FEMA awards $40.9M for Hurricane Florence disaster operations support in North Carolina

Contract Overview

Contract Amount: $40,896,393 ($40.9M)

Contractor: WSP USA Services Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2018-09-17

End Date: 2019-03-16

Contract Duration: 180 days

Daily Burn Rate: $227.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::OT::IGF- THIS TASK ORDER SUPPORTS DISASTER OPERATIONS AS A RESULT OF HURRICANE FLORENCE IN THE STATE OF NORTH CAROLINA.

Place of Performance

Location: SAIPAN, SAIPAN County, NORTHERN MARIANA ISLANDS, 96950

Plain-Language Summary

Department of Homeland Security obligated $40.9 million to WSP USA SERVICES INC. for work described as: IGF::OT::IGF- THIS TASK ORDER SUPPORTS DISASTER OPERATIONS AS A RESULT OF HURRICANE FLORENCE IN THE STATE OF NORTH CAROLINA. Key points: 1. Contract value represents significant investment in disaster recovery efforts. 2. Competition level indicates a potentially robust market for disaster response services. 3. Performance period of 180 days suggests a focused, short-term operational need. 4. Contract type (Cost Plus Incentive Fee) allows for performance-based adjustments. 5. Geographic focus on North Carolina highlights specific regional disaster impact. 6. Contractor has experience in providing essential services during emergencies.

Value Assessment

Rating: good

The contract value of $40.9 million for 180 days of support appears reasonable given the scope of disaster operations following Hurricane Florence. Benchmarking against similar large-scale disaster response contracts would provide further context, but the cost is aligned with the critical nature of immediate post-disaster needs. The Cost Plus Incentive Fee structure suggests an effort to control costs while incentivizing efficient performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This approach generally fosters competitive pricing and allows the agency to select the best value offer. The presence of two bidders suggests a moderate level of competition for this specific task order.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures that federal funds are used efficiently by selecting the most cost-effective and capable provider.

Public Impact

Residents and businesses in North Carolina impacted by Hurricane Florence benefit from the restoration and support services. Essential services such as building inspection and disaster operations support are delivered. The geographic impact is concentrated in North Carolina, addressing immediate recovery needs. The contract supports a workforce engaged in critical disaster relief and recovery activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Incentive Fee contracts if not closely monitored.
Ensuring timely and effective delivery of services to meet urgent disaster recovery needs.
Verifying the necessity and efficiency of all incurred costs under the incentive fee structure.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Contractor selected to provide critical disaster response services, indicating capability.
Clear performance period and defined scope of work for disaster operations support.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to disaster recovery and emergency management support. The market for such services is often driven by unpredictable events like natural disasters, leading to surge demands. Comparable spending benchmarks would involve analyzing other large federal contracts for disaster response and recovery operations, which can vary significantly based on the scale and duration of the event.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem for this specific contract may be limited unless WSP USA Services Inc. actively engages small businesses in its subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Emergency Management Agency (FEMA) contracting officers and program managers. Accountability measures are embedded in the Cost Plus Incentive Fee structure, which links contractor payment to performance outcomes. Transparency is generally maintained through federal procurement databases, though specific performance reports may not always be publicly accessible.

Related Government Programs

Hurricane Florence Disaster Relief
Federal Emergency Management Agency (FEMA) Contracts
Disaster Operations Support Services
North Carolina Emergency Management

Risk Flags

Cost Overrun Risk
Performance Monitoring
Timeliness of Service Delivery

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $40.9 million to WSP USA SERVICES INC.. IGF::OT::IGF- THIS TASK ORDER SUPPORTS DISASTER OPERATIONS AS A RESULT OF HURRICANE FLORENCE IN THE STATE OF NORTH CAROLINA.

Who is the contractor on this award?

The obligated recipient is WSP USA 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 $40.9 million.

What is the period of performance?

Start: 2018-09-17. End: 2019-03-16.

What is the track record of WSP USA Services Inc. in disaster response contracts?

WSP USA Services Inc. has a significant track record in providing engineering, environmental, and construction services, which often includes support during disaster recovery operations. Their experience spans various large-scale infrastructure projects and emergency response efforts. While specific details on past disaster response contracts are not provided here, their general capabilities suggest they are well-equipped for such tasks. Federal procurement data often shows them as a recipient of various government contracts, including those related to infrastructure resilience and emergency management, indicating a sustained presence and capability in serving federal agencies during critical events.

How does the $40.9 million award compare to typical FEMA spending for similar disaster events?

The $40.9 million award for Hurricane Florence disaster operations support is substantial, reflecting the significant impact of the storm. FEMA's spending on disaster recovery can vary widely depending on the scale, duration, and specific needs of an event. For major hurricanes, multi-million dollar contracts for debris removal, temporary housing, infrastructure repair, and operational support are common. Comparing this specific award requires analyzing FEMA's historical spending patterns for comparable events like Hurricanes Harvey, Irma, or Maria, where costs often ran into the tens or hundreds of millions of dollars for various support services. This contract appears to be within the expected range for significant disaster response operations.

What are the primary risks associated with this type of Cost Plus Incentive Fee (CPIF) contract?

The primary risks associated with a Cost Plus Incentive Fee (CPIF) contract include potential cost overruns if the target cost is not well-defined or if unforeseen circumstances significantly increase expenses. There's also a risk that the incentive fee structure might not perfectly align with all desired outcomes or could inadvertently encourage specific behaviors that aren't in the government's best interest. For the government, ensuring robust oversight to validate costs and verify that performance targets are met is crucial. Contractor risk involves managing costs effectively to achieve the target while meeting performance metrics to earn the incentive fee. Inadequate performance could lead to reduced profit margins for the contractor.

How effective is the full and open competition process in ensuring value for money in disaster response contracting?

Full and open competition is generally considered the most effective method for ensuring value for money in disaster response contracting. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. Agencies can compare a wider range of proposals based on technical merit, past performance, and cost. For disaster response, where speed and effectiveness are critical, this process helps identify contractors who can deliver the required services efficiently and at a reasonable cost. However, the time required for a full competition can sometimes be a challenge in rapidly evolving disaster situations, potentially leading agencies to use other contracting methods like emergency procurements or task orders against existing indefinite-delivery/indefinite-quantity (IDIQ) contracts.

What are the implications of the 180-day performance period for disaster recovery?

A 180-day performance period for disaster recovery operations suggests a focused, medium-term engagement rather than immediate, short-term emergency response or long-term rebuilding. This duration is often suitable for critical post-disaster stabilization, assessment, and initial recovery phases, such as detailed inspections, temporary infrastructure setup, or specialized support services. It implies that the contract is designed to address needs that extend beyond the initial emergency response but do not encompass the full scope of long-term reconstruction. The defined period helps in budget planning and resource allocation, providing a clear timeframe for the contractor's responsibilities and for FEMA to transition to other phases of recovery or subsequent contracts.

Industry Classification

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

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › INSPECTION SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Parsons Brinckerhoff Holdings Inc. (UEI: 080308199)

Address: 465 SPRINGPARK PL, HERNDON, VA, 20170

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

Financial Breakdown

Contract Ceiling: $42,529,933

Exercised Options: $42,529,933

Current Obligation: $40,896,393

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSFE8013D0070

IDV Type: IDC

Timeline