FEMA awards $49.1M task order for Hurricane Laura recovery haul and install services in Louisiana

Contract Overview

Contract Amount: $49,114,536 ($49.1M)

Contractor: CH2M Facility Support Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2020-11-09

End Date: 2024-02-23

Contract Duration: 1,201 days

Daily Burn Rate: $40.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE PURPOSE OF THE TASK ORDER IS TO PROVIDE HAUL AND INSTALL SERVICES IN SUPPORT OF DISASTER OPERATIONS IN THE STATE OF LA AS A RESULT OF HURRICANE LAURA.

Place of Performance

Location: ALEXANDRIA, RAPIDES County, LOUISIANA, 71303

State: Louisiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $49.1 million to CH2M FACILITY SUPPORT SERVICES, LLC for work described as: THE PURPOSE OF THE TASK ORDER IS TO PROVIDE HAUL AND INSTALL SERVICES IN SUPPORT OF DISASTER OPERATIONS IN THE STATE OF LA AS A RESULT OF HURRICANE LAURA. Key points: 1. Task order awarded under an existing contract for disaster recovery support. 2. Services include haul and install for disaster operations. 3. Contract duration extends over three years, indicating a significant recovery effort. 4. The award was made through full and open competition. 5. The contractor, CH2M Facility Support Services, LLC, is tasked with critical post-disaster logistics. 6. The contract type is Firm Fixed Price, providing cost certainty for the government.

Value Assessment

Rating: good

The task order value of $49.1 million for haul and install services in response to Hurricane Laura appears reasonable given the scale of disaster recovery operations. While specific benchmarks for similar post-hurricane haul and install contracts are not readily available, the duration of the contract (over three years) suggests a substantial and ongoing need for these services. The firm fixed-price structure helps manage cost predictability for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bids suggests a competitive environment, which generally leads to better pricing and value for the government. The specific number of bidders is not detailed, but the 'full and open' designation is a positive indicator of market engagement.

Taxpayer Impact: Full and open competition ensures that taxpayers benefit from a market-driven price, as vendors compete to offer the most cost-effective solution for essential disaster recovery services.

Public Impact

Residents and businesses in Louisiana affected by Hurricane Laura will benefit from the restoration and support services. The contract facilitates the critical haul and install operations necessary for disaster recovery. The geographic impact is focused on Louisiana, specifically areas affected by Hurricane Laura. The services provided will likely support local workforces through the contractor's operations and potential subcontracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if disaster recovery needs evolve beyond initial estimates.
Dependence on contractor performance for timely and effective recovery operations.
Logistical challenges inherent in large-scale disaster response efforts.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm Fixed Price contract provides cost certainty.
Long duration indicates sustained support for a significant recovery effort.
Contractor has experience in facility support services.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically addressing the logistical and operational needs following a major natural disaster. The market for disaster recovery services is often characterized by urgent needs and specialized capabilities. FEMA frequently utilizes task orders under larger indefinite-delivery/indefinite-quantity (IDIQ) contracts to procure such services efficiently. Benchmarking against similar disaster recovery contracts is challenging due to the unique and often unpredictable nature of such events.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) was not a specific set-aside for this task order. While the prime contractor is CH2M Facility Support Services, LLC, the extent of small business subcontracting is not detailed. Further analysis would be needed to determine if small businesses were effectively engaged in supporting this critical recovery effort.

Oversight & Accountability

Oversight for this task order would typically fall under the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. FEMA has established oversight mechanisms for disaster relief funding and operations. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General for the Department of Homeland Security would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Hurricane Recovery Operations
Disaster Relief Funding
Logistics and Support Services
Construction Services for Government Facilities

Risk Flags

Potential for performance delays
Scope creep risk
Logistical complexity in disaster zones

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $49.1 million to CH2M FACILITY SUPPORT SERVICES, LLC. THE PURPOSE OF THE TASK ORDER IS TO PROVIDE HAUL AND INSTALL SERVICES IN SUPPORT OF DISASTER OPERATIONS IN THE STATE OF LA AS A RESULT OF HURRICANE LAURA.

Who is the contractor on this award?

The obligated recipient is CH2M FACILITY SUPPORT SERVICES, LLC.

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 $49.1 million.

What is the period of performance?

Start: 2020-11-09. End: 2024-02-23.

What is the track record of CH2M Facility Support Services, LLC in performing similar disaster recovery contracts for FEMA or other federal agencies?

CH2M Facility Support Services, LLC, has a history of performing facility support and logistical services for government agencies. While specific details on their disaster recovery contract performance require deeper investigation into federal procurement databases and past performance reviews, their existing contract with FEMA suggests a level of established capability. Analyzing their past performance on similar task orders, particularly those involving large-scale logistics and construction-related services in response to natural disasters, would provide a clearer picture of their reliability, efficiency, and ability to meet critical deadlines under pressure. This would involve reviewing contract close-out reports, any documented performance issues or commendations, and their overall experience in managing complex recovery operations.

How does the awarded amount of $49.1 million compare to the estimated costs for similar post-hurricane haul and install services?

Directly comparing the $49.1 million award to specific post-hurricane haul and install service costs is challenging without detailed market data for comparable events and service scopes. However, the value reflects the significant scale and duration (over three years) of the recovery effort following Hurricane Laura. FEMA often utilizes pre-negotiated contract vehicles or competitive task orders to ensure fair pricing. The firm fixed-price nature of this award suggests that the government sought cost certainty. To benchmark effectively, one would need to analyze the unit costs of specific services (e.g., per cubic yard of debris hauled, per installation unit) against industry standards or other government contracts for similar disaster response activities, considering regional cost variations and the urgency of the services.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks for this contract include potential delays in service delivery due to unforeseen logistical challenges, contractor performance issues impacting the pace of recovery, and potential cost overruns if the scope of work expands beyond initial estimates, despite the firm fixed-price structure. Environmental hazards in the affected areas also pose a risk. Mitigation strategies likely include robust project management by FEMA, clear performance metrics and reporting requirements, contingency planning for logistical disruptions, and potentially performance bonds from the contractor. Regular progress reviews and open communication channels between FEMA and CH2M Facility Support Services, LLC are crucial for identifying and addressing risks proactively.

How effective has FEMA been in leveraging competition for disaster recovery contracts of this magnitude?

FEMA generally aims to leverage competition for disaster recovery contracts, utilizing mechanisms like full and open competition for task orders under IDIQ contracts, as seen in this case. The effectiveness of this competition can be gauged by the number of bids received and the resulting pricing. While this task order had two bids, indicating some level of competition, further analysis of the bidding process and the final price against independent cost estimates would be necessary to fully assess its effectiveness. FEMA's ability to attract a sufficient number of qualified bidders for specialized disaster recovery services can be influenced by contract terms, urgency, and geographic scope. Continuous evaluation of their procurement strategies is important to ensure optimal value for taxpayer funds.

What is the historical spending pattern for haul and install services related to disaster recovery by FEMA?

FEMA's spending on haul and install services for disaster recovery fluctuates significantly year-to-year, heavily dependent on the frequency and severity of natural disasters. Following major events like hurricanes, floods, or wildfires, spending in these categories can surge dramatically. Historically, FEMA has utilized various contracting vehicles, including IDIQ contracts and specific task orders like this one, to procure these essential services. Analyzing FEMA's budget allocations and actual expenditures over the past decade would reveal trends in disaster response spending, highlighting periods of increased demand and the types of services most frequently contracted. This specific task order represents a portion of FEMA's broader commitment to post-disaster recovery efforts.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jacobs Engineering Group Inc.

Address: 9189 SOUTH JAMAICA ST, ENGLEWOOD, CO, 80112

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,114,536

Exercised Options: $49,114,536

Current Obligation: $49,114,536

Actual Outlays: $2,167,672

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FB8018D00000011

IDV Type: IDC

Timeline