FEMA awards $32M for 525 manufactured housing units to support disaster relief efforts

Contract Overview

Contract Amount: $31,960,395 ($32.0M)

Contractor: GSH of Alabama LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-02-04

End Date: 2022-10-18

Contract Duration: 256 days

Daily Burn Rate: $124.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PURCHASE AND DELIVERY OF 525 COMMERCIAL MANUFACTURED HOUSING UNITS

Place of Performance

Location: BATON ROUGE, EAST BATON ROUGE County, LOUISIANA, 70802

State: Louisiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $32.0 million to GSH OF ALABAMA LLC for work described as: PURCHASE AND DELIVERY OF 525 COMMERCIAL MANUFACTURED HOUSING UNITS Key points: 1. Contract value appears reasonable given the scale and urgency of disaster response. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Delivery timeline of 256 days aligns with typical emergency response needs. 5. Focus on manufactured housing addresses immediate shelter needs post-disaster. 6. Contract awarded to a single entity, GSH of Alabama LLC, for delivery.

Value Assessment

Rating: good

The contract value of $32 million for 525 housing units translates to approximately $60,762 per unit. This figure is within a reasonable range for manufactured housing, especially considering the potential for expedited production and delivery required for disaster relief. Benchmarking against similar emergency housing contracts would provide further context, but the price appears competitive for the services rendered.

Cost Per Unit: $60,762 per unit

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, which can lead to better pricing and quality for the government. The use of full and open competition is a positive indicator for price discovery.

Taxpayer Impact: Full and open competition is expected to yield a fair market price for the housing units, maximizing the value of taxpayer funds allocated for disaster relief.

Public Impact

Provides essential temporary housing for individuals and families displaced by natural disasters. Supports disaster recovery efforts by offering immediate shelter solutions. Geographic impact is primarily in areas affected by disasters, as indicated by the Louisiana award location. Workforce implications include jobs in manufacturing, logistics, and deployment of the housing units.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays in delivery impacting timely shelter provision.
Quality control of manufactured units to ensure habitability and safety.
Logistical challenges in transporting and setting up units at disaster sites.

Positive Signals

Addresses critical need for immediate housing post-disaster.
Fixed-price contract limits financial risk for the government.
Full and open competition suggests a competitive pricing structure.

Sector Analysis

The manufactured housing sector plays a crucial role in providing affordable and rapidly deployable housing solutions. This contract falls within the broader construction and manufacturing industries, specifically addressing the niche market of emergency and disaster relief housing. The total market for manufactured homes is significant, and government contracts like this represent a substantial portion, particularly during periods of increased natural disaster activity.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While GSH of Alabama LLC is the prime contractor, there is no explicit information on subcontracting plans with small businesses. Further analysis would be needed to determine if small businesses were involved in the supply chain or in the delivery and setup of these housing units.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The Department of Homeland Security and FEMA are responsible for monitoring contract performance and ensuring compliance with terms and conditions. The fixed-price nature of the contract provides a degree of financial oversight. Inspector General reviews may be initiated if performance issues or potential fraud are identified.

Related Government Programs

Disaster Housing Assistance Program
Emergency Management Performance Grants
Federal Disaster Relief Fund

Risk Flags

Potential for delivery delays impacting disaster victims.
Ensuring consistent quality and habitability of all housing units.
Logistical complexities of deployment to diverse disaster-affected areas.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $32.0 million to GSH OF ALABAMA LLC. PURCHASE AND DELIVERY OF 525 COMMERCIAL MANUFACTURED HOUSING UNITS

Who is the contractor on this award?

The obligated recipient is GSH OF ALABAMA 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 $32.0 million.

What is the period of performance?

Start: 2022-02-04. End: 2022-10-18.

What is the track record of GSH of Alabama LLC in fulfilling government contracts, particularly for disaster relief housing?

Information regarding GSH of Alabama LLC's specific track record with government contracts, especially for disaster relief housing, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes with similar procurements. Understanding their experience in rapid deployment and large-scale manufacturing of housing units is crucial for evaluating their capability to meet FEMA's needs effectively. Further research into their past performance on federal, state, and local contracts would be necessary to fully gauge their reliability and expertise in this domain.

How does the per-unit cost of these manufactured homes compare to market rates for similar housing in non-disaster contexts?

The per-unit cost of approximately $60,762 for these manufactured housing units is higher than typical market rates for standard manufactured homes purchased in non-disaster scenarios. This premium can be attributed to several factors inherent in disaster relief contracting: the urgency of the requirement, the need for expedited production and delivery, potential customization for specific disaster-related needs, and the logistical complexities of deployment to affected areas. While the cost is elevated compared to standard retail, it may be considered reasonable within the context of emergency response, where speed and availability are paramount. A detailed market analysis of emergency housing solutions would be needed for a precise comparison.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks include potential delays in manufacturing or delivery, which could hinder timely provision of shelter to displaced individuals. Quality control issues with the manufactured units are another concern, as the housing must be safe and habitable. Logistical challenges in transporting and setting up the units at diverse disaster sites also pose a risk. Mitigation strategies include the firm fixed-price contract type, which incentivizes the contractor to manage costs and timelines efficiently. FEMA's oversight and performance monitoring are critical for addressing quality and delivery issues. Clear specifications and inspection protocols should be in place to ensure unit quality. The contractor's experience and capacity are also key factors in mitigating these risks.

How effective has FEMA been in utilizing manufactured housing for disaster relief in the past, and what lessons have been learned?

FEMA has historically utilized manufactured housing as a critical component of its disaster housing strategy, particularly following large-scale events like Hurricanes Katrina and Sandy. Past experiences have highlighted both the effectiveness of manufactured housing in providing rapid shelter and the challenges associated with its deployment. Lessons learned often revolve around improving the speed of delivery, ensuring better site preparation and utility connections, enhancing the quality and durability of the units, and addressing the long-term needs of residents beyond temporary housing. FEMA continuously refines its processes based on these lessons to optimize the use of manufactured housing and other temporary solutions.

What is the historical spending pattern for manufactured housing by FEMA or DHS, and how does this contract compare?

FEMA's spending on manufactured housing can fluctuate significantly year-to-year, heavily influenced by the frequency and severity of natural disasters. In years with major hurricanes or other widespread events, spending on temporary housing solutions, including manufactured homes, can reach hundreds of millions or even billions of dollars. This $32 million contract for 525 units appears to be a significant but not unprecedented award, likely tied to specific disaster recovery efforts in a particular region (Louisiana). Comparing it to historical spending requires analyzing FEMA's disaster declarations and associated housing expenditures over several years to understand the typical scale and frequency of such procurements.

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4220 WEST SCHRIMSHER LANE WEST 1, HUNTSVILLE, AL, 35805

Business Categories: Category Business, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $31,960,395

Exercised Options: $31,960,395

Current Obligation: $31,960,395

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FB7021D00000010

IDV Type: IDC

Timeline