DHS FEMA awards $86.2M contract for Louisiana haul and install services, following exclusion of sources

Contract Overview

Contract Amount: $86,235,966 ($86.2M)

Contractor: MLU Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-11-03

End Date: 2023-10-03

Contract Duration: 699 days

Daily Burn Rate: $123.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 4611-LA 300 HAUL AND INSTALL FOLLOW-ON

Place of Performance

Location: BATON ROUGE, EAST BATON ROUGE County, LOUISIANA, 70810

State: Louisiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $86.2 million to MLU SERVICES, LLC for work described as: 4611-LA 300 HAUL AND INSTALL FOLLOW-ON Key points: 1. The contract value of $86.2M is significant for construction services in Louisiana. 2. Competition was limited after exclusion of sources, potentially impacting price discovery. 3. The firm fixed price contract type aims to control costs. 4. The sector is Commercial and Institutional Building Construction, a critical area for infrastructure.

Value Assessment

Rating: fair

The contract value of $86.2M for 699 days of service appears substantial. Benchmarking against similar large-scale construction and installation projects is necessary to determine if the pricing is competitive, especially given the limited competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This method suggests that while competition was sought, certain sources were initially excluded, which could have influenced the final pricing and the range of available solutions.

Taxpayer Impact: The significant contract value means taxpayer funds are being utilized. The effectiveness of the limited competition in securing the best value for taxpayers is a key consideration.

Public Impact

Supports critical infrastructure needs in Louisiana following potential disasters. Ensures essential services are available for government operations in the region. The award impacts local employment and businesses within the construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition after exclusion of sources
Lack of small business participation noted

Positive Signals

Firm fixed price contract type
Delivery order structure allows flexibility

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, which is vital for public infrastructure and disaster recovery. Spending benchmarks for similar large-scale construction projects vary widely based on scope and location.

Small Business Impact

The data indicates that small business participation was not a factor in this award (sb: false). Further analysis would be needed to understand if opportunities were missed for small businesses in this significant contract.

Oversight & Accountability

The award process, particularly the 'exclusion of sources' clause, warrants oversight to ensure fairness and adherence to procurement regulations. Accountability for the effective use of funds rests with FEMA.

Related Government Programs

Commercial and Institutional Building Construction
Department of Homeland Security Contracting
Federal Emergency Management Agency Programs

Risk Flags

Limited competition
Exclusion of sources
No small business participation
Significant contract value requires close monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $86.2 million to MLU SERVICES, LLC. 4611-LA 300 HAUL AND INSTALL FOLLOW-ON

Who is the contractor on this award?

The obligated recipient is MLU SERVICES, 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 $86.2 million.

What is the period of performance?

Start: 2021-11-03. End: 2023-10-03.

What was the justification for excluding specific sources in the competition?

The justification for excluding specific sources is not provided in the data. Typically, such exclusions are based on specific technical requirements, past performance issues, or national security concerns. A thorough review of the solicitation documents and agency justifications would be necessary to understand the rationale behind this decision and its impact on overall competition.

How does the $86.2M contract value compare to similar construction projects in Louisiana?

Without specific details on the scope of 'haul and install' services, direct comparison is difficult. However, $86.2M is a substantial sum for a single contract. Benchmarking would require analyzing contracts for similar scale construction, debris removal, or installation projects in the region, considering factors like duration, complexity, and specific deliverables to assess value.

What is the expected impact of this contract on local infrastructure and recovery efforts in Louisiana?

This contract is likely intended to support critical infrastructure needs, potentially related to disaster recovery or ongoing facility maintenance in Louisiana. The 'haul and install' nature suggests it could involve transportation of materials and installation of equipment or structures, directly contributing to the region's resilience and operational capacity.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 573 HAWTHORNE AVE, ATHENS, GA, 30606

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $282,088,966

Exercised Options: $86,235,966

Current Obligation: $86,235,966

Actual Outlays: $14,844,761

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FB8018D00000013

IDV Type: IDC

Timeline