FEMA Spends $267M on Travel Trailers for Disaster Relief, Awarded Sole-Source

Contract Overview

Contract Amount: $267,646,019 ($267.6M)

Contractor: Gulf Stream Coach Inc

Awarding Agency: Department of Homeland Security

Start Date: 2005-09-02

End Date: 2006-04-25

Contract Duration: 235 days

Daily Burn Rate: $1.1M/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRAVEL TRAILERS

Place of Performance

Location: NAPPANEE, ELKHART County, INDIANA, 46550

State: Indiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $267.6 million to GULF STREAM COACH INC for work described as: TRAVEL TRAILERS Key points: 1. Significant expenditure of $267.6 million on travel trailers. 2. Sole-source award to Gulf Stream Coach Inc. raises competition concerns. 3. Contract duration was short (235 days), suggesting an urgent need. 4. The manufacturing sector for these trailers is likely competitive, but this award bypassed it.

Value Assessment

Rating: questionable

The total award amount of $267.6 million for travel trailers is substantial. Without comparable contract data for similar emergency procurements, it's difficult to definitively assess if this price was optimal. The lack of competition suggests potential for overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning FEMA did not solicit bids from multiple vendors. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The sole-source nature of this award means taxpayers may have paid a premium due to the absence of competitive bidding.

Public Impact

Provides essential temporary housing for individuals displaced by disasters. Supports a specific manufacturer, potentially impacting market dynamics. Highlights FEMA's reliance on rapid procurement during emergencies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for inflated pricing
Urgent need may have bypassed standard procurement safeguards

Positive Signals

Addresses critical need for disaster relief housing
Supports a known manufacturer for rapid deployment

Sector Analysis

The procurement falls within the manufacturing sector, specifically for recreational vehicles and campers. While this sector can be competitive, emergency procurements sometimes necessitate sole-source awards due to time constraints, potentially deviating from standard market pricing.

Small Business Impact

The data indicates this award went to Gulf Stream Coach Inc., a large manufacturer. There is no indication that small businesses were involved in this specific sole-source contract.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the price was fair and reasonable and that competition was only bypassed when absolutely necessary. Post-award audits would be crucial.

Related Government Programs

Travel Trailer and Camper Manufacturing
Department of Homeland Security Contracting
Federal Emergency Management Agency Programs

Risk Flags

Sole-source award lacks competition
Potential for overpricing
Lack of transparency in pricing
Urgent need may have bypassed standard due diligence

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $267.6 million to GULF STREAM COACH INC. TRAVEL TRAILERS

Who is the contractor on this award?

The obligated recipient is GULF STREAM COACH 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 $267.6 million.

What is the period of performance?

Start: 2005-09-02. End: 2006-04-25.

Was the sole-source justification for this large travel trailer procurement adequately documented and vetted by FEMA?

The justification for a sole-source award, especially for a contract valued at over $267 million, must be robust. FEMA would need to demonstrate that only Gulf Stream Coach Inc. could meet the urgent requirements, and that market research confirmed no other viable options existed within the necessary timeframe. Without access to the specific justification documentation, it's impossible to confirm its adequacy.

What was the actual per-unit cost of these travel trailers compared to market rates at the time?

Determining the exact per-unit cost and comparing it to market rates would require access to the contract's detailed pricing structure and contemporary market data for similar trailers. Given the sole-source nature and the urgency of disaster relief, it's plausible that the per-unit cost was higher than if the contract had been competitively bid. Further analysis of the contract's line-item costs is needed.

How effectively were these travel trailers utilized for their intended purpose of disaster relief housing?

The effectiveness of the travel trailers hinges on their deployment and the duration of need. While the procurement addressed a critical housing shortage, the long-term impact depends on how quickly displaced individuals were rehoused and whether the trailers met their needs adequately. Post-deployment assessments and beneficiary feedback would be necessary to gauge true effectiveness.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Travel Trailer and Camper Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: COUNTY ROAD #7, NAPPANEE, IN, 02

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

Financial Breakdown

Contract Ceiling: $303,079,450

Exercised Options: $303,079,450

Current Obligation: $267,646,019

Timeline