FEMA Awards $31.9M for Louisiana Logistics Housing Operations, Supporting DR-4611-LA Disaster Recovery

Contract Overview

Contract Amount: $31,918,398 ($31.9M)

Contractor: MLU Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-08-02

End Date: 2026-05-01

Contract Duration: 1,003 days

Daily Burn Rate: $31.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: LOGISTICS HOUSING OPERATIONS UNIT INSTALLATION, MAINTENANCE AND DEACTIVATION - LOG HOUSE HAULING AND INSTALLING AND MAINTENANCE AND DEACTIVATION OF UP TO 2300 UNITS IN SUPPORT OF DR-4611-LA IN LOUISIANA

Place of Performance

Location: BATON ROUGE, EAST BATON ROUGE County, LOUISIANA, 70801

State: Louisiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $31.9 million to MLU SERVICES, LLC for work described as: LOGISTICS HOUSING OPERATIONS UNIT INSTALLATION, MAINTENANCE AND DEACTIVATION - LOG HOUSE HAULING AND INSTALLING AND MAINTENANCE AND DEACTIVATION OF UP TO 2300 UNITS IN SUPPORT OF DR-4611-LA IN LOUISIANA Key points: 1. Contract awarded to MLU Services, LLC for logistics housing operations. 2. Supports disaster recovery efforts in Louisiana under DR-4611-LA. 3. Involves installation, maintenance, and deactivation of up to 2300 units. 4. The contract is firm-fixed-price, indicating predictable costs for the government.

Value Assessment

Rating: good

The contract value of $31.9 million for up to 2300 units suggests a per-unit cost of approximately $13,877. This appears reasonable given the scope includes installation, maintenance, and deactivation, especially in a disaster recovery context.

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 used, though specific reasons for source exclusion were noted. This method generally promotes price discovery and fair market value.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential disaster recovery services.

Public Impact

Provides critical temporary housing solutions for individuals and families impacted by disasters. Supports the long-term recovery and rebuilding efforts in Louisiana. Ensures operational readiness and maintenance of essential infrastructure during crisis response.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unit numbers or maintenance needs exceed projections.
Dependence on a single contractor for critical logistics housing operations.

Positive Signals

Addresses a clear and urgent need for disaster housing.
Firm-fixed-price contract provides cost certainty.
Supports a specific, declared disaster recovery effort.

Sector Analysis

This contract falls under Commercial and Institutional Building Construction, a sector vital for infrastructure development and disaster response. Spending benchmarks for similar logistics and temporary housing contracts can vary significantly based on scale, duration, and specific requirements.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the awardee, MLU Services, LLC, is not explicitly identified as a small business in this record. Further analysis would be needed to determine the impact on small business participation.

Oversight & Accountability

The award is a delivery order under a larger contract, suggesting a structured procurement process. Oversight will be crucial to ensure timely delivery, quality maintenance, and adherence to the contract terms by FEMA.

Related Government Programs

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

Risk Flags

Potential for scope creep or unforeseen logistical challenges in a disaster area.
Contract duration extends over multiple years, requiring sustained oversight.
Reliance on a single awardee for a critical function.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $31.9 million to MLU SERVICES, LLC. LOGISTICS HOUSING OPERATIONS UNIT INSTALLATION, MAINTENANCE AND DEACTIVATION - LOG HOUSE HAULING AND INSTALLING AND MAINTENANCE AND DEACTIVATION OF UP TO 2300 UNITS IN SUPPORT OF DR-4611-LA IN LOUISIANA

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 $31.9 million.

What is the period of performance?

Start: 2023-08-02. End: 2026-05-01.

What specific factors contributed to the 'Exclusion of Sources' in this full and open competition, and how did this impact the final price?

The exclusion of sources typically occurs when specific capabilities, past performance, or unique requirements necessitate limiting the pool of eligible bidders. While the exact reasons are not detailed here, such exclusions can sometimes reduce competition, potentially leading to higher prices than a truly open bid. However, if the excluded sources lacked essential qualifications, the final price might still reflect fair market value for the required specialized services.

What are the key performance indicators (KPIs) being tracked to ensure the quality and timeliness of the housing unit installation, maintenance, and deactivation?

Key performance indicators likely include metrics such as the percentage of units installed within the specified timeframe, the average response time for maintenance requests, the number of reported issues per unit, and the efficiency of the deactivation process. FEMA's contract management team would monitor these KPIs to ensure MLU Services, LLC meets its contractual obligations and provides effective support for disaster recovery operations.

How does the cost per unit for these logistics housing operations compare to similar contracts awarded in other disaster recovery efforts or regions?

A comparative analysis would require data from similar FEMA contracts for temporary housing solutions. Factors like geographic location, specific unit types (e.g., trailers, modular homes), duration of need, and the complexity of installation/deactivation services influence per-unit costs. Without direct benchmarks, assessing the cost-effectiveness is challenging, but the $13,877 estimated per unit seems within a plausible range for comprehensive logistics housing support in a disaster zone.

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: 70FBR623R00000010

Offers Received: 3

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: $49,745,000

Exercised Options: $31,918,398

Current Obligation: $31,918,398

Actual Outlays: $16,832,774

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FB8018D00000013

IDV Type: IDC

Timeline