DHS FEMA spent $26.6M on temporary housing solutions for Hurricane Katrina evacuees in Louisiana

Contract Overview

Contract Amount: $26,639,826 ($26.6M)

Contractor: CH2M Hill Constructors, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2005-10-11

End Date: 2008-12-13

Contract Duration: 1,159 days

Daily Burn Rate: $23.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Construction

Official Description: IDENTIFY POTENTIAL TEMPORARY (UP TO 18 MONTHS) HOUSING SOLUTIONS, RESOURCES, AND REQUIREMENT IN LOUISIANA FOR PEOPLE DISPLACED AS A RESULT OF HURRICANE KATRINA. HAUL/INSTALL TRAVEL TRAILERS, MOBILE HOMES, MODULAR HOMES OR OTHER TEMPORARY RESIDENTIAL STRUCTURES. INCLUDES OCCUPANCY MAINTENANCE; STAGING; OCCUPANCY MAINTENANCE RECORDS; AND DEACTIVATION AND REMOVAL

Place of Performance

Location: ENGLEWOOD, DENVER County, COLORADO, 80112

State: Colorado Government Spending

Plain-Language Summary

Department of Homeland Security obligated $26.6 million to CH2M HILL CONSTRUCTORS, INC. for work described as: IDENTIFY POTENTIAL TEMPORARY (UP TO 18 MONTHS) HOUSING SOLUTIONS, RESOURCES, AND REQUIREMENT IN LOUISIANA FOR PEOPLE DISPLACED AS A RESULT OF HURRICANE KATRINA. HAUL/INSTALL TRAVEL TRAILERS, MOBILE HOMES, MODULAR HOMES OR OTHER TEMPORARY RESIDENTIAL STRUCTURES. INCLUDES OCCUPANCY… Key points: 1. Contract focused on rapid deployment of temporary housing units, including trailers and mobile homes. 2. Significant logistical effort involved installation, maintenance, and eventual removal of housing structures. 3. The contract duration of 1159 days highlights the extended need for disaster relief housing. 4. Awarded to CH2M HILL CONSTRUCTORS, INC., a major player in construction and engineering services. 5. The 'Not Competed' status raises questions about the procurement process during an emergency. 6. This contract represents a substantial investment in immediate post-disaster recovery efforts.

Value Assessment

Rating: fair

The total award of $26.6 million for temporary housing solutions, including installation and maintenance, appears substantial given the nature of the services. Benchmarking this against similar disaster relief housing contracts is challenging due to the unique circumstances of Hurricane Katrina and the emergency procurement. However, the cost-plus-fixed-fee structure suggests that while direct costs were reimbursed, the contractor's profit was fixed, which can be a reasonable approach in uncertain environments. The scale of the operation, involving the deployment and management of numerous temporary housing units, likely contributed to the overall expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. In the context of a major disaster like Hurricane Katrina, emergency procurements are often conducted without full and open competition to expedite critical services. While this allows for rapid response, it limits the opportunity for price discovery through competitive bidding and may result in higher costs than if multiple vendors had vied for the contract.

Taxpayer Impact: The lack of competition means taxpayers did not benefit from potential cost savings that could have arisen from a competitive bidding process. The government relied on the contractor's proposed pricing without the leverage of multiple offers.

Public Impact

Provided essential temporary housing for individuals and families displaced by Hurricane Katrina in Louisiana. Facilitated the staging, installation, maintenance, and removal of travel trailers, mobile homes, and modular homes. Supported the immediate recovery and stabilization of affected communities in Louisiana. The services ensured a basic level of shelter and habitability for thousands of evacuees during a critical period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a significant contract raises concerns about potential overpricing and reduced value for taxpayer funds.
The extended duration of the contract (over 3 years) suggests a prolonged recovery period and ongoing costs.
Cost-plus-fixed-fee contracts can sometimes incentivize higher spending if not closely monitored, although the fixed fee component mitigates this to some extent.

Positive Signals

The contract successfully addressed a critical and urgent need for temporary housing in a disaster-stricken region.
The contractor, CH2M HILL CONSTRUCTORS, INC., has a track record in large-scale construction and program management, suggesting capability.
The contract included comprehensive services from deployment to removal, indicating a full-cycle approach to housing solutions.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically addressing emergency and disaster relief housing. The market for disaster response services is often characterized by urgent needs and specialized capabilities. While direct spending benchmarks for temporary housing deployment are scarce, the overall construction and engineering services market is vast. This contract represents a significant, albeit temporary, surge in demand for specific construction and logistical services driven by an extraordinary event.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this specific contract was not provided in the data. Given the emergency nature and the scale of the operation, it's possible that larger, established firms were prioritized for rapid deployment. Further investigation would be needed to determine if small businesses were involved in subcontracting opportunities or if any set-aside goals were established.

Oversight & Accountability

Oversight for this contract would have been primarily managed by the Federal Emergency Management Agency (FEMA) within the Department of Homeland Security. As a sole-source award during an emergency, the oversight would likely focus on ensuring the delivery of services as contracted and managing the cost-plus-fixed-fee elements. Transparency might be limited due to the non-competitive nature, but contract performance and financial expenditures would still be subject to agency review and potentially Inspector General audits.

Related Government Programs

Hurricane Katrina Disaster Relief Efforts
FEMA Temporary Housing Programs
Emergency Disaster Response Contracts
Department of Homeland Security Procurement

Risk Flags

Sole-source award during emergency procurement
Potential for cost overruns in CPFF contracts
Extended duration of disaster relief services

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $26.6 million to CH2M HILL CONSTRUCTORS, INC.. IDENTIFY POTENTIAL TEMPORARY (UP TO 18 MONTHS) HOUSING SOLUTIONS, RESOURCES, AND REQUIREMENT IN LOUISIANA FOR PEOPLE DISPLACED AS A RESULT OF HURRICANE KATRINA. HAUL/INSTALL TRAVEL TRAILERS, MOBILE HOMES, MODULAR HOMES OR OTHER TEMPORARY RESIDENTIAL STRUCTURES. INCLUDES OCCUPANCY MAINTENANCE; STAGING; OCCUPANCY MAINTENANCE RECORDS; AND DEACTIVATION AND REMOVAL

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 $26.6 million.

What is the period of performance?

Start: 2005-10-11. End: 2008-12-13.

What was the specific justification for awarding this contract on a sole-source basis?

The justification for awarding this contract on a sole-source basis likely stems from the extreme urgency and exigent circumstances following Hurricane Katrina. In major disaster scenarios, federal agencies often invoke emergency procurement procedures to rapidly deploy essential services and resources. This allows for immediate action without the time-consuming process of full and open competition, which could delay critical aid to affected populations. The Federal Acquisition Regulation (FAR) provides exceptions to full and open competition for such situations, prioritizing life-saving and mission-critical support.

How does the cost-plus-fixed-fee (CPFF) structure compare to other contract types for disaster relief?

The Cost-Plus-Fixed-Fee (CPFF) contract type, used here, reimburses the contractor for allowable costs plus a predetermined fixed fee representing profit. For disaster relief, CPFF can be advantageous when the scope of work is not precisely defined or is subject to significant change, as was likely the case post-Katrina. It provides flexibility but requires robust oversight to control costs. Other contract types like Firm-Fixed-Price (FFP) offer more cost certainty but are less suitable for unpredictable disaster environments. Time and Materials (T&M) could also be used but might offer less incentive for efficiency compared to a well-managed CPFF.

What was the historical spending pattern for temporary housing solutions by FEMA prior to Hurricane Katrina?

Prior to Hurricane Katrina, FEMA's spending on temporary housing solutions, while present for various disasters, was generally on a much smaller scale and less concentrated than the massive effort required after Katrina. FEMA's standard procedures involved various forms of temporary sheltering, including hotel vouchers, rental assistance, and the deployment of temporary units. However, the sheer scale of displacement caused by Katrina necessitated an unprecedented mobilization of resources and a significant increase in the utilization and funding of temporary housing solutions, making historical spending patterns prior to this event not directly comparable in terms of magnitude.

What were the key performance indicators (KPIs) for this contract, and how was performance measured?

While specific KPIs are not detailed in the provided data, typical performance indicators for such a contract would likely include the speed of housing unit deployment, the availability and habitability of units, the efficiency of maintenance services, and the timeliness and completeness of unit deactivation and removal. Performance would be measured through regular reporting by the contractor, site inspections by FEMA representatives, and potentially through feedback from the displaced individuals utilizing the housing. Adherence to schedules, budget management (within the CPFF framework), and compliance with safety and environmental regulations would also be critical.

What is the track record of CH2M HILL CONSTRUCTORS, INC. in disaster response contracting?

CH2M HILL CONSTRUCTORS, INC. (now part of Jacobs) has a significant track record in large-scale construction, engineering, and program management, including extensive experience in disaster response and recovery efforts. They have been involved in numerous projects following major natural disasters, providing services ranging from infrastructure repair to temporary housing solutions and environmental remediation. Their involvement in post-Katrina recovery, including this contract, highlights their capacity to handle complex, large-scale operations under challenging conditions. Their broader portfolio demonstrates a capability to manage significant federal contracts across various sectors.

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: $26,731,515

Exercised Options: $26,731,515

Current Obligation: $26,639,826

Parent Contract

Parent Award PIID: HSFEHQ05D0592

IDV Type: IDC

Timeline