FEMA's $9.99M contract for Katrina housing support shows long-term recovery needs and contractor performance

Contract Overview

Contract Amount: $9,993,419 ($10.0M)

Contractor: ARS International, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2007-08-01

End Date: 2010-09-30

Contract Duration: 1,156 days

Daily Burn Rate: $8.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAINTENANCE AND DEACTIVATION OF TEMPORARY HOUSING IN SUPPORT OF HURRICANE KATRINA RELIEF EFFORTS

Place of Performance

Location: METAIRIE, JEFFERSON County, LOUISIANA, 70001

State: Louisiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $10.0 million to ARS INTERNATIONAL, LLC for work described as: MAINTENANCE AND DEACTIVATION OF TEMPORARY HOUSING IN SUPPORT OF HURRICANE KATRINA RELIEF EFFORTS Key points: 1. Contract duration of 1156 days indicates sustained support requirements. 2. Fixed-price contract type suggests cost certainty for the government. 3. High number of bids (15) points to a competitive market for these services. 4. Contract awarded to ARS INTERNATIONAL, LLC, a single entity for the duration. 5. Focus on facilities support services highlights the logistical challenges of disaster recovery. 6. Geographic focus on Louisiana underscores the localized impact of Hurricane Katrina.

Value Assessment

Rating: good

The total award of $9.99 million over approximately three years for facilities support services related to Hurricane Katrina relief appears reasonable given the extended nature of disaster recovery operations. Benchmarking against similar large-scale, long-term disaster response contracts is challenging due to the unique circumstances of each event. However, the fixed-price nature of the contract provides a degree of cost control. The contract's value is further contextualized by the significant need for temporary housing maintenance and deactivation in the aftermath of a major natural disaster.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that multiple vendors were solicited and evaluated. The record shows 15 bids were received, suggesting a robust level of competition for this requirement. A competitive process generally leads to better price discovery and allows the government to select the offer that provides the best value, considering both price and technical factors. The high number of bidders implies that the market for facilities support services in disaster recovery is active and accessible.

Taxpayer Impact: The strong competition for this contract likely resulted in more favorable pricing for taxpayers, as vendors vied to win the award. It also suggests that taxpayer funds were used efficiently by securing services through a market-driven process.

Public Impact

Displaced residents and communities in Louisiana benefited from the availability and maintenance of temporary housing solutions. Services delivered included the maintenance and eventual deactivation of temporary housing units, crucial for transitioning affected populations. The geographic impact was concentrated in Louisiana, specifically addressing the needs arising from Hurricane Katrina's devastation. The contract supported a workforce involved in facilities management, maintenance, and logistical support in a critical recovery period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (1156 days) could indicate potential for cost overruns if not managed tightly.
Reliance on a single contractor for an extended period might limit flexibility in adapting to changing needs.

Positive Signals

Competitive award process (15 bids) suggests a healthy market and potential for good value.
Fixed-price contract type offers cost predictability.
Clear focus on a specific disaster relief effort demonstrates targeted government support.

Sector Analysis

This contract falls within the Facilities Support Services sector, a segment of the broader professional, scientific, and technical services industry. This sector encompasses a wide range of services essential for the operation and maintenance of buildings and infrastructure. In the context of disaster relief, these services are critical for managing temporary housing, debris removal, and infrastructure repair. The market size for such services can fluctuate significantly based on the frequency and severity of natural disasters, with government contracts often representing a substantial portion of demand during recovery phases.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information suggesting significant subcontracting opportunities for small businesses. The award to ARS INTERNATIONAL, LLC, without specific mention of small business participation, suggests it may have been awarded to a larger entity or that small business involvement was not a primary focus of the contract's structure. Further analysis would be needed to determine the extent of small business impact.

Oversight & Accountability

Oversight for this contract would have been primarily managed by the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. As a delivery order under a larger contract vehicle, oversight would focus on performance against the specific task order requirements, adherence to the fixed-price terms, and timely completion of maintenance and deactivation activities. Transparency is generally maintained through contract award databases and reporting requirements, though specific day-to-day oversight details are not publicly detailed.

Related Government Programs

Hurricane Katrina Relief Efforts
Temporary Housing Programs
Disaster Recovery Services
Facilities Maintenance Contracts
Federal Emergency Management Agency Contracts

Risk Flags

Long-term contract duration
Disaster recovery complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $10.0 million to ARS INTERNATIONAL, LLC. MAINTENANCE AND DEACTIVATION OF TEMPORARY HOUSING IN SUPPORT OF HURRICANE KATRINA RELIEF EFFORTS

Who is the contractor on this award?

The obligated recipient is ARS INTERNATIONAL, LLC.

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 $10.0 million.

What is the period of performance?

Start: 2007-08-01. End: 2010-09-30.

What was the track record of ARS INTERNATIONAL, LLC prior to and following this contract?

Information regarding ARS INTERNATIONAL, LLC's specific track record prior to and following this $9.99 million contract for Hurricane Katrina relief housing support is not detailed in the provided data. To assess their performance, one would typically examine their contract history with federal agencies, including past performance evaluations, any reported disputes or terminations, and the types and scale of services previously rendered. A comprehensive review would involve searching federal procurement databases like SAM.gov and FPDS for other awards and performance data. Without this additional data, a full assessment of their track record remains incomplete, though the successful completion of this multi-year contract suggests a level of capability.

How does the per-day cost of this contract compare to similar disaster housing support contracts?

Calculating a precise per-day cost requires dividing the total award amount by the contract duration in days. For this contract, the total award was approximately $9.99 million over 1156 days, yielding a daily cost of roughly $8,645. Benchmarking this figure against similar disaster housing support contracts is difficult without access to comparable data for other large-scale disaster responses. Factors such as the type of housing, the specific services required (e.g., maintenance, security, utilities, deactivation), the geographic location, and the prevailing market rates at the time of award significantly influence costs. However, the daily rate suggests a substantial investment required for sustained support during a prolonged recovery period.

What were the primary risks associated with managing temporary housing post-Hurricane Katrina?

Managing temporary housing post-Hurricane Katrina involved numerous risks. Logistical challenges were immense, including site selection, infrastructure development (water, power, sanitation), and transportation of materials and personnel. Security risks were present, both for the residents and the facilities themselves, requiring adequate patrols and monitoring. Maintenance risks included ensuring the habitability of diverse housing types (e.g., trailers, modular homes) under potentially harsh environmental conditions and preventing deterioration over extended periods. Financial risks involved potential cost overruns due to unforeseen issues, scope creep, or inefficient management. Furthermore, there were public health risks associated with sanitation, disease prevention, and ensuring safe living conditions. Finally, the deactivation phase posed risks related to site restoration and proper disposal or repurposing of temporary structures.

How effective was the maintenance and deactivation of temporary housing in supporting the recovery?

The effectiveness of the maintenance and deactivation of temporary housing in supporting recovery is best assessed by its contribution to providing stable, safe, and sanitary living conditions for displaced individuals and families, and by the efficiency of the transition away from temporary solutions. This contract's duration of over three years suggests that maintaining these units was a prolonged necessity, indicating the slow pace of permanent housing solutions. Effective maintenance would have ensured that residents had adequate shelter throughout this period. Efficient deactivation would have minimized residual costs and environmental impact, facilitating the return to normalcy. While the data doesn't provide specific metrics on resident satisfaction or speed of transition, the sustained need highlights the critical, albeit long-term, role these services played in the recovery process.

What is the historical spending trend for facilities support services by FEMA?

FEMA's spending on facilities support services, particularly in the context of disaster response and recovery, has historically been substantial and highly variable, directly correlating with the frequency and severity of declared disasters. Following major events like Hurricane Katrina, spending on temporary housing, site management, and related infrastructure support surges significantly. Over the years, FEMA has utilized various contracting mechanisms, including large-scale support contracts similar to this one, to address these needs. Analyzing historical spending trends would reveal peaks during years with significant natural disasters and potentially lower, more routine levels of spending for non-disaster-related facility operations. The agency continually refines its procurement strategies to balance rapid response capabilities with cost-effectiveness and efficient resource management.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 15

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2609 N RIVER RD, PORT ALLEN, LA, 06

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $9,993,419

Exercised Options: $9,993,419

Current Obligation: $9,993,419

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: HSFEHQ06D0380

IDV Type: IDC

Timeline