FEMA leases commercial pads for temporary housing in Iowa for $683,400, supporting disaster relief efforts

Contract Overview

Contract Amount: $68,340 ($68.3K)

Contractor: Birchwood Estates, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-04

End Date: 2026-03-03

Contract Duration: 545 days

Daily Burn Rate: $125/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS PURCHASE ORDER IS TO LEASE COMMERCIAL PADS TO PROVIDE TRANSPORTABLE TEMPORARY HOUSING UNITS (TTHU) IN SUPPORT OF THE DIRECT HOUSING MISSION UNDER DR-4796 IN THE STATE OF IOWA.

Place of Performance

Location: SPENCER, CLAY County, IOWA, 51301

State: Iowa Government Spending

Plain-Language Summary

Department of Homeland Security obligated $68,340 to BIRCHWOOD ESTATES, INC for work described as: THE PURPOSE OF THIS PURCHASE ORDER IS TO LEASE COMMERCIAL PADS TO PROVIDE TRANSPORTABLE TEMPORARY HOUSING UNITS (TTHU) IN SUPPORT OF THE DIRECT HOUSING MISSION UNDER DR-4796 IN THE STATE OF IOWA. Key points: 1. The contract focuses on providing essential temporary housing infrastructure following a disaster. 2. Leasing commercial pads is a cost-effective approach compared to acquiring or building new facilities. 3. The duration of the contract aligns with anticipated recovery timelines. 4. The fixed-price nature of the contract provides cost certainty for FEMA. 5. This procurement supports the Federal Emergency Management Agency's (FEMA) direct housing mission. 6. The contract is awarded to a single vendor, indicating potential limitations in competition.

Value Assessment

Rating: good

The contract value of $683,400 for leasing commercial pads over approximately 1.5 years appears reasonable for disaster relief operations. While specific benchmarks for temporary housing pad leases are not readily available, FEMA's use of existing commercial infrastructure likely offers better value than constructing new sites. The firm fixed-price structure helps manage costs and prevent overruns, providing a predictable expense for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was likely awarded on a sole-source basis or through a limited competition not detailed in the provided data. The lack of open competition means that pricing may not have been subjected to the full market forces that would arise from multiple bids. This approach might be justified in emergency situations where speed is critical, but it limits the opportunity for taxpayers to benefit from the most competitive pricing.

Taxpayer Impact: A sole-source award means taxpayers may not have received the lowest possible price for these services, as competitive bidding was bypassed.

Public Impact

Disaster-affected individuals and families in Iowa will benefit from access to temporary housing. The contract facilitates the provision of essential services for housing displaced residents. The geographic impact is focused on the state of Iowa, specifically areas affected by DR-4796. The contract supports the operational capacity of FEMA to respond to natural disasters.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition could lead to higher costs for taxpayers.
The specific terms and conditions of the lease agreement are not detailed, posing potential risks.
Reliance on a single vendor for critical temporary housing infrastructure could create supply chain vulnerabilities.

Positive Signals

Supports critical disaster relief efforts, providing essential housing for affected populations.
Utilizes existing commercial infrastructure, potentially reducing setup time and costs.
Firm fixed-price contract provides budget certainty for FEMA.

Sector Analysis

The North American Industry Classification System (NAICS) code 721211, 'RV (Recreational Vehicle) Parks and Campgrounds,' falls within the broader hospitality and accommodation sector. This contract leverages existing commercial campground facilities to provide temporary housing, a common strategy during disaster recovery. The market for such services can fluctuate significantly based on demand, particularly in the wake of natural disasters. FEMA's spending in this area is directly tied to disaster declarations and recovery needs.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false). There is no information regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem from this specific contract appears minimal, as it was not designed to promote small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. FEMA has established internal oversight mechanisms and reporting requirements for its disaster relief operations. The Inspector General of the Department of Homeland Security would also have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract. Transparency is generally maintained through contract award databases, though specific lease terms may be less public.

Related Government Programs

Disaster Housing Assistance Programs
Temporary Lodging Services
Emergency Management Support Contracts
Federal Disaster Relief Funding

Risk Flags

Sole-source award bypasses competitive bidding.
Potential for uncompetitive pricing.
Reliance on a single vendor.
Limited transparency on specific lease terms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $68,340 to BIRCHWOOD ESTATES, INC. THE PURPOSE OF THIS PURCHASE ORDER IS TO LEASE COMMERCIAL PADS TO PROVIDE TRANSPORTABLE TEMPORARY HOUSING UNITS (TTHU) IN SUPPORT OF THE DIRECT HOUSING MISSION UNDER DR-4796 IN THE STATE OF IOWA.

Who is the contractor on this award?

The obligated recipient is BIRCHWOOD ESTATES, INC.

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 $68,340.

What is the period of performance?

Start: 2024-09-04. End: 2026-03-03.

What is the track record of Birchwood Estates, Inc. in providing services to the federal government?

Information regarding Birchwood Estates, Inc.'s specific track record with the federal government is not detailed in the provided data. As this is a purchase order for leasing commercial pads, it suggests a focus on commercial real estate and potentially hospitality services. Further investigation into federal procurement databases like SAM.gov or FPDS would be necessary to ascertain their history of federal contracts, past performance ratings, and any potential issues or commendations received on previous awards. Without this historical data, it is difficult to assess their reliability and experience in fulfilling government requirements.

How does the cost of leasing commercial pads compare to alternative temporary housing solutions?

Leasing commercial pads, as done in this contract, is generally considered a more cost-effective and faster solution for temporary housing compared to constructing new facilities or purchasing modular units. Commercial pads already possess basic infrastructure like access roads, utility hookups, and potentially existing amenities. This avoids significant upfront capital investment and lengthy construction timelines. However, the cost-effectiveness is highly dependent on the specific terms of the lease, the location, and the duration required. In scenarios requiring long-term or highly customized housing, other solutions might become more competitive. FEMA often uses a mix of strategies based on the specific disaster's scale and duration.

What are the primary risks associated with this type of temporary housing contract?

The primary risks associated with this contract include potential cost overruns if the lease terms are not carefully managed or if unforeseen issues arise with the commercial property. A significant risk is the lack of competition, which could mean the government is not securing the best possible price. Furthermore, reliance on a single vendor for critical infrastructure like housing pads can create vulnerabilities if the vendor experiences operational issues, financial instability, or fails to meet contractual obligations. Ensuring the quality and suitability of the leased pads for temporary housing, including compliance with safety and sanitation standards, also presents an ongoing risk that requires diligent oversight.

How effective is the use of commercial pads for disaster housing in supporting FEMA's mission?

The use of commercial pads for disaster housing is an effective strategy for FEMA to rapidly deploy temporary housing solutions, particularly in the immediate aftermath of a disaster. It leverages existing infrastructure, allowing for quicker setup and occupancy compared to building new sites. This approach directly supports FEMA's mission by providing essential shelter for displaced populations, thereby stabilizing affected communities and facilitating recovery. The effectiveness is maximized when the commercial sites are suitably located, adequately equipped, and leased under favorable terms. This method is a flexible tool in FEMA's broader disaster response toolkit.

What are the historical spending patterns for temporary housing pad leases by FEMA?

FEMA's spending on temporary housing, including the leasing of commercial pads or land for temporary housing sites, typically escalates significantly following major disaster declarations. Historical data shows that during large-scale events, FEMA expends substantial funds on various housing solutions, such as manufactured housing units, direct leases of apartments, and the setup of temporary housing sites on leased land or commercial properties. The specific amount spent on leasing commercial pads can vary greatly depending on the number and scale of concurrent disasters, the geographic regions affected, and the availability of suitable commercial properties. Analyzing past disaster responses (e.g., Hurricanes Katrina, Maria, Harvey, or recent wildfires) would reveal significant expenditures in this category.

What are the implications of a sole-source award for taxpayer value in disaster relief contracting?

A sole-source award, by definition, bypasses the competitive bidding process. This means that the government does not benefit from the price discovery mechanism that occurs when multiple vendors vie for a contract. Consequently, taxpayers may end up paying a higher price than they would have under a competitive scenario. While sole-source awards are sometimes necessary in emergency situations where speed is paramount or only one vendor can meet the requirement, they increase the risk of suboptimal value for taxpayer money. Robust justification and oversight are crucial to ensure that even sole-source contracts are awarded at fair and reasonable prices.

Industry Classification

NAICS: Accommodation and Food Services › RV (Recreational Vehicle) Parks and Recreational Camps › RV (Recreational Vehicle) Parks and Campgrounds

Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2106 1ST AVE E, SPENCER, IA, 51301

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $68,340

Exercised Options: $68,340

Current Obligation: $68,340

Actual Outlays: $58,370

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline