Hurricane Katrina Assistance contract awarded to Westover Consultants Inc. for over $12.2 million

Contract Overview

Contract Amount: $12,291,898 ($12.3M)

Contractor: Westover Consultants Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2005-09-13

End Date: 2006-09-30

Contract Duration: 382 days

Daily Burn Rate: $32.2K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: HKRP - HURRICANE KATRINA ASSISTANCE

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $12.3 million to WESTOVER CONSULTANTS INC for work described as: HKRP - HURRICANE KATRINA ASSISTANCE Key points: 1. Contract awarded for critical disaster relief services following Hurricane Katrina. 2. Service delivery period was relatively short, indicating a focused response effort. 3. The contract type, Cost Plus Award Fee, allows for performance-based incentives. 4. Awarded by HHS, this contract supports vital public health and mental health services. 5. The specific NAICS code suggests a broad range of business support services were procured.

Value Assessment

Rating: fair

The total award amount of $12,291,898 for a period of approximately one year for disaster assistance is substantial. Benchmarking this against similar disaster relief contracts is challenging due to the unique nature and urgency of Hurricane Katrina response. However, the Cost Plus Award Fee (CPAF) structure suggests that the government aimed to control costs while incentivizing performance, which can be a reasonable approach for complex, evolving needs. Without detailed performance metrics and cost breakdowns, a precise value-for-money assessment is difficult, but the scale indicates significant resource allocation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER', indicating that multiple vendors likely had an opportunity to bid. The fact that it was competed suggests a degree of market research and solicitation to find qualified providers. The presence of competition, even in a delivery order format, generally helps in price discovery and ensures that the government receives proposals from various entities. However, the specific number of bidders is not provided, which limits a deeper analysis of the competitive intensity.

Taxpayer Impact: A competitive award process, even for a delivery order, is generally favorable for taxpayers as it promotes a more efficient allocation of funds and can lead to better pricing compared to sole-source awards.

Public Impact

Beneficiaries include individuals and communities impacted by Hurricane Katrina, receiving essential mental health and substance abuse services. Services delivered likely encompassed a range of support functions necessary for disaster recovery and aid distribution. Geographic impact is primarily focused on the areas affected by Hurricane Katrina, particularly in the Gulf Coast region. Workforce implications include the potential for temporary employment for consultants and support staff involved in the disaster response effort.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The urgency of disaster response can sometimes lead to less rigorous cost scrutiny.
The Cost Plus Award Fee structure requires careful monitoring to ensure award fees are justified by performance.
The short duration of the contract might indicate a need for follow-on or extended support, potentially increasing overall spending.

Positive Signals

Awarded through a competitive process, suggesting potential for good value.
The contract type (CPAF) includes incentives for performance, aiming for efficient service delivery.
The contract addresses a critical need for disaster relief, demonstrating responsiveness to national emergencies.

Sector Analysis

This contract falls within the 'Other Business Service Centers' sector, which encompasses a wide array of support services. In the context of disaster response, such services are crucial for logistical, administrative, and operational support. The market for these services is broad, with many firms capable of providing support functions. The spending of over $12 million on this contract highlights the significant investment required for large-scale disaster recovery efforts, often involving specialized consulting and support firms.

Small Business Impact

Information regarding small business set-asides or subcontracting is not explicitly provided for this contract. Given the nature and scale of disaster response, it's possible that larger firms were prime contractors, with potential for subcontracting opportunities. However, without specific data, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services (HHS) and its relevant sub-agency, SAMHSA. The Cost Plus Award Fee structure necessitates robust oversight to ensure that award fees are earned based on documented performance against established criteria. Transparency would be managed through contract reporting requirements and potentially through HHS's Inspector General's office, especially concerning the use of federal funds for disaster relief.

Related Government Programs

Hurricane Katrina Disaster Relief Efforts
Federal Emergency Management Agency (FEMA) Contracts
Public Health Emergency Response
Mental Health Services Contracts
Substance Abuse Treatment Programs

Risk Flags

Urgency of disaster response may impact thoroughness of oversight.
CPAF structure requires diligent monitoring of performance metrics.
Short contract duration could lead to service gaps if not managed.
Broad NAICS code may obscure specific service details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $12.3 million to WESTOVER CONSULTANTS INC. HKRP - HURRICANE KATRINA ASSISTANCE

Who is the contractor on this award?

The obligated recipient is WESTOVER CONSULTANTS INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Substance Abuse and Mental Health Services Administration).

What is the total obligated amount?

The obligated amount is $12.3 million.

What is the period of performance?

Start: 2005-09-13. End: 2006-09-30.

What was the specific nature of the 'Other Business Service Centers' services provided under this contract?

The NAICS code 561439, 'Other Business Service Centers (including Copy Shops)', is quite broad. In the context of Hurricane Katrina assistance, these services likely encompassed a range of critical support functions necessary for disaster relief operations. This could include administrative support, logistical coordination, communication services, data management, document processing, and potentially call center operations to manage aid distribution or information dissemination. Given the scale of the disaster and the awarding agency (HHS), the services were probably tailored to support public health and mental health outreach, case management, and the coordination of relief efforts in affected areas.

How does the Cost Plus Award Fee (CPAF) structure typically function in disaster response contracts?

The Cost Plus Award Fee (CPAF) contract type allows the contractor to recover all allowable costs plus a fixed fee, with a portion of that fee being variable and contingent upon meeting or exceeding specific performance objectives. In disaster response, where needs can be dynamic and unpredictable, CPAF offers flexibility. The government defines performance standards related to response time, effectiveness of services, coordination with other agencies, and client satisfaction. The contractor is incentivized to perform well to earn the maximum award fee. This structure aims to balance cost control with the need for high-quality, responsive services during critical events, though it requires diligent government oversight to ensure award fees are appropriately justified.

What was the historical spending pattern for Hurricane Katrina-related assistance by HHS?

Hurricane Katrina, occurring in 2005, triggered an unprecedented federal response, with significant funding allocated across numerous agencies, including HHS. HHS was tasked with providing critical health and human services, including mental health support, to survivors. While this specific contract represents over $12.2 million, HHS's overall spending for Katrina relief was in the billions, encompassing a wide range of programs and services. Historical data indicates a substantial and sustained investment in recovery efforts over several years following the storm, with contracts like this being part of a larger, coordinated federal strategy to address the multifaceted impacts of the disaster.

What are the potential risks associated with a short-duration contract for disaster relief?

Short-duration contracts for disaster relief, like this one ending within a year of its start, can present several risks. Firstly, there's a risk of service discontinuity if follow-on contracts are not secured in a timely manner, potentially leaving affected populations without essential support. Secondly, the urgency to deploy resources quickly might lead to less thorough vetting of contractors or services, potentially increasing the risk of inefficient spending or suboptimal service delivery. Lastly, a short timeframe might not allow for the full impact or long-term recovery goals to be achieved, necessitating further, potentially more expensive, interventions later on. However, short durations can also be beneficial by allowing for rapid reassessment and adaptation of strategies as the situation evolves.

How did the competitive delivery order mechanism impact the cost-effectiveness of this contract?

A competitive delivery order (DO) mechanism, when used appropriately, can enhance cost-effectiveness. It implies that the contract was awarded under a larger indefinite-delivery indefinite-quantity (IDIQ) contract or a similar framework, and that multiple vendors were solicited for this specific task order. This competition, even at the delivery order level, encourages bidders to offer competitive pricing and terms to secure the work. While the exact number of bidders isn't specified, the competitive nature suggests that the government sought to leverage market forces to obtain favorable pricing for the services required for Hurricane Katrina assistance. The effectiveness of this mechanism depends on the thoroughness of the competition and the clarity of the requirements.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Other Business Service Centers (including Copy Shops)

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 8630 FENTON ST STE 724, SILVER SPRING, MD, 08

Business Categories: Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $12,291,898

Exercised Options: $12,291,898

Current Obligation: $12,291,898

Parent Contract

Parent Award PIID: 280020200

IDV Type: IDC

Timeline