Request for Information - THU Warranty

Request for Information

INTRODUCTION

The Federal Emergency Management Agency (FEMA) is interested in improving its temporary housing operations. The purpose of this Request for Information (RFI) is to seek industry input to provide solutions for FEMA’s unique warranty issues.

BACKGROUND

The Robert T Stafford Act as amended provides FEMA with the authority to provide “direct housing” assistance (Section 408(c) (1) (B)). Historically, FEMA has used Manufactured Homes, Park Models and Travel Trailers. Manufactured Home construction is regulated by the U.S. Department of Housing and Urban Development (HUD) under 42 U.S.C. 3535(d), 5403, and 5424. Park Models and Travel Trailers are constructed to standards adopted by the Recreational Vehicle Industry Association (RVIA). For purposes of this RFI all three of these units will be known as Temporary Housing Units or THUs

FEMA initiates a housing mission when a Joint Field Office (JFO), operated under a Unified Command of Federal and State representatives, determines there is a need for a direct housing mission. To facilitate FEMA’s response to the need for direct housing, the Agency purchases and maintains an inventory of THUs; this practice was made mandatory by the Post Katrina Emergency Management Reform Act (PKEMRA) of 2006. THUs may sit in FEMA’s inventory for periods ranging from a few months to as long as four years. As required by ongoing housing missions and current inventory, FEMA may also purchase THUs and ship them directly to disaster operations. FEMA’s need for THUs is dictated by the Agency’s requirement to house disaster survivors, therefore demand on inventory levels is unpredictable.

ASSUMPTIONS

FEMA generally recognizes the following types of warranty coverage:

· Major sub-component and appliance manufacturers cover related product issues (furniture, stove/oven, refrigerator, water heater, and HVAC/thermostat).

· THU manufacturers cover all other issues (including but not limited to chassis and running gear including tires, axels, etc.,; structural issues, including water intrusion, roof, windows, doors, walls, siding, cabinetry, dry wall; electrical, including line and low voltage; and mechanical, including plumbing and ductwork).

WARRANTY ISSUE TYPES

THU manufacturers provide quality products; when FEMA inspects the THUs upon receipt, not all warranty issues can be detected. When FEMA encounters THU or appliance warranty issues after installation, these pose problems for the Agency in two ways, both leading to increased costs for direct housing operations:

(1) THUs may be stored beyond warranty coverage periods, and THU or appliance warranty issues may be discovered upon use (after warranty periods have expired). Latent defects may not be discovered during unit acceptance.

(2) THUs may be shipped within warranty period; however, THUs or appliances may be repaired outside the warranty to avoid operational delays and expedite placing survivors in units. The primary goal of FEMA’s direct housing operations is to provide temporary emergency housing to disaster survivors as quickly as possible. Thus, when issues are discovered during installation, it becomes unacceptable to delay occupancy in order to have the manufacturer determine warranty coverage and make repairs; instead, FEMA repairs THUs to expedite occupancy.

SAMPLE WARRANTY ISSUE SCENARIOS

The following scenarios are representative of issues that FEMA has encountered when looking to make warranty claims for issues with Temporary housing Units (THUs). For the purposes of this Request for Information, all scenarios given include a warranty period of twelve (12) months.

(A) Unit stored beyond warranty period; THU issue arises in storage, after warranty expires.

FEMA receives, at one of FEMA’s Long Term Storage facilities, a Temporary Housing Unit (THU) from the manufacturer. The THU is inspected and placed into storage for fifteen months. When FEMA inspects the THU prior to sending it to an Area of Operation for installation and use by a disaster survivor, water stains are discovered near one of the entry doors and under a window. The source of the water stain needs to be found and corrected prior to the THU being occupied.

(B) Unit stored beyond warranty period; major sub-component or appliance issue arises after installation, after warranty expires.

FEMA receives, at one of FEMA’s Long Term Storage facilities, a Temporary Housing Unit (THU) from the manufacturer. The THU is inspected and placed into storage for eighteen months. The THU is then transported by FEMA to an Area of Operation (AO) for installation. The THU is installed and occupied for 60 days with no issues. On the 61st day the FEMA maintenance telephone line receives a call from the THU occupant stating that the refrigerator has stopped working. When contacted the THU manufacture tells FEMA to call the refrigerator manufacturer. The refrigerator manufacturer states that the refrigerator was sold 20 months ago and that they only provide a 12 month warranty.

(C) Unit stored and installed within warranty period; THU issue repaired outside warranty to expedite occupancy.

FEMA receives, at one of FEMA’s Long Term Storage facilities, a Temporary Housing Unit (THU) from the manufacturer. The THU is inspected and placed into storage for three months. The THU is then transported by FEMA to an Area of Operation (AO) for installation. The THU is installed and when the water lines are hooked up and charged there is a leak in the cold water line in the bathroom. When contacted the manufacturer states that they can have a representative arrive in the AO in three days and – if their representative determines that the manufacturer is responsible – they can make repairs two days after that, causing a 5-day delay in occupancy. The installation contractor is able to make the repairs the same day and get the THU occupied the next day.

(D) Unit installed within warranty period; major sub-component or appliance repaired outside warranty to expedite occupancy.

FEMA purchases a new THU and it is shipped directly from the manufacture to a disaster AO. The unit is installed, and the installation contractor discovers that there is a defective circuit breaker for the air conditioning unit which is part of the Heating Ventilation and Air Conditioning (HVAC) system. When contacted the manufacturer states that they can have a representative arrive in the AO in three days and if their representative determines that the manufacturer is responsible they can make repairs two days after that. The installation contractor is able to make the repairs the same day and get the THU occupied the next day.

RESPONSE REQUIREMENT

FEMA requests that the Manufactured Home and Recreational Vehicle industries provide one or more suggested solutions to the warranty issues expressed in this Request for Information. Please submit your responses to: sean.g.williams@dhs.gov, by November 26, 2010.