DHS awards $330.8M contract to Bechtel National for site identification and housing support
Contract Overview
Contract Amount: $330,758,779 ($330.8M)
Contractor: Bechtel National, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2005-09-03
End Date: 2006-01-02
Contract Duration: 121 days
Daily Burn Rate: $2.7M/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: SITE IDENTIFICATION AND HOUSING SUPPORT
Place of Performance
Location: FREDERICK, FREDERICK County, MARYLAND, 21703, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
Department of Homeland Security obligated $330.8 million to BECHTEL NATIONAL, INC. for work described as: SITE IDENTIFICATION AND HOUSING SUPPORT Key points: 1. Contract awarded to a single, large business (Bechtel National, Inc.). 2. Significant value of $330.8 million for a 121-day duration. 3. Services fall under 'All Other Professional, Scientific, and Technical Services' (NAICS 541990). 4. Contract type is Cost Plus Fixed Fee, which can carry cost overrun risks. 5. No small business participation indicated.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee structure, especially for a short duration, raises questions about cost efficiency. The awarded amount of $330.8M for 121 days suggests a high daily burn rate, warranting scrutiny of the fixed fee and cost components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and competitive pressure, potentially leading to higher costs than if multiple vendors had bid.
Taxpayer Impact: The lack of competition for a substantial $330.8M contract means taxpayers may not have received the best possible value, as competitive bidding was bypassed.
Public Impact
Supports critical FEMA operations during a period of need. Ensures housing and site identification services are provided. Potential for cost overruns due to the contract type. Lack of small business involvement limits broader economic participation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- No small business participation
Positive Signals
- Addresses critical housing and site identification needs
- Experienced contractor (Bechtel National, Inc.)
Sector Analysis
This contract falls under professional, scientific, and technical services, often utilized for specialized support during emergencies or large-scale projects. Benchmarks for similar emergency response support contracts vary widely based on scope and duration.
Small Business Impact
The contract data indicates no small business participation (SB=false). This suggests that opportunities for small businesses to contribute to this significant federal spending were not pursued or included.
Oversight & Accountability
The sole-source nature of this award warrants oversight to ensure the fixed fee and cost reimbursements were justified and that the government received fair value. Documentation supporting the non-competitive decision is crucial.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Homeland Security Contracting
- Federal Emergency Management Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns (CPFF)
- No small business participation
- High value for short duration
Tags
all-other-professional-scientific-and-te, department-of-homeland-security, md, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $330.8 million to BECHTEL NATIONAL, INC.. SITE IDENTIFICATION AND HOUSING SUPPORT
Who is the contractor on this award?
The obligated recipient is BECHTEL NATIONAL, 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 $330.8 million.
What is the period of performance?
Start: 2005-09-03. End: 2006-01-02.
Was the sole-source justification robust, and were alternatives to a non-competitive award thoroughly explored?
The justification for a sole-source award needs to be rigorously documented. Agencies must demonstrate why full and open competition was not feasible or not in the government's best interest. This typically involves detailed market research and analysis of available sources, especially for contracts exceeding $330 million.
What mechanisms were in place to control costs and ensure value under the Cost Plus Fixed Fee structure?
For a Cost Plus Fixed Fee contract, oversight should focus on the 'cost' portion to ensure only allowable, allocable, and reasonable costs were incurred. The 'fixed fee' should reflect the contractor's performance expectations and risk. Regular audits and performance reviews are essential to manage potential cost escalations.
How effectively did the services provided by Bechtel National, Inc. meet the critical needs for site identification and housing support?
Effectiveness is measured by the successful delivery of housing solutions and site identification within the contract's timeframe and objectives. Post-contract reviews and performance metrics, if available, would indicate whether the agency's needs were met efficiently and to satisfaction, especially considering the urgency often associated with FEMA operations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HSFEHQ05R0045
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Bechtel Group, Inc. (UEI: 094878980)
Address: 5275 WESTVIEW DRIVE, FREDERICK, MD, 21703
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $693,856,473
Exercised Options: $686,003,995
Current Obligation: $330,758,779
Parent Contract
Parent Award PIID: HSFEHQ05D0572
IDV Type: IDC
Timeline
Start Date: 2005-09-03
Current End Date: 2006-01-02
Potential End Date: 2006-01-02 00:00:00
Last Modified: 2015-05-04
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