FEMA Awards $60.4M for Logistics Housing Operations in Iowa Disaster Recovery

Contract Overview

Contract Amount: $60,410,205 ($60.4M)

Contractor: MLU Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-08-15

End Date: 2026-05-14

Contract Duration: 637 days

Daily Burn Rate: $94.8K/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 - LOGHOUSE HAULING AND INSTALLING (H&I) AND MAINTENANCE AND DEACTIVATION (M&D) SERVICES UP TO 200 UNITS, CONSTRUCTION IN SUPPORT OF DR-4796-IA IN IOWA

Place of Performance

Location: AKRON, PLYMOUTH County, IOWA, 51001

State: Iowa Government Spending

Plain-Language Summary

Department of Homeland Security obligated $60.4 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 200 UNITS, CONSTRUCTION IN SUPPORT OF DR-4796-IA IN IOWA Key points: 1. Significant contract for disaster relief housing logistics and maintenance. 2. MLU Services, LLC awarded the contract, indicating a specific provider. 3. Full and open competition after exclusion of sources suggests a unique approach to sourcing. 4. The contract supports DR-4796-IA, highlighting its role in a specific disaster response. 5. Firm fixed price contract type provides cost certainty for the government.

Value Assessment

Rating: good

The contract value of $60.4M for up to 200 units of logistics housing services appears reasonable given the scope of installation, maintenance, and deactivation. Benchmarking against similar disaster response contracts would provide further context on pricing efficiency.

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,' which is an unusual method. This suggests that while competition was sought, certain sources were initially excluded, potentially impacting the breadth of price discovery.

Taxpayer Impact: The firm fixed price nature of the contract provides predictability for taxpayer funds allocated to disaster recovery efforts.

Public Impact

Provides essential housing solutions for individuals displaced by the Iowa disaster (DR-4796-IA). Supports FEMA's critical mission in disaster response and recovery operations. Facilitates the logistical challenges of deploying and managing temporary housing units. Ensures maintenance and deactivation services are available for housing infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Unusual competition method ('after exclusion of sources') warrants further review for potential impact on price.
Lack of explicit small business participation noted.

Positive Signals

Firm fixed price contract offers cost certainty.
Supports critical disaster recovery efforts in Iowa.
Clear scope of work for installation, maintenance, and deactivation.

Sector Analysis

This contract falls under Commercial and Institutional Building Construction, specifically supporting logistics and housing operations. The value is substantial for a disaster recovery effort, reflecting the scale of needs.

Small Business Impact

The data indicates that small business participation was not a factor in this award (sb: false). Further analysis would be needed to determine if opportunities were missed or if the nature of the services made it unsuitable for small businesses.

Oversight & Accountability

The contract is managed by the Department of Homeland Security (FEMA), which has established oversight mechanisms for disaster relief spending. The firm fixed price contract type aids in accountability by setting clear cost expectations.

Related Government Programs

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

Risk Flags

Unusual procurement method ('after exclusion of sources').
No explicit small business participation.
Lack of detailed cost breakdown for service phases (installation, maintenance, deactivation).
Potential for unforeseen costs in deactivation phase of disaster housing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $60.4 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 200 UNITS, CONSTRUCTION IN SUPPORT OF DR-4796-IA IN IOWA

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 $60.4 million.

What is the period of performance?

Start: 2024-08-15. End: 2026-05-14.

What was the rationale behind the 'Full and Open Competition After Exclusion of Sources' method, and did it lead to optimal pricing?

The specific rationale for excluding certain sources prior to full and open competition is not detailed in the provided data. This method can sometimes be used when specific capabilities are required or when prior performance issues with certain vendors are a concern. However, it may limit the pool of potential bidders, potentially impacting the competitiveness of the pricing achieved compared to a truly unrestricted full and open competition.

What is the cost per unit for the housing installation, maintenance, and deactivation services, and how does it compare to industry benchmarks?

The provided data does not break down the total award amount by the number of units or specific service phases (installation, maintenance, deactivation), making a precise per-unit cost calculation impossible. Without this granular data, a direct comparison to industry benchmarks for similar services is not feasible. Further data is required to assess cost-effectiveness on a per-unit basis.

What is the expected timeline and cost for the deactivation phase of the housing units, and are there contingency plans for unforeseen costs?

The contract duration is 637 days, ending May 14, 2026, which encompasses installation, maintenance, and deactivation. Specific cost breakdowns for the deactivation phase are not provided. While the contract is firm fixed price, which generally limits cost overruns, the complexity of deactivation in disaster zones can present unforeseen challenges. The government should have internal procedures for managing such contingencies.

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

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: $63,289,306

Exercised Options: $60,410,205

Current Obligation: $60,410,205

Actual Outlays: $48,908,101

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FB8018D00000013

IDV Type: IDC

Timeline