DHS FEMA awards $14.4M contract for hurricane housing design services to Fluor Enterprises Inc

Contract Overview

Contract Amount: $14,395,623 ($14.4M)

Contractor: Fluor Enterprises Inc

Awarding Agency: Department of Homeland Security

Start Date: 2006-03-07

End Date: 2006-11-30

Contract Duration: 268 days

Daily Burn Rate: $53.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Construction

Official Description: SUPPORT - SITE DESIGN SERVICES IN SUPPORT OF HURRICANE KATRINA HOUSING MISSION.

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 $14.4 million to FLUOR ENTERPRISES INC for work described as: SUPPORT - SITE DESIGN SERVICES IN SUPPORT OF HURRICANE KATRINA HOUSING MISSION. Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies. 2. The contract duration of 268 days suggests a focused, short-term need for design services. 3. The use of Time and Materials pricing can lead to cost overruns if not closely managed. 4. This award is part of the broader federal response to Hurricane Katrina, highlighting disaster recovery efforts. 5. The specific NAICS code (541310) indicates a focus on architectural services. 6. The contract was awarded in March 2006, indicating historical context for disaster response spending.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and the specific context of disaster relief. However, the Time and Materials (T&M) pricing structure, without a defined ceiling or fixed price, inherently carries a higher risk of cost escalation compared to fixed-price contracts. While Fluor Enterprises Inc. is a large, established company, the lack of competitive bidding prevents a direct comparison of pricing against market alternatives for these specific architectural services in a disaster recovery scenario. The awarded amount of $14.4 million for 268 days of service needs to be evaluated against the urgency and unique demands of post-Katrina housing reconstruction.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary qualifications, or in urgent situations where competition is not feasible. The lack of competition means there was no opportunity for price discovery through bidding, potentially leading to higher costs for the government. The decision to sole-source bypasses the standard procurement processes designed to ensure the best value is obtained through market competition.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to secure lower prices, potentially resulting in taxpayers bearing a higher cost for these essential design services.

Public Impact

The primary beneficiaries are the individuals and communities impacted by Hurricane Katrina, who will receive housing solutions. The services delivered include site design for temporary and potentially permanent housing structures. The geographic impact is focused on the areas affected by Hurricane Katrina, primarily along the Gulf Coast. Workforce implications include the employment of architects, engineers, and support staff by Fluor Enterprises Inc. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs.
Time and Materials contract type poses a risk of cost overruns without strict oversight.
Lack of transparency in the procurement process due to sole-sourcing.

Positive Signals

Award to an established contractor (Fluor Enterprises Inc.) with experience in large-scale projects.
Contract supports critical disaster relief efforts for Hurricane Katrina victims.
Specific focus on architectural services for housing solutions addresses a direct need.

Sector Analysis

The architectural services sector is a critical component of the construction and engineering industries. This contract falls within the broader professional, scientific, and technical services sector. The market for architectural services is diverse, ranging from small local firms to large international corporations. In the context of disaster recovery, specialized firms with experience in rapid deployment and large-scale project management are often sought. Comparable spending benchmarks for disaster-related design services can vary significantly based on the scale of the disaster, the type of infrastructure required, and the urgency of the response.

Small Business Impact

As this contract was awarded on a sole-source basis to Fluor Enterprises Inc., there is no explicit small business set-aside. The implications for small businesses would depend on Fluor's subcontracting strategy. Large prime contractors often utilize small businesses for specialized services, but without a set-aside requirement or clear subcontracting plan details, the extent of small business participation remains uncertain. This could limit opportunities for small architectural or engineering firms to contribute to the disaster recovery effort.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. Given the Time and Materials pricing, rigorous oversight of labor hours, material costs, and progress would be essential to control expenditures. Accountability measures would involve performance reviews and adherence to contract terms. Transparency might be limited due to the sole-source nature, but contract award details are typically made public. The Inspector General for DHS would likely have jurisdiction for audits and investigations if any issues arise.

Related Government Programs

Hurricane Katrina Disaster Relief Efforts
Federal Emergency Management Agency (FEMA) Contracts
Department of Homeland Security Procurement
Architectural and Engineering Services
Disaster Housing Solutions

Risk Flags

Sole-source award
Time and Materials contract type
Lack of competitive bidding

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $14.4 million to FLUOR ENTERPRISES INC. SUPPORT - SITE DESIGN SERVICES IN SUPPORT OF HURRICANE KATRINA HOUSING MISSION.

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 $14.4 million.

What is the period of performance?

Start: 2006-03-07. End: 2006-11-30.

What is Fluor Enterprises Inc.'s track record with federal disaster relief contracts?

Fluor Enterprises Inc. has a significant history of engaging in large-scale federal contracts, including those related to disaster recovery and infrastructure projects. Their experience spans various agencies and types of support, often involving complex logistical and construction management. While specific details on their performance for Hurricane Katrina relief contracts would require a deeper dive into contract databases and agency reports, Fluor's general profile suggests they are a capable entity for such demanding work. However, the nature of disaster response can present unique challenges, and performance can vary based on the specific contract, duration, and evolving requirements on the ground. A thorough review would examine past performance evaluations, any disputes or claims, and the overall success in meeting objectives for similar federal disaster relief engagements.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or when the duration is uncertain, which can be the case in rapidly evolving disaster situations. However, T&M contracts carry a higher risk for the government compared to fixed-price contracts because the final cost is not predetermined. The government pays for the actual labor hours and material costs incurred by the contractor, plus a fee. This necessitates robust oversight to ensure efficiency and prevent overcharging. Fixed-price contracts, on the other hand, offer greater cost certainty for the government but require a well-defined scope of work upfront. For architectural services where design elements can be specified, a firm-fixed-price or fixed-price-incentive contract might offer better value if the scope is sufficiently defined. The choice of T&M here suggests either a very fluid scope or an emphasis on speed over cost certainty.

What are the potential risks associated with a sole-source award for disaster response services?

Sole-source awards for disaster response services, while sometimes necessary due to urgency or unique capabilities, carry several potential risks. The primary risk is the lack of price competition, which can lead to the government paying a premium for services that could have been obtained at a lower cost through a competitive bidding process. This reduces the government's leverage in negotiating favorable terms and pricing. Furthermore, sole-sourcing can limit the pool of available talent and innovation, as other qualified firms are excluded from participating. It can also raise concerns about fairness and transparency in the procurement process. In disaster scenarios, where resources are often strained, ensuring the most cost-effective and efficient use of taxpayer funds is paramount, making sole-source awards a point of scrutiny.

What is the typical duration and cost for architectural services in disaster recovery contexts?

The typical duration and cost for architectural services in disaster recovery contexts can vary dramatically depending on the scale of the disaster, the type of housing or infrastructure needed, and the specific phase of recovery. Short-term needs, like initial assessments and temporary shelter design, might last weeks to a few months. Longer-term reconstruction and permanent housing projects can extend for years. Costs are influenced by factors such as the complexity of the design, the required level of detail, the urgency of the timeline, and the geographic location. A contract like this one, for $14.4 million over approximately 9 months (268 days), for site design services in support of housing, suggests a significant undertaking. Benchmarking requires comparing it to similar-scale disaster housing projects, considering the specific services rendered and the prevailing market rates for architectural expertise during such critical periods.

How does this contract fit into the broader federal spending on Hurricane Katrina recovery?

This contract for $14.4 million represents a small fraction of the overall federal spending allocated for Hurricane Katrina recovery, which ultimately amounted to hundreds of billions of dollars across various agencies and programs. FEMA, as the lead agency for disaster response and recovery, managed a substantial portion of these funds, directing them towards housing, infrastructure repair, debris removal, and economic assistance. Contracts for architectural and engineering services, like this one, are crucial for planning and executing the physical rebuilding efforts. This specific award highlights the federal government's investment in designing the housing solutions necessary to address the displacement and devastation caused by the hurricane. It underscores the complex, multi-faceted nature of disaster recovery, requiring a wide range of contracted services to support the affected populations and rebuild communities.

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: $37,403,203

Exercised Options: $37,403,203

Current Obligation: $14,395,623

Parent Contract

Parent Award PIID: HSFEHQ05D0471

IDV Type: BOA

Timeline