FEMA's $27.4M Katrina temporary housing contract to Shaw Environmental, Inc. awarded without competition
Contract Overview
Contract Amount: $27,411,742 ($27.4M)
Contractor: Shaw Environmental, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2006-06-26
End Date: 2006-10-31
Contract Duration: 127 days
Daily Burn Rate: $215.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: DESIGN AND CONSTRUCTION OF TEMPORARY HOUSING STRUCTURES; IDENTIFY POTENTIAL TEMPORARY HOUSING SOLUTIONS, RESOURCES, AND REQUIREMENT IN LOUISIANA FOR PEOPLE DISPLACED AS A RESULT OF HURRICANE KATRINA - DESIGN AND CONSTRUCT SITES AND INSTALL TRAVEL TRAILERS AND MOBILE HOMES; PROVIDE MAINTENANCE SERVICES FOR MANUFACTURED HOUSING UNITS INSTALLED; PROVIDE GROUNDS AND INFRASTRUCTURE MAINTENANCE SERVICES
Place of Performance
Location: BATON ROUGE, EAST BATON ROUGE County, LOUISIANA, 70802
Plain-Language Summary
Department of Homeland Security obligated $27.4 million to SHAW ENVIRONMENTAL, INC. for work described as: DESIGN AND CONSTRUCTION OF TEMPORARY HOUSING STRUCTURES; IDENTIFY POTENTIAL TEMPORARY HOUSING SOLUTIONS, RESOURCES, AND REQUIREMENT IN LOUISIANA FOR PEOPLE DISPLACED AS A RESULT OF HURRICANE KATRINA - DESIGN AND CONSTRUCT SITES AND INSTALL TRAVEL TRAILERS AND MOBILE HOMES; PROVID… Key points: 1. Contract focused on immediate post-disaster needs, highlighting rapid response requirements. 2. Sole-source award suggests urgency or lack of pre-qualified vendors for emergency housing. 3. Performance period was short, indicating a focus on immediate relief rather than long-term solutions. 4. The contract's scope included design, construction, installation, and maintenance of temporary housing. 5. Geographic focus on Louisiana underscores the localized impact of Hurricane Katrina. 6. The 'All Other Professional, Scientific, and Technical Services' NAICS code is broad, potentially masking specific service delivery.
Value Assessment
Rating: questionable
Benchmarking value for this contract is challenging due to its emergency nature and sole-source award. The fixed fee component suggests some cost control, but the lack of competition limits price discovery. Without comparable sole-source emergency response contracts, assessing whether the $27.4 million represented a fair price is difficult. The broad scope also makes granular cost analysis problematic.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Shaw Environmental, Inc., was solicited. This approach is typically used in emergency situations where time is critical and a competitive process is not feasible. The lack of competition means there was no opportunity to compare bids or leverage market dynamics to achieve potentially lower prices.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. The urgency of the situation likely overrode standard procurement practices, potentially leading to less cost-effective outcomes.
Public Impact
Displaced residents of Louisiana affected by Hurricane Katrina were the primary beneficiaries, receiving temporary housing solutions. Services delivered included the design and construction of housing sites, installation of travel trailers and mobile homes, and ongoing maintenance. The geographic impact was concentrated in Louisiana, specifically addressing needs within the state. The contract supported a workforce involved in construction, installation, and maintenance of temporary housing units.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits transparency and potential cost savings.
- Broad NAICS code may obscure specific service costs and performance metrics.
- Emergency procurement can sometimes lead to inflated pricing compared to non-emergency contracts.
- Short contract duration might indicate a reactive rather than strategic approach to housing needs.
Positive Signals
- Addressed critical, immediate needs for housing post-disaster.
- Provided a comprehensive solution including installation and maintenance.
- Focused on a specific, high-impact geographic area requiring urgent assistance.
Sector Analysis
The contract falls under professional, scientific, and technical services, specifically related to disaster response and temporary infrastructure. The market for emergency response services is often characterized by rapid mobilization and specialized capabilities. While specific benchmarks for temporary housing construction in disaster zones are scarce, the overall spending on disaster relief by agencies like FEMA can be substantial, reflecting the significant costs associated with recovery efforts.
Small Business Impact
This contract was not set aside for small businesses, nor does it appear to have significant subcontracting implications mentioned in the provided data. The sole-source nature further reduces the likelihood of small business participation through subcontracting opportunities. The focus was on a large-scale, immediate response, likely requiring the capacity of a larger firm.
Oversight & Accountability
Oversight for this contract would have been primarily managed by the Federal Emergency Management Agency (FEMA) within the Department of Homeland Security. Given the emergency context, oversight might have been expedited. Transparency is limited due to the sole-source award. Inspector General jurisdiction would apply to investigate any potential fraud, waste, or abuse.
Related Government Programs
- Hurricane Katrina Disaster Relief
- Temporary Housing Programs
- Emergency Infrastructure Services
- FEMA Disaster Assistance Contracts
Risk Flags
- Sole-source award raises concerns about competition and potential cost overruns.
- Emergency procurement context may limit detailed performance and cost analysis.
- Broad service category (NAICS 541990) lacks specificity for granular oversight.
Tags
disaster-response, temporary-housing, emergency-procurement, sole-source, fema, department-of-homeland-security, louisiana, professional-scientific-technical-services, construction, maintenance, hurricane-katrina, cost-plus-fixed-fee
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $27.4 million to SHAW ENVIRONMENTAL, INC.. DESIGN AND CONSTRUCTION OF TEMPORARY HOUSING STRUCTURES; IDENTIFY POTENTIAL TEMPORARY HOUSING SOLUTIONS, RESOURCES, AND REQUIREMENT IN LOUISIANA FOR PEOPLE DISPLACED AS A RESULT OF HURRICANE KATRINA - DESIGN AND CONSTRUCT SITES AND INSTALL TRAVEL TRAILERS AND MOBILE HOMES; PROVIDE MAINTENANCE SERVICES FOR MANUFACTURED HOUSING UNITS INSTALLED; PROVIDE GROUNDS AND INFRASTRUCTURE MAINTENANCE SERVICES
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 $27.4 million.
What is the period of performance?
Start: 2006-06-26. End: 2006-10-31.
What was the justification for the sole-source award of this contract?
The contract was awarded on a sole-source basis due to the urgent and immediate need for temporary housing solutions following Hurricane Katrina. In disaster situations, particularly those of significant scale like Katrina, agencies like FEMA often invoke emergency procurement procedures to expedite the delivery of essential services and resources. This allows for rapid deployment of contractors without the time-consuming process of a full competitive bidding cycle, which could delay critical aid to affected populations. The specific justification would likely cite the exigent circumstances and the inability to conduct a timely competition.
How does the cost of this contract compare to similar emergency housing contracts?
Direct comparison of this $27.4 million contract to similar emergency housing contracts is difficult due to several factors. Firstly, the sole-source nature limits the availability of benchmark pricing derived from competitive bids. Secondly, the scope of work, encompassing design, construction, installation, and maintenance, is comprehensive. Thirdly, the urgency and specific requirements of post-Hurricane Katrina relief may have influenced pricing. Without access to data on other sole-source emergency housing contracts awarded under similar exigent circumstances, it is challenging to definitively assess whether the price was competitive or represented optimal value for money.
What were the key performance indicators (KPIs) for Shaw Environmental, Inc. under this contract?
The provided data does not explicitly detail the Key Performance Indicators (KPIs) for Shaw Environmental, Inc. However, based on the contract's description, likely KPIs would have included the timely design and construction of housing sites, the successful installation of a specified number of travel trailers and mobile homes, and the provision of adequate grounds and infrastructure maintenance services. Meeting deadlines for site readiness and unit deployment, ensuring the habitability of the housing units, and maintaining the grounds to acceptable standards would have been crucial performance metrics.
What was the total federal spending on temporary housing solutions in Louisiana following Hurricane Katrina?
The provided data focuses solely on this specific contract awarded to Shaw Environmental, Inc. for $27.4 million. It does not encompass the total federal spending on temporary housing solutions in Louisiana following Hurricane Katrina. Federal disaster relief efforts involve numerous contracts and programs administered by various agencies, including FEMA, the Army Corps of Engineers, and others. A comprehensive analysis of total spending would require aggregating data from multiple sources and contracts over an extended period, which is beyond the scope of this single contract's information.
What is the typical duration for contracts related to temporary housing in disaster zones?
The typical duration for contracts related to temporary housing in disaster zones can vary significantly depending on the scale of the disaster, the type of housing provided, and the specific phase of the recovery effort. Short-term contracts, like this 127-day delivery order, are common for immediate response and initial setup. Longer-term contracts may be necessary for sustained temporary housing solutions or for the transition to more permanent housing. Factors such as the availability of permanent housing, funding cycles, and the pace of reconstruction influence how long temporary housing solutions remain in place and thus the duration of related contracts.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $28,478,802
Exercised Options: $28,478,802
Current Obligation: $27,411,742
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSFEHQ05D0573
IDV Type: IDC
Timeline
Start Date: 2006-06-26
Current End Date: 2006-10-31
Potential End Date: 2006-10-31 00:00:00
Last Modified: 2021-04-01
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