DHS awarded $84M for emergency response program management, exceeding initial estimates

Contract Overview

Contract Amount: $84,086,983 ($84.1M)

Contractor: Emergency Response Program Management Consultants

Awarding Agency: Department of Homeland Security

Start Date: 2008-06-13

End Date: 2014-05-05

Contract Duration: 2,152 days

Daily Burn Rate: $39.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PUBLIC ASSISTANCE/TECHNICAL ASSISTANCE DR-1763-IA

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $84.1 million to EMERGENCY RESPONSE PROGRAM MANAGEMENT CONSULTANTS for work described as: PUBLIC ASSISTANCE/TECHNICAL ASSISTANCE DR-1763-IA Key points: 1. Contract value significantly surpassed initial projections, indicating potential scope creep or underestimation. 2. The use of Time and Materials pricing may lead to cost overruns if not closely managed. 3. A single delivery order suggests a focused, albeit potentially limited, application of services. 4. The contract duration of over 2000 days points to a long-term need for these services. 5. Engineering services were procured, aligning with the need for technical expertise in emergency response. 6. The contract was awarded under a competitive process, suggesting a degree of market engagement.

Value Assessment

Rating: fair

The total award of $84 million for emergency response program management consultants appears substantial. Benchmarking against similar contracts is difficult without more specific service details, but the duration and the Time and Materials pricing model raise concerns about cost control. While competitive, the final cost relative to the initial scope and expected outcomes warrants scrutiny to ensure value for money was achieved.

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 had the opportunity to bid. The specific number of bidders is not provided, but a competitive award generally suggests that the government sought to leverage market forces to obtain favorable pricing and terms. The nature of the competition for this specific delivery order within a larger contract vehicle would provide further insight.

Taxpayer Impact: A competitive award process is generally favorable for taxpayers as it encourages multiple vendors to offer their best pricing and services, potentially leading to cost savings compared to sole-source procurements.

Public Impact

Federal Emergency Management Agency (FEMA) personnel and operations benefit from enhanced program management support. Services provided likely contribute to the efficiency and effectiveness of disaster preparedness and response efforts. The geographic impact is national, supporting FEMA's nationwide mission. Workforce implications include the engagement of specialized consultants to augment government capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing model.
Long contract duration may indicate a lack of defined scope or evolving requirements.
Limited information on the number of bidders in the competitive process.

Positive Signals

Awarded through a full and open competition, suggesting a robust bidding process.
Services procured align with critical national security and public safety functions.
Contract duration suggests a sustained commitment to improving emergency response capabilities.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically engineering services. This sector is crucial for government operations, providing specialized expertise that agencies may not possess internally. The market for emergency response and program management consulting is competitive, with numerous firms offering a range of capabilities. Benchmarking this $84 million award requires comparison to other large-scale, long-duration government contracts for similar specialized support services.

Small Business Impact

Information regarding small business set-asides or subcontracting goals for this specific delivery order was not provided. As the contract was awarded under a competitive delivery order, it's possible that small businesses could have participated as prime contractors or subcontractors, depending on the specific requirements and the contract vehicle used. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would typically reside with the Federal Emergency Management Agency (FEMA) contracting officers and program managers. The contract's long duration and Time and Materials nature necessitate diligent monitoring of performance, costs, and adherence to the statement of work. Transparency would be enhanced by public reporting of key performance indicators and expenditures. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Disaster Relief Fund
Emergency Management Performance Grants
National Preparedness System
Public Assistance Program

Risk Flags

Potential for cost overruns due to T&M pricing.
Long contract duration may indicate scope creep or lack of defined requirements.
Limited transparency on the number of bidders in the competitive process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $84.1 million to EMERGENCY RESPONSE PROGRAM MANAGEMENT CONSULTANTS. PUBLIC ASSISTANCE/TECHNICAL ASSISTANCE DR-1763-IA

Who is the contractor on this award?

The obligated recipient is EMERGENCY RESPONSE PROGRAM MANAGEMENT CONSULTANTS.

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 $84.1 million.

What is the period of performance?

Start: 2008-06-13. End: 2014-05-05.

What was the specific scope of work for these emergency response program management consultants?

The provided data indicates the contract was for 'EMERGENCY RESPONSE PROGRAM MANAGEMENT CONSULTANTS' under the NAICS code '541330' (Engineering Services). While the specific statement of work is not detailed, it likely involved providing expertise in planning, organizing, directing, and coordinating emergency response programs. This could encompass areas such as disaster preparedness, mitigation strategies, response coordination, and post-disaster recovery management. The engineering services designation suggests a technical component, possibly related to infrastructure assessment, damage evaluation, or the development of technical solutions for emergency response.

How does the $84 million award compare to typical spending on similar emergency response consulting services?

Benchmarking the $84 million award against similar contracts is challenging without more granular data on the specific services rendered and the duration of comparable contracts. However, $84 million represents a significant investment. Large-scale, long-term contracts for specialized program management and engineering support in critical areas like emergency response can often reach these figures, especially when spanning multiple years and involving complex, nationwide operations. The duration of this contract (over 2000 days) suggests a sustained need, which would naturally lead to a higher cumulative award value compared to shorter-term engagements.

What are the primary risks associated with a Time and Materials (T&M) contract for program management consulting?

The primary risk with a Time and Materials (T&M) contract, like the one used here, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the scope of work is not tightly defined, or if project management is not rigorous, contractors may incur more hours or use more expensive materials than anticipated, leading to a final cost that significantly exceeds initial estimates. This necessitates robust oversight and detailed tracking of all billable hours and expenses by the government.

What does the contract duration of 2152 days imply about the program's stability and requirements?

A contract duration of 2152 days, which is nearly six years, suggests a long-term, stable requirement for the services provided. This extended period implies that the emergency response program management consulting is not a short-term, ad-hoc need but rather an integral and ongoing function within the agency. It could indicate a strategic commitment to building and maintaining robust emergency response capabilities, or it might suggest that the scope of work was initially underestimated or has evolved over time, necessitating continued support. Such long durations require careful management to prevent complacency and ensure continued value.

How does the Engineering Services (NAICS 541330) classification relate to emergency response program management?

The classification under Engineering Services (NAICS 541330) for emergency response program management suggests that the contract likely involved technical and engineering expertise applied to the planning, execution, and oversight of emergency response operations. This could include tasks such as assessing infrastructure vulnerabilities, developing engineering solutions for disaster mitigation or recovery, providing technical guidance on response logistics, or managing engineering aspects of recovery projects. It indicates that the program management required a strong foundation in technical and engineering principles to effectively address the complexities of emergency situations.

What is the significance of this contract being a single delivery order (DO) under a larger contract vehicle?

A single delivery order (DO) indicates that this specific award represents one instance of service procurement under a potentially larger, pre-existing contract vehicle (like a Multiple Award Indefinite Delivery/Indefinite Quantity contract). The significance is that the competition and terms were likely established when the parent contract vehicle was awarded. This particular DO represents a specific task or project within that framework. The fact that it's a single DO might suggest a focused need or a specific phase of a larger program. However, without knowing the nature of the parent contract, it's hard to fully assess the implications for competition and overall spending.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › OTHER QUALITY, TEST, INSPECT SVCS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM (UEI: 153561212)

Address: 3101 WILSON BOULEVARD, ARLINGTON, VA, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $85,365,100

Exercised Options: $84,086,983

Current Obligation: $84,086,983

Parent Contract

Parent Award PIID: HSFEHQ06D0488

IDV Type: IDC

Timeline