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1 1 (July 18, 2019)

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  1   Congressional Budget Office
'   7Cost Estimate


July 18, 2019


By Fiscal Year, IVMillions of Dollars 2019           2019-2024            2019-2029


Direct Spending (Outlays)


Revenues

Deficit Effect


0


0

0


0


0


0

0


0

0


Under the Post-Katrina Emergency Management   Reform Act of 2006, the Federal
Emergency  Management   Agency  (FEMA)  was required to provide a report to the Congress
identifying goods and services that the agency is capable of contracting for in advance of
disasters, as well as a strategy outlining how the agency could use advance contracts in a
practical and cost-effective manner.

S. 979 would require FEMA, within 6 months of enactment, to provide an updated report and
strategy to the Congress that includes new information about how advance contracts can be
better employed by the agency. The bill also would require FEMA to undertake a variety of
actions with respect to contracts including communicating complete and up-to-date
information on available advance contracts to state and local governments.

FEMA's   Office of Chief Procurement Officer employs 54 staff focused on implementing
advance contracts and is currently performing all of the activities required by S. 979, with
the exception of communicating with state and local governments.

Using information from FEMA,  CBO  estimates that the agency would need about $150,000
to develop a strategy for communicating information to state and local governments and
would complete the strategy in 2020. After that, CBO expects the agency would start

                See also CBO's Cost Estimates Explained, www.cbo.gov/publication/54437;
  How CBO Prepares Cost Estimates, www.cbo.gov/publication/53519; and Glossary, www.cbo.gov/publication/42904.

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