FEMA awards $29.2M for 642 manufactured homes, exceeding unit cost benchmarks

Contract Overview

Contract Amount: $29,221,960 ($29.2M)

Contractor: Scotbilt Homes, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2011-09-09

End Date: 2011-12-15

Contract Duration: 97 days

Daily Burn Rate: $301.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MANUFACTURE OF 3 BEDROOM UNITS - 642

Place of Performance

Location: WAYCROSS, WARE County, GEORGIA, 31503

State: Georgia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $29.2 million to SCOTBILT HOMES, LLC for work described as: MANUFACTURE OF 3 BEDROOM UNITS - 642 Key points: 1. High per-unit cost for manufactured homes suggests potential overspending. 2. Competition method may have limited price discovery, impacting value. 3. Significant taxpayer investment in temporary housing solutions. 4. Sector context: Disaster relief housing procurement can be complex and costly.

Value Assessment

Rating: questionable

The average unit cost of $45,517 significantly exceeds typical manufactured home prices. This suggests potential overpricing given the scale and nature of the units.

Cost Per Unit: $45,517

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited initial competition. This method may have restricted the pool of bidders and potentially led to less competitive pricing.

Taxpayer Impact: The high per-unit cost for these temporary housing units represents a substantial expenditure of taxpayer funds, raising concerns about overall value for money.

Public Impact

Provides essential temporary housing for disaster victims. Supports recovery efforts in affected communities. Represents a significant federal investment in disaster response infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost
Limited competition method
Potential for cost overruns

Positive Signals

Addresses critical housing needs post-disaster
Timely delivery of essential services

Sector Analysis

The procurement falls within the construction and manufacturing sector, specifically for disaster relief housing. Benchmarks for manufactured homes vary widely, but this contract's per-unit cost appears elevated.

Small Business Impact

The data does not indicate any specific set-aside for small businesses, suggesting a lack of direct small business participation in this large contract.

Oversight & Accountability

Oversight of the contract's execution and quality control is crucial to ensure the manufactured homes meet FEMA's standards and provide adequate shelter.

Related Government Programs

Manufactured Home (Mobile Home) Manufacturing
Department of Homeland Security Contracting
Federal Emergency Management Agency Programs

Risk Flags

High unit cost compared to market rates
Limited competition methodology
Potential for cost overruns due to urgency
Lack of small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $29.2 million to SCOTBILT HOMES, LLC. MANUFACTURE OF 3 BEDROOM UNITS - 642

Who is the contractor on this award?

The obligated recipient is SCOTBILT HOMES, 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 $29.2 million.

What is the period of performance?

Start: 2011-09-09. End: 2011-12-15.

What factors contributed to the significantly high per-unit cost for these manufactured homes?

The high per-unit cost could be attributed to several factors, including expedited delivery requirements, specific customization needs for disaster relief, transportation logistics to remote or damaged areas, and potentially limited competition that allowed for higher pricing. A thorough review of the contract's specifications and the bidding process is needed to pinpoint the exact cost drivers.

How did the 'exclusion of sources' impact the final price and overall value for taxpayers?

Excluding certain sources from the initial competition likely reduced the number of potential bidders, thereby limiting price discovery and potentially leading to a higher final price than if full and open competition had been maintained. This could mean taxpayers paid a premium for the housing units.

What measures were in place to ensure the effectiveness and durability of these manufactured homes as temporary housing?

Effectiveness and durability would typically be ensured through detailed contract specifications regarding materials, construction standards, and performance requirements. Post-delivery inspections and a warranty period are also standard mechanisms to verify quality and address any defects, ensuring the homes serve their intended purpose.

Industry Classification

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

Product/Service Code: PREFAB STRUCTURES/SCAFFOLDING

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2888 FULFORD RD, WAYCROSS, GA, 01

Business Categories: Category Business, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $29,221,960

Exercised Options: $29,221,960

Current Obligation: $29,221,960

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSFEHQ09D1501

IDV Type: IDC

Timeline