Disaster Contracting: Opportunities Exist for FEMA to Improve Oversight
Fast Facts
FEMA—the federal agency that coordinates disaster response and recovery—spends billions annually on contracts to help communities recover. These contracts are mostly for goods (like water) and services (like construction).
FEMA has staff that have been trained and certified to oversee these contracts which helps ensure communities receive their goods and services. For instance, FEMA staff assess contractor reports of work performed and conduct unannounced site inspections.
However, we found that not all FEMA staff performing oversight had the proper training or certification.
Our 7 recommendations address this issue and more.
Damage to Structures from Maui Wildfires
Highlights
What GAO Found
U.S. states and territories have experienced several devastating and costly natural disasters requiring aid from the Federal Emergency Management Agency (FEMA). From fiscal years 2018 through 2023, FEMA obligated more than $10 billion on contracts—mostly for services, such as housing inspections—to conduct response and recovery efforts. Three disasters in that time frame include the Kentucky floods, Hurricane Ian, and the Maui wildfires. Contract obligations for these disasters totaled more than $1 billion.
Maui Wildfires Damage
GAO reviewed 15 contracts from the three disasters and found that FEMA took oversight steps, such as assessing contractor reports of work performed and conducting site inspections. However, FEMA did not always document oversight activities or details of contractor performance, such as whether a contractor performed work within the time frame specified in the contract. Without this documentation, FEMA and others may not know whether FEMA received the level and quality of services or goods that it purchased.
Additionally, some FEMA staff performed oversight without the required authorization or certification, which is not in accordance with Department of Homeland Security (DHS) guidance or FEMA policy. For example, some FEMA housing specialists conducted activities like filling out contactor assessment forms without having received certification or authorization for performing such tasks. Without FEMA identifying who across the agency is currently performing contract oversight duties and ensuring they are appropriately certified and authorized, there is increased risk that FEMA has unqualified staff performing contract oversight. These staff may not properly assess the goods and services received in accordance with the contract.
FEMA uses DHS's staffing model to identify certain contract oversight staff needs. This model, however, does not fully adhere to staffing model key principles. For instance, the model does not incorporate risk factors, such as attrition. Doing so would better position FEMA to retain the staff it needs.
Why GAO Did This Study
FEMA obligates billions of dollars annually on contracts to respond to natural disasters. These include contracts for providing temporary housing to those affected by disasters.
GAO was asked to review FEMA's use and oversight of its disaster contracts. This report examines (1) how and to what extent FEMA used contracts to support its response and recovery efforts from fiscal years 2018 through 2023; (2) steps FEMA took to provide oversight of contractor performance; and (3) the extent to which FEMA identified contract oversight staffing needs, among others.
GAO analyzed contracting data on FEMA's obligations. GAO selected a nongeneralizable sample of 15 contracts and orders across three disasters. At the time of selection, 12 selected contracts accounted for 42 percent of total contract obligations across the three disasters. GAO subsequently selected three additional contracts to review ongoing oversight activities. GAO also reviewed training and staffing documents, conducted site visits to observe contract performance and oversight activities, and interviewed agency officials.
Recommendations
GAO is making seven recommendations, including that FEMA reiterates to oversight staff the importance of documenting contractor performance and takes steps to ensure those performing oversight duties have proper certification and authorization; and that DHS incorporates potential risks into its staffing model. DHS and FEMA concurred with the recommendations.
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Federal Emergency Management Agency | The FEMA Administrator should ensure that its Office of the Chief Component Procurement Officer reiterates to contracting officers and CORs, such as through a memorandum or training, the preference for and purpose of implementing performance-based acquisition methods for service contracts. (Recommendation 1) |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Federal Emergency Management Agency | The FEMA Administrator should ensure that its Office of the Chief Component Procurement Officer reiterates to CORs, such as through a memorandum or training, the COR's role in documenting oversight activities taken to ensure contractor performance on service contracts. (Recommendation 2) |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Federal Emergency Management Agency | The FEMA Administrator should ensure that its Office of the Chief Component Procurement Officer trains contract oversight staff (including contracting officers, CORs, and program office staff) on DHS and FEMA requirements for technical monitors to have the appropriate level of COR certification and the appropriate authorizations to serve on contracts. (Recommendation 3) |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Federal Emergency Management Agency | The FEMA Administrator should ensure that its Office of the Chief Component Procurement Officer take steps to identify who within the agency is performing contract oversight duties on active contracts, and ensure that those individuals have the proper COR certification and contracting officer authorization. (Recommendation 4) |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Homeland Security | The Secretary of Homeland Security should ensure that its Office of the Chief Procurement Officer documents the steps it used to create and maintain the contracting job series staffing model. (Recommendation 5) |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Homeland Security | The Secretary of Homeland Security should ensure that its Office of the Chief Procurement Officer incorporates potential risks into its contracting job series staffing model. (Recommendation 6) |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Federal Emergency Management Agency | The FEMA Administrator should ensure its Office of the Chief Component Procurement Officer uses the results of the contracting job series staffing model to help inform long-term workforce planning, to include staff retention. (Recommendation 7) |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|