FEMA awards $26M contract to GPPC Inc. for 20 new homes in Northern Mariana Islands post-typhoon

Contract Overview

Contract Amount: $26,024,801 ($26.0M)

Contractor: Gppc Inc

Awarding Agency: Department of Homeland Security

Start Date: 2021-08-02

End Date: 2023-08-12

Contract Duration: 740 days

Daily Burn Rate: $35.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BRIEF DESCRIPTION OF WORK: THE CONTRACTOR SHALL PROVIDE ALL SUPERVISION, MATERIALS, LABOR, PERMITS, LICENSES, DESIGNS, AND EQUIPMENT NECESSARY TO BUILD 20 HOMES DESTROYED BY SUPER TYPHOON YUTU IN OCTOBER 2018. ALL HOMES WILL BE CONSTRUCTED IN ACCO

Place of Performance

Location: SAIPAN, SAIPAN County, NORTHERN MARIANA ISLANDS, 96950

Plain-Language Summary

Department of Homeland Security obligated $26.0 million to GPPC INC for work described as: BRIEF DESCRIPTION OF WORK: THE CONTRACTOR SHALL PROVIDE ALL SUPERVISION, MATERIALS, LABOR, PERMITS, LICENSES, DESIGNS, AND EQUIPMENT NECESSARY TO BUILD 20 HOMES DESTROYED BY SUPER TYPHOON YUTU IN OCTOBER 2018. ALL HOMES WILL BE CONSTRUCTED IN ACCO Key points: 1. Contract aims to rebuild housing stock following Super Typhoon Yutu, addressing critical infrastructure needs. 2. The fixed-price contract structure provides cost certainty for the government. 3. Delivery order model suggests this is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a specific task order. 4. The project duration of 740 days indicates a significant construction timeline. 5. Geographic focus on the Northern Mariana Islands highlights disaster recovery efforts in a specific region. 6. The contract was awarded under full and open competition after exclusion of sources, suggesting a specific justification for the procurement method.

Value Assessment

Rating: fair

The total contract value of $26,024,801.04 for 20 homes equates to approximately $1.3 million per home. This figure appears high for standard home construction and may reflect the complexities of disaster recovery, remote location, specialized building requirements, and the inclusion of all necessary permits, designs, and equipment. Benchmarking against typical new home construction costs would require detailed analysis of the specific requirements and location, but the per-unit cost warrants scrutiny.

Cost Per Unit: Approximately $1.3 million per home, which is high compared to typical new home construction costs. This may be justified by disaster recovery context, remote location, and comprehensive scope.

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This procurement method is unusual and suggests that while competition was sought, specific sources may have been excluded for reasons not immediately apparent from the data. Further investigation into the justification for excluding sources is needed to understand the competitive landscape and its potential impact on pricing and value.

Taxpayer Impact: The exclusion of sources, even within a competitive framework, could potentially limit price discovery and may not guarantee the most advantageous pricing for taxpayers.

Public Impact

Residents of the Northern Mariana Islands who lost homes due to Super Typhoon Yutu will benefit from new housing. The contract delivers essential housing infrastructure, contributing to community recovery and resilience. The geographic impact is concentrated in the Northern Mariana Islands, a U.S. territory. The project will likely involve local labor and subcontractors, providing economic stimulus to the region. The construction of 20 homes addresses a critical need for shelter and stability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost for home construction requires justification.
The 'exclusion of sources' in a competitive bid needs clarification.
Potential for cost overruns given the complexity of disaster recovery construction.
Logistical challenges in a remote island location could impact timelines and costs.

Positive Signals

Addresses critical post-disaster housing needs.
Fixed-price contract offers cost certainty.
Focus on rebuilding essential infrastructure in a vulnerable region.
Awarded through a competitive process, albeit with exclusions.

Sector Analysis

The construction sector, particularly in disaster recovery and public infrastructure, is characterized by large-scale projects often managed by federal agencies like FEMA. This contract fits within the broader category of public works and housing development, with specific challenges related to remote locations and post-disaster rebuilding efforts. Comparable spending benchmarks would typically be found in other federal disaster relief housing initiatives or large-scale construction projects in similar geographic or logistical environments.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. There is no explicit mention of subcontracting goals for small businesses. This suggests that the primary focus was on securing a qualified contractor for the large-scale construction, and the impact on the small business ecosystem may be indirect, potentially through opportunities for local suppliers or labor rather than direct subcontracting mandates.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. As a delivery order under a larger contract vehicle, oversight mechanisms would likely involve contract administration, performance monitoring, and quality assurance checks by FEMA officials. Transparency is generally maintained through contract award databases, but specific details on ongoing oversight and accountability measures would require deeper access to agency records. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

FEMA Disaster Housing Assistance
Public Housing Construction
Post-Typhoon Reconstruction Efforts
Department of Homeland Security Infrastructure Projects

Risk Flags

High per-unit cost
Unusual competition method ('exclusion of sources')
Remote geographic location
Post-disaster construction complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $26.0 million to GPPC INC. BRIEF DESCRIPTION OF WORK: THE CONTRACTOR SHALL PROVIDE ALL SUPERVISION, MATERIALS, LABOR, PERMITS, LICENSES, DESIGNS, AND EQUIPMENT NECESSARY TO BUILD 20 HOMES DESTROYED BY SUPER TYPHOON YUTU IN OCTOBER 2018. ALL HOMES WILL BE CONSTRUCTED IN ACCO

Who is the contractor on this award?

The obligated recipient is GPPC INC.

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 $26.0 million.

What is the period of performance?

Start: 2021-08-02. End: 2023-08-12.

What is the specific justification for excluding certain sources in this 'full and open competition after exclusion of sources' procurement?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' typically implies that while the solicitation was broadly advertised, specific pre-qualified or previously vetted sources were considered, and others were intentionally excluded based on predefined criteria. For disaster recovery projects, these exclusions might relate to a contractor's demonstrated experience in similar high-risk environments, specialized certifications, existing security clearances, or prior performance on related federal contracts. Without access to the solicitation documents or agency justifications, the precise reasons for exclusion remain unclear. This procurement method can sometimes raise concerns about whether the exclusion unduly limited competition, potentially impacting the final price and overall value achieved for the taxpayer. Further analysis would require reviewing the contract file and any associated Justification for Other than Full and Open Competition (JOFOC) if applicable.

How does the per-unit cost of approximately $1.3 million per home compare to similar disaster recovery housing projects managed by FEMA?

The per-unit cost of approximately $1.3 million for each home constructed under this FEMA contract is significantly higher than typical new home construction costs in most U.S. markets. However, disaster recovery projects, especially in remote or geographically isolated areas like the Northern Mariana Islands, often incur substantially higher expenses. Factors contributing to this elevated cost can include the need for specialized building materials resistant to extreme weather, complex logistics for transporting materials and equipment, higher labor costs due to limited local availability, stringent environmental and building code compliance in disaster zones, and the comprehensive scope which includes design, permits, and site preparation. To accurately benchmark this cost, it would be necessary to compare it with other FEMA housing projects in similar post-disaster, remote island environments, considering the specific scope of work and the prevailing economic conditions at the time of award.

What are the primary risks associated with constructing 20 homes in the Northern Mariana Islands following a major typhoon?

Constructing 20 homes in the Northern Mariana Islands post-Super Typhoon Yutu presents several significant risks. Firstly, logistical challenges are paramount; transporting materials, equipment, and personnel to a remote island location can be costly, time-consuming, and subject to disruptions from weather or shipping availability. Secondly, the construction itself faces risks related to adherence to stringent building codes designed for typhoon resilience, potentially requiring specialized materials and techniques that increase costs and complexity. Thirdly, labor availability could be a constraint, potentially driving up wages or necessitating the importation of skilled workers. Fourthly, unforeseen site conditions or environmental factors, exacerbated by the typhoon's impact, could lead to delays and cost overruns. Finally, ensuring the long-term durability and habitability of the homes in a high-risk environment requires robust quality control and oversight throughout the construction process.

What is the expected timeline for completion, and how does the 740-day duration align with typical reconstruction efforts?

The contract duration of 740 days, approximately two years, for the construction of 20 homes suggests a deliberate and potentially complex rebuilding process. This timeline aligns with the multifaceted nature of post-disaster reconstruction, which often involves extensive planning, permitting, procurement of specialized materials, and coordination of labor in challenging environments. Compared to standard new home construction, a two-year timeline for 20 units might seem lengthy, but it is likely influenced by the remote location, the need for typhoon-resistant construction standards, and the comprehensive scope of work encompassing design through completion. FEMA's disaster recovery projects often have extended timelines due to these factors, aiming for resilience and long-term sustainability rather than rapid, short-term deployment.

What is GPPC Inc.'s track record with FEMA or similar disaster recovery construction projects?

Information regarding GPPC Inc.'s specific track record with FEMA or similar large-scale disaster recovery construction projects is not detailed in the provided data. To assess their suitability and past performance, a review of their contract history with federal agencies, particularly FEMA, would be necessary. This would involve examining past performance evaluations, any documented issues or successes on similar projects, and their capacity to manage complex construction in challenging environments. Without this historical context, it is difficult to definitively evaluate their experience and reliability for this critical rebuilding effort. Publicly available contract databases and agency performance records would be the primary sources for such an assessment.

Industry Classification

NAICS: Construction › Residential Building Construction › New Housing For-Sale Builders

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 70FBR921R00000008

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: AS PERDIDO RD AS LITO, SAIPAN, MP, 96950

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,024,801

Exercised Options: $26,024,801

Current Obligation: $26,024,801

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FBR921D00000003

IDV Type: IDC

Timeline