FEMA awards $27.1M for 100 park model homes, with potential for more

Contract Overview

Contract Amount: $27,096,000 ($27.1M)

Contractor: TL Industries, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2008-09-30

End Date: 2009-11-30

Contract Duration: 426 days

Daily Burn Rate: $63.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: INTIAL ORDER OF 100 UNITS FOR 2 BEDROOM PARK MODEL PROCUREMENT

Place of Performance

Location: ELKHART, ELKHART County, INDIANA, 46514

State: Indiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $27.1 million to TL INDUSTRIES, INC. for work described as: INTIAL ORDER OF 100 UNITS FOR 2 BEDROOM PARK MODEL PROCUREMENT Key points: 1. Contract awarded for manufactured housing units to support disaster relief efforts. 2. Procurement utilized full and open competition after exclusion of sources. 3. The initial order covers 100 units, with a contract duration of 426 days. 4. The contract type is Firm Fixed Price, indicating price certainty. 5. The award was made to TL INDUSTRIES, INC. by the Department of Homeland Security. 6. This procurement falls under the category of Manufactured Home Manufacturing.

Value Assessment

Rating: fair

The initial order value of $27.1 million for 100 park model homes equates to $270,960 per unit. Benchmarking this cost against similar disaster relief housing procurements or standard manufactured home prices is challenging without more specific unit configurations and market data. However, the price appears to be at the higher end for manufactured housing, suggesting potential for cost savings if comparable units can be sourced at lower prices in future procurements or if the units include specialized features for disaster response.

Cost Per Unit: Approximately $270,960 per unit for the initial order.

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources may have been excluded for reasons not detailed in the provided data. The number of bidders is not specified, making it difficult to fully assess the level of competition and its impact on price discovery. The 'exclusion of sources' clause warrants further investigation to understand its justification and potential effect on market responsiveness.

Taxpayer Impact: The 'exclusion of sources' aspect of the competition could potentially limit competitive pressure, which might lead to less favorable pricing for taxpayers compared to a truly unrestricted full and open competition.

Public Impact

Provides temporary housing solutions for individuals and families affected by disasters. Supports the Federal Emergency Management Agency's (FEMA) disaster response and recovery operations. The manufactured homes will likely be deployed to areas experiencing housing shortages due to natural disasters. The procurement may indirectly support jobs in the manufactured housing industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher per-unit costs due to 'exclusion of sources' in competition.
Lack of detailed unit specifications makes value-for-money assessment difficult.
Limited transparency on the number of bidders and reasons for source exclusion.

Positive Signals

Addresses critical need for temporary housing in disaster situations.
Firm Fixed Price contract provides cost certainty for the initial order.
Procurement falls under a federal agency with a clear mission for disaster relief.

Sector Analysis

This contract falls within the broader construction and manufacturing sectors, specifically focusing on manufactured housing. The market for manufactured homes is diverse, ranging from recreational park models to permanent residences. Federal procurements in this area often relate to disaster relief, military housing, or other government needs. The price per unit is a significant factor, and FEMA's requirement for rapid deployment in disaster scenarios can influence cost considerations.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. There is no information on subcontracting plans with small businesses. This suggests that the primary award was made to a larger entity, and the impact on the small business ecosystem would depend on whether the prime contractor engages small businesses for manufacturing components or related services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's Office of Inspector General (OIG), with specific oversight responsibilities likely managed by FEMA's contracting and program management offices. Transparency is moderate, as the award is publicly documented, but details regarding the competition's 'exclusion of sources' and specific performance metrics are not readily available in this summary.

Related Government Programs

Disaster Housing Assistance Programs
Temporary Housing Units Procurement
Manufactured Home Manufacturing Contracts
Federal Emergency Management Agency (FEMA) Contracts

Risk Flags

Potential for reduced competition due to 'exclusion of sources'.
High per-unit cost requires further justification.
Lack of detailed specifications hinders comprehensive value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $27.1 million to TL INDUSTRIES, INC.. INTIAL ORDER OF 100 UNITS FOR 2 BEDROOM PARK MODEL PROCUREMENT

Who is the contractor on this award?

The obligated recipient is TL INDUSTRIES, 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 $27.1 million.

What is the period of performance?

Start: 2008-09-30. End: 2009-11-30.

What specific features or customizations differentiate these park model homes from standard models, justifying the per-unit cost?

The provided data does not specify the unique features or customizations of these park model homes. The per-unit cost of $270,960 suggests they may include specialized components for disaster resilience, rapid deployment, or specific habitability standards required by FEMA. Without detailed specifications, it is difficult to ascertain if the cost is justified by unique attributes or if it reflects a premium for urgency and specific contractual terms. Further analysis would require access to the Statement of Work (SOW) and detailed product descriptions.

How does the 'Full and Open Competition After Exclusion of Sources' process impact price competitiveness compared to a standard 'Full and Open Competition'?

The 'Full and Open Competition After Exclusion of Sources' (F&O CAES) process implies that while the solicitation was intended for broad participation, certain potential offerors were deliberately excluded. The reasons for exclusion are critical; if based on legitimate technical qualifications or past performance issues, it might not significantly harm competition. However, if exclusions are arbitrary or overly restrictive, it can limit the number of viable bidders, potentially reducing price pressure and leading to higher costs for the government. A standard 'Full and Open Competition' typically allows all responsible sources to submit offers, maximizing the potential for competitive pricing.

What is the historical spending pattern for similar park model home procurements by FEMA or DHS?

Historical spending data for similar park model home procurements by FEMA or DHS is not provided in the initial data. To assess historical patterns, one would need to analyze past contracts for manufactured housing units, noting quantities, unit costs, contract types, and the specific circumstances (e.g., disaster declarations) under which they were awarded. This would help determine if the current $270,960 per-unit cost is an anomaly or consistent with previous procurements, considering inflation and market conditions.

What are the performance expectations and quality assurance measures for these manufactured homes?

The provided data does not detail the specific performance expectations or quality assurance measures for these manufactured homes. Typically, such contracts would include clauses related to manufacturing standards (e.g., HUD code compliance), delivery timelines, inspection protocols, and warranty provisions. FEMA would likely have quality assurance surveillance plans (QASP) in place to monitor contractor performance and ensure the delivered units meet all contractual requirements and are suitable for their intended purpose in disaster relief operations.

What is the potential total value of this contract, considering options or future orders beyond the initial 100 units?

The initial order is for 100 units valued at $27.1 million. The data does not explicitly state if there are options for additional units or a broader contract ceiling. However, the duration of 426 days and the nature of disaster relief suggest that this initial award may be part of a larger, evolving requirement. Without information on contract modifications, exercise of options, or a stated contract ceiling, the total potential value beyond the initial order remains unknown.

Industry Classification

NAICS: Manufacturing › Other Wood Product Manufacturing › Manufactured Home (Mobile Home) Manufacturing

Product/Service Code: MISCELLANEOUS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSFEHQ-08-R-0068

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 25876 MINER RD, ELKHART, IN, 02

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Labor Surplus Area Firm, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $27,096,000

Exercised Options: $27,096,000

Current Obligation: $27,096,000

Parent Contract

Parent Award PIID: HSFEHQ08D1145

IDV Type: IDC

Timeline