DHS awarded $42.6M for engineering services to Fluor Enterprises, Inc. over 7 years

Contract Overview

Contract Amount: $42,575,635 ($42.6M)

Contractor: Fluor Enterprises, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2006-06-19

End Date: 2013-09-26

Contract Duration: 2,656 days

Daily Burn Rate: $16.0K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TECHNICAL ASSISTANCE

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $42.6 million to FLUOR ENTERPRISES, INC. for work described as: TECHNICAL ASSISTANCE Key points: 1. Contract value represents significant investment in engineering support for FEMA. 2. Competition dynamics for this delivery order warrant further examination. 3. Long contract duration may present risks related to evolving needs and technology. 4. Performance context is tied to FEMA's critical disaster response and recovery missions. 5. Engineering services sector is vital for infrastructure and emergency management. 6. Contract type (Time and Materials) can lead to cost overruns if not managed closely.

Value Assessment

Rating: fair

The total award of $42.6 million over seven years averages to approximately $6 million annually. Benchmarking this against similar large-scale engineering support contracts for federal agencies is challenging without more specific service details. However, the Time and Materials pricing structure, while flexible, often carries a higher risk of cost escalation compared to fixed-price contracts, suggesting potential for less predictable value for money if not rigorously monitored.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. The fact that it was competed suggests a degree of market engagement. However, the specifics of the competition, such as the number of bids received and the evaluation process, are not detailed here, making it difficult to fully assess the effectiveness of the competition in driving down costs.

Taxpayer Impact: A competitive award process is generally favorable for taxpayers as it encourages multiple vendors to offer their best pricing and technical solutions, potentially leading to better value.

Public Impact

Federal Emergency Management Agency (FEMA) benefits from specialized engineering expertise. Services likely support disaster preparedness, response, and recovery infrastructure needs. Geographic impact is national, supporting FEMA's nationwide mission. Workforce implications include potential for skilled engineering jobs, both directly and indirectly.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
Long contract duration (7 years) may not align with rapidly changing engineering needs or technologies.
Limited insight into specific performance metrics and quality of services provided.
Lack of detail on the competitive landscape beyond 'competitive delivery order'.

Positive Signals

Awarded through a competitive process, suggesting potential for fair pricing.
Contractor (Fluor Enterprises, Inc.) is a large, established firm with significant experience.
Services support critical national security and disaster response functions of FEMA.

Sector Analysis

Engineering services are a critical component of the federal procurement landscape, supporting a wide array of agency missions from infrastructure development to technical assistance. The market for these services is substantial, with numerous firms ranging from large corporations to specialized small businesses. This contract fits within the broader category of professional services, often procured through various mechanisms including competitive bids and task orders against indefinite delivery/indefinite quantity (IDIQ) vehicles. Comparable spending benchmarks would depend heavily on the specific type and scale of engineering expertise required.

Small Business Impact

The provided data indicates this contract was not specifically set aside for small businesses (sb: false) and the awardee is a large corporation. There is no information on subcontracting plans or performance. Therefore, the direct impact on the small business ecosystem is likely minimal unless Fluor Enterprises, Inc. actively engages small businesses as subcontractors, which is not specified.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security and the Federal Emergency Management Agency. Specific oversight mechanisms, such as performance reviews, audits, and reporting requirements, are not detailed in the provided data. Transparency would depend on the agency's public reporting practices for contract awards and performance. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

FEMA Disaster Relief Fund
Engineering and Technical Services Contracts
Professional Services Contracts
Department of Homeland Security Procurement

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Long contract duration may lead to outdated services or technologies.
Lack of specific performance metrics hinders objective evaluation.
Limited transparency on the competitive bidding process details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $42.6 million to FLUOR ENTERPRISES, INC.. TECHNICAL ASSISTANCE

Who is the contractor on this award?

The obligated recipient is FLUOR ENTERPRISES, 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 $42.6 million.

What is the period of performance?

Start: 2006-06-19. End: 2013-09-26.

What specific engineering services were provided under this contract?

The provided data classifies this contract under NAICS code 541330, 'Engineering Services,' and the description is 'TECHNICAL ASSISTANCE.' However, the specific nature of the technical assistance or engineering services rendered is not detailed. This could range from structural engineering assessments for disaster-affected areas, planning and design services for infrastructure resilience projects, environmental engineering consulting, or support for FEMA's operational planning and execution. Without further details, it's difficult to ascertain the precise scope of work.

How does the $42.6 million award compare to FEMA's typical spending on engineering services?

To accurately compare, we would need data on FEMA's historical spending for similar engineering services, ideally categorized by specific service types (e.g., structural, environmental, planning) and contract types (e.g., T&M, fixed-price). The $42.6 million over seven years averages to about $6 million annually. This figure alone doesn't indicate if it's high or low without context. FEMA's overall budget and its allocation towards technical and engineering support during both routine operations and disaster response phases would be key comparison points. Larger disaster events could necessitate significantly higher spending on engineering support.

What are the potential risks associated with a Time and Materials (T&M) contract of this duration?

Time and Materials contracts, like this one, carry inherent risks, particularly over a long duration of seven years. The primary risk is cost escalation, as the contractor is reimbursed for direct labor hours at specified rates and for the actual cost of materials. Without stringent oversight, controls, and well-defined task orders, the total cost can exceed initial estimates significantly. For a seven-year contract, there's also the risk that the defined labor categories or rates may become outdated, or that the scope of work might expand implicitly, leading to unforeseen costs. Effective management requires continuous monitoring of labor hours, rates, and material costs.

What is Fluor Enterprises, Inc.'s track record with federal government contracts, particularly with FEMA or DHS?

Fluor Enterprises, Inc. is a large, well-established company with extensive experience in engineering, construction, and government contracting. A comprehensive review of their track record would involve analyzing their past performance ratings on federal contracts, any past performance issues or disputes, and their history of working with FEMA and the Department of Homeland Security. While the data indicates they were awarded this significant contract, further investigation into their specific performance history on similar large-scale technical assistance or engineering service contracts would provide a clearer picture of their reliability and capability.

Were there any specific performance metrics or deliverables outlined for this contract?

The provided data summary does not include details on specific performance metrics, deliverables, or quality assurance surveillance plans (QASPs) associated with this contract. For a technical assistance contract, especially one supporting FEMA, performance metrics could include response times, accuracy of technical advice, successful completion of engineering assessments, or adherence to project timelines. The absence of this information makes it difficult to assess the contractor's performance objectively or to evaluate the overall effectiveness and value derived from the contract.

How does the $6 million average annual spend compare to industry benchmarks for similar engineering services?

Determining a precise industry benchmark for an average annual spend of $6 million requires a more granular understanding of the specific engineering services procured. If these services involve complex infrastructure design, large-scale project management, or specialized technical consulting, $6 million annually might be within a reasonable range for a large federal agency like FEMA. However, if the services are more routine or administrative in nature, this figure could be considered high. Industry benchmarks are often derived from market research reports, cost analysis of similar contracts, and surveys of service providers, none of which are available in the provided data.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Fluor Corporation (UEI: 006907190)

Address: 1101 WILSON BLVD STE 1900, ARLINGTON, VA, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $136,596,335

Exercised Options: $44,828,335

Current Obligation: $42,575,635

Parent Contract

Parent Award PIID: HSFEHQ06D0487

IDV Type: IDC

Timeline