FEMA awards $102.6M contract to Fluor Federal Services for PA-TAC V East Zone in New Mexico

Contract Overview

Contract Amount: $102,648,176 ($102.6M)

Contractor: Fluor Federal Services Inc

Awarding Agency: Department of Homeland Security

Start Date: 2024-06-10

End Date: 2026-03-06

Contract Duration: 634 days

Daily Burn Rate: $161.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PA-TAC V EAST ZONE - HERMITS PEAK

Place of Performance

Location: SANTA FE, SANTA FE County, NEW MEXICO, 87505

State: New Mexico Government Spending

Plain-Language Summary

Department of Homeland Security obligated $102.6 million to FLUOR FEDERAL SERVICES INC for work described as: PA-TAC V EAST ZONE - HERMITS PEAK Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 3. Fluor Federal Services Inc. is the sole awardee, indicating a single entity will perform the work. 4. The contract duration is 634 days, spanning from June 2024 to March 2026. 5. The North American Industry Classification System (NAICS) code 541611 points to administrative and management consulting services. 6. The contract is a delivery order under a larger award (BR 161906), implying it's part of an existing framework.

Value Assessment

Rating: fair

The total award amount is $102.6 million. Without specific performance metrics or a breakdown of services, it's challenging to benchmark the value for money definitively. Time and Materials contracts inherently carry a higher risk of cost overruns compared to fixed-price contracts if not meticulously managed and monitored for efficiency. Comparing this to similar large-scale disaster recovery or administrative support contracts would provide better context on pricing and overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but this method generally fosters price discovery and allows the government to select the most advantageous offer. The open nature of the competition suggests a robust market for these services.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible price and quality for the services rendered, reducing the likelihood of inflated costs due to a lack of alternatives.

Public Impact

The primary beneficiaries are likely the residents and communities within the PA-TAC V East Zone of New Mexico affected by disasters. The contract will deliver administrative management and general management consulting services, crucial for disaster recovery operations. The geographic impact is focused on New Mexico, specifically the designated East Zone. The contract may have implications for the local workforce through potential job creation or the utilization of local resources by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases risk of cost escalation without strict oversight.
Lack of specific performance metrics makes value assessment difficult.
Sole awardee means no ongoing competition for this specific delivery order.
Details on the number of bidders are not provided, limiting full understanding of competitive intensity.

Positive Signals

Awarded through full and open competition, indicating a fair and accessible bidding process.
Contract is a delivery order under a larger award, suggesting it fits within an established procurement framework.
Contractor Fluor Federal Services Inc. is a known entity in federal contracting, potentially bringing experience.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative and management consulting. This sector is vital for government operations, particularly in areas like disaster response and recovery management. The market for such services is competitive, with numerous firms capable of providing specialized expertise. Benchmarking would involve comparing the contract's value and scope to other large-scale support services procured by FEMA or other agencies for similar disaster recovery efforts.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting requirements for small businesses mandated by this specific award. The primary contractor, Fluor Federal Services Inc., will likely manage the entire scope of work. The impact on the small business ecosystem is indirect, as opportunities may arise if Fluor chooses to subcontract portions of the work, but this is not a guaranteed outcome.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. As a Time and Materials contract, rigorous monitoring of labor hours, material costs, and adherence to the Statement of Work will be critical. Transparency is expected through regular reporting requirements. The Inspector General for the Department of Homeland Security would have jurisdiction for audits and investigations into potential fraud, waste, or abuse.

Related Government Programs

FEMA Disaster Relief Fund
Public Assistance Program
Emergency Management Services
Management and Consulting Services

Risk Flags

Cost Overrun Risk (Time and Materials Contract)
Performance Monitoring Complexity
Contractor Capacity and Staffing
Coordination with Multiple Stakeholders

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $102.6 million to FLUOR FEDERAL SERVICES INC. PA-TAC V EAST ZONE - HERMITS PEAK

Who is the contractor on this award?

The obligated recipient is FLUOR FEDERAL SERVICES 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 $102.6 million.

What is the period of performance?

Start: 2024-06-10. End: 2026-03-06.

What is the specific nature of the 'PA-TAC V EAST ZONE' services being procured?

The 'PA-TAC V EAST ZONE' likely refers to a specific geographic region within FEMA's Public Assistance Technical Assistance Contract (PA-TAC) V program, designated as the East Zone. These contracts typically provide comprehensive technical assistance to support state, local, tribal, and territorial governments in their disaster recovery efforts. Services can include damage assessments, cost estimating, project formulation, and overall program management to ensure efficient and compliant use of federal disaster relief funds. The 'East Zone' designation suggests a specific operational area within a larger regional or national contract framework.

How does the Time and Materials (T&M) contract type compare to other contract types for similar disaster recovery services in terms of risk and value?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change significantly, which can be common in disaster recovery. However, T&M contracts carry a higher risk of cost overruns for the government compared to fixed-price contracts because the contractor is reimbursed for direct labor hours and costs, plus a fixed fee or percentage. This necessitates robust government oversight to ensure efficiency and prevent inflated billing. For disaster recovery, where urgency is paramount, T&M can offer flexibility, but agencies must implement stringent controls, such as labor hour limitations and detailed progress reporting, to manage costs effectively and ensure value for taxpayer money.

What is Fluor Federal Services Inc.'s track record with FEMA or similar disaster response contracts?

Fluor Federal Services Inc. is a significant player in the federal contracting space, with a history of performing large-scale engineering, construction, and support services for various government agencies, including FEMA. They have been involved in major disaster response and recovery efforts, often managing complex logistics and infrastructure projects. Their experience with FEMA likely includes previous iterations of PA-TAC or similar contracts, providing them with institutional knowledge of FEMA's processes and requirements. A detailed review of their past performance ratings and any past performance issues on similar contracts would offer a more precise assessment of their suitability and reliability for this specific award.

What are the potential performance risks associated with this specific contract, given its scope and duration?

Potential performance risks include challenges in managing a large, complex scope of work over a 634-day period, especially within the dynamic environment of disaster recovery. Ensuring consistent quality of administrative and management consulting services across the East Zone of New Mexico is critical. Risks also stem from the T&M contract type, where maintaining cost control requires diligent oversight of labor and materials. Furthermore, coordinating with multiple local and state entities, ensuring timely delivery of support, and adapting to evolving disaster recovery needs are inherent performance challenges. The contractor's ability to recruit and retain qualified personnel for the duration of the contract is also a key factor.

How does the $102.6 million award compare to historical spending on similar FEMA PA-TAC contracts?

The $102.6 million award for the PA-TAC V East Zone represents a substantial investment in disaster recovery support for New Mexico. To contextualize this, one would need to examine historical spending data for previous PA-TAC phases (I, II, III, IV) and other similar large-scale technical assistance contracts managed by FEMA. Factors influencing spending include the scale and frequency of disasters, the complexity of recovery needs, and the specific services included in each contract iteration. Without direct comparative data for PA-TAC V East Zone against prior contracts of similar scope and duration, it's difficult to definitively state whether this award is higher or lower than historical benchmarks. However, the trend in disaster recovery spending has generally been upward due to increasing climate-related events.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 70FB8024R00000029

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Fluor Corporation

Address: 100 FLUOR DANIEL DR, GREENVILLE, SC, 29607

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $102,648,176

Exercised Options: $102,648,176

Current Obligation: $102,648,176

Actual Outlays: $64,443,147

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $25,010,757

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FB8024D00000003

IDV Type: IDC

Timeline