FACILITY MANAGEMENT AND SECURITY OF HOUSING SHELTERS AS RESULT OF HURRICANE RITA
Place of Performance
Location: BATON ROUGE, EAST BATON ROUGE County, LOUISIANA, 70821
Plain-Language Summary
Department of Homeland Security obligated $12.8 million to SHAW ENVIRONMENTAL, INC. for work described as: IA TAC SUPPORT; TECHNICAL ASSISTANCE TO SUPPORT FACILITY MANAGEMENT AND SECURITY OF HOUSING SHELTERS AS RESULT OF HURRICANE RITA Key points: 1. Contract awarded for critical post-disaster facility management and security. 2. Focus on technical assistance for housing shelters following Hurricane Rita. 3. Duration of 266 days indicates a focused, short-term operational need. 4. Sole-source award raises questions about competition and potential cost efficiencies. 5. Contract value of $12.8M for specialized support services. 6. Geographic focus on Louisiana (LA) highlights regional disaster impact.
Value Assessment
Rating: questionable
The contract value of $12.8 million for a 266-day period for technical assistance in facility management and security of housing shelters appears substantial. Without comparable contracts for similar post-disaster scenarios, it is difficult to benchmark the value for money. The cost-plus-fixed-fee (CPFF) contract type can sometimes lead to higher costs if not carefully managed, as it incentivizes cost incurrence. Further analysis would be needed to determine if the pricing is competitive and reflects fair market value for the services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning that only one contractor, Shaw Environmental, Inc., was solicited. This approach bypasses the standard competitive bidding process, which typically involves soliciting offers from multiple vendors. While sole-source awards can be justified in specific circumstances, such as urgent and compelling needs, they generally limit price discovery and may not result in the most cost-effective outcome for the government.
Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the absence of competition reduces the incentive for contractors to offer their lowest possible prices.
Public Impact
Provides essential support for individuals displaced by Hurricane Rita through the management of temporary housing shelters. Ensures the security and operational readiness of critical post-disaster infrastructure. Services delivered in Louisiana, directly impacting communities affected by the hurricane. Supports the Federal Emergency Management Agency's (FEMA) disaster response and recovery efforts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potential cost savings.
- Cost-plus-fixed-fee contract type may not always be the most cost-efficient.
- Lack of detailed performance metrics in the provided data makes assessing effectiveness challenging.
Positive Signals
- Addresses a critical need for housing shelter support in a disaster-stricken area.
- Contract awarded to a single entity suggests specialized capabilities for the task.
- Timely award (October 2005) for immediate post-hurricane needs.
Sector Analysis
This contract falls within the Professional, Scientific, and Technical Services sector, specifically under NAICS code 541990 (All Other Professional, Scientific, and Technical Services). This broad category encompasses a wide range of specialized services. In the context of disaster response, such contracts are crucial for providing immediate logistical, technical, and management support to agencies like FEMA. The market for disaster recovery services is often characterized by urgent needs and specialized expertise, which can influence contracting approaches and pricing.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting opportunities for small businesses. Given the sole-source nature of the award and the specialized services required, it is unlikely that small business participation was a primary consideration in the contracting strategy. Further investigation into subcontracting plans would be necessary to determine any indirect impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily fall under the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. As a cost-plus-fixed-fee contract, rigorous financial oversight and auditing would be expected to ensure that costs are reasonable and allocable. The Inspector General for the Department of Homeland Security would likely have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.
Related Government Programs
- Hurricane Rita Disaster Relief
- FEMA Housing Assistance Programs
- Department of Homeland Security Emergency Management
- Post-Disaster Infrastructure Support
Risk Flags
- Sole-source award may limit cost savings.
- Cost-plus-fixed-fee contract type requires careful monitoring.
- Lack of performance data hinders effectiveness assessment.
Tags
disaster-response, facility-management, security-services, housing-shelters, hurricane-rita, fema, department-of-homeland-security, sole-source, cost-plus-fixed-fee, professional-scientific-technical-services, louisiana, emergency-management
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $12.8 million to SHAW ENVIRONMENTAL, INC.. IA TAC SUPPORT; TECHNICAL ASSISTANCE TO SUPPORT FACILITY MANAGEMENT AND SECURITY OF HOUSING SHELTERS AS RESULT OF HURRICANE RITA
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 $12.8 million.
What is the period of performance?
Start: 2005-10-07. End: 2006-06-30.
What was the specific nature of the technical assistance provided by Shaw Environmental, Inc. for the housing shelters?
The contract data indicates 'TECHNICAL ASSISTANCE TO SUPPORT FACILITY MANAGEMENT AND SECURITY OF HOUSING SHELTERS AS RESULT OF HURRICANE RITA'. This suggests that Shaw Environmental, Inc. provided expertise and support related to the day-to-day operations, maintenance, and security protocols for temporary housing facilities established for individuals displaced by Hurricane Rita. This could encompass a range of services such as site assessment, security planning and implementation, maintenance coordination, resource management, and ensuring compliance with safety and operational standards for these emergency shelters.
How does the $12.8 million contract value compare to similar post-disaster shelter support contracts?
Benchmarking this $12.8 million contract value against similar post-disaster shelter support contracts is challenging without access to a comprehensive database of comparable awards. Factors such as the scale of the disaster, the duration of the support (266 days in this case), the specific services required (facility management and security), and the geographic location all influence contract costs. Given that this was a sole-source award for a critical post-hurricane need, the pricing might reflect urgency and specialized capabilities rather than competitive market rates. A detailed analysis of contracts for Hurricane Katrina or other major disaster responses would be needed for a more accurate comparison.
What are the potential risks associated with a sole-source award for disaster response services?
Sole-source awards for disaster response services carry several potential risks. Firstly, the absence of competition can lead to higher prices for taxpayers, as the government does not benefit from the price reductions typically achieved through competitive bidding. Secondly, it may limit the pool of available expertise, potentially excluding innovative solutions or more efficient service providers. Thirdly, without a competitive process, there's a reduced incentive for the awarded contractor to optimize performance and cost-effectiveness. Finally, sole-source awards can raise concerns about fairness and transparency in government contracting, particularly if the justification for the sole-source status is not robust.
What was the historical spending pattern for facility management and security support in disaster areas prior to Hurricane Rita?
Historical spending patterns for facility management and security support in disaster areas prior to Hurricane Rita would likely show significant variability based on the scale and nature of previous disasters, as well as the specific agencies involved in the response. Federal agencies like FEMA have established mechanisms and budgets for disaster relief, which include provisions for temporary housing and associated support services. However, the exact figures for facility management and security for shelters would depend on the number and type of shelters deployed, their duration, and the specific services contracted. The increasing frequency and intensity of natural disasters may have led to an overall increase in federal spending in this area over time.
How effective was Shaw Environmental, Inc. in fulfilling the requirements of this contract?
The provided data does not contain specific performance metrics or evaluations for Shaw Environmental, Inc.'s fulfillment of this contract. Assessing effectiveness would require access to contract performance reports, customer satisfaction surveys, or any post-award reviews conducted by FEMA. Given that the contract was for technical assistance in facility management and security, indicators of effectiveness might include the operational status of the shelters, the security incidents (or lack thereof), the efficiency of resource management, and the overall satisfaction of displaced individuals utilizing the shelters. Without such data, a definitive assessment of effectiveness cannot be made.
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: 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: $25,537,230
Exercised Options: $25,537,230
Current Obligation: $12,837,230
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSFEHQ05D0573
IDV Type: IDC
Timeline
Start Date: 2005-10-07
Current End Date: 2006-06-30
Potential End Date: 2015-09-30 00:00:00
Last Modified: 2017-06-26
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