FEMA awards $28.8M contract for temporary housing units, with a significant portion allocated for Hawaii

Contract Overview

Contract Amount: $28,824,529 ($28.8M)

Contractor: Acuity International, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-08-30

End Date: 2025-08-29

Contract Duration: 364 days

Daily Burn Rate: $79.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ALTERNATIVE TRANSPORTABLE TEMPORARY HOUSING UNIT FOR RESPONSE AND RECOVERY FROM NATURAL DISASTERS.

Place of Performance

Location: HAIKU, MAUI County, HAWAII, 96708

State: Hawaii Government Spending

Plain-Language Summary

Department of Homeland Security obligated $28.8 million to ACUITY INTERNATIONAL, LLC for work described as: ALTERNATIVE TRANSPORTABLE TEMPORARY HOUSING UNIT FOR RESPONSE AND RECOVERY FROM NATURAL DISASTERS. Key points: 1. The contract focuses on providing essential temporary housing solutions in disaster-stricken areas. 2. Competition dynamics appear robust, with a full and open solicitation process. 3. The fixed-price nature of the contract aims to control costs and provide predictability. 4. Performance will be monitored over a one-year period, with potential for extensions. 5. This award falls within the broader category of emergency preparedness and response. 6. The geographic focus on Hawaii highlights specific regional needs for disaster recovery.

Value Assessment

Rating: good

The contract value of $28.8 million for temporary housing units over one year appears reasonable given the specialized nature of disaster response equipment. Benchmarking against similar contracts for emergency shelter solutions is challenging due to varying unit specifications and deployment complexities. However, the firm fixed-price structure suggests an effort to establish clear cost expectations upfront. The award amount should be evaluated in the context of the number of units procured and their intended duration of use.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. This approach generally fosters a competitive environment, encouraging multiple bidders to present their best pricing and technical solutions. The presence of three bidders suggests a healthy level of interest and competition for this type of requirement, which can lead to more favorable pricing for the government.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of securing goods and services at competitive market rates, preventing potential overpayment and maximizing the value of federal funds.

Public Impact

Disaster survivors in affected regions will benefit from the provision of essential temporary housing. The contract facilitates the delivery of manufactured home units designed for rapid deployment. The geographic impact is currently focused on Hawaii, addressing specific recovery needs. The contract supports the manufacturing sector involved in producing these specialized housing units.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for extended deployment needs beyond the initial one-year term.
Ensuring timely delivery and setup of units to meet urgent housing demands.
Quality control and maintenance of temporary housing units throughout their service life.

Positive Signals

Firm fixed-price contract helps manage budget predictability.
Full and open competition suggests a competitive pricing environment.
Award to a single contractor streamlines management and delivery.

Sector Analysis

This contract operates within the broader emergency management and disaster response sector, specifically focusing on the provision of temporary housing solutions. The market for disaster relief supplies and services is often characterized by urgent demand and specialized requirements. While specific market size data for temporary housing units is not readily available, FEMA's consistent need for such resources underscores its importance in national preparedness. This contract fits within FEMA's ongoing efforts to maintain a state of readiness for natural disasters.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside requirement for this contract (ss: false, sb: false). Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor, Acuity International, LLC, may engage small businesses as subcontractors for various aspects of manufacturing, logistics, or support services. The extent of subcontracting to small businesses will be a key factor in assessing the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. FEMA is responsible for ensuring that the contractor meets all delivery schedules, quality standards, and contractual obligations. Transparency is facilitated through federal procurement databases where contract awards are publicly reported. Inspector General jurisdiction would typically fall under the Department of Homeland Security's Office of Inspector General for investigations into fraud, waste, or abuse related to this award.

Related Government Programs

FEMA Disaster Relief Fund
Temporary and Transitional Sheltering Assistance
Emergency Management and Response Services
Manufactured Housing Procurement

Risk Flags

Potential for delivery delays
Ensuring unit quality and habitability
Logistical challenges in deployment
Unforeseen cost increases for contractor
Supply chain disruptions

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $28.8 million to ACUITY INTERNATIONAL, LLC. ALTERNATIVE TRANSPORTABLE TEMPORARY HOUSING UNIT FOR RESPONSE AND RECOVERY FROM NATURAL DISASTERS.

Who is the contractor on this award?

The obligated recipient is ACUITY INTERNATIONAL, 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 $28.8 million.

What is the period of performance?

Start: 2024-08-30. End: 2025-08-29.

What is Acuity International, LLC's track record with FEMA and similar disaster response contracts?

Acuity International, LLC has a history of providing services to government agencies, including defense and emergency response. While specific details on their past performance with FEMA for temporary housing units require deeper analysis of contract databases, their presence as a prime contractor suggests prior experience. Their ability to fulfill this current contract will depend on their established supply chains, manufacturing capacity, and logistical expertise in deploying housing units rapidly. Further investigation into past performance reviews and any documented issues on previous FEMA contracts would provide a more comprehensive understanding of their reliability.

How does the per-unit cost of these temporary housing units compare to market rates or similar government procurements?

Determining the precise per-unit cost is difficult without knowing the exact number of units procured under the $28.8 million award. The contract is for 'ALTERNATIVE TRANSPORTABLE TEMPORARY HOUSING UNIT FOR RESPONSE AND RECOVERY FROM NATURAL DISASTERS,' suggesting specialized features beyond standard manufactured homes. Benchmarking requires comparing the specifications, size, amenities, and intended lifespan of these units against other government contracts for similar emergency shelters or against commercial offerings for rapidly deployable housing. Without this detailed comparison, a definitive assessment of value-for-money on a per-unit basis is challenging. The 'br': 79188 value in the data might represent a benchmark or a specific unit cost, but its context is unclear.

What are the primary risks associated with the delivery and deployment of these temporary housing units?

Key risks include delays in manufacturing and transportation, especially given the potential need for rapid deployment to disaster-affected areas. Ensuring the quality and habitability of the units upon arrival is critical, as is the logistical challenge of site preparation and installation. There's also a risk related to the duration of need; if disasters are more frequent or prolonged than anticipated, the demand for these units could exceed supply or strain the contract's capacity. Furthermore, unforeseen weather events or supply chain disruptions could impact delivery timelines. The contractor's ability to manage these logistical and operational complexities effectively is paramount.

How effective is the firm fixed-price (FFP) contract type in managing costs for this type of emergency procurement?

A Firm Fixed-Price (FFP) contract is generally effective in managing costs for procurements where the scope of work is well-defined and risks can be reasonably assessed upfront. For temporary housing units, FFP provides budget certainty for FEMA, as the total cost is established at the time of award. This shifts the risk of cost overruns to the contractor, Acuity International, LLC. However, if unforeseen circumstances significantly increase the contractor's costs (e.g., material price spikes, transportation challenges), the contractor may be less motivated to perform or could face financial strain, potentially impacting delivery. For emergency procurements, the predictability of FFP is often a significant advantage in budget planning.

What is the historical spending pattern for temporary housing units by FEMA or DHS?

FEMA and the Department of Homeland Security (DHS) have a history of significant spending on temporary housing solutions, particularly following major natural disasters like hurricanes and wildfires. Spending patterns fluctuate annually based on the frequency and severity of disaster events. For instance, years with widespread catastrophic events typically see higher expenditures on transitional sheltering assistance and temporary housing units. Analyzing historical data would reveal peaks in spending corresponding to major disaster declarations. This contract represents a portion of that ongoing, albeit variable, expenditure aimed at maintaining disaster response capabilities.

What are the implications of the 364-day duration and the 'delivery order' award type for long-term housing solutions?

The 364-day duration suggests this contract is intended for short-to-medium-term temporary housing needs, typical for post-disaster recovery phases. The 'delivery order' (aw: DELIVERY ORDER) award type indicates that the contract establishes terms and conditions, and specific quantities and delivery schedules are issued via individual orders as needed. This provides flexibility for FEMA to procure units based on evolving disaster situations. While effective for immediate response, this structure is not designed for permanent housing solutions. If long-term recovery requires more sustained housing, separate, longer-term programs or contracts would likely be necessary.

Industry Classification

NAICS: Manufacturing › Other Wood Product Manufacturing › Manufactured Home (Mobile Home) Manufacturing

Product/Service Code: PREFAB STRUCTURES/SCAFFOLDING

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Acuity International LLC

Address: 10701 PARKRIDGE BLVD STE 200, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,824,529

Exercised Options: $28,824,529

Current Obligation: $28,824,529

Actual Outlays: $27,324,529

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FBR924D00000003

IDV Type: IDC

Timeline