DHS Awards $80M for Temporary Housing Units to Dynamic Group, LLC for Disaster Response

Contract Overview

Contract Amount: $80,049,684 ($80.0M)

Contractor: Dynamic Group, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-08-30

End Date: 2025-08-29

Contract Duration: 364 days

Daily Burn Rate: $219.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ALTERNATIVE TRANSPORTABLE TEMPORARY HOUSING UNIT FOR RESPONSE AND RECOVERY FROM NATURAL DISASTERS.

Place of Performance

Location: HAIKU, MAUI County, HAWAII, 96708

State: Hawaii Government Spending

Plain-Language Summary

Department of Homeland Security obligated $80.0 million to DYNAMIC GROUP, LLC for work described as: ALTERNATIVE TRANSPORTABLE TEMPORARY HOUSING UNIT FOR RESPONSE AND RECOVERY FROM NATURAL DISASTERS. Key points: 1. Significant contract value for disaster relief housing. 2. Dynamic Group, LLC is the sole awardee. 3. Potential risk in single-source reliance for critical infrastructure. 4. Manufacturing sector involved in disaster preparedness.

Value Assessment

Rating: fair

The award of $80M for temporary housing units appears substantial. Benchmarking against similar disaster relief housing contracts is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, this is a delivery order, and the specific pricing discovery for this order needs review.

Taxpayer Impact: Taxpayer funds are being used for essential disaster response infrastructure, aiming for efficient recovery.

Public Impact

Provides critical temporary housing for disaster-affected populations. Supports FEMA's mission in disaster response and recovery. Addresses immediate shelter needs in Hawaii. Potential for long-term impact on community resilience.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific per-unit cost benchmark.
Single awardee for this delivery order.
Limited detail on performance metrics.

Positive Signals

Addresses a critical need for disaster response.
Awarded under full and open competition.
Clear end date for contract performance.

Sector Analysis

This contract falls within the manufacturing sector, specifically related to disaster preparedness and response. Spending benchmarks for temporary housing solutions during emergencies can vary widely based on scale and urgency.

Small Business Impact

The data indicates that small business participation was not a factor in this specific award (sb: false). Further analysis would be needed to determine if small businesses were involved in the supply chain or subcontracting.

Oversight & Accountability

Oversight will be crucial to ensure timely delivery, quality of housing units, and adherence to contract terms by Dynamic Group, LLC. FEMA's contract management will be key.

Related Government Programs

Manufactured Home (Mobile Home) Manufacturing
Department of Homeland Security Contracting
Federal Emergency Management Agency Programs

Risk Flags

Potential for cost overruns if not managed tightly.
Dependence on a single vendor for critical supplies.
Logistical challenges in remote or disaster-stricken areas.
Ensuring quality and habitability of temporary structures.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $80.0 million to DYNAMIC GROUP, LLC. ALTERNATIVE TRANSPORTABLE TEMPORARY HOUSING UNIT FOR RESPONSE AND RECOVERY FROM NATURAL DISASTERS.

Who is the contractor on this award?

The obligated recipient is DYNAMIC GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $80.0 million.

What is the period of performance?

Start: 2024-08-30. End: 2025-08-29.

What is the cost-effectiveness of these temporary housing units compared to alternative solutions or previous disaster response efforts?

Assessing cost-effectiveness requires detailed unit cost analysis and comparison with historical data for similar housing solutions deployed during past disasters. Factors like durability, setup time, and long-term usability influence overall value. Without specific unit pricing or performance metrics, a definitive cost-effectiveness judgment is difficult.

What are the primary risks associated with relying on a single vendor for this critical disaster response capability?

The primary risks include potential supply chain disruptions, quality control issues, and limited leverage for price negotiation if future needs arise. Dependence on one vendor can also create vulnerabilities if the company faces financial or operational challenges, potentially delaying critical housing deployment.

How effectively will these housing units meet the needs of disaster survivors in Hawaii, considering local conditions and logistical challenges?

Effectiveness hinges on the units' suitability for Hawaii's climate, ease of transport and setup on potentially remote or damaged sites, and adherence to safety standards. FEMA's logistical planning and coordination with local authorities will be critical to ensure timely distribution and adequate support for survivors.

Industry Classification

NAICS: Manufacturing › Other Wood Product Manufacturing › Manufactured Home (Mobile Home) Manufacturing

Product/Service Code: PREFAB STRUCTURES/SCAFFOLDING

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3045 WESTFORK DR, BATON ROUGE, LA, 70816

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $80,049,684

Exercised Options: $80,049,684

Current Obligation: $80,049,684

Actual Outlays: $80,049,684

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FBR924D00000005

IDV Type: IDC

Timeline