FEMA awards $46.8M contract to TL Industries for manufactured homes, highlighting a firm fixed price agreement

Contract Overview

Contract Amount: $46,790,000 ($46.8M)

Contractor: TL Industries, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2008-10-08

End Date: 2008-12-31

Contract Duration: 84 days

Daily Burn Rate: $557.0K/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: MANUFACTORED MOBIL HOMES

Place of Performance

Location: ELKHART, ELKHART County, INDIANA, 46514

State: Indiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $46.8 million to TL INDUSTRIES, INC. for work described as: MANUFACTORED MOBIL HOMES Key points: 1. Contract Value: $46.8 million for manufactured homes. 2. Competition: Full and open competition after exclusion of sources. 3. Risk: Potential for limited competition impacting price discovery. 4. Sector: Primarily construction and housing-related procurement.

Value Assessment

Rating: fair

The contract value of $46.8 million for manufactured homes appears significant. Benchmarking against similar large-scale housing procurements would be necessary to assess if this price is competitive, especially given the fixed-price nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition scenario. This method can sometimes lead to higher prices if the pool of eligible bidders is restricted.

Taxpayer Impact: The taxpayer impact is moderate, with a significant sum allocated. Ensuring the price reflects fair market value despite limited competition is crucial for fiscal responsibility.

Public Impact

Provides essential housing solutions, likely for disaster relief or emergency housing needs. Supports a specific manufacturer, TL Industries, Inc., impacting regional employment in Indiana. The procurement method raises questions about maximizing taxpayer value through broader competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may inflate costs.
Contract duration and fixed price could pose risks if market conditions change.
Lack of specific performance metrics makes assessing effectiveness challenging.

Positive Signals

Addresses a critical need for housing.
Firm fixed price provides cost certainty for the government.
Procurement occurred in Indiana, potentially supporting local economies.

Sector Analysis

This contract falls within the construction and manufacturing sectors, specifically for prefabricated housing. Spending benchmarks in this area are highly variable, depending on scale, customization, and urgency.

Small Business Impact

The data does not indicate any specific provisions or awards to small businesses within this contract. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight would focus on ensuring TL Industries meets the contract specifications for manufactured homes and adheres to the firm fixed price. The 'exclusion of sources' aspect warrants scrutiny to confirm its necessity and justification.

Related Government Programs

Manufactured Home (Mobile Home) Manufacturing
Department of Homeland Security Contracting
Federal Emergency Management Agency Programs

Risk Flags

Potential for inflated costs due to limited competition.
Lack of detailed cost breakdown makes value assessment difficult.
Contract awarded in late 2008, potentially subject to outdated pricing.
Unclear if performance standards were stringent enough to ensure quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $46.8 million to TL INDUSTRIES, INC.. MANUFACTORED MOBIL HOMES

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 $46.8 million.

What is the period of performance?

Start: 2008-10-08. End: 2008-12-31.

What was the justification for excluding sources in the full and open competition, and did this impact the final price?

The justification for excluding sources is critical. If specific technical requirements or unique capabilities were mandated, exclusion might be warranted. However, if the exclusion was arbitrary, it could have limited the bidder pool, potentially leading to a less competitive price and higher taxpayer cost than if a broader competition had been pursued.

How does the per-unit cost of these manufactured homes compare to similar government or commercial procurements, considering the contract's fixed price?

A detailed cost-per-unit analysis against comparable contracts is essential. Given the $46.8 million award and the unspecified number of units, benchmarking is key. A firm fixed price offers budget certainty, but without comparative data, it's difficult to ascertain if the government secured the best possible value or if TL Industries' pricing reflects market realities.

What are the long-term implications of using manufactured homes for potentially long-term housing needs, and how effective is this solution compared to alternatives?

The effectiveness of manufactured homes depends on the intended duration of use and the specific needs they are meant to address. While providing rapid housing solutions, their long-term durability and suitability compared to traditional construction methods should be evaluated. The government's choice suggests a need for speed and cost-efficiency, but the long-term performance and resident satisfaction are key metrics for overall effectiveness.

Industry Classification

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

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ONLY ONE SOURCE

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, Labor Surplus Area Firm, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $142,210,000

Exercised Options: $142,210,000

Current Obligation: $46,790,000

Parent Contract

Parent Award PIID: HSFEHQ08D1140

IDV Type: IDC

Timeline