DHS FEMA Spends $97.9M on Katrina Temporary Housing, Awarded Sole-Source to Fluor Enterprises

Contract Overview

Contract Amount: $97,863,197 ($97.9M)

Contractor: Fluor Enterprises Inc

Awarding Agency: Department of Homeland Security

Start Date: 2005-09-02

End Date: 2011-04-04

Contract Duration: 2,040 days

Daily Burn Rate: $48.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IDENTIFY POTENTIAL TEMPORARY HOUSING SOLUTIONS, RESOURCES, AND REQUIREMENT FOR PEOPLE DISPLACED BY 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 $97.9 million to FLUOR ENTERPRISES INC for work described as: IDENTIFY POTENTIAL TEMPORARY HOUSING SOLUTIONS, RESOURCES, AND REQUIREMENT FOR PEOPLE DISPLACED BY HURRICANE KATRINA. Key points: 1. Significant expenditure of $97.9M for disaster relief housing solutions. 2. Sole-source award to Fluor Enterprises Inc. raises questions about competition. 3. Long contract duration (2040 days) suggests complex, ongoing needs. 4. Architectural services (NAICS 541310) were the primary focus.

Value Assessment

Rating: questionable

The $97.9M award for architectural services is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar disaster relief contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award to Fluor Enterprises Inc. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competitive bidding for a large contract like this means taxpayers may have overpaid for the services rendered.

Public Impact

Provided essential temporary housing solutions for Hurricane Katrina victims. Contract duration extended over several years, indicating long-term recovery efforts. Awarded by FEMA, highlighting the agency's role in disaster response.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Addressed critical need for disaster housing

Sector Analysis

This contract falls under architectural services, a sector often engaged during large-scale infrastructure and recovery projects. The spending benchmark for such services can vary widely based on project scope and urgency.

Small Business Impact

There is no indication in the provided data whether small businesses were involved as subcontractors or partners in this contract. The sole-source nature might have limited opportunities for SMB participation.

Oversight & Accountability

The sole-source award warrants further oversight to ensure the necessity of non-competitive procurement and the reasonableness of costs. Accountability for disaster relief spending is crucial.

Related Government Programs

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

Risk Flags

Sole-source award lacks transparency and competitive pricing.
High contract value ($97.9M) without competition raises cost concerns.
Long contract duration (2040 days) may indicate inefficiencies or scope creep.
Potential for taxpayer overpayment due to lack of competitive bidding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $97.9 million to FLUOR ENTERPRISES INC. IDENTIFY POTENTIAL TEMPORARY HOUSING SOLUTIONS, RESOURCES, AND REQUIREMENT FOR PEOPLE DISPLACED BY 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 $97.9 million.

What is the period of performance?

Start: 2005-09-02. End: 2011-04-04.

What specific architectural services were provided under this contract, and how did they directly contribute to temporary housing solutions for Katrina displaced persons?

The contract focused on identifying potential temporary housing solutions, resources, and requirements. This likely involved site assessment, design consultation, planning for modular or temporary structures, and potentially coordination with various stakeholders to expedite the provision of shelter for those displaced by Hurricane Katrina.

Given the sole-source nature, what justification was provided by FEMA for not competing this significant contract, and were alternative solutions explored?

The justification for a sole-source award typically involves urgency, unique capabilities, or lack of available alternatives. For Hurricane Katrina relief, the extreme urgency and scale of the disaster may have led FEMA to believe that a sole-source award to a known entity like Fluor Enterprises was the fastest way to address immediate housing needs, though this should be rigorously documented.

How was the 'Time and Materials' pricing structure monitored to ensure cost-effectiveness and prevent overruns, especially in a sole-source scenario?

Monitoring Time and Materials (T&M) contracts, particularly sole-source ones, requires robust oversight. FEMA would need to establish clear labor categories, rates, and material cost ceilings, along with detailed tracking and verification of hours worked and materials used. Regular audits and performance reviews are essential to control costs and ensure value.

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: NEGOTIATED PROPOSAL/QUOTE

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, 40

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $97,863,197

Exercised Options: $97,863,197

Current Obligation: $97,863,197

Parent Contract

Parent Award PIID: HSFEHQ05D0471

IDV Type: BOA

Timeline