FEMA's $11.6M manufactured housing maintenance contract awarded to Heritage Homes of Mississippi Inc. for facilities support

Contract Overview

Contract Amount: $11,625,845 ($11.6M)

Contractor: Heritage Homes of Mississippi Incorporated

Awarding Agency: Department of Homeland Security

Start Date: 2007-06-01

End Date: 2010-01-04

Contract Duration: 948 days

Daily Burn Rate: $12.3K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 45

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MANUFACTURED HOUSING MAINTENANCE

Place of Performance

Location: CANTON, MADISON County, MISSISSIPPI, 39046

State: Mississippi Government Spending

Plain-Language Summary

Department of Homeland Security obligated $11.6 million to HERITAGE HOMES OF MISSISSIPPI INCORPORATED for work described as: MANUFACTURED HOUSING MAINTENANCE Key points: 1. The contract's value of $11.6 million over its period of performance suggests a significant investment in maintaining manufactured housing facilities. 2. Competition dynamics for this contract are not fully detailed, but the award type indicates a competitive process. 3. Risk indicators are moderate, given the fixed-price nature which shifts some cost risk to the contractor, but the duration and scope require careful monitoring. 4. Performance context is tied to FEMA's mission of disaster relief and recovery, implying a critical need for reliable facility maintenance. 5. The contract falls within the Facilities Support Services sector, a common area for government contracting to ensure operational readiness. 6. The total number of offers received (45) suggests a healthy level of interest and potential competition within the market for these services.

Value Assessment

Rating: fair

Benchmarking the value of this $11.6 million contract is challenging without specific service details and comparable contract data. However, the total duration of 948 days (approximately 2.6 years) implies an average annual spend of around $4.5 million. This figure needs to be assessed against the scope of services provided, the number of units maintained, and the prevailing market rates for facilities support in Mississippi. The fixed-price contract type suggests an attempt to control costs, but the ultimate value for money depends on the quality and efficiency of the services delivered by Heritage Homes of Mississippi Inc.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER' under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, indicating that it was subject to a full and open competition. The solicitation received 45 offers, demonstrating a robust level of interest from potential vendors in the facilities support services market. A high number of offers generally suggests that the government's requirements were clearly defined and accessible to a broad range of qualified contractors, fostering a competitive environment that can lead to better pricing and service quality.

Taxpayer Impact: The strong competition, evidenced by 45 offers, likely resulted in more favorable pricing for taxpayers compared to a sole-source or limited competition scenario. This competitive process helps ensure that taxpayer funds are used efficiently by driving down costs and encouraging high-quality service delivery.

Public Impact

Disaster survivors and personnel benefit from the availability of well-maintained manufactured housing units, crucial for temporary shelter and operational support. The services delivered include essential facilities maintenance, ensuring the habitability and functionality of housing units. The geographic impact is concentrated in Mississippi (MS), where the manufactured housing units are located. The contract supports the workforce employed by Heritage Homes of Mississippi Inc. for performing maintenance and repair services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise beyond the scope of the fixed-price contract.
Dependency on a single contractor for critical facilities maintenance could lead to service disruptions if performance falters.
Ensuring consistent quality of maintenance across all units over the contract duration requires diligent oversight.

Positive Signals

The fixed-price contract structure incentivizes the contractor to manage costs efficiently.
A high number of offers (45) suggests a competitive market and potentially good value.
The contract is awarded to a specific company, Heritage Homes of Mississippi Inc., indicating a focused approach to service delivery.
The contract duration of 948 days allows for sustained maintenance efforts.

Sector Analysis

The Facilities Support Services sector (NAICS code 561210) is a significant component of government contracting, encompassing a wide range of services necessary for the operation and maintenance of government facilities. This contract, valued at $11.6 million, represents a moderate investment within this sector. Comparable spending benchmarks for facilities maintenance can vary widely based on the type and scale of facilities, but contracts of this magnitude are common for supporting large housing or operational complexes. The market for these services is generally competitive, with numerous providers capable of offering specialized maintenance and support.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Heritage Homes of Mississippi Inc., is likely not a small business for the purpose of this award. There is no explicit information regarding subcontracting plans for small businesses. Without specific set-aside provisions or mandated subcontracting goals, the direct impact on the small business ecosystem for this particular contract may be limited, unless the prime contractor voluntarily engages small businesses for specialized services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Emergency Management Agency (FEMA) contracting officers and program managers. Accountability measures are embedded in the contract terms, particularly the fixed-price structure, which holds the contractor responsible for delivering services within the agreed-upon cost. Transparency is facilitated through contract databases like FPDS, which record award details. While specific Inspector General (IG) jurisdiction is not detailed here, the DHS OIG would likely have oversight authority over FEMA contracts to ensure proper use of funds and prevent fraud, waste, and abuse.

Related Government Programs

Disaster Housing Assistance Programs
Public Facility Maintenance Contracts
Emergency Management Support Services
Federal Housing Administration (FHA) Property Management

Risk Flags

Potential for scope creep in long-term maintenance contracts.
Contractor performance monitoring is critical for ensuring quality over the contract duration.
Reliance on fixed-price contracts can pose risks if unforeseen conditions arise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11.6 million to HERITAGE HOMES OF MISSISSIPPI INCORPORATED. MANUFACTURED HOUSING MAINTENANCE

Who is the contractor on this award?

The obligated recipient is HERITAGE HOMES OF MISSISSIPPI INCORPORATED.

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 $11.6 million.

What is the period of performance?

Start: 2007-06-01. End: 2010-01-04.

What is the specific scope of 'manufactured housing maintenance' covered under this contract?

The provided data does not detail the specific scope of 'manufactured housing maintenance.' Typically, such services can include routine upkeep, repairs to structural components, plumbing, electrical systems, HVAC, pest control, landscaping, and ensuring the overall habitability and safety of the manufactured housing units. For FEMA, this could involve maintaining units used for disaster relief housing or temporary operational facilities. A comprehensive understanding would require reviewing the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which would outline the exact tasks, standards, and deliverables expected from Heritage Homes of Mississippi Inc.

How does the $11.6 million contract value compare to similar FEMA contracts for housing maintenance in Mississippi?

Direct comparison of the $11.6 million contract value to similar FEMA contracts for housing maintenance in Mississippi is difficult without access to a broader dataset of comparable awards. However, the total contract value spread over 948 days (approximately 2.6 years) suggests an average annual expenditure of roughly $4.5 million. This figure needs to be contextualized by the number of housing units maintained, the complexity of the maintenance required (e.g., standard upkeep vs. extensive repairs), and the specific geographic areas within Mississippi served. FEMA's spending on housing maintenance can fluctuate significantly based on disaster activity and the scale of its housing programs.

What are the primary risks associated with a fixed-price contract for facilities maintenance over a 948-day period?

The primary risks associated with a fixed-price contract for facilities maintenance over a 948-day period include potential cost overruns for the contractor if unforeseen issues arise or if the scope of work expands beyond initial estimates. For the government, the risk lies in potentially receiving substandard services if the contractor cuts corners to maintain profitability, or if the fixed price was set too high initially due to incomplete information. Additionally, long-term contracts can face risks related to contractor performance degradation over time, requiring robust oversight and performance management to ensure consistent quality and adherence to the contract terms.

What is the track record of Heritage Homes of Mississippi Inc. in performing federal contracts, particularly for FEMA?

The provided data indicates that Heritage Homes of Mississippi Inc. was awarded this specific contract by FEMA. To assess their track record, one would need to examine their past performance on federal contracts, looking at factors such as timely delivery, quality of work, adherence to budget, and any history of disputes or contract terminations. Information on previous awards, contract values, and performance evaluations would be crucial. Without this additional data, it's difficult to definitively assess their track record beyond this single award.

How does the number of offers (45) influence the perceived value for money in this contract award?

A high number of offers, such as the 45 received for this contract, generally indicates a competitive marketplace for the services solicited. This level of competition typically benefits the government by driving down prices, encouraging innovation, and ensuring that the selected contractor is highly capable and offers a strong value proposition. When multiple qualified vendors compete, the government is more likely to secure services at a fair and reasonable price, thereby enhancing the overall value for money. It suggests that the contract requirements were well-defined and accessible, leading to a robust bidding process.

What are the potential implications of this contract on the local economy in Mississippi?

This contract, valued at $11.6 million and awarded to Heritage Homes of Mississippi Inc., has the potential to positively impact the local economy in Mississippi. The company will likely hire local personnel for maintenance and repair tasks, creating jobs and generating income within the state. Furthermore, the company may procure materials and services from local suppliers, stimulating business activity. The sustained nature of the contract over nearly three years provides a degree of economic stability for the contractor and its employees, contributing to the overall economic well-being of the region where the manufactured housing units are located.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 45

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 170 DAVIS CROSSING RD, CANTON, MS, 02

Business Categories: Category Business, Emerging Small Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $11,625,845

Exercised Options: $11,625,845

Current Obligation: $11,625,845

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: HSFEHQ06D0432

IDV Type: IDC

Timeline