FEMA awards $16.7M contract for Hurricane Ida technical assistance to Serco Inc

Contract Overview

Contract Amount: $16,740,210 ($16.7M)

Contractor: Serco Inc

Awarding Agency: Department of Homeland Security

Start Date: 2024-06-19

End Date: 2025-08-28

Contract Duration: 435 days

Daily Burn Rate: $38.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PUBLIC ASSISTANCE TECHNICAL ASSISTANCE CONTRACT (PA TAC V) DR-4611-LA SUPPORT HURRICANE IDA. BASE 6 MONTHS. 51 TECHNICAL SPECIALISTS.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $16.7 million to SERCO INC for work described as: PUBLIC ASSISTANCE TECHNICAL ASSISTANCE CONTRACT (PA TAC V) DR-4611-LA SUPPORT HURRICANE IDA. BASE 6 MONTHS. 51 TECHNICAL SPECIALISTS. Key points: 1. Contract focuses on essential public assistance technical support following Hurricane Ida. 2. Serco Inc. will provide 51 technical specialists for a 14-month period. 3. The contract type is Time and Materials, which can pose cost control challenges. 4. This is a delivery order under a larger contract vehicle. 5. The contract is for administrative management and general management consulting services. 6. The base period is 6 months, with potential for extensions.

Value Assessment

Rating: fair

The contract value of $16.7 million for 14 months of support, involving 51 specialists, suggests a per-specialist cost of approximately $5,300 per month. This rate needs to be benchmarked against similar technical assistance contracts for disaster response. The Time and Materials pricing structure introduces inherent risk for cost overruns if not closely managed, making value for money dependent on efficient service delivery and diligent oversight.

Cost Per Unit: Approximately $5,300 per specialist per month (estimated).

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally expected to yield better pricing and service options for the government. The number of bidders and the specific evaluation criteria would provide further insight into the strength of the competition.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it promotes a competitive environment that can lead to more cost-effective solutions and prevent price gouging.

Public Impact

Beneficiaries include disaster-affected communities in Louisiana requiring public assistance. Services delivered are technical expertise for managing and processing disaster relief applications. Geographic impact is primarily focused on areas affected by Hurricane Ida in Louisiana. Workforce implications include the deployment of 51 technical specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not managed tightly.
The duration of the contract (14 months) requires sustained oversight to ensure continued value.
Reliance on external specialists may not build long-term internal capacity for FEMA.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Addresses a critical need for technical assistance in disaster recovery.
Contract aims to expedite public assistance delivery to affected populations.

Sector Analysis

This contract falls within the professional services sector, specifically administrative and management consulting. The market for disaster response and recovery services is significant, with numerous firms specializing in providing technical expertise and support to government agencies during emergencies. Benchmarking this contract's value would involve comparing it to other disaster recovery support contracts awarded by FEMA and other agencies for similar services and durations.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While Serco Inc. is a large business, there may be opportunities for small businesses to participate as subcontractors. Further analysis would be needed to determine the extent of small business subcontracting planned for this delivery order.

Oversight & Accountability

Oversight will likely be managed by the Federal Emergency Management Agency (FEMA) contracting officers and program managers. Accountability measures are tied to the delivery of technical assistance and adherence to the contract's terms and conditions. Transparency is generally facilitated through contract award databases, though specific performance metrics and oversight reports may not be publicly available.

Related Government Programs

Public Assistance Program
Hurricane Recovery Efforts
Disaster Management Support Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Need for strong government oversight to manage contractor performance and costs.
Dependence on external specialists may impact long-term agency capacity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $16.7 million to SERCO INC. PUBLIC ASSISTANCE TECHNICAL ASSISTANCE CONTRACT (PA TAC V) DR-4611-LA SUPPORT HURRICANE IDA. BASE 6 MONTHS. 51 TECHNICAL SPECIALISTS.

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 $16.7 million.

What is the period of performance?

Start: 2024-06-19. End: 2025-08-28.

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

Serco Inc. has a history of performing various contracts with government agencies, including FEMA. Their experience often spans areas like IT support, call centers, and program management. For disaster response, Serco has been involved in providing support services in past emergencies. A detailed review of their past performance on similar FEMA contracts, including any past performance evaluations or disputes, would be necessary to fully assess their suitability and reliability for this specific technical assistance role. Their ability to mobilize and manage a large contingent of technical specialists quickly and effectively is a key factor.

How does the per-specialist cost compare to similar disaster response technical assistance contracts?

The estimated per-specialist cost of approximately $5,300 per month needs to be benchmarked against comparable contracts. Factors influencing this rate include the required skill sets, the duration of the assignment, and the geographic location of the specialists. Contracts for highly specialized technical roles or those requiring immediate deployment in challenging environments may command higher rates. Conversely, standard administrative or general consulting roles might be expected to fall within a lower range. Without specific data on the skill mix of the 51 specialists and the prevailing market rates for similar expertise during disaster recovery operations, a definitive value comparison is difficult.

What are the primary risks associated with a Time and Materials contract for this service?

The primary risk with a Time and Materials (T&M) contract, especially for a service like public assistance technical assistance, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and materials used. If the scope of work is not clearly defined, or if project management is weak on either the government or contractor side, the hours billed can escalate beyond initial estimates. This necessitates robust government oversight to monitor labor hours, ensure efficiency, and validate the necessity of all expenditures to control costs and achieve value for money.

How effective is the full and open competition process in ensuring competitive pricing for disaster response services?

Full and open competition is generally the most effective method for ensuring competitive pricing because it allows any qualified vendor to submit a bid. This broad participation increases the likelihood of receiving multiple proposals, which drives down prices as vendors compete to win the contract. For disaster response services, where needs can be urgent, a well-executed full and open competition can still yield competitive bids if the solicitation is clear and the evaluation criteria are fair. However, the urgency of disaster situations can sometimes lead to expedited processes that might limit the number of bidders or the thoroughness of the evaluation, potentially impacting the degree of price competition achieved.

What is the historical spending pattern for public assistance technical assistance contracts by FEMA?

FEMA's spending on public assistance technical assistance contracts has historically fluctuated based on the frequency and severity of natural disasters. Following major events like hurricanes, floods, and wildfires, there is typically a surge in demand for technical support to help state and local governments manage the complex process of applying for and receiving federal aid. These contracts can range from short-term, specialized support to longer-term engagements. Analyzing historical spending data reveals a pattern of increased contract awards and values in years with significant disaster activity, underscoring the critical role these services play in the agency's response and recovery operations.

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: 70FB8024R00000026

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 12930 WORLDGATE DR, HERNDON, VA, 20170

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: $16,740,210

Exercised Options: $16,740,210

Current Obligation: $16,740,210

Actual Outlays: $15,487,596

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $373,804

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FB8024D00000002

IDV Type: IDC

Timeline