FEMA awards $51.5M for disaster housing, with a significant portion for Louisiana

Contract Overview

Contract Amount: $51,447,349 ($51.4M)

Contractor: Disaster Solutions Alliance, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-11-03

End Date: 2023-10-03

Contract Duration: 699 days

Daily Burn Rate: $73.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DR4611LA LOGHOUSE HAUL AND INSTALL FOLLOW-ON

Place of Performance

Location: BATON ROUGE, EAST BATON ROUGE County, LOUISIANA, 70810

State: Louisiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $51.4 million to DISASTER SOLUTIONS ALLIANCE, LLC for work described as: DR4611LA LOGHOUSE HAUL AND INSTALL FOLLOW-ON Key points: 1. Contract value represents a substantial investment in disaster recovery infrastructure. 2. Competition dynamics suggest a potentially competitive bidding environment for this type of service. 3. Contract duration of nearly two years indicates a sustained need for these services. 4. The fixed-price contract type aims to control costs and provide budget certainty. 5. Geographic focus on Louisiana highlights a specific regional disaster response effort.

Value Assessment

Rating: good

The contract value of $51.5 million for disaster housing services appears reasonable given the scope and duration. Benchmarking against similar large-scale disaster relief contracts would provide further context, but the fixed-price nature suggests an effort to manage costs effectively. The award to a single entity for this amount indicates a significant operational capacity required for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. With four bids received, the competition level appears moderate, suggesting that while the market is not saturated with bidders, there was sufficient interest to drive price discovery. This level of competition is generally favorable for obtaining competitive pricing.

Taxpayer Impact: A full and open competition process helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that can lead to lower prices and better service quality.

Public Impact

Provides essential temporary housing solutions for individuals and families impacted by disasters. Supports the recovery and rebuilding efforts in disaster-stricken regions, specifically Louisiana in this instance. Creates employment opportunities within the construction and logistics sectors related to housing deployment. Enhances the resilience and preparedness of communities facing natural disasters.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen logistical challenges arise during deployment.
Dependence on a single contractor for a critical disaster response function could pose a risk if performance falters.

Positive Signals

Fixed-price contract structure provides cost certainty for the government.
Full and open competition suggests a robust market for these services.
Award to a single entity implies a capacity to handle a large-scale operation.

Sector Analysis

The Commercial and Institutional Building Construction sector is vital for infrastructure development and maintenance. This contract falls within the broader construction and logistics services category, often utilized by government agencies for emergency response and recovery. The market for disaster housing solutions is specialized, driven by the unpredictable nature of natural disasters and the need for rapid deployment of temporary or semi-permanent structures.

Small Business Impact

This contract was not set aside for small businesses, and there is no explicit information regarding subcontracting plans for small businesses. The scale of the award suggests that the primary contractor likely possesses significant resources and capabilities, which may limit opportunities for smaller firms to participate directly unless they are part of a larger subcontracting effort.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The Federal Emergency Management Agency (FEMA) is responsible for monitoring performance and ensuring compliance with contract terms. While specific oversight mechanisms are not detailed here, the fixed-price nature and the competitive award process are intended to promote accountability. Inspector General reviews may be initiated if performance issues or potential fraud are identified.

Related Government Programs

Disaster Relief and Emergency Assistance Programs
Federal Housing Administration Programs
Public Works and Infrastructure Development

Risk Flags

Potential for delays in deployment due to logistical challenges in disaster zones.
Ensuring the quality and habitability of housing units for displaced individuals.
Managing the transition and de-mobilization of housing units post-recovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $51.4 million to DISASTER SOLUTIONS ALLIANCE, LLC. DR4611LA LOGHOUSE HAUL AND INSTALL FOLLOW-ON

Who is the contractor on this award?

The obligated recipient is DISASTER SOLUTIONS ALLIANCE, 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 $51.4 million.

What is the period of performance?

Start: 2021-11-03. End: 2023-10-03.

What is the track record of Disaster Solutions Alliance, LLC in fulfilling similar disaster housing contracts?

Information regarding the specific track record of Disaster Solutions Alliance, LLC in fulfilling similar disaster housing contracts is not detailed in the provided data. However, the award of a significant contract by FEMA suggests that the agency has assessed the contractor's capabilities and past performance to be adequate for this requirement. Further investigation into past performance reviews, contract close-outs, and any documented issues or successes with previous FEMA or other government disaster relief contracts would be necessary for a comprehensive assessment of their track record.

How does the per-unit cost of housing units under this contract compare to market rates or similar government contracts?

The provided data does not include a per-unit cost breakdown for the housing units. The total contract value of $51.5 million over 699 days (approximately 23 months) for 'HAUL AND INSTALL FOLLOW-ON' services makes a direct per-unit cost comparison difficult without knowing the number of units, the type of housing, and the specific services included (e.g., transportation, installation, maintenance). Benchmarking would require access to detailed cost data from comparable contracts or market surveys for disaster relief housing solutions, which is not available in this summary.

What are the primary risks associated with the 'HAUL AND INSTALL FOLLOW-ON' nature of this contract?

The 'HAUL AND INSTALL FOLLOW-ON' designation suggests that this contract likely involves the transportation, setup, and potentially ongoing management or maintenance of housing units that may have been previously deployed or are part of an existing program. Key risks include logistical challenges in moving and installing units, especially in disaster-affected areas with damaged infrastructure. There's also a risk of delays if the 'follow-on' aspect involves modifications or repairs to existing units. Furthermore, ensuring the quality and suitability of the housing for intended occupants, and managing the transition out of these units, are critical considerations.

What is the expected effectiveness of these housing solutions in addressing immediate post-disaster needs in Louisiana?

The effectiveness of these housing solutions hinges on several factors, including the speed of deployment, the suitability of the housing types for the affected population's needs, and the availability of necessary utilities and support services. Given that this is a follow-on contract, it implies an ongoing or recurring need, suggesting that initial deployments may have occurred. FEMA's objective is to provide safe and habitable temporary or transitional housing, thereby mitigating homelessness and supporting community recovery. The success will be measured by how quickly and effectively displaced individuals and families are housed.

How has FEMA's spending on disaster housing evolved over the past five years, and does this contract represent a significant shift?

Analyzing FEMA's overall spending on disaster housing over the past five years would require access to historical budget and expenditure data. This single contract of $51.5 million, while substantial, represents a specific award for a particular need and region. Without broader context on FEMA's total disaster relief budget and allocation towards housing solutions in previous years, it's difficult to determine if this contract signifies a significant shift. However, the increasing frequency and intensity of natural disasters globally suggest a sustained and potentially growing need for robust disaster housing programs, which this contract addresses.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12420 MILESTONE CENTER DRIVE STE 150, GERMANTOWN, MD, 20876

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

Financial Breakdown

Contract Ceiling: $284,982,349

Exercised Options: $51,447,349

Current Obligation: $51,447,349

Actual Outlays: $103,601

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $44,581,295

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FB8018D00000012

IDV Type: IDC

Timeline