DHS awarded $25.7M for temporary staffing during Hurricane Katrina relief, exceeding initial estimates

Contract Overview

Contract Amount: $25,741,041 ($25.7M)

Contractor: Express Services, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2005-09-01

End Date: 2011-03-24

Contract Duration: 2,030 days

Daily Burn Rate: $12.7K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONTRACTOR PROVIDED TEMPORARY STAFFING PERSONNEL FROM VARIOUS LABOR CATEGORIES IN SUPPORT OF HURRICANE KATRINA RELIEF EFFORTS.

Place of Performance

Location: BATON ROUGE, EAST BATON ROUGE County, LOUISIANA, 70802

State: Louisiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $25.7 million to EXPRESS SERVICES, INC. for work described as: CONTRACTOR PROVIDED TEMPORARY STAFFING PERSONNEL FROM VARIOUS LABOR CATEGORIES IN SUPPORT OF HURRICANE KATRINA RELIEF EFFORTS. Key points: 1. Contract provided essential personnel during a critical national disaster. 2. Sole-source award raises questions about potential cost efficiencies and market alternatives. 3. Long contract duration suggests sustained need beyond initial disaster response. 4. Fixed-price contract type offers some cost certainty but may limit flexibility. 5. Focus on administrative management services indicates support for broader relief operations.

Value Assessment

Rating: fair

The contract value of $25.7 million for temporary staffing over approximately six years is substantial. Without specific benchmarks for disaster relief staffing, it's difficult to definitively assess value for money. However, the non-competitive nature of the award suggests that pricing may not have been subjected to the same level of scrutiny as a competed contract. The duration of the contract also implies a significant, ongoing need for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a non-competitive basis, likely due to the urgent and unforeseen nature of the Hurricane Katrina disaster response. While this allowed for rapid deployment of resources, it means there was no formal competition to solicit bids from multiple vendors. The lack of competition limits the government's ability to leverage market forces to achieve the best possible pricing and service terms.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. The sole-source nature prevents verification of whether the selected contractor offered the most cost-effective solution available in the market.

Public Impact

Beneficiaries include disaster survivors in Louisiana and surrounding affected areas. Services delivered encompass administrative support crucial for coordinating and executing relief efforts. Geographic impact is concentrated in Louisiana, the primary area of operations. Workforce implications include the provision of temporary personnel to augment federal and state response teams.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings.
Extended contract duration may indicate a lack of long-term planning for staffing needs.
High dollar value without competitive benchmarking raises concerns about overall value.

Positive Signals

Provided critical support during a major national emergency.
Firm fixed-price contract offers some cost predictability.
Contractor likely possessed specialized capabilities for rapid deployment.

Sector Analysis

The administrative management and general management consulting services sector (NAICS 541611) is broad and includes firms that provide expertise in organizational efficiency and operational support. During disaster events, the demand for such services, particularly temporary staffing, surges to manage complex logistical and administrative challenges. This contract falls within a category of spending that is often reactive and critical for governmental response operations, but can be prone to higher costs when awarded non-competitively.

Small Business Impact

Information regarding small business participation, including set-asides or subcontracting, is not available in the provided data. Given the sole-source nature and the scale of the award, it is possible that small businesses were not directly involved as prime contractors, though they may have been utilized as subcontractors by the prime.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Federal Emergency Management Agency (FEMA) and potentially the Department of Homeland Security's Office of Inspector General. Given the non-competitive award and the context of disaster relief, oversight would focus on ensuring that the services provided were necessary, delivered effectively, and that funds were expended appropriately, though the lack of competition inherently reduces transparency in pricing.

Related Government Programs

Hurricane Katrina Disaster Relief Efforts
Federal Emergency Management Agency (FEMA) Contracts
Temporary Staffing Services
Administrative Support Services

Risk Flags

Sole-source award
High contract value
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $25.7 million to EXPRESS SERVICES, INC.. CONTRACTOR PROVIDED TEMPORARY STAFFING PERSONNEL FROM VARIOUS LABOR CATEGORIES IN SUPPORT OF HURRICANE KATRINA RELIEF EFFORTS.

Who is the contractor on this award?

The obligated recipient is EXPRESS 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 $25.7 million.

What is the period of performance?

Start: 2005-09-01. End: 2011-03-24.

What was the specific justification for the sole-source award to Express Services, Inc. for Hurricane Katrina relief?

The provided data indicates the contract was awarded as 'NON-COMPETITIVE DELIVERY ORDER'. In disaster situations like Hurricane Katrina, sole-source or non-competitive awards are often justified under urgent and compelling circumstances, where the need for services is immediate and a full and open competition process would cause unacceptable delays. Agencies must document these justifications thoroughly. For this contract, it's highly probable that the unprecedented scale and urgency of the disaster response necessitated rapid procurement of essential support services, making a lengthy competitive process infeasible. Express Services, Inc. may have been identified as capable of immediate deployment and possessing the necessary resources to address the crisis.

How does the $25.7 million contract value compare to other disaster relief staffing contracts?

Direct comparison of this $25.7 million contract value to other specific disaster relief staffing contracts is challenging without access to a comprehensive database of similar procurements, especially those awarded under emergency conditions. However, the scale of Hurricane Katrina was immense, requiring a massive federal response. Contracts for temporary staffing during such large-scale events can reach tens or hundreds of millions of dollars, depending on the duration, labor categories required, and geographic scope. The fact that this contract spanned from September 2005 to March 2011 indicates a sustained, long-term need for support, which would naturally increase the total value. While the dollar amount is significant, its 'value for money' is difficult to ascertain without benchmarking against comparable emergency procurements and considering the unique circumstances.

What were the primary risks associated with this sole-source contract?

The primary risks associated with this sole-source contract include potential overpayment due to the lack of competitive pricing, and the risk of inadequate performance if the contractor was not fully vetted through a competitive process. Without competition, there's less incentive for the contractor to offer the lowest possible price. Furthermore, the government may not have explored alternative solutions or contractors that could have offered better value or specialized expertise. The extended duration also presents a risk of scope creep or the contract becoming less efficient over time if not actively managed and reviewed.

What does the contract's duration (2030 days, approx. 5.5 years) imply about the nature of the relief efforts?

The contract duration of approximately 5.5 years (2030 days) strongly implies that the Hurricane Katrina relief efforts involved long-term recovery and rebuilding phases, extending far beyond the immediate emergency response. This suggests that the temporary staffing provided by Express Services, Inc. was utilized not just for immediate crisis management but also for ongoing administrative, logistical, and potentially consulting services required to manage the complex, multi-year recovery process. Such extended needs might include processing claims, managing reconstruction projects, coordinating aid distribution, and supporting displaced populations over an extended period.

What specific administrative management services were likely provided under this contract?

Given the NAICS code 541611 (Administrative Management and General Management Consulting Services) and the context of disaster relief, Express Services, Inc. likely provided a range of support functions. This could include personnel management for temporary staff deployed to the region, logistical support coordination, administrative assistance for FEMA and other agencies involved in the response, data management and reporting, assistance with financial management and tracking of relief funds, and potentially consulting on operational efficiency for the recovery efforts. Essentially, they provided the human capital and organizational expertise to help manage the immense administrative burden created by the disaster.

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: NON-COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8516 NW EXPRESSWAY, OKLAHOMA CITY, OK, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $25,741,041

Exercised Options: $25,741,041

Current Obligation: $25,741,041

Parent Contract

Parent Award PIID: GS10F0097P

IDV Type: FSS

Timeline