DHS FEMA Awards $134.7M Contract to Fluor Enterprises for Hurricane Katrina Site Development

Contract Overview

Contract Amount: $134,695,143 ($134.7M)

Contractor: Fluor Enterprises Inc

Awarding Agency: Department of Homeland Security

Start Date: 2006-02-28

End Date: 2011-03-31

Contract Duration: 1,857 days

Daily Burn Rate: $72.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Construction

Official Description: IA TAC SITE DEVELOPMENT: PROVIDE CONSTRUCTION SERVICES, MATERIALS, LABOR AND EQUIP. FOR INFRASTRUCTURE/UTILITIES AND OTHER RELATED ACTIVITIES TO SUPPORT TEMPORARY HOUSING OR OTHER SOLUTIONS FOR HURRICANE KATRINA.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $134.7 million to FLUOR ENTERPRISES INC for work described as: IA TAC SITE DEVELOPMENT: PROVIDE CONSTRUCTION SERVICES, MATERIALS, LABOR AND EQUIP. FOR INFRASTRUCTURE/UTILITIES AND OTHER RELATED ACTIVITIES TO SUPPORT TEMPORARY HOUSING OR OTHER SOLUTIONS FOR HURRICANE KATRINA. Key points: 1. Significant investment of $134.7 million for critical post-disaster infrastructure. 2. Contract awarded to Fluor Enterprises Inc. for construction services. 3. Limited competition raises questions about optimal price discovery. 4. Spending occurred during a period of urgent need following Hurricane Katrina.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not closely managed. The total award amount of $134.7 million for site development and infrastructure support is substantial, and its value needs to be assessed against the specific scope and urgency of post-Katrina recovery efforts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, indicating a limited competition approach. This was likely due to the urgent nature of disaster recovery. However, the lack of full competition may have limited opportunities for price discovery and potentially resulted in a higher cost than a fully competed contract.

Taxpayer Impact: Taxpayer funds were used for essential recovery efforts, but the lack of competition may have impacted the overall cost-effectiveness of the expenditure.

Public Impact

Directly supported recovery efforts for victims of Hurricane Katrina. Provided essential infrastructure and utilities for temporary housing solutions. Demonstrates federal commitment to disaster response and rebuilding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Fixed Fee contract type
Long duration for a disaster recovery contract

Positive Signals

Addressed urgent post-disaster needs
Supported critical infrastructure development

Sector Analysis

This contract falls under construction services for infrastructure and utilities, a critical sector during disaster recovery. The spending of $134.7 million is significant and reflects the scale of the Hurricane Katrina response.

Small Business Impact

The data does not indicate any specific involvement or benefit to small businesses in this contract award.

Oversight & Accountability

The contract was awarded by the Department of Homeland Security (FEMA) during a critical period. Oversight would have been crucial to manage costs and ensure the effective delivery of services under a Cost Plus Fixed Fee arrangement.

Related Government Programs

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

Risk Flags

Lack of competition
Potential for cost overruns due to CPFF structure
Limited transparency on pricing justification
Long contract duration without clear competitive re-evaluation

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $134.7 million to FLUOR ENTERPRISES INC. IA TAC SITE DEVELOPMENT: PROVIDE CONSTRUCTION SERVICES, MATERIALS, LABOR AND EQUIP. FOR INFRASTRUCTURE/UTILITIES AND OTHER RELATED ACTIVITIES TO SUPPORT TEMPORARY HOUSING OR OTHER SOLUTIONS FOR HURRICANE KATRINA.

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 $134.7 million.

What is the period of performance?

Start: 2006-02-28. End: 2011-03-31.

What was the justification for not competing this significant contract, given the long performance period?

The justification for not competing this contract likely stemmed from the extreme urgency and scale of the Hurricane Katrina disaster. FEMA needed to rapidly deploy resources for temporary housing and infrastructure. While urgency is a valid concern, the lack of competition over an 1857-day period warrants scrutiny regarding whether alternative competitive strategies could have been employed or if the pricing was adequately validated.

How were costs controlled and validated under the Cost Plus Fixed Fee structure for this large-scale recovery effort?

Controlling costs under a Cost Plus Fixed Fee (CPFF) contract, especially for a large-scale disaster recovery effort, relies heavily on robust oversight, clear definition of allowable costs, and rigorous auditing. FEMA would have needed to establish strict guidelines for expenditures and monitor Fluor Enterprises' costs closely to ensure they were reasonable and allocable to the contract. The fixed fee component provides some incentive for efficiency, but the 'cost plus' aspect requires diligent management to prevent overspending.

What was the long-term impact of this site development on the recovery and rebuilding of affected areas?

The long-term impact of this site development was crucial for establishing the foundational infrastructure necessary for temporary housing and subsequent rebuilding efforts following Hurricane Katrina. By providing essential utilities and site preparation, the contract enabled the deployment of immediate relief solutions and laid the groundwork for more permanent reconstruction. The effectiveness is measured by the speed and stability of the recovery process it facilitated.

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: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Fluor Corporation (UEI: 006907190)

Address: ONE ENTERPRISE DR, ALISO VIEJO, CA, 40

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $134,695,143

Exercised Options: $134,695,143

Current Obligation: $134,695,143

Parent Contract

Parent Award PIID: HSFEHQ05D0471

IDV Type: BOA

Timeline