FEMA awards $26.7M for 250 housing units to CMH Manufacturing Inc. under full and open competition

Contract Overview

Contract Amount: $26,690,548 ($26.7M)

Contractor: CMH Manufacturing Inc

Awarding Agency: Department of Homeland Security

Start Date: 2022-02-08

End Date: 2022-11-25

Contract Duration: 290 days

Daily Burn Rate: $92.0K/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 250 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 $26.7 million to CMH MANUFACTURING INC for work described as: PURCHASE AND DELIVERY OF 250 COMMERCIAL MANUFACTURED HOUSING UNITS Key points: 1. Significant investment in disaster relief housing. 2. CMH Manufacturing Inc. is the sole awardee. 3. Contract awarded via delivery order, indicating a specific need. 4. Sector: Manufactured Home Manufacturing.

Value Assessment

Rating: good

The total award of $26.7M for 250 units suggests a per-unit cost of approximately $106,762. This price point needs to be benchmarked against similar government and commercial housing contracts to assess value.

Cost Per Unit: $106,762

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. The delivery order mechanism suggests a specific, potentially urgent, requirement.

Taxpayer Impact: Taxpayer funds are being used for essential disaster relief housing, aiming to provide shelter to those affected by natural disasters.

Public Impact

Provides critical housing solutions for disaster-affected populations. Supports the Federal Emergency Management Agency's (FEMA) disaster response capabilities. Stimulates the manufactured housing industry through a substantial government contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation if material costs increase.
Dependence on a single manufacturer for a large quantity of units.

Positive Signals

Addresses a clear and urgent need for housing.
Awarded through a competitive process.
Fixed-price contract limits cost overruns.

Sector Analysis

The manufactured housing sector plays a vital role in providing affordable and rapidly deployable housing solutions, particularly in disaster relief scenarios. Government contracts of this nature can significantly impact production capacity and pricing within the industry.

Small Business Impact

While the contract was awarded under full and open competition, there is no specific indication of small business participation in this particular award. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The award is managed by FEMA, a component of the Department of Homeland Security, which has established oversight mechanisms for disaster relief procurements. The delivery order process allows for monitoring of progress and adherence to contract terms.

Related Government Programs

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

Risk Flags

Single awardee for a large quantity.
Potential for supply chain disruptions.
Need for detailed cost-benefit analysis against market rates.
Dependence on manufacturer's production capacity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $26.7 million to CMH MANUFACTURING INC. PURCHASE AND DELIVERY OF 250 COMMERCIAL MANUFACTURED HOUSING UNITS

Who is the contractor on this award?

The obligated recipient is CMH MANUFACTURING 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 $26.7 million.

What is the period of performance?

Start: 2022-02-08. End: 2022-11-25.

How does the per-unit cost compare to market rates for similar manufactured housing, considering the scale and specifications?

Benchmarking the $106,762 per-unit cost against market data for 250 commercial manufactured housing units is crucial. Factors like customization, delivery, and installation costs must be considered. If the price is significantly higher than comparable commercial sales or other government contracts for similar units, it may indicate a suboptimal value for taxpayers. Conversely, if it aligns with or is below market due to bulk purchasing power and competitive bidding, it represents good value.

What are the risks associated with relying on a single manufacturer for such a large quantity of essential housing units?

The primary risk is supply chain disruption. If CMH Manufacturing Inc. faces production issues, delays, or quality control problems, the delivery of 250 housing units could be significantly impacted, hindering FEMA's disaster response efforts. This single-source dependency, even within a competitive award, concentrates risk. Mitigation strategies might include close monitoring of production schedules, quality assurance checks, and contingency planning for alternative suppliers if feasible.

To what extent does this contract effectively meet the urgent need for disaster housing, and what is the expected timeline for deployment?

The contract's effectiveness hinges on the timely delivery and deployment of the 250 units to affected areas. The contract duration of 290 days (from Feb 8, 2022, to Nov 25, 2022) suggests a planned delivery schedule. FEMA's ability to rapidly deploy these units post-delivery will determine the contract's success in addressing urgent housing needs. Clear communication and coordination between FEMA and CMH Manufacturing are essential for efficient deployment.

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: Berkshire Hathaway Inc.

Address: 5000 CLAYTON RD, MARYVILLE, TN, 37804

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

Financial Breakdown

Contract Ceiling: $26,690,548

Exercised Options: $26,690,548

Current Obligation: $26,690,548

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FB7021D00000009

IDV Type: IDC

Timeline