FEMA Spends $14.1M on Hurricane Rita Housing Solutions with Shaw Environmental, Inc
Contract Overview
Contract Amount: $14,119,462 ($14.1M)
Contractor: Shaw Environmental, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2005-09-10
End Date: 2015-09-30
Contract Duration: 3,672 days
Daily Burn Rate: $3.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: SUPPORT; IDENTIFY AND PROVIDE TEMPORARY HOUSING SOLUTIONS FOR ALL PEOPLE DISPLACED BECAUSE OF HURRICANE RITA - MANAGE STAGING AREAS; HAUL AND/OR HAUL/INSTALL TRAVEL TRAILERS OR MOBILE HOMES; RESOLVE MAINTENANCE ISSUES RELATING TO THE STRUCTURES; DEACTIVATE AND PROVIDE TRANSPORTATION SERVICES OF MOBILE STRUCTURES FROM FACILITIES/LOCATIONS DESIGNATED BY FEMA , ETC.
Place of Performance
Location: BATON ROUGE, EAST BATON ROUGE County, LOUISIANA, 70821
Plain-Language Summary
Department of Homeland Security obligated $14.1 million to SHAW ENVIRONMENTAL, INC. for work described as: SUPPORT; IDENTIFY AND PROVIDE TEMPORARY HOUSING SOLUTIONS FOR ALL PEOPLE DISPLACED BECAUSE OF HURRICANE RITA - MANAGE STAGING AREAS; HAUL AND/OR HAUL/INSTALL TRAVEL TRAILERS OR MOBILE HOMES; RESOLVE MAINTENANCE ISSUES RELATING TO THE STRUCTURES; DEACTIVATE AND PROVIDE TRANSPORTAT… Key points: 1. Contract awarded for post-Hurricane Rita temporary housing solutions. 2. Shaw Environmental, Inc. managed staging areas and trailer installations. 3. Significant duration of contract (over 10 years) for disaster recovery. 4. Services included maintenance, deactivation, and transportation of mobile structures.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure for disaster recovery services can lead to cost overruns. Benchmarking is difficult due to the unique and urgent nature of disaster response, but the duration and scope suggest a high potential for cost escalation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, likely due to the immediate and urgent need following Hurricane Rita. This lack of competition limits price discovery and potentially increases costs for taxpayers.
Taxpayer Impact: The sole-source award and cost-plus structure may have resulted in higher costs than a competitive procurement would have yielded.
Public Impact
Provided essential temporary housing for thousands displaced by Hurricane Rita. Supported long-term recovery efforts in Louisiana by managing housing solutions. Demonstrated government's role in disaster relief and infrastructure support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration for a single event
Positive Signals
- Provided critical services during a national disaster
- Supported displaced populations
Sector Analysis
This contract falls under professional, scientific, and technical services, specifically related to emergency management and disaster response. Spending in this sector is highly variable, driven by natural disasters and national emergencies.
Small Business Impact
There is no indication in the data that small businesses were involved in this contract, either as prime contractors or subcontractors.
Oversight & Accountability
The long duration and sole-source nature of this contract warrant oversight to ensure funds were used efficiently and effectively for their intended purpose of disaster relief.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Homeland Security Contracting
- Federal Emergency Management Agency Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
- Potential for cost overruns
- Limited transparency on specific costs
Tags
all-other-professional-scientific-and-te, department-of-homeland-security, la, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $14.1 million to SHAW ENVIRONMENTAL, INC.. SUPPORT; IDENTIFY AND PROVIDE TEMPORARY HOUSING SOLUTIONS FOR ALL PEOPLE DISPLACED BECAUSE OF HURRICANE RITA - MANAGE STAGING AREAS; HAUL AND/OR HAUL/INSTALL TRAVEL TRAILERS OR MOBILE HOMES; RESOLVE MAINTENANCE ISSUES RELATING TO THE STRUCTURES; DEACTIVATE AND PROVIDE TRANSPORTATION SERVICES OF MOBILE STRUCTURES FROM FACILITIES/LOCATIONS DESIGNATED BY FEMA , ETC.
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 $14.1 million.
What is the period of performance?
Start: 2005-09-10. End: 2015-09-30.
What was the justification for awarding this contract on a sole-source basis, and were there any attempts to solicit competitive bids even under urgent circumstances?
Sole-source awards are typically justified by urgent and compelling circumstances where a disaster's immediate aftermath necessitates rapid deployment of services. While formal competitive bidding might be impractical, agencies often explore limited sources or emergency solicitations. The specific justification for this FEMA contract would require reviewing agency procurement records from 2005.
How did the cost-plus-fixed-fee structure impact the final cost, and were there any audits or reviews conducted to validate the expenses incurred?
Cost-plus contracts allow contractors to recover allowable costs plus a fixed fee. While necessary for unpredictable disaster scenarios, this structure can incentivize higher spending. Post-award audits and reviews are crucial to ensure costs are reasonable and allocable. FEMA likely conducted some level of oversight, but the extent of detailed cost validation would depend on internal policies and resource availability.
Given the 10-year duration, were the temporary housing solutions truly temporary, or did the contract evolve into long-term infrastructure management?
The extended duration suggests that the 'temporary' housing solutions evolved into a longer-term management and maintenance operation. This is common in large-scale disaster recovery where rebuilding infrastructure takes significant time. The contract likely encompassed the lifecycle from initial deployment to eventual deactivation and site restoration.
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: $36,525,520
Exercised Options: $36,525,520
Current Obligation: $14,119,462
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: 2015-09-30
Potential End Date: 2015-09-30 00:00:00
Last Modified: 2017-06-26
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