FEMA Awards $10.4M for Loghouse Installation and Maintenance in Texas

Contract Overview

Contract Amount: $10,446,000 ($10.4M)

Contractor: MLU Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-11-18

End Date: 2026-04-17

Contract Duration: 515 days

Daily Burn Rate: $20.3K/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: DR-4798-TX & DR-4781-TX: LOGHOUSE - HAULING AND INSTALLING (H&I) AND MAINTENANCE AND DEACTIVATION (M&D) SERVICES UP TO 250 UNITS

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75201

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $10.4 million to MLU SERVICES, LLC for work described as: DR-4798-TX & DR-4781-TX: 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 Loghouse units. 2. The contract has a total value of $10,446,000 and a duration of 515 days. 3. Services will be performed in Texas, supporting disaster relief efforts. 4. This award falls under the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: fair

The contract value of $10.4M for up to 250 units suggests a per-unit cost of approximately $41,784. This pricing needs to be benchmarked against similar construction and installation contracts for modular or prefabricated structures to assess its competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. 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 disaster relief services, with the efficiency of the procurement process impacting the overall value for money.

Public Impact

Supports disaster recovery efforts by providing essential housing solutions. Ensures timely installation and maintenance of temporary housing units. Addresses critical infrastructure needs in affected areas. Potential for job creation in the construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may inflate costs.
Lack of detailed cost breakdown for H&I vs. M&D services.
Potential for scope creep given the 'up to 250 units' clause.

Positive Signals

Supports critical FEMA disaster relief mission.
Clear performance period and delivery order structure.
Fixed-price contract provides cost certainty.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically related to temporary or modular housing solutions. Spending benchmarks in this sector vary widely based on materials, complexity, and location, but large-scale projects often require careful cost analysis.

Small Business Impact

The data indicates that small business participation was not a factor in this specific award, as the contract was awarded to MLU Services, LLC, and the 'sb' field is false. Future contracts should explore opportunities for small business involvement.

Oversight & Accountability

FEMA's oversight will be crucial in ensuring MLU Services, LLC meets the installation, maintenance, and deactivation requirements within the specified timeframe and budget. Performance monitoring will be key to accountability.

Related Government Programs

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

Risk Flags

Limited competition raises cost concerns.
Lack of detailed cost breakdown.
Potential for cost overruns if scope expands.
Need for robust performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $10.4 million to MLU SERVICES, LLC. DR-4798-TX & DR-4781-TX: 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 $10.4 million.

What is the period of performance?

Start: 2024-11-18. End: 2026-04-17.

What is the breakdown of costs between Hauling & Installation (H&I) and Maintenance & Deactivation (M&D) services?

The provided data does not specify the cost allocation between Hauling & Installation (H&I) and Maintenance & Deactivation (M&D) services. A detailed breakdown would allow for a more granular assessment of the value proposition for each component of the contract and identify potential areas for cost optimization in future procurements.

How does the per-unit cost compare to market rates for similar temporary housing solutions?

Benchmarking the approximate per-unit cost of $41,784 against market rates for similar temporary housing solutions is essential. Factors like material costs, labor, transportation, and the specific requirements of Loghouse units will influence this comparison. Without this analysis, it's difficult to definitively assess if the pricing represents good value for taxpayers.

What measures are in place to ensure the effectiveness and timely completion of services, especially given the limited competition?

While the contract specifies a performance period, the effectiveness and timely completion rely on FEMA's contract management and oversight. Given the limited competition, proactive monitoring of MLU Services, LLC's performance, adherence to milestones, and quality control are paramount to ensure services are delivered effectively and taxpayer funds are used appropriately.

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: 70FBR625R00000003

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: $10,446,000

Exercised Options: $10,446,000

Current Obligation: $10,446,000

Actual Outlays: $2,507,387

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FB8018D00000013

IDV Type: IDC

Timeline