DHS awarded $10.4M for travel trailers, a contract that was not competed

Contract Overview

Contract Amount: $10,383,385 ($10.4M)

Contractor: Dixie Motors, L.L.C.

Awarding Agency: Department of Homeland Security

Start Date: 2005-11-19

End Date: 2010-09-10

Contract Duration: 1,756 days

Daily Burn Rate: $5.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRAVEL TRAILERS

Place of Performance

Location: HAMMOND, TANGIPAHOA County, LOUISIANA, 70401

State: Louisiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $10.4 million to DIXIE MOTORS, L.L.C. for work described as: TRAVEL TRAILERS Key points: 1. The contract for travel trailers was awarded without competition, raising questions about potential value. 2. The duration of the contract (over 1700 days) suggests a long-term need for these assets. 3. The award was made to Dixie Motors, L.L.C., with the specific product code indicating recreational vehicle dealers. 4. The contract's value of over $10 million warrants scrutiny regarding pricing and necessity. 5. The lack of competition may have limited opportunities for better pricing or alternative solutions.

Value Assessment

Rating: questionable

Without a competitive bidding process, it is difficult to benchmark the value for money on this $10.4 million contract for travel trailers. The pricing cannot be assessed against market rates or similar contracts. The absence of competition suggests that taxpayers may not have received the best possible price for these goods. Further analysis would be needed to determine if the awarded price was reasonable in the absence of competitive pressure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This indicates that the agency likely identified a specific need that could only be met by a single provider, or that the circumstances did not allow for a competitive solicitation. The lack of multiple bidders means there was no direct price comparison or negotiation driven by market forces.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This also limits transparency in the procurement process.

Public Impact

The primary beneficiaries of this contract are likely federal agencies requiring temporary housing or transportation solutions, such as FEMA during disaster relief efforts. The services delivered include the provision of travel trailers, which can serve multiple purposes including emergency response, temporary housing, or logistical support. The geographic impact is not specified but likely relates to areas where FEMA or other DHS components operate. Workforce implications are minimal as this is a contract for goods, not services requiring significant labor from the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about price reasonableness and potential overpayment.
The long contract duration without competition could indicate a missed opportunity for cost savings through re-competition.
The specific need for travel trailers and the justification for a sole-source award are not detailed, creating a transparency gap.

Positive Signals

The contract addresses a specific need for travel trailers, likely for critical government functions.
The award was made to a dealer specializing in recreational vehicles, suggesting relevant expertise.

Sector Analysis

The procurement of travel trailers falls under the broader category of vehicle and equipment acquisition for government operations. This sector involves numerous dealers and manufacturers, and typically benefits from competitive bidding to ensure cost-effectiveness. The market size for such vehicles is substantial, driven by both commercial and government demand. This contract represents a specific instance of government purchasing within this market.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The sole-source nature of the award further suggests that small business participation was not a primary consideration in the procurement strategy.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer and agency procurement officials within FEMA. Transparency is limited due to the sole-source award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

FEMA Disaster Relief Funding
Government Vehicle Procurement
Emergency Response Equipment

Risk Flags

Lack of Competition
Potential for Unreasonable Price
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $10.4 million to DIXIE MOTORS, L.L.C.. TRAVEL TRAILERS

Who is the contractor on this award?

The obligated recipient is DIXIE MOTORS, L.L.C..

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 $10.4 million.

What is the period of performance?

Start: 2005-11-19. End: 2010-09-10.

What was the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified under circumstances such as urgent and compelling needs, unique capabilities of a single source, or when only one responsible source exists. Without further documentation from the Department of Homeland Security (DHS) or the Federal Emergency Management Agency (FEMA), it is impossible to ascertain the precise rationale. This lack of transparency is a common concern with sole-source procurements, as it can obscure whether competition was genuinely impossible or simply not pursued.

How does the awarded price compare to market rates for similar travel trailers during the contract period?

Direct comparison of the awarded price to market rates is challenging without knowing the exact specifications of the travel trailers procured under this $10.4 million contract. However, given that the contract was not competed, there is a heightened risk that the price may not reflect the most favorable market conditions. The duration of the contract (nearly five years) also means that market prices could have fluctuated significantly. A thorough analysis would require detailed specifications of the trailers and a benchmark against contemporary pricing from multiple dealers and manufacturers, ideally through a competitive process.

What was the intended use of these travel trailers by the Department of Homeland Security?

The data indicates the contract was awarded by the Department of Homeland Security (DHS) through the Federal Emergency Management Agency (FEMA). Travel trailers are commonly used by FEMA for disaster relief operations, providing temporary housing for individuals and families displaced by natural disasters. They can also be utilized for other logistical support functions, such as mobile command centers or temporary office spaces for emergency personnel. The substantial value and long duration suggest a significant or ongoing requirement for these assets within DHS's mission.

What is the track record of Dixie Motors, L.L.C. in fulfilling government contracts?

The provided data indicates that Dixie Motors, L.L.C. was awarded this specific contract for travel trailers. However, it does not offer details on their broader track record with government contracts, such as past performance ratings, previous contract values, or the types of goods and services they have supplied to federal agencies. To assess their track record, one would need to consult additional government contracting databases or agency performance reviews. The fact that this was a sole-source award might suggest a pre-existing relationship or a specific capability that led to this direct award.

Were there any performance metrics or delivery schedules associated with this contract?

The provided data includes the start date (2005-11-19) and end date (2010-09-10), indicating a duration of 1756 days, which is approximately 4.8 years. This suggests a long-term delivery or availability requirement. However, the data does not specify detailed performance metrics, milestones, or specific delivery schedules for the travel trailers. Such details are typically outlined in the contract's statement of work or delivery terms. Without this information, it's difficult to assess how effectively the contractor met the agency's needs beyond the overall contract period.

Industry Classification

NAICS: Retail Trade › Other Motor Vehicle Dealers › Recreational Vehicle Dealers

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 318 N MORRISON BLVD, HAMMOND, LA, 90

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,383,385

Exercised Options: $10,383,385

Current Obligation: $10,383,385

Contract Characteristics

Cost or Pricing Data: NO

Timeline