How Civil Engineering Firms Can Stretch Out FEMA-Funded Roadworks

Wide scale destruction from Hurricane Katrina resulted in the Federal Emergency Management Agency’s (FEMA) grant of $2 billion to New Orleans for street and drainage repairs. Completing these basic infrastructures, however, remains challenging, particularly as some estimates show that full repairs would reach $10 billion.

Presently, Mayor Mitch Landrieu’s office believes it is cutting costs by having most of the design done in-house. One study contradicts the assumption that in-house designers are more cost-efficient than engineers from private firms.

Status of FEMA Funds

FEMA funding is supposed to last for the next six to ten years. The executive director of the Sewerage & Water Board, Cedric Grant, noted the importance of incrementally using these funds properly for the next decade. Some of the road projects began at the end of 2016, but officials could not provide a finalized plan on the eventual rollout across New Orleans.

Officials are alarmed about insufficient FEMA funds. A recent report analyzed every pavement in the city and learned that two-thirds are in poor or worse conditions. Raising the quality of these roads, as well as maintaining them, entails costs of $400 million every year for the next 2 to 3 decades.

Currently, the city spends only $150 million yearly on street repairs. Spending $400 million annually would definitely diminish FEMA funds quickly, which is problematic for a city that cannot produce revenues for much needed and extensive road and drainage works.

Once FEMA Funds Run Out, What’s Next for Civil Engineering Firms?

Civil engineering firms are in a better position to offer cost-efficient expert services. First, they can serve as contractors of these streets. Second, they can offer lower overall lower costs to the government.

The New York State Department of Transportation (NYSDOT) analyzed and compared in-house and private engineering consulting services in 2011. They learned that a private engineer cost 15% less than an in-house one. These are even conservative estimates and actual differences could rise well beyond 15%. This study showed why the city should consider hiring private civil engineering firms for the design and construction of these roads.

Private organizations can offer competencies and resources public agencies lack. Furthermore, instead of paying for all the costs of hiring and maintaining an employee, the city should transfer these costs to private firms. The private sector likewise has more means for improving and implementing innovation and sharing intellectual properties which can save money, while enhancing design effectiveness.

Civil engineering firms can maximize the remaining FEMA funds through more cost-efficient project management strategies. They similarly absorb risks and other in-house costs. Hence, stretching out FEMA money can be done by simply working with private civil engineering firms.

Sources:

“City to bring design, engineering work for street overhauls in-house as questions remain about funding,” theadvocate.com
“Finally more FEMA funds to repair New Orleans streets,” wgno.com
“NYSDOT Engineering Costs: In-House vs. Outsourced Engineering, acecny.org