FEMA Awards $57.8M for Logistics Housing Operations in Florida Disaster Relief

Contract Overview

Contract Amount: $57,857,605 ($57.9M)

Contractor: MLU Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-10-19

End Date: 2025-10-18

Contract Duration: 1,095 days

Daily Burn Rate: $52.8K/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 5,000 UNITS, CONSTRUCTION IN SUPPORT OF DR-4673-FL IN FLORIDA

Place of Performance

Location: FORT MYERS, LEE County, FLORIDA, 33965

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $57.9 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 5,000 UNITS, CONSTRUCTION IN SUPPORT OF DR-4673-FL IN FLORIDA Key points: 1. Significant contract for post-disaster housing support in Florida. 2. MLU Services, LLC secured the award, indicating potential market concentration. 3. Risk of cost overruns due to the dynamic nature of disaster response. 4. Construction sector spending, with implications for local economies and supply chains.

Value Assessment

Rating: good

The $57.8 million award for up to 5,000 units appears reasonable given the scope of disaster relief housing construction and installation. Benchmarking against similar large-scale construction contracts for emergency response is necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a specific justification for limiting the initial pool of bidders. This method may impact price discovery and potentially lead to higher costs compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being utilized for critical disaster recovery efforts, aiming to provide essential housing solutions. The efficiency of the procurement process and the final cost will determine the ultimate taxpayer impact.

Public Impact

Provides essential temporary housing for individuals displaced by Hurricane Ian (DR-4673-FL). Supports economic activity in Florida through construction and related services. Demonstrates FEMA's capacity to rapidly deploy resources in major disaster events.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in disaster response.
Dependency on MLU Services, LLC for critical housing needs.
Geographic concentration of services in Florida.

Positive Signals

Addresses urgent housing needs post-disaster.
Supports economic recovery in affected areas.
Utilizes a fixed-price contract type to control costs.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending benchmarks for disaster relief construction can vary widely based on the scale of the disaster, geographic location, and material availability.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). Further analysis is needed to determine if subcontracting opportunities were made available to small businesses within the construction and logistics services.

Oversight & Accountability

The Federal Emergency Management Agency (FEMA) is responsible for overseeing this contract. Robust oversight is crucial to ensure timely delivery, quality of services, and adherence to budget, especially given the emergency nature of the work.

Related Government Programs

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

Risk Flags

Limited competition may inflate costs.
Potential for delays in disaster response.
Geographic concentration increases risk if similar events occur elsewhere.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $57.9 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 5,000 UNITS, CONSTRUCTION IN SUPPORT OF DR-4673-FL IN FLORIDA

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 $57.9 million.

What is the period of performance?

Start: 2022-10-19. End: 2025-10-18.

What is the estimated cost per unit for the housing installation and maintenance services?

The provided data does not specify a per-unit cost. The total award is $57.8 million for up to 5,000 units. Calculating a precise per-unit cost would require knowing the exact number of units installed and maintained, as well as the breakdown of costs for installation versus ongoing maintenance and deactivation services over the contract's duration.

What specific factors justified the 'exclusion of sources' in this full and open competition?

The justification for excluding sources in a 'full and open competition after exclusion of sources' typically involves specific technical requirements, unique capabilities, or urgent needs that limit the pool of eligible contractors. For disaster relief, this might relate to pre-existing contracts, specialized equipment, or demonstrated rapid deployment capabilities essential for immediate response.

How effectively does this contract address the long-term housing needs post-disaster?

This contract focuses on the logistical operations, installation, maintenance, and deactivation of up to 5,000 housing units, likely serving as temporary or transitional housing. While crucial for immediate relief, its effectiveness for long-term housing depends on integration with broader recovery strategies and the durability and suitability of the units provided.

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: 70FBR423R00000006

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: $65,231,154

Exercised Options: $58,777,605

Current Obligation: $57,857,605

Actual Outlays: $15,762,124

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FB8018D00000013

IDV Type: IDC

Timeline