FEMA awards $20.4M contract to Serco Inc. for Hurricane Ida technical support

Contract Overview

Contract Amount: $20,353,231 ($20.4M)

Contractor: Serco Inc

Awarding Agency: Department of Homeland Security

Start Date: 2023-05-19

End Date: 2024-06-18

Contract Duration: 396 days

Daily Burn Rate: $51.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: FEMA PATAC IV - ZONE 2 - TECHNICAL SPECIALISTS IN SUPPORT OF DR-4611-LA (HURRICANE IDA).

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20.4 million to SERCO INC for work described as: FEMA PATAC IV - ZONE 2 - TECHNICAL SPECIALISTS IN SUPPORT OF DR-4611-LA (HURRICANE IDA). Key points: 1. Contract awarded to Serco Inc. for specialized technical services. 2. Focus on supporting disaster recovery efforts for Hurricane Ida in Louisiana. 3. Contract type is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. Services include administrative and management consulting. 5. Contract duration is approximately 13 months. 6. The award represents a portion of broader federal spending on disaster response.

Value Assessment

Rating: good

The contract value of $20.4 million for approximately 13 months of support appears reasonable given the specialized nature of disaster recovery technical assistance. Benchmarking against similar large-scale disaster response contracts managed by FEMA suggests that pricing for technical specialists in this domain can range significantly based on expertise and duration. Without specific details on the labor categories and hours, a precise value-for-money assessment is challenging, but the award falls within expected parameters for such critical support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple vendors had the opportunity to bid. The specific IDIQ vehicle under which this delivery order was placed likely had a competitive process. The presence of full and open competition generally promotes price discovery and encourages vendors to offer competitive rates to secure these types of task orders.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for essential disaster recovery services, ensuring funds are used efficiently.

Public Impact

Provides critical technical and administrative support to FEMA for Hurricane Ida recovery operations in Louisiana. Aids in the efficient management and execution of disaster relief programs. Supports the restoration of services and infrastructure impacted by the hurricane. Contributes to the overall resilience and recovery of affected communities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if disaster needs evolve beyond initial projections.
Reliance on a single contractor for critical support could pose a risk if performance issues arise.

Positive Signals

Awarded under a competitive process, suggesting potential for good value.
Contract is for a defined period, limiting long-term financial commitment.
Focus on specific disaster event allows for targeted resource allocation.

Sector Analysis

This contract falls within the professional services sector, specifically administrative and management consulting. The federal government is a significant consumer of these services, particularly for large-scale operations like disaster response. Spending in this category often fluctuates with national emergencies. Comparable contracts for disaster support services can range from millions to billions of dollars depending on the scale and duration of the event.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While Serco Inc. is a large business, there is always an opportunity for large prime contractors to engage small businesses as subcontractors. The extent of small business participation will depend on Serco's subcontracting plan and the availability of qualified small businesses for specialized support roles.

Oversight & Accountability

Oversight is likely managed by FEMA contracting officers and program managers responsible for disaster response. Accountability measures would be tied to performance metrics outlined in the contract. Transparency is generally maintained through federal contract databases, though specific performance details may be internal.

Related Government Programs

FEMA Disaster Relief Fund
Hurricane Recovery Programs
Federal Emergency Management Agency Operations
Disaster Assistance Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Performance risk associated with specialized technical support.
Dependency on a single contractor for critical disaster recovery functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.4 million to SERCO INC. FEMA PATAC IV - ZONE 2 - TECHNICAL SPECIALISTS IN SUPPORT OF DR-4611-LA (HURRICANE IDA).

Who is the contractor on this award?

The obligated recipient is SERCO 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 $20.4 million.

What is the period of performance?

Start: 2023-05-19. End: 2024-06-18.

What is Serco Inc.'s track record with FEMA and disaster response contracts?

Serco Inc. has a history of performing various contracts with federal agencies, including FEMA. Their experience often spans a range of services, from IT support to program management and operational assistance. For disaster response, Serco has been involved in providing support services for numerous events, leveraging their expertise in logistics, technical assistance, and administrative management. Their performance on past FEMA contracts would be a key factor in their selection for this delivery order, with agencies typically reviewing past performance evaluations when making award decisions. Specific details on their performance for Hurricane Ida support would be available through internal agency reviews and potentially through contract performance reports.

How does the $20.4 million value compare to similar disaster recovery technical support contracts?

The $20.4 million value for approximately 13 months of technical support for a major disaster like Hurricane Ida is within the expected range for such specialized services. Large-scale disaster recovery efforts often require significant investment in technical expertise, project management, and administrative support. Contracts for similar events, such as Hurricanes Harvey, Maria, or Florence, have seen federal spending in the tens to hundreds of millions of dollars for comprehensive recovery operations. The specific cost drivers for this contract would include the number of personnel, their skill sets (e.g., engineers, project managers, data analysts), and the duration of their deployment. Without a detailed breakdown of labor categories and hours, a precise comparison is difficult, but the awarded amount reflects the complexity and urgency associated with post-disaster technical assistance.

What are the primary risks associated with this contract for FEMA?

Key risks for FEMA associated with this contract include potential performance deficiencies by Serco Inc., where the contractor may fail to deliver the required technical expertise or administrative support effectively and on time. Another risk is cost overruns, particularly if the scope of work expands due to unforeseen disaster impacts or if the time and materials pricing model leads to higher-than-anticipated expenditures. There's also a risk of vendor lock-in if Serco becomes indispensable for ongoing recovery efforts, potentially limiting future competition. Furthermore, ensuring data security and privacy for sensitive information handled during recovery operations is a critical risk that requires robust oversight.

How effective is this type of contract in facilitating rapid disaster response?

Contracts like this, particularly delivery orders under IDIQ vehicles, are designed to facilitate rapid disaster response by pre-establishing a framework for acquiring necessary services. The IDIQ structure allows agencies to quickly task contractors for specific needs without initiating a full, new procurement process for each requirement. This speeds up the deployment of essential technical and administrative support. The time-and-materials (T&M) pricing, while carrying cost risks, can also enable flexibility in adapting to evolving disaster situations where the exact scope of work may not be fully defined at the outset. Overall, this contracting approach is generally effective for providing agile support during dynamic emergency situations.

What are historical spending patterns for FEMA technical support during major hurricanes?

FEMA's spending on technical support during major hurricanes has historically been substantial, often running into hundreds of millions or even billions of dollars when considering all related contracts for response and recovery. For instance, following Hurricane Harvey, contracts for debris removal, temporary housing, and technical consulting exceeded $1 billion. Similarly, Hurricane Maria in Puerto Rico saw significant federal spending on infrastructure repair, logistics, and program management support. The $20.4 million for Hurricane Ida technical specialists represents a focused investment within a broader recovery effort, and FEMA's overall spending for major events is driven by the scale of devastation, the duration of recovery operations, and the complexity of the assistance required.

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: 70FBR623B00000003

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1818 LIBRARY ST STE 1000, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $20,353,231

Exercised Options: $20,353,231

Current Obligation: $20,353,231

Actual Outlays: $15,066,756

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $6,932,014

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FB8018D00000002

IDV Type: IDC

Timeline