FEMA Spends $94.8M on Mobile Homes from Morgan Buildings & Spas, Inc. for Hurricane Katrina Relief
Contract Overview
Contract Amount: $94,820,710 ($94.8M)
Contractor: Morgan Buildings & Spas, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2005-09-21
End Date: 2005-12-01
Contract Duration: 71 days
Daily Burn Rate: $1.3M/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MOBILE HOMES
Place of Performance
Location: BATON ROUGE, EAST BATON ROUGE County, LOUISIANA, 70821
Plain-Language Summary
Department of Homeland Security obligated $94.8 million to MORGAN BUILDINGS & SPAS, INC. for work described as: MOBILE HOMES Key points: 1. Significant expenditure of $94.8M for mobile homes. 2. Sole-source contract awarded to Morgan Buildings & Spas, Inc. 3. Contract awarded during Hurricane Katrina response, indicating urgent need. 4. Limited competition likely due to emergency circumstances.
Value Assessment
Rating: questionable
The total award of $94.8M for 336,214 units (approximately $282 per unit) appears extremely low for mobile homes, suggesting potential issues with the data or the nature of the 'units' provided. This price point is not comparable to standard mobile home sales.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, likely due to the emergency nature of Hurricane Katrina. This lack of competition limits price discovery and potentially leads to higher costs than if multiple vendors had bid.
Taxpayer Impact: Taxpayers bore the full cost of this emergency procurement, with no competitive pressure to ensure the lowest possible price.
Public Impact
Provided essential temporary housing for displaced individuals after Hurricane Katrina. Addressed immediate shelter needs in a disaster-stricken region. The large scale of the procurement highlights the significant impact of the hurricane on housing infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition raises concerns about price fairness.
- Urgent need procurement may have bypassed standard cost controls.
- Data on unit count and price per unit seems anomalous.
Positive Signals
- Fulfilled critical need for temporary housing.
- Rapid deployment of resources in response to a major disaster.
Sector Analysis
The procurement falls under the 'Travel Trailer and Camper Manufacturing' category, often associated with emergency response or temporary housing solutions. Spending benchmarks for such emergency procurements are difficult to establish due to variable demand and urgency.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had the capacity to fulfill this large-scale emergency requirement.
Oversight & Accountability
The sole-source nature of this contract warrants oversight to ensure the price paid was reasonable given the circumstances. Post-award audits would be crucial to verify the value received.
Related Government Programs
- Travel Trailer and Camper Manufacturing
- Department of Homeland Security Contracting
- Federal Emergency Management Agency Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for inflated costs due to emergency procurement.
- Anomalous per-unit cost requires further investigation.
- Lack of small business participation.
Tags
travel-trailer-and-camper-manufacturing, department-of-homeland-security, la, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $94.8 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 $94.8 million.
What is the period of performance?
Start: 2005-09-21. End: 2005-12-01.
Was the extremely low per-unit cost a result of bulk purchasing, specific unit configurations, or data error?
The reported cost of approximately $282 per unit is highly unusual for mobile homes. It's possible this figure represents a component, a very basic shelter, or a data entry error. Without further clarification on what 'mobile homes' entailed and the specific terms of the contract, it's difficult to ascertain the true value or if it was a data anomaly.
What was the justification for the sole-source award, and were there any alternatives considered?
Given the contract's award date (September 2005) and the agency (FEMA), it is highly probable that the sole-source justification stemmed from the immediate and overwhelming need for housing following Hurricane Katrina. Emergency declarations often allow for expedited, non-competitive procurements to address critical life-saving and support requirements.
How effectively were these mobile homes utilized for disaster relief, and what was the long-term impact?
These mobile homes likely provided crucial temporary shelter for thousands of individuals displaced by Hurricane Katrina, fulfilling an immediate and critical need. The long-term impact would involve assessing their durability, the transition of residents to permanent housing, and any environmental or community integration challenges that arose from their use.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Travel Trailer and Camper Manufacturing
Product/Service Code: PREFAB STRUCTURES/SCAFFOLDING
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: GHM Corp. (UEI: 556592426)
Address: 2800 MCCREE RD, GARLAND, TX, 05
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $227,916,000
Exercised Options: $227,916,000
Current Obligation: $94,820,710
Parent Contract
Parent Award PIID: HSFEHQ05D4334
IDV Type: IDC
Timeline
Start Date: 2005-09-21
Current End Date: 2005-12-01
Potential End Date: 2005-12-01 00:00:00
Last Modified: 2010-04-01
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