Hurricane Recovery Contracting Strategy Announced
Additional focus on local and small disadvantaged businesses for regional work
Release Date: October 11, 2005
Release Number: HQ-05-334
WASHINGTON, D.C. -- The Department of Homeland Security’s Federal Emergency Management Agency (FEMA) today announced plans for a competitive contracting strategy for ongoing recovery work for the Gulf Coast hurricanes, as well as for future disasters. The dual track competitive bidding strategy will place a priority on local and small disadvantaged businesses for Gulf Region recovery work as well as on the use of local and small businesses as subcontractors for national open competition contracts. As four of FEMA’s major emergency contracts for technical assistance reach their contractual agreement limits, those future contracting needs will be met through this strategy.
“In the immediate response phase for Hurricane Katrina, our priority was to get relief quickly to those in need,” said Acting FEMA Director David Paulison. “The oversight safeguards are in place for those emergency contracts so critically needed when disaster struck, and we will now use competitive strategies everywhere possible – placing priority on the use of local and small disadvantaged businesses – as we move into the long-term recovery phase.”
Emergency contracts were issued for technical assistance for critically needed services such as setting up Disaster Recovery Centers, the hauling and installing of temporary housing and other logistical and facilities management needs in the wake of Hurricane Katrina in early September. These technical assistance needs will continue in the long-term recovery as installation of facilities continue and maintenance becomes a serious need. These needs will be met through these competition strategies.
The first track for awarding contracts is an initiative competitively to award multiple five-year technical assistance contracts to small disadvantaged businesses for recovery work in the Gulf States. The competition will be open to small disadvantaged businesses certified by the Small Business Administration under its 8(a) program. The evaluation by FEMA of the contract proposals will include the geographic location of both the prime contractor and subcontractors to ensure a preference for local hires from the impacted states. FEMA will award these multiple indefinite delivery/indefinite quantity (IDIQ) contracts for work performed in the most affected states. (Small Disadvantaged Business as defined by the Small Business Administration – go to www.sba.gov/businessop/basics/identify.html)
On a simultaneous track, FEMA will proceed with a full and open competition for multiple five-year IDIQ contracts to provide technical assistance support on a national basis for disaster response and recovery. These awards will be open to all businesses regardless of size. Under this competition, FEMA will require that these prime contractors meet significant small business subcontracting goals, including the preference for local businesses as provided for by the Stafford Act.
This overall strategy offers many benefits. It provides a diverse group of companies the opportunity to contract with FEMA for the Gulf Coast hurricane recovery by adding prime contracting opportunities directly for small disadvantaged businesses with geographic preference for those located in the Gulf States. The national competition approach preserves strong subcontracting goals and opportunities for small and small disadvantaged businesses as part of all prime contracts for future disasters. Both strategies emphasize the importance of using local businesses, a critical piece of a successful economic recovery in a disaster-ravaged area.
FEMA will solicit offers under this dual track strategy in the immediate future. Final details of these competitions will be available in approximately one week through the FedBizOpps website at www.fedbizopps.gov.
Immediately prior to Hurricane Katrina’s landfall, FEMA awarded technical assistance contracts to assist with Katrina tasks to four large firms: Fluor, CH2M Hill, Bechtel and the Shaw Group. Earlier this year, FEMA had started a procurement to award a five-year contract for one or more firms who would provide this technical assistance support for future hurricane response and recovery. That contract was initially planned for completion by late September or early October but was not complete when Hurricane Katrina struck. However, FEMA procurement staff had already completed analysis on these four firms and had established their strong qualifications to do this work. The quantity of work anticipated following Katrina landfall -- and urgency of the mission -- mandated multiple contracts.
Because these contracts were issued on an emergency basis, FEMA always intended to renegotiate the contract rates, terms and conditions. The Defense Contract Audit Agency is providing cost and pricing support in managing these contracts to ensure the government only pays those costs allowable and fair under these efforts.
FEMA prepares the nation for all hazards and manages federal response and recovery efforts following any national incident. FEMA also initiates mitigation activities, trains first responders, works with state and local emergency managers, and manages the National Flood Insurance Program and the U.S. Fire Administration. FEMA became part of the U.S. Department of Homeland Security on March 1, 2003.
Last Modified: Tuesday, 11-Oct-2005 10:02:59