FEMA Awards $158M for Travel Trailers to Freedom Roads, LLC Under SAP
Contract Overview
Contract Amount: $15,813,012 ($15.8M)
Contractor: Freedom Roads, LLC
Awarding Agency: Department of Homeland Security
Start Date: 2005-09-10
End Date: 2005-10-31
Contract Duration: 51 days
Daily Burn Rate: $310.1K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TRAILERS
Place of Performance
Location: NAPPANEE, ELKHART County, INDIANA, 46550
State: Indiana Government Spending
Plain-Language Summary
Department of Homeland Security obligated $15.8 million to FREEDOM ROADS, LLC for work described as: TRAILERS Key points: 1. Significant award value of $158.13 million for travel trailers. 2. Contract competed under Simplified Acquisition Procedures (SAP), suggesting potential for limited competition. 3. Awarded to Freedom Roads, LLC, a single vendor. 4. The contract duration is 51 days, indicating a short-term need.
Value Assessment
Rating: questionable
The award value is substantial, but the lack of detailed pricing information and the use of SAP make it difficult to assess value for money. Benchmarking against similar contracts is challenging without more data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP, which typically involves simplified procedures and may limit the pool of potential bidders. This method can impact price discovery and potentially lead to higher prices compared to full and open competition.
Taxpayer Impact: The $158 million expenditure represents a significant taxpayer investment. Without clear evidence of competitive pricing, there's a risk of inefficient use of funds.
Public Impact
Emergency preparedness: The trailers are likely for disaster relief or emergency housing, impacting affected populations. Economic impact: Supports the manufacturing sector and employment for Freedom Roads, LLC. Government logistics: Requires efficient distribution and management of the awarded trailers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to SAP
- Lack of detailed pricing justification
- Short contract duration may indicate urgency or limited scope
Positive Signals
- Addresses a potential need for emergency shelter
- Awarded to a specific company, potentially streamlining delivery
Sector Analysis
The award falls within the manufacturing and logistics sector, specifically for emergency response equipment. Spending benchmarks for similar large-scale trailer procurements are not readily available, but the value suggests a significant operational requirement.
Small Business Impact
The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
Oversight would focus on contract performance, delivery timelines, and ensuring the trailers meet specifications. The use of SAP may require additional diligence to ensure fair pricing and accountability.
Related Government Programs
- Travel Trailer and Camper Manufacturing
- Department of Homeland Security Contracting
- Federal Emergency Management Agency Programs
Risk Flags
- Potential for overpayment due to limited competition under SAP.
- Lack of transparency regarding the specific justification for price reasonableness.
- Short contract duration may indicate rushed decision-making or insufficient planning.
- No clear indication of small business participation.
- Uncertainty about the long-term value and utility of the procured assets.
Tags
travel-trailer-and-camper-manufacturing, department-of-homeland-security, in, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $15.8 million to FREEDOM ROADS, LLC. TRAILERS
Who is the contractor on this award?
The obligated recipient is FREEDOM ROADS, 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 $15.8 million.
What is the period of performance?
Start: 2005-09-10. End: 2005-10-31.
What was the specific emergency or operational need driving this large trailer procurement?
The specific need is not detailed in the provided data. However, given the agency (FEMA) and the product (travel trailers), it is highly probable that this procurement was related to disaster relief efforts, such as providing temporary housing for individuals displaced by natural disasters or other emergencies. The short duration also suggests a rapid deployment requirement.
How was the price determined to be fair and reasonable under SAP for this $158 million award?
Under Simplified Acquisition Procedures (SAP), agencies are permitted to use various methods to determine price reasonableness, including comparing prices with previous purchases, catalog prices, or market research. However, for an award of this magnitude, the specific justification for price reasonableness would ideally be documented and accessible to ensure taxpayer value was achieved, especially given the limited competition.
What is the expected lifespan and utility of these trailers beyond the initial contract period?
The provided data does not specify the intended lifespan or long-term utility of the trailers. Typically, emergency response trailers are designed for temporary use, but their durability can vary. Information regarding maintenance, potential for repurposing, or disposal plans would be crucial for a complete assessment of their long-term value and impact.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Travel Trailer and Camper Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
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: LINCOLNSHIRE, IN
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $15,813,012
Exercised Options: $15,813,012
Current Obligation: $15,813,012
Timeline
Start Date: 2005-09-10
Current End Date: 2005-10-31
Potential End Date: 2005-10-31 00:00:00
Last Modified: 2012-01-31
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