DHS FEMA awards $30,000 lease for temporary housing in Kentucky, with a 180-day term

Contract Overview

Contract Amount: $30,000 ($30.0K)

Contractor: RAY LEE Holdings, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2026-01-10

End Date: 2026-07-09

Contract Duration: 180 days

Daily Burn Rate: $167/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FIRM FIXED PRICE PURCHASE ORDER - LEASE COMMERCIAL PADS LOCATED AT HIDDEN MOUNTAIN ATV, BELFRY, KENTUCKY IN SUPPORT OF THE DIRECT HOUSING IN THE STATE OF KENTUCKY.

Place of Performance

Location: BELFRY, PIKE County, KENTUCKY, 41514

State: Kentucky Government Spending

Plain-Language Summary

Department of Homeland Security obligated $30,000 to RAY LEE HOLDINGS, LLC for work described as: FIRM FIXED PRICE PURCHASE ORDER - LEASE COMMERCIAL PADS LOCATED AT HIDDEN MOUNTAIN ATV, BELFRY, KENTUCKY IN SUPPORT OF THE DIRECT HOUSING IN THE STATE OF KENTUCKY. Key points: 1. Lease agreement for temporary housing facilities secured at a fixed price. 2. Contract duration is 180 days, indicating a short-term need. 3. The award was made under Simplified Acquisition Procedures (SAP), suggesting a focus on efficiency for smaller procurements. 4. The North American Industry Classification System (NAICS) code 721199 points to accommodation services beyond traditional hotels. 5. The contract is not set aside for small businesses, but subcontracting opportunities may exist. 6. The geographic focus is on Belfry, Kentucky, supporting direct housing initiatives.

Value Assessment

Rating: fair

The lease cost of $30,000 for 180 days equates to approximately $167 per day. Without specific details on the size, amenities, or capacity of the leased commercial pads, a direct comparison to similar contracts is challenging. However, the daily rate appears reasonable for temporary accommodation, especially considering potential emergency or disaster relief contexts. The firm fixed-price nature of the contract provides cost certainty for the government.

Cost Per Unit: $167 per day (estimated)

Competition Analysis

Competition Level: unknown

This contract was competed under Simplified Acquisition Procedures (SAP), which are designed for procurements below a certain threshold (typically $250,000). While SAP allows for competition, it often involves fewer bidders and less formal solicitation processes compared to full and open competition. The specific number of bidders is not provided, but the use of SAP suggests a streamlined approach rather than extensive market outreach.

Taxpayer Impact: Using SAP can lead to faster award times and potentially lower administrative costs for taxpayers. However, the reduced competition might mean that the government does not always secure the absolute lowest price achievable through a broader bidding process.

Public Impact

Individuals requiring temporary housing in the Belfry, Kentucky area will benefit from this lease. The services delivered include the provision of commercial pads for accommodation purposes. The geographic impact is localized to Belfry, Kentucky, and surrounding areas needing direct housing support. This contract supports the Federal Emergency Management Agency's (FEMA) mission to provide disaster relief and housing assistance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to SAP may not yield the best possible price.
Lack of detail on the specific services and capacity of the leased pads makes full value assessment difficult.
Short contract duration could lead to recurring procurement costs if long-term needs arise.

Positive Signals

Firm fixed-price contract provides cost certainty.
Supports critical housing needs in Kentucky.
Streamlined procurement process through SAP can ensure timely delivery of services.

Sector Analysis

The accommodation and lodging sector (NAICS 721) encompasses a wide range of services, from hotels to specialized lodging. This contract falls under 'All Other Traveler Accommodation,' suggesting a non-traditional or specialized form of housing. The market for temporary or emergency housing can fluctuate significantly based on disaster events or specific government needs. The $30,000 award is relatively small within the broader federal contracting landscape, indicative of a localized, short-term requirement.

Small Business Impact

This contract was not specifically set aside for small businesses. While the procurement was conducted under Simplified Acquisition Procedures, which can sometimes include small business preferences, the data indicates no such set-aside was applied. This means that larger businesses could also compete. There is no explicit information on subcontracting plans, but given the nature and value of the contract, significant subcontracting is less likely unless the prime contractor is a larger entity outsourcing specific services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and the Federal Emergency Management Agency (FEMA). As a purchase order, it is subject to standard procurement regulations and internal agency review processes. Transparency is facilitated by public contract databases, though detailed operational oversight specifics are not provided. The Inspector General for DHS would have jurisdiction for investigations into fraud, waste, or abuse related to this award.

Related Government Programs

FEMA Disaster Relief Programs
Temporary Housing Solutions
Federal Emergency Management Agency Contracts
Department of Homeland Security Leases

Risk Flags

Potential for increased costs if housing needs extend beyond 180 days.
Limited competition under SAP may not guarantee the lowest price.
Lack of detailed specifications for 'commercial pads' could lead to suitability issues.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $30,000 to RAY LEE HOLDINGS, LLC. FIRM FIXED PRICE PURCHASE ORDER - LEASE COMMERCIAL PADS LOCATED AT HIDDEN MOUNTAIN ATV, BELFRY, KENTUCKY IN SUPPORT OF THE DIRECT HOUSING IN THE STATE OF KENTUCKY.

Who is the contractor on this award?

The obligated recipient is RAY LEE HOLDINGS, 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 $30,000.

What is the period of performance?

Start: 2026-01-10. End: 2026-07-09.

What is the track record of RAY LEE HOLDINGS, LLC with federal contracts, particularly with FEMA or DHS?

Information regarding RAY LEE HOLDINGS, LLC's specific track record with federal contracts, especially with FEMA or DHS, is not detailed in the provided data. A comprehensive analysis would require searching federal procurement databases like SAM.gov or FPDS to identify past awards, performance history, and any reported issues. Without this historical data, it's difficult to assess their experience level and reliability for this specific lease agreement. Future performance can be inferred from past behavior, making this a crucial area for deeper investigation if more contracts with this vendor were anticipated.

How does the daily lease rate of approximately $167 compare to market rates for similar temporary accommodation in rural Kentucky?

The estimated daily lease rate of $167 for commercial pads in Belfry, Kentucky, requires context for a precise market comparison. Rural areas often have different pricing structures than urban centers. Factors such as the size of the pads, included utilities, security, and the specific amenities offered would significantly influence the rate. Without knowing these specifics, comparing it to standard hotel rates or other temporary housing solutions in the region is difficult. However, for emergency or disaster-related temporary housing, rates can sometimes be higher due to urgency and limited availability. A more accurate benchmark would involve researching local commercial real estate listings or similar government leases in comparable rural Kentucky locations.

What are the specific risks associated with a short-term (180-day) lease for temporary housing?

Short-term leases, like this 180-day agreement, carry several risks. Firstly, there's the risk of continuity; if the need for housing extends beyond the contract period, a new, potentially more expensive or time-consuming procurement process will be necessary. This could lead to gaps in service. Secondly, frequent short-term contracts can sometimes be less cost-effective than longer-term agreements, as administrative costs for repeated solicitations and award processes are incurred. Lastly, if the leased property is not adequately maintained or if the provider's performance is subpar, the government may face challenges in addressing issues within the limited timeframe, potentially impacting the beneficiaries of the housing.

What is the expected effectiveness of this contract in supporting FEMA's direct housing mission in Kentucky?

The effectiveness of this contract hinges on its ability to provide timely and suitable accommodation for individuals displaced or in need of direct housing in the Belfry, Kentucky area. As a firm fixed-price lease for commercial pads, it offers a predictable cost for a defined period. Its success will be measured by whether the leased space meets the required standards for temporary housing and if it is utilized efficiently to house the intended beneficiaries. The short duration suggests it's a stop-gap measure, so its effectiveness is tied to its role within a larger, potentially longer-term housing strategy for the region.

What are historical spending patterns for similar temporary housing leases by FEMA in Kentucky or surrounding states?

Analyzing historical spending patterns for similar temporary housing leases by FEMA in Kentucky and surrounding states would provide valuable context. This would involve examining past contract awards for lease agreements, modular housing, or other temporary shelter solutions, noting their duration, cost, and the circumstances (e.g., disaster declarations) under which they were awarded. Such analysis could reveal trends in pricing, typical contract durations, and the types of providers FEMA frequently engages. Without access to this historical data, it's challenging to definitively state whether the current $30,000 award for 180 days is consistent with past FEMA practices or represents an outlier in terms of cost or duration for similar needs.

Industry Classification

NAICS: Accommodation and Food Services › Traveler Accommodation › All Other Traveler Accommodation

Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 35 OAKRIDGE ESTATES RD, DANVILLE, WV, 25053

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $45,000

Exercised Options: $30,000

Current Obligation: $30,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline