Contract for Louisiana Flood Aid Program Administrator to Cost $227M

April 26, 2017

Louisiana’s contract with disaster recovery firm IEM to administer a homeowner flood aid program is estimated to cost $227 million.

The Greater Baton Rouge Business Report says the state has completed its deal with IEM to manage the $1.3 billion program to assist homeowners with damage from the March and August 2016 floods.

Of the $227 million cost of the contract, $127 million will go to IEM for program management and construction management. The remaining $100 million will be paid to the firm to cover construction costs for people who let the state handle the rebuilding of their homes.

Homeowners will be able to choose among four options: state-managed construction, homeowner-managed construction, reimbursement for eligible expenses on completed rebuilding and buyouts in limited circumstances.

The contract was signed April 21, ending weeks of controversy over the selection of a firm to administer the program.

In March, the state selected North Carolina-based IEM from among five teams of contractors, engineers, architects, attorneys, accountants and consultants. But it scrapped the decision three weeks later and restarted the bid process amid questions over licensure requirements, cost concerns and protests from losing teams.

This month, a new state selection committee again selected IEM from among five teams. IEM’s proposal was the second-most expensive.

Topics Louisiana Flood Homeowners Construction

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