FEMA awards $5.7M for mobile homes to Morgan Buildings & Spas, Inc. in Texas

Contract Overview

Contract Amount: $57,401,400 ($57.4M)

Contractor: Morgan Buildings & Spas, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2004-08-17

End Date: 2005-08-15

Contract Duration: 363 days

Daily Burn Rate: $158.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MOBILE HOMES

Place of Performance

Location: GARLAND, DALLAS County, TEXAS, 75040

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $57.4 million to MORGAN BUILDINGS & SPAS, INC. for work described as: MOBILE HOMES Key points: 1. Contract awarded for manufactured housing dealers. 2. Competition was full and open. 3. Potential risk associated with fixed-price contracts in fluctuating markets. 4. Spending falls within the construction/housing sector.

Value Assessment

Rating: fair

The contract value of $5.7 million for mobile homes appears reasonable given the quantity of 7 units. However, without specific details on the type and size of the homes, a precise comparison to similar contracts is difficult.

Cost Per Unit: $811,477 per unit

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing competitive pricing.

Public Impact

Provides essential housing solutions for disaster relief efforts. Supports a specific vendor, Morgan Buildings & Spas, Inc. Contract duration of approximately one year. Geographic focus on Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Fixed-price contract risk
Potential for cost overruns if material prices increase

Positive Signals

Full and open competition
Clear delivery order for specific needs

Sector Analysis

This contract falls under the construction and housing sector, specifically for manufactured homes. Spending benchmarks for similar disaster relief housing procurements can vary significantly based on scale and urgency.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as the vendor is Morgan Buildings & Spas, Inc. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract was a delivery order under a larger agreement, suggesting it may have undergone prior review. Oversight would focus on ensuring timely delivery and quality of the mobile homes as per the contract terms.

Related Government Programs

Manufactured (Mobile) Home Dealers
Department of Homeland Security Contracting
Federal Emergency Management Agency Programs

Risk Flags

Fixed-price contract risk
Potential for delivery delays
Quality control of manufactured homes
Long-term suitability of mobile homes

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $57.4 million to MORGAN BUILDINGS & SPAS, INC.. MOBILE HOMES

Who is the contractor on this award?

The obligated recipient is MORGAN BUILDINGS & SPAS, 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 $57.4 million.

What is the period of performance?

Start: 2004-08-17. End: 2005-08-15.

What was the specific purpose and urgency driving this mobile home procurement?

The procurement was likely driven by a need for temporary housing following a natural disaster or emergency event, as indicated by the awarding agency, FEMA. The urgency would be tied to providing shelter for displaced individuals and families, making rapid deployment and availability of housing units critical.

How did the fixed-price contract structure impact the final cost given potential material fluctuations?

A fixed-price contract shifts the risk of cost overruns to the contractor. If the cost of materials for mobile homes increased significantly between the bid and delivery, Morgan Buildings & Spas, Inc. would absorb those costs, potentially impacting their profit margin. Conversely, if costs decreased, the government would benefit from the agreed-upon price.

What are the long-term implications of using mobile homes for disaster housing?

Mobile homes offer a relatively quick solution for immediate shelter needs but may not be a sustainable long-term housing option due to durability and potential environmental concerns. Their use can be a necessary stopgap measure, but planning for more permanent housing solutions is crucial for community recovery.

Industry Classification

NAICS: Retail Trade › Other Miscellaneous Store Retailers › Manufactured (Mobile) Home Dealers

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: GHM Corp. (UEI: 556592426)

Address: 2800 MCCREE RD., GARLAND, TX, 75041

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $57,401,400

Exercised Options: $57,401,400

Current Obligation: $57,401,400

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSFE0404D4060

IDV Type: BPA

Timeline