FEMA Oversight Bill Scraps Old Contracting Rule and Mandates 5 Years of Annual No-Bid Contract Reports

The new HELP Response and Recovery Act is essentially a two-part administrative cleanup and transparency measure aimed squarely at the Department of Homeland Security (DHS) and, specifically, the Federal Emergency Management Agency (FEMA).

First, the bill repeals Section 695 of the Post-Katrina Emergency Management Reform Act of 2006 (Sec. 2). This is a technical step, but the goal is practical: removing what are deemed obsolete contracting requirements to potentially streamline how FEMA gets necessary supplies and services during a crisis. If you’ve ever waited for aid after a disaster, you know delays often come down to bureaucratic red tape. This repeal is intended to snip some of that tape.

Second, and perhaps more importantly for accountability, the bill mandates a serious new reporting requirement (Sec. 3). The Secretary of Homeland Security must submit an initial report within 540 days, followed by annual reports for five years, to key Congressional committees. These reports have two main jobs.

The Cleanup Crew Report

One part of the report is dedicated to proving that the repeal of that old contracting rule actually worked. DHS has to detail how scrapping Section 695 has achieved two things: preventing waste, fraud, and abuse and promoting savings for taxpayers. This is the government equivalent of requiring a before-and-after photo: they have to show that making the process easier didn't make it sloppier or more expensive.

Shining a Light on No-Bid Deals

The second, and most critical, component of the reports involves shining a bright spotlight on FEMA’s use of no-bid contracts. When a major disaster hits, FEMA often needs to award contracts immediately for things like temporary housing, water, or debris removal. Since there’s no time to solicit bids, these are called “urgent and compelling” contracts, or sole-source contracts. They are necessary but often come under scrutiny because they bypass the usual competitive process.

For every single one of these emergency contracts entered into or extended by the FEMA Administrator, the report must list four key details (Sec. 3):

• The total number of contracts.
• The subject matter (e.g., roofing materials, logistics support).
• The total dollar amount obligated.
• The specific State or disaster event that benefited from the contract.

This level of detail means that for the next five years, Congress—and by extension, the public—will get an annual, itemized receipt for every time FEMA skipped the bidding process to get help where it was needed fast. For taxpayers, this is a huge win for transparency. It means that if FEMA pays $50 million for bottled water in one state, everyone will know exactly why and where that money went. This increased oversight is designed to ensure that while FEMA can act quickly, it remains accountable for every dollar spent in the immediate aftermath of a crisis.