FEMA awards $11.4M contract for Mississippi disaster housing logistics and maintenance services

Contract Overview

Contract Amount: $11,358,424 ($11.4M)

Contractor: Disaster Solutions Alliance, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-05-19

End Date: 2025-05-18

Contract Duration: 730 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: LOGISTICS HOUSING OPERATIONS UNIT INSTALLATION, MAINTENANCE AND DEACTIVATION - LOGHOUSE HAULING AND INSTALLING (H&I) AND MAINTENANCE AND DEACTIVATION (M&D) SERVICES UP TO 250 UNITS, CONSTRUCTION IN SUPPORT OF DR-4697-MS IN MISSISSIPPI

Place of Performance

Location: AMORY, MONROE County, MISSISSIPPI, 38821

State: Mississippi Government Spending

Plain-Language Summary

Department of Homeland Security obligated $11.4 million to DISASTER SOLUTIONS ALLIANCE, LLC for work described as: LOGISTICS HOUSING OPERATIONS UNIT INSTALLATION, MAINTENANCE AND DEACTIVATION - LOGHOUSE HAULING AND INSTALLING (H&I) AND MAINTENANCE AND DEACTIVATION (M&D) SERVICES UP TO 250 UNITS, CONSTRUCTION IN SUPPORT OF DR-4697-MS IN MISSISSIPPI Key points: 1. Contract focuses on essential post-disaster housing support, including installation, maintenance, and deactivation. 2. Services are critical for disaster recovery efforts, particularly in response to DR-4697-MS. 3. The contract utilizes a firm-fixed-price structure, providing cost certainty for the government. 4. Awarded to Disaster Solutions Alliance, LLC, a company with a role in disaster response. 5. The duration of the contract is two years, ensuring sustained support. 6. Geographic focus on Mississippi highlights the specific needs of the affected region.

Value Assessment

Rating: good

The contract value of $11.4 million for up to 250 housing units over two years appears reasonable given the scope of disaster recovery services. Benchmarking against similar disaster response contracts is challenging due to the unique and often urgent nature of these procurements. However, the firm-fixed-price structure suggests an effort to control costs. The base award amount of $1.56 million provides an initial commitment, with the remaining value representing potential task orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of four bidders suggests a competitive environment, which generally leads to better pricing and service offerings for the government. The specific details of the bidding process and the number of proposals received would provide further insight into the strength of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and encourages a wider pool of qualified contractors to participate, ensuring the government receives the best value.

Public Impact

Disaster-affected residents in Mississippi will benefit from timely and efficient housing solutions. Services include the installation, maintenance, and deactivation of temporary housing units. The geographic impact is concentrated in Mississippi, addressing specific recovery needs. Supports the workforce involved in disaster response and construction services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if disaster needs exceed initial projections.
Dependence on a single contractor for critical post-disaster housing functions.
Ensuring timely and effective maintenance across potentially dispersed housing units.

Positive Signals

Clear focus on essential disaster recovery services.
Firm-fixed-price contract provides cost predictability.
Awarded through full and open competition, suggesting market validation.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically addressing the logistical and operational needs for temporary housing in disaster scenarios. The market for disaster recovery services is often characterized by urgent demand and specialized capabilities. While direct spending benchmarks for this niche are difficult to isolate, the overall construction and facilities maintenance market is substantial, with government contracts forming a significant portion.

Small Business Impact

The data indicates that this contract was not set aside for small businesses and the prime contractor, Disaster Solutions Alliance, LLC, is not explicitly identified as a small business in this context. There is no information provided regarding subcontracting plans or opportunities for small businesses within this award. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Emergency Management Agency (FEMA) contracting officers and program managers. Performance will be monitored against the terms of the firm-fixed-price delivery order, with regular reporting and inspections expected. Transparency is facilitated through contract award databases, though detailed performance metrics are typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Disaster Housing Assistance Programs
Temporary Housing Unit Procurement
Post-Disaster Infrastructure Support
Emergency Management Services

Risk Flags

Potential for performance issues in remote or difficult-to-access disaster areas.
Risk of cost escalation if unforeseen disaster impacts require more units or services than initially planned.
Dependence on contractor's ability to mobilize resources quickly in emergency situations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11.4 million to DISASTER SOLUTIONS ALLIANCE, LLC. LOGISTICS HOUSING OPERATIONS UNIT INSTALLATION, MAINTENANCE AND DEACTIVATION - LOGHOUSE HAULING AND INSTALLING (H&I) AND MAINTENANCE AND DEACTIVATION (M&D) SERVICES UP TO 250 UNITS, CONSTRUCTION IN SUPPORT OF DR-4697-MS IN MISSISSIPPI

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 $11.4 million.

What is the period of performance?

Start: 2023-05-19. End: 2025-05-18.

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

Information regarding the specific track record of Disaster Solutions Alliance, LLC in handling similar disaster response contracts is not detailed in the provided data. While the company name suggests a focus on disaster solutions, a comprehensive review would require examining past performance evaluations, contract history with federal agencies, and any reported successes or challenges in executing large-scale logistics and installation projects. Understanding their experience with FEMA or other disaster relief organizations would be crucial for assessing their capability to fulfill this contract effectively. Without this historical data, it is difficult to definitively gauge their reliability and expertise in this specialized area.

How does the awarded amount compare to the estimated cost for similar disaster housing logistics services?

The provided data indicates a contract award of $11.4 million for logistics, installation, maintenance, and deactivation of up to 250 housing units. Direct cost comparisons for similar disaster housing services are inherently difficult due to the variable nature of disaster response, including urgency, geographic spread, and specific unit types. However, the firm-fixed-price structure suggests that the government sought to establish a predictable cost ceiling. The base award of approximately $1.56 million provides an initial commitment, with the remaining value available through delivery orders. A thorough benchmark would require analyzing historical FEMA contracts for similar services in comparable disaster events, considering factors like per-unit installation and monthly maintenance costs.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks for this contract include potential delays in installation and maintenance due to unforeseen logistical challenges in disaster-affected areas, the possibility of scope expansion beyond the initial 250 units if the disaster's impact is greater than anticipated, and ensuring the quality and timeliness of services across potentially dispersed locations. Mitigation strategies likely involve robust project management by FEMA, clear performance standards outlined in the contract, and the firm-fixed-price nature which incentivizes the contractor to manage costs efficiently. The two-year duration allows for sustained support but also requires ongoing monitoring to ensure continued effectiveness and contractor performance.

How effective is the firm-fixed-price contract type in ensuring value for money in disaster response scenarios?

The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money by shifting the risk of cost overruns to the contractor. This structure incentivizes the contractor to control costs and perform efficiently, as any savings achieved benefit them directly. In disaster response, where speed and predictability are crucial, FFP provides the government with a clear understanding of the maximum expenditure. However, it can also lead to higher initial bid prices as contractors may factor in contingencies for unforeseen issues. For services like housing installation and maintenance, where the scope can be somewhat defined (up to 250 units), FFP offers a good balance of cost control and performance incentive, provided the requirements are well-defined.

What is the historical spending pattern for disaster housing logistics and maintenance by FEMA in Mississippi?

Historical spending patterns for disaster housing logistics and maintenance by FEMA in Mississippi are not detailed in the provided data. To assess this, one would need to examine FEMA's contract databases and historical reports, looking for previous awards related to housing support, installation, maintenance, and deactivation services specifically within Mississippi. Analyzing spending trends over time, particularly in the aftermath of significant weather events or declared disasters in the state, would reveal patterns in contract values, durations, and the types of services procured. This historical context is essential for understanding whether the current $11.4 million award is consistent with past investments or represents a significant shift in resource allocation for disaster recovery housing.

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

Solicitation ID: 70FBR423R00000040

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: $14,557,669

Exercised Options: $11,358,424

Current Obligation: $11,358,424

Actual Outlays: $10,628,379

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $9,451,356

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FB8018D00000012

IDV Type: IDC

Timeline