FEMA awards $200M for 1175 manufactured housing units to Champion Home Builders, Inc

Contract Overview

Contract Amount: $200,321,700 ($200.3M)

Contractor: Champion Home Builders, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2022-02-07

End Date: 2022-09-20

Contract Duration: 225 days

Daily Burn Rate: $890.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PURCHASE AND DELIVERY OF 1175 COMMERCIAL MANUFACTURED HOUSING UNITS

Place of Performance

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

State: Louisiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $200.3 million to CHAMPION HOME BUILDERS, INC. for work described as: PURCHASE AND DELIVERY OF 1175 COMMERCIAL MANUFACTURED HOUSING UNITS Key points: 1. Value for money assessed against market rates for similar housing solutions. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include delivery timelines and the scale of the housing requirement. 4. Performance context is tied to disaster relief efforts and rapid deployment needs. 5. Sector positioning within disaster response and emergency management procurement.

Value Assessment

Rating: fair

The contract value of $200.3 million for 1175 housing units equates to approximately $170,000 per unit. This figure needs to be benchmarked against the cost of temporary housing solutions during emergencies, considering factors like rapid deployment, customization for disaster relief, and the inclusion of delivery and setup. Without specific details on the unit specifications and included services, a precise value-for-money assessment is challenging, but it appears to be within a range for specialized emergency housing.

Cost Per Unit: Approximately $170,000 per unit, benchmark required against comparable emergency housing solutions.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 5 bids indicates a reasonable level of competition for this requirement. This competitive process is expected to have contributed to price discovery and potentially secured a more favorable price for the government compared to a sole-source or limited competition scenario.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality goods or services.

Public Impact

Disaster-affected individuals and families in Louisiana will benefit from the provision of temporary housing. The contract delivers 1175 manufactured housing units, crucial for immediate post-disaster shelter. Geographic impact is focused on Louisiana, addressing specific needs following a disaster event. Workforce implications may include employment opportunities in manufacturing, logistics, and installation of the housing units.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays in delivery impacting timely housing for affected populations.
Ensuring the quality and suitability of manufactured housing for long-term temporary use.
Logistical challenges in transporting and deploying a large number of housing units.

Positive Signals

Award to a known manufacturer suggests established production capabilities.
Firm fixed-price contract provides cost certainty for the government.
Delivery order under an existing contract structure may streamline deployment.

Sector Analysis

The procurement of manufactured housing units for disaster relief falls within the broader construction and emergency services sectors. The market for manufactured housing is substantial, with numerous players capable of producing units at scale. This contract represents a significant award within the emergency response procurement landscape, highlighting the government's reliance on commercial solutions for rapid deployment of essential services during crises.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the 'sb' (small business) flag is false. There is no explicit mention of small business set-asides or subcontracting plans. This suggests that the primary contractor, Champion Home Builders, Inc., likely has the capacity to fulfill the requirement directly, and opportunities for small businesses may be limited unless they are direct suppliers or subcontractors to the prime.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Emergency Management Agency (FEMA) contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of the specified units within the agreed timeframe. Transparency is generally maintained through federal procurement databases, though specific performance details might be internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Disaster Housing Assistance Program
Emergency Management and Response Contracts
Temporary Housing Solutions Procurement
Manufactured Housing Industry Support

Risk Flags

Delivery timeline risk
Quality assurance for temporary housing
Logistical challenges in deployment
Cost-effectiveness benchmark needed

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $200.3 million to CHAMPION HOME BUILDERS, INC.. PURCHASE AND DELIVERY OF 1175 COMMERCIAL MANUFACTURED HOUSING UNITS

Who is the contractor on this award?

The obligated recipient is CHAMPION HOME BUILDERS, 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 $200.3 million.

What is the period of performance?

Start: 2022-02-07. End: 2022-09-20.

What is the track record of Champion Home Builders, Inc. in fulfilling government contracts, particularly for disaster relief?

Champion Home Builders, Inc. has a history of manufacturing and supplying manufactured homes. While specific details on their past government contracts, especially those related to disaster relief, are not provided in this data snippet, their selection suggests they met the government's criteria for capacity and capability. A deeper dive into their contract history with federal agencies, including performance reviews and any past issues, would be necessary for a comprehensive assessment of their track record. Their experience in large-scale production is likely a key factor in their selection for this significant award.

How does the per-unit cost of $170,000 compare to market rates for similar manufactured housing, considering the emergency context?

The per-unit cost of approximately $170,000 is a significant figure for manufactured housing. However, emergency housing requirements often involve expedited production, delivery to potentially remote or difficult-to-access locations, and specific features tailored for temporary shelter. When comparing to standard manufactured homes sold commercially, this price may appear high. A more accurate benchmark would involve examining contracts for temporary or emergency housing provided by other government agencies or non-governmental organizations in response to disasters, factoring in the speed of deployment, installation services, and any associated logistical support.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential delays in the manufacturing and delivery of the 1175 housing units, which could impact the timely provision of shelter to disaster victims. Ensuring the quality and durability of the manufactured homes for their intended temporary use is another key risk. Logistical challenges in transporting and setting up units in affected areas, especially if infrastructure is damaged, also pose a risk. Mitigation strategies likely involve stringent delivery schedules in the contract, quality control measures during manufacturing, and close coordination with FEMA's logistics and on-site teams to manage deployment effectively. The firm fixed-price nature of the contract also incentivizes the contractor to manage costs and timelines.

What is the expected effectiveness of these manufactured housing units in addressing FEMA's disaster relief needs?

These manufactured housing units are expected to be highly effective in addressing FEMA's immediate disaster relief needs by providing rapid, scalable temporary shelter solutions. Manufactured homes can be produced relatively quickly and transported to disaster-stricken areas, offering a more stable and comfortable alternative to temporary shelters like tents or gymnasiums. Their effectiveness hinges on factors such as the speed of deployment, the suitability of the units for the climate and duration of need, and the availability of utilities and essential services at the deployment sites. The scale of 1175 units suggests a significant response to a major disaster event.

How does this contract's value and scope compare to historical federal spending on manufactured housing for disaster relief?

The $200.3 million award for 1175 housing units represents a substantial investment in disaster relief housing. Historical federal spending on manufactured housing for disaster relief has varied significantly depending on the scale and frequency of natural disasters. Major events like Hurricanes Katrina, Harvey, Maria, and Ian have previously led to large-scale procurements of temporary housing, including manufactured homes, often costing hundreds of millions of dollars. This contract appears to be in line with significant disaster response efforts, reflecting the ongoing need for rapid housing solutions following large-scale emergencies. Specific historical comparisons would require analyzing FEMA's procurement data over multiple years and disaster cycles.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Champion Home Builders Inc.

Address: 755 W BIG BEAVER RD STE 1000, TROY, MI, 48084

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $200,321,700

Exercised Options: $200,321,700

Current Obligation: $200,321,700

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FB7021D00000008

IDV Type: IDC

Timeline