FEMA awarded $58.2M for mobile homes, with CMH Manufacturing Inc. securing the sole-source contract

Contract Overview

Contract Amount: $58,205,262 ($58.2M)

Contractor: CMH Manufacturing Inc

Awarding Agency: Department of Homeland Security

Start Date: 2005-09-21

End Date: 2005-12-01

Contract Duration: 71 days

Daily Burn Rate: $819.8K/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

State: Louisiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $58.2 million to CMH MANUFACTURING INC for work described as: MOBILE HOMES Key points: 1. The contract's value of $58.2 million represents a significant investment in disaster relief housing. 2. Sole-source procurement raises questions about potential cost efficiencies and market competition. 3. The short duration of 71 days suggests an urgent response to immediate needs. 4. The contract was awarded under a firm-fixed-price structure, indicating defined cost expectations. 5. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its specific nature (disaster relief mobile homes) and sole-source award. The awarded amount of $58.2 million for 1 unit (presumably a large batch) needs context regarding the specifications and quantity of units provided. Without competitive bids, it's difficult to definitively assess if this represents fair market value or if taxpayers received optimal pricing. The contract's value relative to the immediate need during a disaster is a key consideration, but the lack of competition prevents a robust value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, CMH MANUFACTURING INC, was solicited. This approach is typically used when only one source is capable of meeting the requirement, often in emergency situations or for highly specialized goods/services. The lack of competition means there was no opportunity for price discovery through bidding, potentially leading to higher costs for the government compared to a competed contract. The justification for sole-source procurement in this instance would need to be thoroughly reviewed.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to secure the best possible prices, potentially resulting in less efficient use of taxpayer funds.

Public Impact

Disaster-affected populations in Louisiana will benefit from the provision of temporary housing. The contract directly addresses the critical need for shelter following a natural disaster. The geographic impact is focused on Louisiana, specifically the areas affected by the disaster. The contract supports the manufacturing and logistics workforce involved in producing and delivering mobile homes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to inflated pricing.
Sole-source award limits transparency in the procurement process.
No clear indication of small business participation or subcontracting goals.

Positive Signals

Addresses an urgent need for disaster relief housing.
Firm-fixed-price contract provides cost certainty.
Awarded by a key agency (FEMA) for critical services.

Sector Analysis

The Travel Trailer and Camper Manufacturing sector (NAICS 336214) encompasses companies that produce recreational vehicles and mobile homes. This contract falls within the broader manufacturing and construction industries, with a specific application in emergency response and disaster relief. The market for mobile homes can be influenced by factors such as housing demand, interest rates, and government procurement needs, particularly after significant natural disasters. The scale of this award suggests a substantial requirement, potentially indicating a large-scale disaster event.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award, there is no explicit mention of subcontracting requirements or opportunities for small businesses. This suggests that CMH MANUFACTURING INC likely fulfilled the contract requirements directly, potentially limiting the participation of the small business ecosystem in this specific procurement. Further investigation into subcontracting plans or historical small business involvement with this contractor would be necessary.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security. As a sole-source award, the justification and execution would be subject to internal agency review and potentially oversight from the Government Accountability Office (GAO) if protests were filed. Transparency is limited due to the non-competitive nature, but FEMA's Inspector General could investigate the necessity and fairness of the sole-source determination and award.

Related Government Programs

Disaster Housing Assistance Programs
Emergency Management and Response Contracts
Federal Mobile Home Procurement
Department of Homeland Security Acquisitions

Risk Flags

Sole-source award lacks competitive pricing.
Urgent need procurement may bypass standard cost-saving measures.
Limited transparency on contractor performance and pricing justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $58.2 million to CMH MANUFACTURING INC. MOBILE HOMES

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 $58.2 million.

What is the period of performance?

Start: 2005-09-21. End: 2005-12-01.

What specific disaster event prompted this large sole-source award for mobile homes?

The data indicates the contract was awarded on September 21, 2005, with an end date of December 1, 2005, and a primary location of Louisiana. This timeframe strongly suggests the contract was a direct response to the catastrophic Hurricane Katrina, which made landfall on August 29, 2005. Hurricane Katrina caused widespread devastation across the Gulf Coast, particularly in Louisiana, leading to an unprecedented demand for temporary housing solutions. FEMA, as the lead federal agency for disaster response, would have urgently needed to procure large quantities of housing units like mobile homes to shelter displaced residents.

What was the unit cost or cost per mobile home under this contract?

The provided data states a total award amount of $58,205,262 for 1 unit (no: 1) and a duration of 71 days. This '1 unit' designation is highly unusual for a contract of this magnitude and likely refers to the entire contract award as a single line item or task order, rather than a single physical mobile home. Therefore, calculating a meaningful per-unit cost for a mobile home is not possible with the given information. The 'br' (base price) value of 819792 might represent a base value for a portion of the contract or a related metric, but it does not directly translate to the cost of an individual mobile home without further context or breakdown of the contract's deliverables.

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

CMH MANUFACTURING INC, as a manufacturer of mobile homes, likely has a history of supplying housing solutions. However, without access to a comprehensive federal procurement database beyond the provided snippet, a detailed track record specifically with FEMA or other federal agencies cannot be fully assessed. The 'aw': 'DO' designation might indicate a 'Delivery Order' or a similar contract type, suggesting this might be one of several awards or a specific task order under a broader agreement. A thorough review would involve searching federal contract databases for all awards to CMH MANUFACTURING INC, noting the agencies involved, contract types, values, and performance history.

How does the firm-fixed-price (FFP) contract type impact risk and cost certainty for this disaster relief procurement?

A Firm-Fixed-Price (FFP) contract type, as indicated ('pt': 'FIRM FIXED PRICE'), means the price is set and not subject to adjustment based on the contractor's cost experience. For FEMA in a disaster scenario, this offers cost certainty, as the total expenditure is known upfront. This shifts the risk of cost overruns to the contractor, CMH MANUFACTURING INC. While beneficial for budgeting, it could also mean that the initial price might be higher to account for the contractor's risk premium. In an urgent disaster situation, the certainty of cost and the contractor's incentive to manage their own expenses efficiently are often prioritized over achieving the absolute lowest possible price.

What are the implications of the 'Travel Trailer and Camper Manufacturing' PSC code for this contract?

The Product and Service Code (PSC) is '336214' which corresponds to 'Travel Trailer and Camper Manufacturing'. This PSC code accurately categorizes the primary product being procured: mobile homes, which are often used as temporary or permanent residences and can be classified similarly to travel trailers or campers in manufacturing terms. This code helps in classifying federal spending and allows for analysis of procurement trends within specific manufacturing sectors. Its presence confirms the nature of the goods acquired and aids in comparing this spending to other government purchases of similar manufactured housing or recreational vehicles.

What does the 'st': 'LA' and 'sn': 'LOUISIANA' designation signify in the context of this contract?

The 'st': 'LA' and 'sn': 'LOUISIANA' designations clearly indicate that the primary geographic location or area of performance for this contract is the state of Louisiana. Given the timing of the award (September 2005) and the nature of the contract (mobile homes), this strongly correlates with the response to Hurricane Katrina. Louisiana was one of the most severely impacted states, requiring massive federal aid for recovery and sheltering of its displaced population. This contract was therefore a critical component of the federal government's efforts to provide immediate housing solutions to residents affected by the hurricane in Louisiana.

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: Berkshire Hathaway Inc. (UEI: 001024314)

Address: 5000 CLAYTON ROAD, MARYVILLE, TN, 02

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $58,205,262

Exercised Options: $58,205,262

Current Obligation: $58,205,262

Parent Contract

Parent Award PIID: HSFEHQ05D4335

IDV Type: IDC

Timeline