FEMA's $281M manufactured housing contract awarded to Circle B Enterprises, Inc. for disaster relief

Contract Overview

Contract Amount: $280,878,482 ($280.9M)

Contractor: Circle B Enterprises, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2005-09-04

End Date: 2005-12-31

Contract Duration: 118 days

Daily Burn Rate: $2.4M/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MANUFACTURED HOUSING

Place of Performance

Location: OCILLA, IRWIN County, GEORGIA, 31774

State: Georgia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $280.9 million to CIRCLE B ENTERPRISES, INC. for work described as: MANUFACTURED HOUSING Key points: 1. Contract awarded non-competitively, raising questions about price discovery and potential value for money. 2. Limited competition may have led to higher costs compared to a more open bidding process. 3. The contract's duration and fixed-price nature suggest a defined scope, but performance risks remain. 4. Awarded during a period of high demand for disaster relief, potentially impacting pricing. 5. Circle B Enterprises, Inc. is the sole recipient, indicating a concentrated award. 6. The contract's value is substantial, requiring close scrutiny of performance and cost-effectiveness.

Value Assessment

Rating: questionable

The contract's value is difficult to benchmark due to its non-competitive nature and the specific context of disaster relief, which often involves expedited procurement and potentially higher costs. Without comparable contracts awarded under similar emergency conditions or through competitive bidding, assessing the true value for money is challenging. The fixed-price structure provides some cost certainty, but the absence of competition limits the ability to verify if the price reflects market rates or if it was inflated due to the circumstances of the award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a non-competitive delivery order, meaning it was not subject to a full and open competition. This approach is typically used in situations where only one source can fulfill the requirement, or in urgent circumstances. The lack of multiple bidders means there was no direct price comparison or negotiation against competing offers, which can limit the government's ability to secure the most favorable pricing.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. The government's ability to negotiate the best possible price was constrained by the sole-source award.

Public Impact

Disaster-affected populations in Georgia and potentially other areas benefit from the provision of manufactured housing. The contract delivers essential temporary housing solutions following natural disasters. Geographic impact is primarily focused on areas designated for disaster relief operations. The contract supports the manufacturing and delivery workforce involved in producing and distributing these homes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits price discovery and potential for cost savings.
High value of the contract necessitates rigorous oversight to ensure performance and prevent waste.
Awarded during a period of significant demand, which could inflate costs.
Lack of transparency in the sole-source justification requires careful review.

Positive Signals

Addresses critical need for housing in disaster-stricken areas.
Fixed-price contract provides some cost predictability.
Contract duration allows for sustained support during recovery efforts.

Sector Analysis

The manufactured housing sector plays a crucial role in providing affordable and rapidly deployable housing solutions, particularly in response to emergencies. This contract falls within the broader construction and manufacturing industries. The significant value of this single award highlights the substantial government investment in disaster relief housing. Comparable spending benchmarks are difficult to establish due to the unique nature of emergency procurements and the specific requirements of manufactured housing for disaster response.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a single large entity may limit opportunities for small businesses within the manufactured housing supply chain to participate directly in this federal contract.

Oversight & Accountability

Oversight of this contract would primarily fall under the Federal Emergency Management Agency (FEMA) and potentially the Department of Homeland Security's Inspector General. Given the non-competitive nature and significant value, robust oversight is crucial to ensure the contractor meets performance standards, delivers quality housing, and adheres to the contract terms. Transparency regarding the justification for the sole-source award and ongoing performance monitoring are key accountability measures.

Related Government Programs

Disaster Housing Assistance Program
Emergency Management and Assistance
Federal Procurement of Temporary Housing

Risk Flags

Non-competitive award
High contract value
Potential for cost overruns
Limited transparency in procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $280.9 million to CIRCLE B ENTERPRISES, INC.. MANUFACTURED HOUSING

Who is the contractor on this award?

The obligated recipient is CIRCLE B ENTERPRISES, 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 $280.9 million.

What is the period of performance?

Start: 2005-09-04. End: 2005-12-31.

What was the specific justification for awarding this contract on a non-competitive basis?

The provided data indicates the contract was a 'NON-COMPETITIVE DELIVERY ORDER'. Typically, such awards are justified under specific circumstances outlined in federal acquisition regulations, such as urgent and compelling needs where a delay resulting from competitive bidding would cause unacceptable delays or harm to the government's interests. In the context of disaster relief, FEMA often faces immediate and widespread housing needs that necessitate rapid procurement. The specific justification would likely detail the emergency situation, the inability to identify or contract with other sources in the required timeframe, and the critical need for manufactured housing to support disaster victims.

How does the contract's value compare to typical spending on manufactured housing for disaster relief?

Comparing this $281 million contract to typical spending is challenging without more granular data on historical disaster relief housing procurements. However, the sheer magnitude suggests it was likely awarded during or in response to a significant disaster event (or series of events) that created a substantial demand for temporary housing. Non-competitive awards, especially during emergencies, can sometimes result in higher per-unit costs than competitively procured housing due to urgency and limited vendor availability. Without specific unit counts and comparable competitive bids from similar periods, a precise value comparison is difficult, but the amount indicates a large-scale, critical response effort.

What are the primary risks associated with a non-competitive contract of this size?

The primary risks associated with a non-competitive contract of this magnitude include potential overpayment due to the lack of price competition, reduced incentive for the contractor to optimize costs or innovate, and a higher risk of performance issues if oversight is not rigorous. Without the pressure of competing bids, the government may not secure the best possible price or terms. Furthermore, ensuring the quality and timely delivery of a large volume of manufactured homes requires robust contract management and oversight to mitigate risks of delays, defects, or cost overruns, even under a fixed-price agreement.

What is the track record of Circle B Enterprises, Inc. in fulfilling large federal contracts, particularly for disaster relief?

Information on Circle B Enterprises, Inc.'s track record specifically for large federal contracts, especially in disaster relief, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other federal contract awards, and any reported issues or successes. Given this is a sole-source award of significant value, understanding their capacity, experience, and past performance in similar high-pressure situations is crucial for evaluating the likelihood of successful contract execution.

How does the contract's duration (118 days) align with the typical needs for disaster housing?

The contract duration of 118 days (approximately 4 months) suggests it was intended for relatively short-term, immediate housing needs following a disaster. This timeframe is typical for providing temporary shelter while more permanent housing solutions are sought or repairs are made. However, the effectiveness of this duration depends on the specific disaster's impact and the recovery timeline. If the need for temporary housing extended beyond this period, follow-on contracts or extensions would have been necessary, potentially involving further procurement actions.

Industry Classification

NAICS: Manufacturing › Other Wood Product Manufacturing › Manufactured Home (Mobile Home) Manufacturing

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

Competition & Pricing

Extent Competed: NON-COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 305 E 3RD ST, OCILLA, GA, 08

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $280,878,482

Exercised Options: $280,878,482

Current Obligation: $280,878,482

Parent Contract

Parent Award PIID: HSFEHQ05D4125

IDV Type: IDC

Timeline