$227M contract for manager of Louisiana flood aid program
BATON ROUGE - 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.
Founded in Baton Rouge in 1985 and headquartered in North Carolina, IEM focuses on emergency management. The company has worked on major recovery efforts, including Hurricane Katrina and Superstorm Sandy. It also has a full-service office in Baton Rouge.
The homeowner assistance program is funded by $1.6 billion in flood recovery allocations through the U.S. Department of Housing and Urban Development. In addition, the state is negotiating a contract with CohnReznick LLP, a quality control accounting, tax and advisory firm, to monitor the program.