Rep. Ricky Cummings, D-Iuka, fears that strict bid guidelines will prevent Mississippi companies, like New River Homes in his district, from participating in the post-Katrina rebuilding effort on the Gulf Coast.

The state is putting modular homes on the Coast to replace some of the thousands of FEMA trailers that still dot the area. Mississippi has received $280 million in federal funds to build and place the modular homes.

Modular homes are constructed at a manufacturer, such as New River, and assembled on site. Many say it is difficult for the average person to distinguish between a conventional home and a modular home.

Jack Beard, owner of New River Homes in Burnsville, said his company, which also makes mobile homes, is one of a handful of manufacturers in the state licensed to construct the modular homes.

But because of the large amount of money needed up front to bid on the homes to be placed on the Gulf Coast, Beard said he is not going to be able to participate. And that has his legislator concerned.

“I fear 90 percent of the work or more will go to out-of-state companies,” Cummings said.

He has asked Barbour to halt the process and look for ways to ensure Mississippi companies are involved in the effort.

“I ask that…you get input from small Mississippi manufacturers and modular home builders,” Cummings said in a letter to the governor. “That is the best way to determine how that small business in Mississippi can become a part of the rebuilding process.”

Pete Smith, a spokesman for Barbour, said the governor is concerned about the issue, but had just received the letter from Cummings and would prepare a response. Smith did say that the state Emergency Management Agency, which is overseeing the project, has made efforts to ensure that small Mississippi companies can compete.

Leigh Stokes, a spokesperson for MEMA, said many of the restrictions have been waived so small in-state companies can participate, but some safeguards are needed. She said the only cash the company must provide is a cashier’s check for 5 percent of its total bid. The check will be held, but not cashed unless there is a problem.

Beard said 5 percent can be a sizable amount for a small company. For instance, if a company submitted a bid of $10 million for 200 units at $50,000 each, it would need a check for $500,000.

“I am not out to embarrass the governor or the state,” said Beard, who had Barbour at his grand opening last year. “I think the governor is doing a good job.

“I don’t know what the laws are. All I know is what they put out (bid requirements) I was not able to participate.”

New River employs about 210 people.

Becky Baum with MEMA said proposals from 45 companies on part of the modular housing project already have been accepted by the state. Those proposals are being studied. Companies can submit proposals for another portion of the project through Thursday.

Baum said the state hopes to build between 4,000 and 5,000 modular cottages.

Coast residents will receive the cottages through a lottery.

source : www.djournal.com