FEMA Awards $18M for Logistics Housing Operations Unit Installation and Maintenance in Kentucky

Contract Overview

Contract Amount: $18,053,819 ($18.1M)

Contractor: MLU Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-08-24

End Date: 2024-08-23

Contract Duration: 730 days

Daily Burn Rate: $24.7K/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: LOGISTICS HOUSING OPERATIONS UNIT INSTALLATION, MAINTENANCE AND DEACTIVATION - LOGHOUSE HAULING AND INSTALLING (H&I) AND MAINTENANCE AND DEACTIVATION (M&D) SERVICES UP TO 2,000 UNITS, CONSTRUCTION IN SUPPORT OF DR-4663-KY IN KENTUCKY

Place of Performance

Location: JACKSON, BREATHITT County, KENTUCKY, 41339

State: Kentucky Government Spending

Plain-Language Summary

Department of Homeland Security obligated $18.1 million to MLU SERVICES, LLC for work described as: LOGISTICS HOUSING OPERATIONS UNIT INSTALLATION, MAINTENANCE AND DEACTIVATION - LOGHOUSE HAULING AND INSTALLING (H&I) AND MAINTENANCE AND DEACTIVATION (M&D) SERVICES UP TO 2,000 UNITS, CONSTRUCTION IN SUPPORT OF DR-4663-KY IN KENTUCKY Key points: 1. The contract focuses on construction services for disaster relief housing units. 2. MLU Services, LLC secured the award under a competitive process. 3. The contract duration is two years, ending August 2024. 4. This spending supports disaster recovery efforts in Kentucky (DR-4663-KY).

Value Assessment

Rating: good

The award amount of $18,053,818.95 appears reasonable for the scope of installing, maintaining, and deactivating up to 2,000 housing units. Benchmarking against similar disaster relief construction contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process was initiated, but specific sources were excluded. This method aims for fair pricing while potentially streamlining the process for specific needs.

Taxpayer Impact: Taxpayer funds are being utilized for essential disaster recovery housing, aiming to provide shelter and support to affected populations.

Public Impact

Provides critical housing infrastructure for disaster survivors in Kentucky. Supports FEMA's response to DR-4663-KY, aiding community recovery. Creates jobs and economic activity through construction services. Ensures timely installation and maintenance of temporary housing units.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Exclusion of sources in competition needs clarification.
Potential for cost overruns if unit needs exceed estimates.

Positive Signals

Supports critical disaster relief mission.
Fixed-price contract provides cost certainty.
Two-year duration allows for sustained support.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector, specifically supporting disaster relief housing. Spending in this sector can fluctuate significantly based on natural disaster frequency and severity.

Small Business Impact

The data indicates that small business participation was not a stated factor in this specific award (sb: false). Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this contract.

Oversight & Accountability

The Federal Emergency Management Agency (FEMA) is responsible for overseeing this contract. Robust oversight is crucial to ensure efficient use of funds and timely delivery of services during a critical recovery period.

Related Government Programs

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

Risk Flags

Potential for scope creep beyond 2,000 units.
Logistical challenges in remote or difficult-to-access areas.
Weather-related delays impacting construction timelines.
Ensuring quality and durability of temporary housing units.
Adequate oversight to prevent fraud or mismanagement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.1 million to MLU SERVICES, LLC. LOGISTICS HOUSING OPERATIONS UNIT INSTALLATION, MAINTENANCE AND DEACTIVATION - LOGHOUSE HAULING AND INSTALLING (H&I) AND MAINTENANCE AND DEACTIVATION (M&D) SERVICES UP TO 2,000 UNITS, CONSTRUCTION IN SUPPORT OF DR-4663-KY IN KENTUCKY

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 $18.1 million.

What is the period of performance?

Start: 2022-08-24. End: 2024-08-23.

What is the specific justification for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' method, and how does this impact overall value?

The justification for excluding sources typically relates to specialized capabilities, past performance, or specific security requirements. Understanding these exclusions is vital to assess if the competition was truly optimized for the best value. If exclusions were overly broad or not well-justified, it could limit price discovery and potentially lead to higher costs for taxpayers.

What are the key performance indicators (KPIs) for the installation, maintenance, and deactivation services, and how is performance being monitored to mitigate risks?

Key performance indicators likely include timely unit installation, quality of maintenance, adherence to deactivation protocols, and cost control. FEMA's oversight team should be actively monitoring these KPIs through site inspections, progress reports, and potentially resident feedback. Proactive risk mitigation involves addressing any performance deficiencies promptly to prevent delays and cost overruns.

How does the cost per unit for installation and maintenance compare to industry benchmarks for similar temporary housing solutions, and are there mechanisms for cost adjustment?

Without specific per-unit cost breakdowns, a direct benchmark is difficult. However, the total contract value divided by the maximum 2,000 units suggests an average of approximately $9,027 per unit over two years for all services. This needs comparison with market rates for modular housing installation, maintenance, and eventual deactivation, considering factors like site preparation and duration of use.

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

Solicitation ID: 70FBR4R00000015

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: $145,436,872

Exercised Options: $83,070,651

Current Obligation: $18,053,819

Actual Outlays: $7,873,454

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FB8018D00000013

IDV Type: IDC

Timeline