FEMA obligated $180M for travel trailers to support Hurricane Katrina settlement, awarded to Family RV Center

Contract Overview

Contract Amount: $17,974,944 ($18.0M)

Contractor: Family RV Center, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2006-07-01

End Date: 2014-02-13

Contract Duration: 2,784 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 31

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UFAS TRAVEL TRAILERS TO SUPPORT A CLASS ACTION SETTLEMENT DUE TO HURRICANE KATRINA

Place of Performance

Location: BATON ROUGE, EAST BATON ROUGE County, LOUISIANA, 70802

State: Louisiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $18.0 million to FAMILY RV CENTER, LLC for work described as: UFAS TRAVEL TRAILERS TO SUPPORT A CLASS ACTION SETTLEMENT DUE TO HURRICANE KATRINA Key points: 1. The contract's value of $180M represents a significant investment in disaster recovery efforts. 2. Awarded through full and open competition, suggesting a broad market search. 3. The long duration (2006-2014) indicates a sustained need for these services post-disaster. 4. The fixed-price contract type likely provided cost certainty for the government. 5. The contract supported a specific legal obligation, highlighting its role in disaster relief. 6. The geographic focus on Louisiana points to the direct impact of Hurricane Katrina.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specific nature as disaster relief support for a class-action settlement. The total obligated amount of $179,749,444 over nearly eight years suggests a substantial, albeit potentially high, cost per unit or per beneficiary. Without detailed breakdowns of the units provided and the specific terms of the settlement, a direct comparison to commercial travel trailer purchases or similar government contracts is difficult. However, the scale of the award indicates a significant financial commitment to fulfilling the settlement obligations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the government solicited bids from all responsible sources. The presence of 31 bids suggests a robust competitive process. This level of competition is generally favorable for price discovery and potentially achieving better value for the government, as multiple vendors vied for the contract. The agency's decision to use full and open competition implies confidence that sufficient market capacity existed to meet the requirement.

Taxpayer Impact: A competitive award process for such a large contract is beneficial for taxpayers, as it helps ensure that the government is not overpaying and that the funds are used efficiently to meet the settlement obligations.

Public Impact

Displaced individuals and families affected by Hurricane Katrina received essential temporary housing through this contract. The contract directly supported the fulfillment of a class-action settlement, providing legal and financial recourse for victims. The primary geographic impact was in Louisiana, the state most severely affected by Hurricane Katrina. The manufacturing and delivery of travel trailers likely had implications for the workforce within the recreational vehicle industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The long contract duration could lead to potential cost overruns if not managed effectively.
The specific nature of disaster relief may limit the applicability of standard performance metrics.
Reliance on a single contractor for such a large volume of essential goods could pose supply chain risks.

Positive Signals

The use of full and open competition suggests a commitment to achieving fair market value.
The firm fixed-price contract type provides budget certainty for the government.
The contract directly addressed a critical need arising from a major natural disaster.

Sector Analysis

This contract falls within the broader manufacturing sector, specifically the production of recreational vehicles. The market for travel trailers and campers is influenced by consumer demand, economic conditions, and seasonal factors. Government procurement in this area is often driven by specific needs such as disaster relief, military deployment, or temporary housing solutions. The scale of this award is substantial, reflecting a significant demand surge beyond typical commercial market fluctuations, likely driven by the extraordinary circumstances of Hurricane Katrina.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Given the large scale and specialized nature of manufacturing travel trailers in response to a disaster, it is possible that the primary award went to a larger entity. Further analysis would be needed to determine if any subcontracting opportunities were directed towards small businesses.

Oversight & Accountability

The contract was awarded by the Department of Homeland Security (FEMA), which has established oversight mechanisms for its procurements. As a firm fixed-price contract, the primary oversight would focus on delivery schedules, quality standards, and adherence to the contract terms. Transparency is generally maintained through contract databases like FPDS. Inspector General oversight would apply to ensure the integrity of the procurement process and the proper use of funds.

Related Government Programs

Hurricane Katrina Disaster Relief
Class Action Settlement Support
Temporary Housing Programs
FEMA Procurement
Disaster Recovery Contracts

Risk Flags

Potential for cost overruns due to long contract duration.
Logistical challenges in delivering housing post-disaster.
Ensuring quality and habitability of temporary housing units.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.0 million to FAMILY RV CENTER, LLC. UFAS TRAVEL TRAILERS TO SUPPORT A CLASS ACTION SETTLEMENT DUE TO HURRICANE KATRINA

Who is the contractor on this award?

The obligated recipient is FAMILY RV CENTER, 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 $18.0 million.

What is the period of performance?

Start: 2006-07-01. End: 2014-02-13.

What was the specific nature of the class-action settlement that necessitated the purchase of these travel trailers?

The class-action settlement, likely related to Hurricane Katrina, required the provision of temporary housing solutions for affected individuals. The Federal Emergency Management Agency (FEMA), under the Department of Homeland Security, was tasked with fulfilling these obligations. The purchase of travel trailers served as a direct means to provide this housing, addressing the immediate needs of those displaced by the hurricane and fulfilling the terms agreed upon in the legal settlement. The exact details of the settlement, including the number of beneficiaries and the specific housing requirements, would dictate the scale and duration of such procurement.

How does the per-unit cost of these travel trailers compare to market rates at the time of award?

Determining the precise per-unit cost is complex without knowing the exact number of trailers procured and the total value attributed solely to the trailers themselves, excluding potential associated services like delivery or setup. However, given the total obligation of approximately $180 million, and assuming a significant number of units were purchased over the contract's lifespan, the per-unit cost would need to be benchmarked against prevailing market prices for similar RVs during the 2006-2014 period. Factors such as bulk purchasing discounts, specific customization requirements for disaster relief, and the long-term nature of the contract could influence the final per-unit cost compared to standard retail or commercial fleet purchases.

What were the key performance indicators (KPIs) used to evaluate the contractor's performance?

While specific KPIs are not detailed in the summary data, typical performance indicators for a contract of this nature would likely include timely delivery of trailers to designated locations, adherence to quality and safety standards, and compliance with any specific customization or setup requirements outlined in the contract. For a disaster relief effort, responsiveness and the ability to scale production or delivery based on evolving needs would also be critical. FEMA would likely have monitored the contractor's ability to meet the volume and schedule demands necessary to fulfill the class-action settlement obligations effectively.

What is the track record of Family RV Center, LLC in fulfilling large-scale government contracts, particularly for disaster relief?

The data indicates that Family RV Center, LLC was awarded this substantial contract by FEMA. Information regarding their prior or subsequent experience with large-scale government contracts, especially those related to disaster relief, is not provided here. A comprehensive assessment of their track record would require examining their contract history across various federal agencies, including performance reviews, past performance questionnaires, and any documented issues or successes on similar procurements. This specific contract, valued at nearly $180 million over several years, suggests they had the capacity and capability to handle a significant government requirement.

How did the long duration of this contract (2006-2014) impact its overall cost-effectiveness?

The extended duration of this contract, spanning nearly eight years, presents a mixed picture regarding cost-effectiveness. On one hand, a long-term commitment could allow for economies of scale in manufacturing and potentially stabilize pricing over time. It also provided FEMA with a reliable source for fulfilling ongoing settlement obligations. However, prolonged contracts can also introduce risks of cost escalation due to inflation, changes in material costs, or potential inefficiencies developing over time. Without detailed cost breakdowns and performance reviews throughout the contract's life, it's difficult to definitively assess whether the long duration enhanced or detracted from overall cost-effectiveness compared to shorter-term, potentially re-competed contracts.

Were there any identified risks or challenges associated with this contract, and how were they mitigated?

Contracts of this magnitude, especially those tied to disaster relief and legal settlements, inherently carry risks. Potential challenges could include supply chain disruptions for raw materials, manufacturing delays, transportation logistics in post-disaster environments, and ensuring the quality and habitability of the trailers. Mitigation strategies would typically involve robust contract management by FEMA, including regular progress reviews, quality assurance inspections, and contingency planning for logistical hurdles. The firm fixed-price nature of the contract also shifts some cost-related risks to the contractor, provided performance standards are met.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 5555Z

Offers Received: 31

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2600 FLORIDA BLVD, DENHAM SPRINGS, LA, 05

Business Categories: American Indian Owned Business, Category Business, Minority Owned Business, Native American Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,974,944

Exercised Options: $17,974,944

Current Obligation: $17,974,944

Timeline