The ink is finally dry on the state's contract to manage $1.3 billion in federal assistance for a home rebuilding program and the estimated price tag for North Carolina-based IEM has been tabulated at $308 million.
Of those dollars, $127.8 million will go to IEM to cover their profits, construction management and administration costs. Another $100 million is estimated for construction costs for homeowners, and another $81.3 million is reserved for federally required environmental reviews of homes.
IEM was awarded the lucrative flood management contract earlier this month in the state's second attempt at a solicitation. The first solicitation was in March, when IEM was initially awarded the contract. But after protests and confusion over licensing requirements that rendered three bidding companies ineligible, the state tossed the original bids. State officials also stressed the first round of bids were too high.
Former state Sen. Larry Bankston should have mentioned a possible conflict before he rendere…
Richard Carbo, a spokesman for Gov. John Bel Edwards said, IEM's second bid is an estimated $2.5 million less in labor costs and another $3.5 million in contract management fees than their first bid.
He also said IEM will take in only 4 percent for administrative costs and another 15 percent for program management costs.
AECOM, a losing firm which bid on the contract, filed a protest last week, saying their firm should be awarded the contract because they were at least $64 million less expensive than IEM, among other reasons. They estimated their own total contract at $181 million.
State officials said that costs were only 30 percent of the scoring weight for the bid proposals.