did not adequately consider cost, resulting in as much as $16 million in waste. As shown in figure 1, if FEMA had instead issued task orders to the five contractors with the lowest overall bid prices, it would only have spent about $32.5 million on the five most expensive line items. Because FEMA did not reassign task orders under the MD contracts until June 2007—the second year of the contract, it likely wasted millions more on these line items from February through May 2007.
Figure 1: Potential FEMA MD Contract Savings Using Least Expensive Contractors
As detailed in the figure, had FEMA made contract awards to only the five lowest bidders, it could have saved as much as
$10.2 million in preventative maintenance costs. FEMA spent about $28.5 million for preventative maintenance on all the units in Mississippi from June 2006 through January 2007. If FEMA had awarded the MD contracts to the five companies with the lowest overall bid price, the cost for trailer and mobile home maintenance would have been approximately $18.3 million.
$3.2 million on phase-in costs. FEMA spent $6.5 million on one-time phase-in costs for all 10 MD contracts. However, if FEMA used only the
GAO-08-106 Hurricane Katrina