FEMA awards $25.3M engineering services contract to Fluor Enterprises, Inc. for disaster recovery support

Contract Overview

Contract Amount: $25,354,424 ($25.4M)

Contractor: Fluor Enterprises, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2008-10-14

End Date: 2013-09-25

Contract Duration: 1,807 days

Daily Burn Rate: $14.0K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PA TAC

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $25.4 million to FLUOR ENTERPRISES, INC. for work described as: PA TAC Key points: 1. Contract awarded via competitive delivery order, suggesting a degree of market vetting. 2. Time and Materials pricing structure may pose cost control challenges if not closely managed. 3. The contract duration of 1807 days (approx. 5 years) indicates a significant, long-term need. 4. Engineering services are critical for post-disaster infrastructure assessment and repair. 5. The award falls under the broader category of disaster preparedness and response. 6. Contractor's performance and adherence to scope will be key to value realization.

Value Assessment

Rating: fair

The contract value of $25.3 million over approximately five years averages to about $5 million annually. Benchmarking this against similar large-scale engineering support contracts for disaster response is challenging without more specific service details. However, the Time and Materials (T&M) pricing model, while flexible, can lead to higher costs if not meticulously managed and if the scope of work expands significantly. Value for money will depend heavily on the efficiency and effectiveness of the engineering services provided and the contractor's ability to control labor hours and material costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' indicating it was competed under a broader indefinite-delivery indefinite-quantity (IDIQ) contract or similar vehicle. The term 'full-and-open' suggests that all responsible sources were permitted to submit offers. While the specific number of bidders for this particular delivery order is not provided, the competitive nature implies that multiple firms likely vied for the work, which generally aids in price discovery and can lead to more favorable pricing compared to sole-source awards.

Taxpayer Impact: A competitive award process, even for a delivery order, generally benefits taxpayers by fostering a more competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The primary beneficiaries are communities impacted by disasters requiring engineering expertise for recovery and rebuilding. Services delivered likely include structural assessments, design, planning, and oversight for infrastructure repair and reconstruction. Geographic impact is nationwide, focusing on areas affected by declared disasters. Workforce implications include the need for specialized engineering talent, potentially creating opportunities for skilled professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not strictly monitored.
The long duration of the contract requires sustained oversight to ensure continued value.
Scope creep could significantly increase the final cost beyond the initial award amount.

Positive Signals

Awarded through a competitive process, suggesting potential for good value.
Engineering services are essential for effective disaster recovery operations.
The contract supports critical national security and public safety missions of FEMA.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330), a significant market supporting government infrastructure and disaster response. The federal government is a major consumer of engineering services, particularly for large-scale projects like those following natural disasters. Spending in this sector is often project-driven and can fluctuate based on the frequency and severity of events. Comparable spending benchmarks would typically be found within broader categories of emergency management and infrastructure support contracts.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, Fluor Enterprises, as a large prime contractor, may engage small businesses as subcontractors to fulfill parts of the contract requirements, contributing indirectly to the small business ecosystem. The extent of subcontracting to small businesses would need further investigation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. Mechanisms likely include contract officer representatives (CORs), regular progress reports from the contractor, and potentially site inspections. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

FEMA Disaster Relief Fund
Army Corps of Engineers Civil Works Programs
General Services Administration (GSA) Multiple Award Schedule (MAS) for Engineering Services
Department of Transportation Federal Highway Administration

Risk Flags

Potential for cost overruns due to T&M pricing structure.
Need for robust oversight to manage long-term contract performance.
Dependence on contractor's ability to scale resources rapidly post-disaster.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $25.4 million to FLUOR ENTERPRISES, INC.. PA TAC

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 $25.4 million.

What is the period of performance?

Start: 2008-10-14. End: 2013-09-25.

What is Fluor Enterprises, Inc.'s track record with FEMA and other federal agencies for similar disaster response engineering contracts?

Fluor Enterprises, Inc. has a substantial history of performing large-scale engineering and construction projects for various federal agencies, including FEMA and the Department of Defense. Their experience often involves complex infrastructure development, emergency response, and recovery operations. While specific performance metrics for this particular $25.3 million contract are not detailed here, Fluor's broader federal contracting history suggests they possess the capacity and experience for such work. A deeper dive into past performance evaluations, any contract disputes, or awards for similar FEMA contracts would provide a more comprehensive understanding of their reliability and effectiveness in disaster scenarios. Their extensive portfolio indicates a significant presence in the federal contracting space, particularly for large, mission-critical projects.

How does the $25.3 million contract value compare to typical FEMA engineering support contracts of similar scope and duration?

The $25.3 million contract value, spread over approximately five years, represents an average annual value of around $5 million. This figure is within the range for significant engineering support contracts, especially those related to disaster response where the scope can be extensive and unpredictable. FEMA often utilizes large contracts to ensure rapid deployment of engineering expertise following major disasters. Without knowing the precise nature of the engineering services (e.g., preliminary damage assessments, detailed design, construction oversight), direct comparison is difficult. However, contracts of this magnitude are common for agencies needing substantial, long-term engineering capabilities to manage the aftermath of large-scale emergencies and support ongoing infrastructure resilience efforts.

What are the primary risks associated with a Time and Materials (T&M) contract for engineering services in a disaster response context?

The primary risk with a Time and Materials (T&M) contract, especially in a dynamic environment like disaster response, is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for actual labor hours and material costs incurred, plus a markup. If the scope of work is not clearly defined, or if unforeseen challenges lead to extended work or increased material needs, costs can escalate rapidly. Effective oversight, detailed tracking of hours and expenses, and robust change management processes are crucial to mitigate these risks. For FEMA, this means ensuring diligent monitoring by Contract Officer Representatives (CORs) to validate the necessity and efficiency of all billed time and materials to protect taxpayer funds.

What is the expected impact of this contract on FEMA's overall disaster preparedness and response capabilities?

This contract is expected to significantly bolster FEMA's disaster preparedness and response capabilities by ensuring access to essential engineering expertise. Having a pre-vetted contractor like Fluor Enterprises, Inc. under contract allows FEMA to quickly mobilize engineering resources for damage assessment, planning, and oversight of recovery and reconstruction efforts following a disaster. This capability is critical for restoring essential services, rebuilding infrastructure, and supporting community resilience. The five-year duration suggests a commitment to sustained support, indicating that FEMA anticipates ongoing needs for such specialized services, thereby enhancing its overall operational readiness and effectiveness in managing the consequences of natural disasters.

How has federal spending on engineering services for disaster management evolved over the past decade, and where does this contract fit?

Federal spending on engineering services for disaster management has generally trended upwards over the past decade, driven by an increase in the frequency and severity of natural disasters, as well as greater emphasis on infrastructure resilience and preparedness. Agencies like FEMA, the Army Corps of Engineers, and others consistently require specialized engineering support for response, recovery, and mitigation efforts. This $25.3 million contract with Fluor Enterprises, Inc. fits within this trend, representing a significant investment by FEMA to secure critical engineering capabilities. It reflects the ongoing need for expert technical assistance in assessing damage, designing repairs, and overseeing reconstruction projects, aligning with broader federal efforts to manage the impacts of climate change and natural hazards.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Fluor Corporation (UEI: 006907190)

Address: 1101 WILSON BLVD STE 1900, ARLINGTON, VA, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $82,567,424

Exercised Options: $82,567,424

Current Obligation: $25,354,424

Parent Contract

Parent Award PIID: HSFEHQ06D0487

IDV Type: IDC

Timeline