FEMA - A True Hole in America's Pocket

After Hurricane Ivan came through and devastatedThe way the system currently works is, contractors
areas of the panhandle of Florida, many people werewith lots of money bid on a complete setup job. A
displaced from their homes and forced to move intocomplete setup is everything it takes for a family to
mobile homes provided by FEMA. Over 17,000 FEMAmove into a FEMA mobile home. I estimate that
trailers were issued in the state of Florida after Ivan.these setups in Florida take approximately $6,500 of
I worked for my father's company at the time, whoactual labor and material cost per setup, but each
was currently a licensed mobile home installer in thesetup is costing FEMA nearly $10,000-15,000 because
state of Florida and Alabama. For almost the wholethe contractors are overcharging. The contractors
year of 2005 and some of 2006, I worked for myare profiting over 50% for each setup.
father's company setting up FEMA mobile homes.I feel that in order to solve this problem, FEMA will
Currently, I am a student at the University of Westneed to establish a logistics department specializing in
Florida where I study supply chain logisticsmobile home setup. This will replace the jobs of these
management. FEMA's ability to execute logisticalmoney-hungry contractors. We need to cut out the
processes on such a large scale is amazing-but withmiddle man because it is wasted money. If we put
almost an unlimited supply of money it should be. Iknowledgeable people in these departments, then we
witnessed firsthand at least three FEMA mobile homecan refine processes to efficiently save money. By
parks that were created with 40 or more mobilesetting up a separate department we can free up
homes within just a few weeks.money provide money for other disasters instead of
I have found by personal experience that FEMAwasting tax payer's precious money.
overspends double or triple a single job's regular cost.With this separate logistical department, a budget can
No doubt, there is an extra price to be paid for thebe given to the department for supplies and labor.
expedited services, but this over-abundant spendingEvery FEMA mobile home is a standard size and
is too much! FEMA has to pay the extra money totakes approximately the same cost of materials for
attract a workforce of skilled laborers. Most of theeach complete setup. The department will be able to
workforce has to travel from different parts of thestrategically deliver the appropriate amount of
U.S. and find a temporary place live during this periodmaterials where they are needed for the setup
of work.crews to use for setting up the mobile homes. FEMA
The biggest problem I see is that the money spentcan set up a centralized department in every disaster
on this work is going into the pockets of the wrongzone for work orders and checks to be received by
people. Instead of the money going into the pocketslicensed installers. As long as the department supplies
of the workers who travel far from home, it is goinga sufficient amount of materials with enough safety
into the pockets of the contractors. Contractorsstock, then they will not just save money, but also
have the money available to keep the projects goingtime. By implementing this new department, FEMA
until they are able to get checks for the work at ashould be able to save at least 50% lost to
later time. Most of the time, these contractors havecontractors and give 15-20% increases to the actual
no knowledge of the individual processes that areworkforce for their expedited services.
taking place to set up each mobile home.