FEMA awards $9.05M contract for Loghouse H&I and M&D services in Tennessee

Contract Overview

Contract Amount: $9,050,000 ($9.1M)

Contractor: MLU Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-11-21

End Date: 2026-05-20

Contract Duration: 545 days

Daily Burn Rate: $16.6K/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: DR-4832-TN: LOGHOUSE - HAULING AND INSTALLING (H&I) AND MAINTENANCE AND DEACTIVATION (M&D) SERVICES UP TO 250 UNITS

Place of Performance

Location: JOHNSON CITY, CARTER County, TENNESSEE, 37601

State: Tennessee Government Spending

Plain-Language Summary

Department of Homeland Security obligated $9.1 million to MLU SERVICES, LLC for work described as: DR-4832-TN: LOGHOUSE - HAULING AND INSTALLING (H&I) AND MAINTENANCE AND DEACTIVATION (M&D) SERVICES UP TO 250 UNITS Key points: 1. Contract awarded to MLU Services, LLC for hauling, installation, maintenance, and deactivation of up to 250 units. 2. The contract has a duration of 545 days, ending May 20, 2026. 3. This award falls under the Commercial and Institutional Building Construction NAICS code. 4. The contract was awarded under Full and Open Competition after Exclusion of Sources.

Value Assessment

Rating: good

The contract value of $9.05 million for 250 units suggests a per-unit cost of approximately $36,200. This pricing appears reasonable given the scope of services including hauling, installation, maintenance, and deactivation, which can be complex and resource-intensive.

Cost Per Unit: $36,200

Competition Analysis

Competition Level: full-and-open

The contract was awarded using 'Full and Open Competition after Exclusion of Sources,' indicating a competitive bidding process was employed, but specific sources were initially excluded. This method aims to ensure fair pricing while potentially focusing on specialized capabilities.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving a fair price for the services rendered, as multiple bidders would have had the opportunity to compete.

Public Impact

Supports FEMA's operational needs in Tennessee, potentially for disaster relief or temporary housing solutions. The contract's focus on construction and installation services highlights infrastructure development within the region. Ensures availability of essential services for up to 250 units, contributing to program delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Exclusion of sources in the competition method requires further scrutiny.
Lack of specific details on unit type and service complexity.
Small business participation not explicitly mentioned.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Clear contract duration and delivery end date.
Firm Fixed Price contract type helps control costs.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector is crucial for infrastructure development and support services, particularly for government agencies like FEMA. Benchmarks for similar construction and installation contracts vary widely based on scope and location.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false, sb: false). Further analysis would be needed to determine if small business set-aside goals were considered or if opportunities were missed for small business participation.

Oversight & Accountability

The contract is a Delivery Order under a larger agreement, suggesting it has undergone some level of pre-qualification. Oversight will be critical to ensure MLU Services, LLC meets all performance requirements and that the pricing remains justified throughout the contract duration.

Related Government Programs

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

Risk Flags

Potential for limited competition due to source exclusion.
Lack of explicit small business participation.
Complexity of services (H&I, M&D) may introduce unforeseen costs or delays.
Dependence on a single contractor (MLU Services, LLC) for a significant scope of work.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $9.1 million to MLU SERVICES, LLC. DR-4832-TN: LOGHOUSE - HAULING AND INSTALLING (H&I) AND MAINTENANCE AND DEACTIVATION (M&D) SERVICES UP TO 250 UNITS

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 $9.1 million.

What is the period of performance?

Start: 2024-11-21. End: 2026-05-20.

What specific criteria led to the exclusion of certain sources in the 'Full and Open Competition after Exclusion of Sources' method, and how did this impact the final price?

The exclusion of sources typically occurs when specific technical capabilities, past performance, or security clearances are required that only a subset of potential bidders possess. While this can streamline the selection process, it may limit price competition if the excluded sources represent significant market players. A thorough review of the solicitation documents and award justification would reveal the specific reasons for exclusion and their potential impact on price discovery.

What are the specific risks associated with the hauling, installation, maintenance, and deactivation services, and how are they being mitigated?

Risks include logistical challenges in hauling, potential damage during installation, unforeseen maintenance issues, and timely deactivation. Mitigation strategies likely involve detailed service level agreements, stringent quality control measures, performance bonds, and clear protocols for each service phase. The firm fixed price structure also incentivizes the contractor to manage these risks efficiently.

How effectively will these services support FEMA's mission, particularly in emergency response scenarios in Tennessee?

The effectiveness hinges on the rapid deployment and quality of the hauled and installed units, as well as the efficiency of maintenance and deactivation. If these services enable swift establishment of temporary housing or operational facilities post-disaster, they will be highly effective. Consistent performance and adherence to timelines are crucial for supporting FEMA's critical mission.

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: 70FBR425R00000016

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: $28,159,000

Exercised Options: $9,050,000

Current Obligation: $9,050,000

Actual Outlays: $2,292,992

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FB8018D00000013

IDV Type: IDC

Timeline