There Was Inadequate Planning and Preparation in Anticipating Requirements for Needed Goods and Services

The need for strong planning is one of the themes identified by the  Comptroller General in regard to the government’s overall response to the  hurricanes. We found that  some key agencies did not always have adequate plans for contracting in a  major contingency situation. We also noted the competing tensions  between the selection of national contractors and the requirement under  the Stafford Act for a preference for contractors from the affected area. While contracts for some items were in place prior to the storm, FEMA did  not adequately anticipate needs for such services as providing temporary  housing and public buildings. Examples of Federal, State, and Private Sector Practices for Improving Planning and Preparation

Officials that we talked to in the public and private sectors considered pre- identification of commodities, scalable operations, and pre-established  vendor relationships to be essential for ensuring adequate planning and  preparation for providing needed goods and services following a disaster. There Was a Lack of Clearly Communicated Responsibilities across Agencies and Jurisdictions

We also found that processes for executing contracts were hindered by  poor communication of responsibilities. In some instances, the local or state officials determine the  requirements and communicate them to FEMA; FEMA may write and  award the contract or communicate the requirements to another agency  that writes and awards the contract; and then FEMA or another agency  oversees contract performance. Our fieldwork identified examples where unclear responsibilities and poor  communications resulted in poor acquisition outcomes. The process for ordering and delivering ice heavily depends on effective  communications between FEMA and the Corps. However, according to  Corps officials, FEMA did not fully understand the contracting approach  used by the Corps and ordered at least double the amount of ice required,  resulting in an oversupply of ice and a lack of distribution sites available to  handle the volume ordered. Examples of State and Private Sector Practices for Establishing and Communicating Responsibilities

To clearly establish and communicate disaster-related responsibilities,  public and private sector officials told us they use such practices as  conducting joint disaster response training for agency employees and  contractors and formally assigning their employees specific disaster- related responsibilities. There Were Insufficient Numbers and Inadequate Deployment of Personnel to Provide for Effective Contractor Oversight

The purpose of agencies’ monitoring processes is to ensure that  contracted goods and services are delivered in accordance with the  agreed-upon schedule, cost, quality, and quantity provisions stated in the  contract. For example:    FEMA’s contracts for installing temporary housing in four states had only  17 of the 27 technical monitors that had been determined necessary to  oversee contractor performance. These teams include specialists with the authority  needed to provide on the ground procurement support to meet mission  needs. Agency Management of Contractors Responding to Hurricanes Katrina  and Rita. Federal Emergency Management Agency: Improvements Needed to  Enhance Oversight and Management of the National Flood Insurance  Program. Hurricane Katrina: Providing Oversight of the Nation’s Preparedness,  Response, and Recovery Activities.
Why GAO Did This Study

The devastation experienced throughout the Gulf Coast region in the wake of Hurricanes Katrina and Rita has called into question the government's ability to effectively respond to such disasters. The government needs to understand what went right and what went wrong, and to apply these lessons to strengthen its disaster response and recovery operations. The federal government relies on partnerships across the public and private sectors to achieve critical results in preparing for and responding to natural disasters, with an increasing reliance on contractors to carry out specific aspects of its missions. This testimony discusses how three agencies--the General Services Administration, the Federal Emergency Management Agency (FEMA), and the U.S. Army Corps of Engineers (the Corps)--conducted oversight of 13 key contracts awarded to 12 contractors for hurricane response, as well as public and private sector practices GAO identified that provide examples of how the federal government could better manage its disaster-related procurements.

What GAO Found

Agency acquisition and contractor personnel have been recognized for their hard work in providing the goods and services required to be responsive. The response efforts nonetheless suffered from three primary deficiencies. First, there was inadequate planning and preparation in anticipating requirements for needed goods and services. Some key agencies did not always have adequate plans for contracting in a major contingency situation. For example, FEMA did not adequately anticipate needs for temporary housing and public buildings. Tensions also existed between selecting national contractors and the Stafford Act requirement for a preference for contractors from the affected area. Second, there was a lack of clearly communicated responsibilities for contracting activities across agencies and jurisdictions. When disasters occur, local or state officials sometimes determine contract requirements and send them to FEMA, which writes and awards the contract or passes that responsibility on to another agency. FEMA or another agency may then oversee contract performance. Although this process requires clear alignment of responsibilities and good communications, our fieldwork found examples that did not meet that standard. Although the process for ordering and delivering ice depends on good communications between FEMA and the Corps, for example, Corps officials said FEMA did not fully understand the contracting approach they used and ordered at least double the amount of ice required, resulting in an oversupply of ice and a lack of distribution sites to handle the volume ordered. Third, there were insufficient numbers and inadequate deployment of personnel to provide for effective contractor oversight. For example, FEMA's contracts to install temporary housing in four states had only 17 of the 27 technical monitors that were needed for oversight. GAO has identified practices in the public and private sectors that provide insight into how federal agencies can better manage their disaster-related procurements, including: developing knowledge of contractor capabilities and prices by identifying commodities and services and establishing vendor relationships before they are needed; establishing a scalable operations plan to adjust the level of capacity required to effectively respond to needs; formally assigning and communicating disaster-related responsibilities, with joint training for government and contractor personnel; and providing sufficient numbers of field-level contracting staff with the authority needed to meet mission requirements.