H.R. 5533: Streamlining FEMA Procurement Procedures Act of 2025

The Streamlining FEMA Procurement Procedures Act of 2025 proposes changes to the way local governments can procure goods and services when responding to disasters and emergencies. This bill specifically allows local governments to use a procurement method known as "Construction Manager at Risk" (CMAR) for acquiring necessary goods and services under the Stafford Disaster Relief and Emergency Assistance Act.

Key Provisions

• CMAR Procurement Method: The President is mandated to create regulations within 180 days of the bill's enactment, enabling local governments to utilize the CMAR procurement method for activities related to disaster relief. This includes procedures based on the qualifications of the contractors to ensure better management of construction projects.
• Increased Financial Threshold: The bill raises the threshold for simplified procurement procedures in disaster relief activities. The limit will be increased from $1,000,000 to $3,000,000, making it easier for local governments to initiate procurement processes for larger contracts without the need for lengthy bidding procedures.

By allowing the use of CMAR and adjusting the financial threshold, the bill aims to expedite the procurement process for disaster-related projects, potentially leading to quicker recovery and rebuilding efforts in affected communities.

Implications of the Changes

These changes are intended to enhance local governments' ability to respond effectively to emergencies by providing them with greater flexibility and efficiency in procuring services and goods necessary for disaster management and recovery. The increased threshold means that local governments can manage more significant contracts more efficiently, which could lead to improved project delivery and reduced bureaucratic delays.

Relevant Companies

• KBR Inc. (KBR) - As an engineering and construction firm, KBR may see increased opportunities for contracts relating to disaster recovery projects under the new procurement methods.
• Fluor Corporation (FLR) - This company may also benefit from the legislation as it provides construction management services and could compete for projects in disaster-struck areas.