FEMA spent $28.5M on manufactured housing for Hurricane Harvey, exceeding initial estimates

Contract Overview

Contract Amount: $28,542,216 ($28.5M)

Contractor: CMH Manufacturing Inc

Awarding Agency: Department of Homeland Security

Start Date: 2017-09-05

End Date: 2018-02-28

Contract Duration: 176 days

Daily Burn Rate: $162.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MANUFACTURED HOUSING UNITS IN SUPPORT OF HURRICANE HARVEY

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73149

State: Oklahoma Government Spending

Plain-Language Summary

Department of Homeland Security obligated $28.5 million to CMH MANUFACTURING INC for work described as: MANUFACTURED HOUSING UNITS IN SUPPORT OF HURRICANE HARVEY Key points: 1. Value for money appears fair given the emergency nature and scale of Hurricane Harvey. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with contract performance noted as 'OK'. 4. Performance context shows a rapid deployment of housing units within a 5-month period. 5. Sector positioning is within disaster relief and emergency response services.

Value Assessment

Rating: fair

The contract value of $28.5 million for manufactured housing units is substantial, reflecting the urgent need post-Hurricane Harvey. Benchmarking against similar disaster relief housing contracts is challenging due to the unique scale and rapid deployment requirements. However, the price per unit, while not explicitly detailed, would need to be assessed against market rates for emergency temporary housing solutions to determine true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 7 bids received. This level of competition is generally positive for price discovery and ensuring the government receives competitive offers. The number of bidders suggests a healthy market response to the requirement.

Taxpayer Impact: A full and open competition process helps ensure taxpayer dollars are used efficiently by fostering a competitive environment among potential suppliers.

Public Impact

Displaced residents of Texas affected by Hurricane Harvey were provided with temporary housing solutions. The services delivered included the manufacturing and delivery of manufactured housing units. The geographic impact was primarily in the Texas Gulf Coast region, severely impacted by the hurricane. Workforce implications include support for manufacturing jobs and logistics personnel involved in production and delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in emergency procurements.
Logistical challenges in delivering housing to disaster-stricken areas.
Ensuring timely delivery of habitable units under pressure.

Positive Signals

Contract awarded under full and open competition.
Performance status noted as 'OK'.
Rapid deployment of essential services during a crisis.

Sector Analysis

The manufactured housing sector plays a critical role in providing rapid, cost-effective housing solutions, particularly during emergencies. This contract falls within the broader construction and manufacturing industries, with a specific focus on disaster relief. Comparable spending benchmarks are difficult to establish precisely due to the ad-hoc nature of disaster response, but the scale indicates a significant federal investment in immediate post-disaster needs.

Small Business Impact

Information regarding small business set-asides or subcontracting is not explicitly provided in the data. Given the scale and nature of the requirement, it is possible that larger manufacturers were the primary awardees, with potential for smaller businesses to be involved in subcontracting roles for specific components or services.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. Accountability measures would include contract performance monitoring, delivery schedules, and quality control of the manufactured units. Transparency is generally maintained through federal procurement databases, though specific details of oversight activities may not be publicly available.

Related Government Programs

Hurricane Relief Efforts
Disaster Housing Programs
Emergency Management Services
Temporary Housing Solutions

Risk Flags

Emergency Procurement
Disaster Relief Scale
Rapid Deployment Needs

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $28.5 million to CMH MANUFACTURING INC. MANUFACTURED HOUSING UNITS IN SUPPORT OF HURRICANE HARVEY

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 $28.5 million.

What is the period of performance?

Start: 2017-09-05. End: 2018-02-28.

What was the average price per manufactured housing unit under this contract?

The total contract value was $28,542,216.16 for an unspecified number of manufactured housing units, though the data indicates 'MANUFACTURED HOUSING UNITS IN SUPPORT OF HURRICANE HARVEY'. Without a precise quantity of units delivered, calculating an exact average price per unit is not possible from the provided data. However, if we assume the '28542216.16' represents the total dollar amount and 'MANUFACTURED HOUSING UNITS' implies a quantity, further clarification on the unit count would be needed. For context, typical manufactured homes can range from $50,000 to $150,000 or more depending on size, features, and customization. Emergency temporary housing solutions might have different cost structures.

How does the contract duration compare to similar emergency housing procurements?

This contract had a duration of 176 days, spanning from September 5, 2017, to February 28, 2018. This duration is relatively short, typical for emergency response procurements where rapid deployment is critical. Similar emergency housing contracts, especially those following major natural disasters, are often time-bound and focused on immediate relief rather than long-term solutions. The short duration suggests a focus on fulfilling an urgent need within a defined crisis period.

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

Specific risks associated with this contract likely included logistical challenges in delivering housing to disaster-affected areas, potential delays in manufacturing, and ensuring the quality and habitability of the units under pressure. Mitigation strategies would have involved close coordination with the contractor (CMH MANUFACTURING INC), robust quality assurance processes, and potentially pre-established delivery routes or staging areas. The 'OK' status for performance suggests that these risks were managed effectively, though the exact mitigation plans are not detailed in the provided data.

What is the track record of CMH MANUFACTURING INC in government contracting, particularly for disaster relief?

The provided data indicates CMH MANUFACTURING INC was the contractor for this specific FEMA contract related to Hurricane Harvey. Further analysis would be required to assess their broader track record with government contracts, including their history with disaster relief efforts, past performance ratings, and any other relevant contracts. Without additional data points on their contract history, it's difficult to provide a comprehensive assessment of their track record beyond this single instance.

How does the $28.5 million expenditure compare to overall federal spending on Hurricane Harvey recovery?

The $28.5 million expenditure on manufactured housing represents a component of the broader federal response to Hurricane Harvey. Total federal spending on Hurricane Harvey recovery efforts was significantly higher, encompassing a wide range of activities including infrastructure repair, aid to individuals and families, and long-term rebuilding initiatives. This contract specifically addresses the immediate need for temporary shelter. To contextualize this amount, one would need to compare it against the total appropriations and expenditures allocated by FEMA and other federal agencies for the entire Hurricane Harvey recovery mission, which likely ran into billions of dollars.

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: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Berkshire Hathaway Inc. (UEI: 001024314)

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: $28,542,216

Exercised Options: $28,542,216

Current Obligation: $28,542,216

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSFE7014D0151

IDV Type: IDC

Timeline