Figure 1 shows the  number of major disasters declared in the United States since Hurricane  Katrina, from fiscal years 2005 through 2014. FEMA Has Expanded Its Contracting Workforce since 2005 but Does Not Have Sufficient Processes to Prioritize Disaster Workloads or Cohesively Manage Contracting Officers

FEMA’s contracting officer workforce has grown significantly since  Hurricane Katrina, but the agency has struggled with attrition at times. FEMA’s workforce increases are due in  part to the creation of the Disaster Acquisition Response Team (DART) in  2010, headquarters staff charged with supporting disasters. DART has  gradually assumed responsibility for administering the majority of FEMA’s  disaster contract spending, but FEMA does not have a process for how  the team will prioritize its work when they are deployed during a disaster. Further, in 2011, FEMA established an agreement between the regions  and headquarters to revise regional contracting staff reporting  responsibilities; however, we found challenges with how the agreement is  being implemented, particularly in that it heightens the potential for an  environment of competing interests for the regional contracting officers. FEMA Created a Team of Disaster Contracting Officers to Provide Increased Oversight, but Has Not Established a Process for Prioritizing Workload

In a 2010 business case to justify hiring additional contracting staff,  OCPO officials said it had substantially added to the size of its contracting  workforce in the years since Hurricane Katrina, but that it did not have  enough specialized contracting staff to manage the contract  administration and oversight requirements of several simultaneous large- scale disasters or a catastrophic event. As a result, the agreement does not address the  concerns identified above, and has not been updated in the more than 4  years since its creation to reflect good practices or lessons learned. Additionally, inconsistent contract management practices during  disaster deployments—such as incomplete contract files and reviews— create oversight challenges. FEMA Has Not Fully Implemented Required Contracting Reforms Following Hurricane Katrina

Based on our review of 27 disaster support contracts from fiscal years  2013 and 2014, FEMA has made progress in addressing some aspects of  the contracting reforms required by PKEMRA, including the use of  contracts established prior to a disaster for goods and services that are  typically needed during a disaster response—known as advance  contracts. To improve coordination and communication between FEMA OCPO and  region mission support officials, we recommend that the FEMA  Administrator direct OCPO and the regional administrators to revisit the 2011  service level agreement to: add details about the extent of operational  control headquarters and regional supervisors should exercise to  minimize potential competing interests experienced by regional  contracting officers; further detail headquarters and regional  supervisors’ roles and responsibilities for managing regional  contracting officers to improve coordination and communication; and  ensure that the agreement reflects any new requirements, including  recent changes in training that may require travel funds, and establish a plan to ensure that the agreement is reviewed on an  annual basis as intended. Appendix I: Objectives, Scope, and Methodology

To assess the Federal Emergency Management Agency’s (FEMA) efforts  to build and manage its contracting workforce and structure, we reviewed  and analyzed data on FEMA’s workforce since Hurricane Katrina, which  occurred in 2005, to identify staff size, rates of attrition, and years of  experience.
Why GAO Did This Study

FEMA obligated $2.1 billion in fiscal years 2013 and 2014 for products and services, which included almost $770 million from offices responsible for disaster contracting. Providing disaster relief in a timely manner is essential, while adhering to contracting laws and regulations helps safeguard taxpayer dollars. Following Hurricane Katrina, Congress passed PKEMRA to improve FEMA's disaster contracting.
GAO was asked to review FEMA's disaster contracting practices. This report assesses the extent to which FEMA (1) made efforts to build and manage its contracting workforce and structure since PKEMRA, and (2) adopted PKEMRA reforms and demonstrated good management practices for disaster contracting.
GAO analyzed data on FEMA's workforce from fiscal years 2005 through 2014, reviewed workforce guidance, and reviewed 27 contracts—including 16 selected through a random sample and 11 through a nonprobability sample based on factors including high cost—to determine the extent to which PKEMRA provisions were met. GAO also met with contracting officials.

What GAO Found

The Federal Emergency Management Agency (FEMA) has more than tripled the number of contracting officers it employs since Hurricane Katrina in 2005, but it does not have a sufficient process in place to prioritize disaster workload and cohesively manage its workforce. Some of the workforce growth is attributed to the establishment of the Disaster Acquisition Response Team (DART) in 2010, which has the primary mission of deploying to provide disaster contracting support, such as contracting for blankets or debris removal. DART has gradually assumed responsibility for administering the majority of disaster contract spending, but FEMA does not have a process for prioritizing the team's work during disasters. Without such a process, FEMA is at risk of developing gaps in contract oversight during major disasters. Further, in 2011, FEMA established an agreement that regional contracting officers would report to headquarters supervisors for technical oversight while continuing to respond to regional supervisors—who have responsibility for administrative duties—for everyday operations. This agreement has led to challenges for FEMA in cohesively managing its workforce, including heightening the potential for an environment of competing interests for the regional contracting officers. Further, FEMA has not revisited this agreement on annual basis as called for in the agreement. As a result, it does not incorporate lessons learned since its creation 4 years ago.
FEMA has not fully implemented 2006 Post-Katrina Emergency Management Reform Act (PKEMRA) contracting reforms due in part to incomplete guidance.

What GAO Recommends

GAO recommends, among other things, that the FEMA Administrator establish procedures to prioritize DART's workload, revisit the agreement for oversight of regional contracting officers, and improve guidance on PKEMRA requirements. DHS concurred with GAO's recommendations.