DHS FEMA awards $71.5M contract for Hurricane Katrina temporary housing solutions to Fluor Enterprises Inc

Contract Overview

Contract Amount: $71,501,537 ($71.5M)

Contractor: Fluor Enterprises Inc

Awarding Agency: Department of Homeland Security

Start Date: 2005-10-28

End Date: 2007-08-31

Contract Duration: 672 days

Daily Burn Rate: $106.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IA TAC INFRASTRUCTURE SUPPORT - IDENTIFY POTENTIAL TEMPORARY HOUSING SOLUTIONS, RESOURCES, AND REQUIREMENT IN LOUISIANA FOR PEOPLE DISPLACED AS A RESULT OF HURRICANE KATRINA, TO INCLUDE MANAGEMENT MOBILIZATION AND OVERALL PROGRAM MANAGEMENT.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $71.5 million to FLUOR ENTERPRISES INC for work described as: IA TAC INFRASTRUCTURE SUPPORT - IDENTIFY POTENTIAL TEMPORARY HOUSING SOLUTIONS, RESOURCES, AND REQUIREMENT IN LOUISIANA FOR PEOPLE DISPLACED AS A RESULT OF HURRICANE KATRINA, TO INCLUDE MANAGEMENT MOBILIZATION AND OVERALL PROGRAM MANAGEMENT. Key points: 1. Contract awarded for critical post-disaster housing needs in Louisiana. 2. Fluor Enterprises Inc. selected for program management and resource identification. 3. Significant taxpayer investment for disaster relief and recovery efforts. 4. Focus on temporary housing solutions and resource mobilization.

Value Assessment

Rating: fair

The contract value of $71.5M for architectural services is substantial, especially given the emergency nature of the requirement. Benchmarking against similar disaster response contracts is difficult due to unique circumstances, but the duration and scope suggest a potentially fair, though not necessarily optimal, price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, likely due to the urgent and immediate need following Hurricane Katrina. This lack of competition may have limited price discovery and potentially led to a higher overall cost for the government.

Taxpayer Impact: Taxpayers funded the full $71.5M for essential disaster recovery services, aiming to provide immediate relief and support to displaced individuals.

Public Impact

Provided essential temporary housing solutions for Katrina victims. Facilitated resource identification and management for displaced populations. Supported critical infrastructure and recovery efforts in Louisiana. Demonstrated government's role in disaster response and management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for cost overruns in emergency contracts
Time and Materials pricing structure

Positive Signals

Addressed urgent housing needs
Provided comprehensive program management
Supported disaster recovery efforts

Sector Analysis

This contract falls under architectural services, a sector crucial for planning and executing large-scale infrastructure and recovery projects. The spending benchmark for disaster response can vary widely based on the scale and duration of the event.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as Fluor Enterprises Inc. is a large corporation. There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The contract was managed by the Federal Emergency Management Agency (FEMA), a key agency responsible for disaster response. Oversight would focus on ensuring timely delivery of housing solutions and effective program management within the allocated budget.

Related Government Programs

Architectural Services
Department of Homeland Security Contracting
Federal Emergency Management Agency Programs

Risk Flags

Sole-source award
Time and Materials pricing
Lack of small business participation
High contract value for emergency services

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $71.5 million to FLUOR ENTERPRISES INC. IA TAC INFRASTRUCTURE SUPPORT - IDENTIFY POTENTIAL TEMPORARY HOUSING SOLUTIONS, RESOURCES, AND REQUIREMENT IN LOUISIANA FOR PEOPLE DISPLACED AS A RESULT OF HURRICANE KATRINA, TO INCLUDE MANAGEMENT MOBILIZATION AND OVERALL PROGRAM MANAGEMENT.

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 $71.5 million.

What is the period of performance?

Start: 2005-10-28. End: 2007-08-31.

What was the cost-effectiveness of the temporary housing solutions provided under this contract compared to alternative approaches?

Assessing cost-effectiveness is challenging without detailed performance data. While the contract aimed to provide immediate solutions, the Time and Materials structure and lack of competition might suggest a higher cost per unit than a competitively bid fixed-price contract. Further analysis would require data on the number of housing units provided, their duration of use, and operational costs.

What were the primary risks associated with awarding this contract on a sole-source basis during a major disaster?

The primary risks included potential overpricing due to the absence of competitive bidding, scope creep, and the possibility of inefficient resource allocation. The urgency of the situation may have necessitated a sole-source award, but it heightened the need for stringent oversight to mitigate financial and performance risks.

How effective was Fluor Enterprises Inc. in identifying and mobilizing resources for temporary housing solutions in Louisiana?

Effectiveness is difficult to gauge solely from contract data. The contract's duration (nearly two years) suggests a sustained effort. FEMA's evaluation of Fluor's performance, including the timely and adequate provision of housing and resources, would be the primary indicator of effectiveness. Post-disaster reports and audits would offer more insight.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HSFEHQ05R0033

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Fluor Corporation (UEI: 006907190)

Address: ONE ENTERPRISE DR, ALISO VIEJO, CA, 92656

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $111,001,536

Exercised Options: $71,501,537

Current Obligation: $71,501,537

Parent Contract

Parent Award PIID: HSFEHQ05D0471

IDV Type: BOA

Timeline