FEMA awards $15.9M contract for hauling, installation, and maintenance of up to 500 units in Florida

Contract Overview

Contract Amount: $15,910,650 ($15.9M)

Contractor: MLU Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-11-27

End Date: 2026-05-26

Contract Duration: 545 days

Daily Burn Rate: $29.2K/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-4828-FL: LOGHOUSE - HAULING AND INSTALLING (H&I) AND MAINTENANCE AND DEACTIVATION (M&D) SERVICES UP TO 500 UNITS

Place of Performance

Location: PORT SAINT JOE, GULF County, FLORIDA, 32456

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $15.9 million to MLU SERVICES, LLC for work described as: DR-4828-FL: LOGHOUSE - HAULING AND INSTALLING (H&I) AND MAINTENANCE AND DEACTIVATION (M&D) SERVICES UP TO 500 UNITS Key points: 1. Contract value represents a significant investment in logistical support for FEMA operations. 2. The contract's scope includes both installation and ongoing maintenance, suggesting a need for sustained support. 3. Fixed-price contract type aims to control costs, but requires careful monitoring of scope creep. 4. The duration of the contract (545 days) indicates a medium-term operational requirement. 5. Geographic focus on Florida highlights a specific regional need for these services. 6. The award to MLU SERVICES, LLC warrants a review of their past performance and capacity.

Value Assessment

Rating: fair

The total contract value of $15.9 million for up to 500 units over approximately 18 months suggests a per-unit cost of roughly $31,800. Benchmarking this against similar construction and installation contracts is challenging without more specific details on the units being handled. However, the firm-fixed-price nature indicates an attempt to cap costs. Further analysis would require understanding the complexity of the 'hauling and installing' and 'maintenance and deactivation' services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating a competitive process was initiated, but specific sources were excluded. The presence of 4 bids suggests a reasonable level of competition. The exclusion of sources warrants further investigation to ensure it did not unduly limit competition or lead to a suboptimal price.

Taxpayer Impact: A competitive process, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and service terms.

Public Impact

This contract directly supports FEMA's mission to provide disaster relief and recovery services in Florida. Beneficiaries include individuals and communities impacted by disasters requiring the installation, maintenance, or deactivation of temporary or permanent structures/units. The services delivered will ensure the operational readiness and proper management of essential facilities or equipment. Geographic impact is concentrated in Florida, addressing specific regional disaster response needs. Workforce implications may include job creation for installation, maintenance, and logistical personnel within the awarded contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of 'hauling and installing' or 'maintenance and deactivation' is more complex than anticipated.
Risk associated with the exclusion of sources in the procurement process; need to verify justification.
Dependence on a single contractor for critical logistical support in a disaster-prone region.
Ensuring the quality and timely completion of services across potentially numerous units.
Adequacy of the contractor's capacity to manage up to 500 units simultaneously or sequentially.

Positive Signals

Firm-fixed-price contract structure provides cost certainty for the government.
Full and open competition, even with exclusions, suggests an effort to achieve market-based pricing.
The contract duration allows for sustained support, reducing the need for frequent re-procurement.
Clear definition of services (H&I, M&D) aids in performance monitoring.
Award to a single entity streamlines management and oversight.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically related to logistical support and facility management. The market for such services is driven by government needs, particularly in disaster response and recovery. Comparable spending benchmarks would depend on the specific type of units being handled (e.g., temporary housing, command centers, equipment storage). FEMA's consistent need for rapid deployment and support services in disaster-affected areas makes this a critical, albeit specialized, segment of the construction and logistics market.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from a set-aside. The primary impact on small businesses would be if MLU SERVICES, LLC, as the prime contractor, chooses to subcontract portions of the work to them, which is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Homeland Security, specifically the Federal Emergency Management Agency (FEMA). As a delivery order under a larger contract vehicle, oversight would involve monitoring performance against the terms of the order, ensuring timely delivery and quality of services, and managing payments. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

FEMA Disaster Relief Fund
Logistics and Support Services Contracts
Temporary Housing Unit Deployment
Construction and Facility Maintenance Contracts

Risk Flags

Potential for scope creep given the broad nature of 'hauling and installing' and 'maintenance and deactivation'.
Justification for 'exclusion of sources' needs verification to ensure fair competition.
Contractor's capacity and past performance require thorough vetting.
Geographic concentration in Florida may pose risks if multiple concurrent events occur.
Dependence on fixed-price contract requires diligent oversight to manage potential change orders.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $15.9 million to MLU SERVICES, LLC. DR-4828-FL: LOGHOUSE - HAULING AND INSTALLING (H&I) AND MAINTENANCE AND DEACTIVATION (M&D) SERVICES UP TO 500 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 $15.9 million.

What is the period of performance?

Start: 2024-11-27. End: 2026-05-26.

What is the track record of MLU SERVICES, LLC with federal contracts, particularly with FEMA or similar agencies?

A review of federal procurement data (e.g., FPDS) would be necessary to assess MLU SERVICES, LLC's track record. Key metrics to examine include the number and value of previous federal contracts awarded, performance ratings on past contracts, any history of contract disputes or terminations, and experience with similar hauling, installation, maintenance, and deactivation services. Understanding their past performance provides insight into their reliability, capability, and potential risks associated with this current award. Without specific historical data, it's difficult to definitively assess their suitability beyond the competitive bid process.

How does the per-unit cost benchmark compare to similar FEMA or DoD contracts for temporary structure installation and maintenance?

The estimated per-unit cost, derived from the total award ($15.9M) divided by the maximum units (500), is approximately $31,800. To benchmark this effectively, one would need to compare it against contracts for similar services, considering factors like unit size, complexity of installation/deactivation, duration of use, and geographic location. For instance, contracts for installing temporary housing units, command centers, or medical facilities by FEMA or the Department of Defense (DoD) in recent years could serve as comparators. A higher per-unit cost might be justified by specialized requirements, remote locations, or rapid deployment needs, while a lower cost could indicate efficient operations or a less complex scope.

What specific risks are associated with the 'exclusion of sources' clause in this 'full and open competition' award?

The 'full and open competition after exclusion of sources' clause suggests that while the competition was broadly advertised, certain potential bidders were intentionally excluded. The primary risk is that this exclusion may have limited the pool of qualified offerors, potentially leading to higher prices or less favorable terms than if all eligible sources had been allowed to compete. The justification for excluding sources must be robust and legally sound, typically related to specific technical requirements, past performance issues, or national security concerns. If the exclusion was not adequately justified, it could raise concerns about fairness in the procurement process and potentially impact overall value for taxpayers.

What is the anticipated effectiveness of these services in supporting FEMA's disaster response and recovery operations in Florida?

The effectiveness hinges on the timely and quality execution of hauling, installation, maintenance, and deactivation services for up to 500 units. These services are crucial for establishing and managing essential infrastructure during disaster recovery, such as temporary housing, command posts, or storage facilities. If MLU SERVICES, LLC performs efficiently, these units will be ready when needed, aiding displaced populations and supporting relief efforts. Conversely, delays or poor quality could hinder recovery operations. The contract's fixed-price nature incentivizes timely completion, but FEMA's oversight will be critical to ensure the services meet operational demands effectively.

How does the historical spending pattern for similar H&I and M&D services by FEMA compare to this $15.9 million award?

Analyzing historical spending requires accessing detailed procurement data for similar services over previous fiscal years. One would look for contracts with comparable scopes (hauling, installation, maintenance, deactivation) and unit volumes awarded by FEMA or other relevant agencies. Comparing the total value, duration, and per-unit costs of past contracts against this $15.9 million award provides context. For example, if FEMA has previously awarded multiple smaller contracts or fewer, larger contracts for similar services, it helps assess whether this award is consistent with past practices or represents a significant shift in procurement strategy or scale. Significant deviations might warrant further investigation into the underlying reasons.

What are the potential implications of the 545-day duration on the overall cost and logistical planning for FEMA?

A 545-day duration (approximately 18 months) suggests a medium-term need for these services, potentially related to ongoing recovery efforts or sustained operational requirements. This duration allows for more predictable budgeting and planning compared to short-term, ad-hoc contracts. It may also allow the contractor to achieve economies of scale. However, it also locks FEMA into a specific provider for an extended period. The fixed-price nature helps mitigate cost uncertainty over this duration, but FEMA must ensure the scope remains well-defined to avoid costly change orders. The planning implications involve integrating these services into longer-term recovery strategies.

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: 70FBR425R00000018

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: $90,247,000

Exercised Options: $15,910,650

Current Obligation: $15,910,650

Actual Outlays: $3,800,937

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FB8018D00000013

IDV Type: IDC

Timeline