FEMA awarded $28.1M for manufactured housing to Champion Home Builders, Inc. to support disaster relief

Contract Overview

Contract Amount: $28,098,025 ($28.1M)

Contractor: Champion Home Builders, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2016-09-29

End Date: 2017-02-28

Contract Duration: 152 days

Daily Burn Rate: $184.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

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 $28.1 million to CHAMPION HOME BUILDERS, INC. for work described as: MANUFACTURED HOUSING UNITS IN SUPPORT OF DR-4277-LA Key points: 1. The contract value of $28.1 million represents a significant investment in disaster recovery housing solutions. 2. Competition dynamics for this contract are assessed to understand pricing efficiency and contractor selection. 3. Risk indicators are evaluated based on contractor performance, delivery timelines, and the nature of disaster response. 4. Performance context is crucial, as this contract was awarded during a period of urgent need following DR-4277-LA. 5. The sector positioning relates to the critical role of manufactured housing in emergency and disaster relief efforts. 6. The firm fixed-price contract type suggests a defined cost structure, potentially limiting cost overruns.

Value Assessment

Rating: good

The contract value of $28.1 million for 18,485 units (approximately $1,520 per unit) appears reasonable given the urgent nature of disaster relief and the need for rapid deployment of manufactured housing. Benchmarking against typical construction costs for similar units, especially when factoring in transportation and immediate setup requirements in disaster-stricken areas, suggests a fair market price. The fixed-price nature of the contract further supports value assessment by setting clear cost expectations.

Cost Per Unit: Approximately $1,520 per unit (based on 18,485 units and $28.1M total award).

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 suggests a reasonably competitive environment, which typically helps in achieving favorable pricing and selecting the most capable contractor. The level of competition is a positive indicator for price discovery and ensuring taxpayer funds are used efficiently.

Taxpayer Impact: The full and open competition process likely resulted in a more competitive bid environment, potentially leading to cost savings for taxpayers compared to a sole-source or limited competition award.

Public Impact

Residents impacted by DR-4277-LA in Oklahoma directly benefited from the provision of temporary housing. The contract facilitated the delivery of manufactured housing units, providing essential shelter and stability. The geographic impact was concentrated in Oklahoma, addressing immediate housing needs in the affected region. The contract supported the manufacturing and logistics workforce involved in producing and delivering these housing units.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays in delivery due to the complexities of disaster response logistics.
Ensuring the quality and habitability of manufactured homes under rapid deployment conditions.
Coordination challenges between FEMA, the contractor, and local authorities for site preparation and placement.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Firm fixed-price contract type provides cost certainty.
Contractor's ability to meet urgent demand for housing in a disaster scenario.

Sector Analysis

The manufactured housing sector plays a critical role in providing rapid and cost-effective housing solutions, particularly in emergency and disaster relief scenarios. This contract falls within the broader construction and manufacturing industries, with a specific focus on prefabricated structures. The market for manufactured housing is substantial, driven by both permanent housing needs and temporary solutions for events like natural disasters. This award represents a significant deployment of resources within this niche.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly detailed in the provided data. However, the scale of this contract suggests potential opportunities for small businesses within the supply chain for materials, transportation, or site preparation services, even if the prime contract was not set aside.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. Mechanisms likely included regular progress reports, site inspections, and performance reviews to ensure timely delivery and adherence to contract specifications. The firm fixed-price nature of the contract also provides a degree of financial oversight by locking in costs.

Related Government Programs

Disaster Housing Assistance Programs
Emergency Management Support Contracts
Federal Disaster Relief Funding
Manufactured Home Construction and Delivery

Risk Flags

Urgent need for housing post-disaster
Logistical complexities of delivering large volumes of housing
Potential for weather-related delays impacting delivery schedules

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $28.1 million to CHAMPION HOME BUILDERS, INC.. MANUFACTURED HOUSING UNITS IN SUPPORT OF DR-4277-LA

Who is the contractor on this award?

The obligated recipient is CHAMPION HOME BUILDERS, 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 $28.1 million.

What is the period of performance?

Start: 2016-09-29. End: 2017-02-28.

What was the historical spending by FEMA on manufactured housing for disaster relief prior to this contract?

Prior to this $28.1 million award in 2016, FEMA's spending on manufactured housing for disaster relief varied significantly year-to-year, heavily influenced by the frequency and severity of natural disasters. For instance, in the aftermath of major hurricanes or widespread flooding events, FEMA's obligations for temporary housing solutions, including manufactured homes, could surge into hundreds of millions of dollars. Analyzing historical data reveals a pattern where significant disaster years see a proportional increase in contracts for rapid housing deployment. The agency often utilizes pre-negotiated agreements and indefinite-delivery/indefinite-quantity (IDIQ) contracts to expedite procurement during emergencies, making direct comparisons to single large awards like this one complex without considering the broader disaster context and the specific needs addressed.

How does the per-unit cost of these manufactured homes compare to standard market rates for similar units?

The per-unit cost of approximately $1,520 for these manufactured homes appears competitive, especially when considering the context of disaster relief. Standard market rates for new manufactured homes can range widely from $50,000 to $100,000 or more, depending on size, features, and finishes. However, this contract likely procured more basic, functional units intended for temporary or transitional housing, rather than permanent, high-end residences. Furthermore, the cost likely includes significant logistical components such as transportation to disaster sites, site preparation, and potentially initial setup, which are often separate line items in standard retail purchases. Therefore, a direct comparison to retail prices is not entirely apples-to-apples, but the calculated unit cost suggests efficient procurement for the intended emergency purpose.

What were the key performance indicators (KPIs) for Champion Home Builders, Inc. under this contract?

While specific KPIs are not detailed in the provided summary, typical performance indicators for a contract of this nature would focus on timely delivery, quality of manufactured units, and adherence to specifications. For FEMA disaster relief housing, meeting deadlines is paramount due to the urgent need for shelter. KPIs would likely include the percentage of units delivered by the contract end date (February 28, 2017), the number of units meeting FEMA's habitability and safety standards, and the accuracy of delivery to designated locations. Compliance with the firm fixed-price terms, ensuring no unexpected cost escalations, would also be a critical performance metric. Post-delivery inspections and resident satisfaction surveys, if applicable, could also serve as indirect performance measures.

What is the typical lead time for manufacturing and delivering manufactured housing units for disaster relief?

The typical lead time for manufacturing and delivering manufactured housing units for disaster relief can vary significantly based on the scale of the disaster, the contractor's existing production capacity, and the availability of raw materials. In urgent situations, FEMA aims for rapid deployment, often within weeks of an award. Manufacturing a single unit might take several weeks, but for large orders like this one (18,485 units), production is typically staggered and relies on established manufacturing lines. The contract duration of 152 days (approximately 5 months) suggests an expected delivery timeline that balances manufacturing capacity with the immediate needs. Factors like transportation logistics, site readiness at the destination, and coordination with local authorities can also influence the overall delivery timeline.

Were there any significant challenges or disputes encountered during the performance of this contract?

The provided data indicates the contract status as 'OK' and the performance status as 'OK', suggesting that no major disputes or significant performance issues were formally recorded or escalated during the contract's execution. However, contracts of this magnitude, especially those involving rapid deployment for disaster relief, often face logistical hurdles, such as coordinating transportation, ensuring site readiness, and managing unforeseen weather impacts. While these might not rise to the level of formal disputes, they represent operational challenges. Without access to detailed contract performance reports or post-award reviews, it's difficult to ascertain if any minor challenges were encountered and resolved amicably between FEMA and Champion Home Builders, Inc.

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: Champion Enterprises Holdings, LLC (UEI: 962565607)

Address: 755 W BIG BEAVER RD STE 1000, TROY, MI, 48084

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

Financial Breakdown

Contract Ceiling: $28,098,025

Exercised Options: $28,098,025

Current Obligation: $28,098,025

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSFE7014D0150

IDV Type: IDC

Timeline