DHS awards $58.5M for 400 temporary housing units in North Dakota

Contract Overview

Contract Amount: $58,487,574 ($58.5M)

Contractor: Partnership for Temporary Housing LLC

Awarding Agency: Department of Homeland Security

Start Date: 2011-07-23

End Date: 2011-10-21

Contract Duration: 90 days

Daily Burn Rate: $649.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DR-1981-ND HAUL AND INSTALL FOR 400 TEMPORARY HOUSING UNITS

Place of Performance

Location: VELVA, MCHENRY County, NORTH DAKOTA, 58790, UNITED STATES OF AMERICA

State: North Dakota Government Spending

Plain-Language Summary

Department of Homeland Security obligated $58.5 million to PARTNERSHIP FOR TEMPORARY HOUSING LLC for work described as: DR-1981-ND HAUL AND INSTALL FOR 400 TEMPORARY HOUSING UNITS Key points: 1. Contract awarded to Partnership for Temporary Housing LLC for facilities support services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration was 90 days, indicating a short-term need. 4. The award amount is substantial for the services provided.

Value Assessment

Rating: fair

The award amount of $58.5 million for 400 units seems high on a per-unit basis when compared to typical construction or rental costs for temporary housing. Further analysis of the scope of services is needed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically leads to better price discovery. However, the final price still appears elevated for the service scope.

Taxpayer Impact: Taxpayer funds were used for this award. The high per-unit cost raises concerns about the efficient use of these funds.

Public Impact

Provides essential temporary housing solutions during emergencies. Supports disaster relief efforts by ensuring shelter availability. Facilitates community recovery by offering immediate housing options.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

Facilities Support Services (NAICS 561210) encompass a broad range of services. The benchmark for temporary housing installation and haul-away can vary significantly based on location, unit type, and duration.

Small Business Impact

The contract was not awarded to a small business. There is no indication if small businesses were solicited or subcontracted.

Oversight & Accountability

The contract was awarded by FEMA, a component of DHS, which has established oversight mechanisms. However, the high cost warrants scrutiny of the procurement process and execution.

Related Government Programs

Risk Flags

Tags

facilities-support-services, department-of-homeland-security, nd, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $58.5 million to PARTNERSHIP FOR TEMPORARY HOUSING LLC. DR-1981-ND HAUL AND INSTALL FOR 400 TEMPORARY HOUSING UNITS

Who is the contractor on this award?

The obligated recipient is PARTNERSHIP FOR TEMPORARY HOUSING LLC.

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 $58.5 million.

What is the period of performance?

Start: 2011-07-23. End: 2011-10-21.

What specific services are included in the 'haul and install' for these temporary housing units to justify the high per-unit cost?

The contract details should specify the exact scope of work, including transportation, site preparation, installation, utility hookups, and potentially removal of the units. Without this granular detail, it's difficult to assess if the cost is justified. Factors like specialized equipment, rapid deployment requirements, or unique site challenges could contribute to higher expenses.

Given the short 90-day duration, what was the urgency driving this specific contract award and could it have impacted price negotiations?

A 90-day contract suggests an immediate, short-term need, likely related to a specific disaster event. Urgency can sometimes lead to higher prices as contractors may factor in expedited timelines, overtime, and limited bidding windows. Understanding the specific event and the timeline constraints is crucial to evaluating if the price reflects a fair market value under such conditions.

How does the cost per unit compare to similar temporary housing contracts awarded by FEMA or other agencies for comparable disaster relief efforts?

Benchmarking against similar contracts is essential. If this contract's per-unit cost significantly exceeds the average for similar services (e.g., cost per unit for temporary housing, including transport and setup), it indicates potential overpricing or a scope of work that is substantially different. A detailed comparison would require access to historical contract data and a clear understanding of the service parameters.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesFacilities Support ServicesFacilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cerberus Capital Management, L.P. (UEI: 014784388)

Address: 3190 FAIRVIEW PK DR STE 700, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $59,239,497

Exercised Options: $59,239,497

Current Obligation: $58,487,574

Parent Contract

Parent Award PIID: HSFEHQ09D0700

IDV Type: IDC

Timeline

Start Date: 2011-07-23

Current End Date: 2011-10-21

Potential End Date: 2011-10-21 00:00:00

Last Modified: 2015-04-24

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