Rural Housing Service awards $1.44M contract for property management services to Van Binsbergen & Associates, LLC

Contract Overview

Contract Amount: $14,400 ($14.4K)

Contractor: VAN Binsbergen & Associates, LLC

Awarding Agency: Department of Agriculture

Start Date: 2026-03-01

End Date: 2027-02-28

Contract Duration: 364 days

Daily Burn Rate: $40/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MANAGEMENT CONTRACT FOR MAPLE WINDS VILLAGE I

Place of Performance

Location: HIAWATHA, BROWN County, KANSAS, 66434

State: Kansas Government Spending

Plain-Language Summary

Department of Agriculture obligated $14,400 to VAN BINSBERGEN & ASSOCIATES, LLC for work described as: MANAGEMENT CONTRACT FOR MAPLE WINDS VILLAGE I Key points: 1. Contract awarded for residential property management, indicating a need for ongoing operational support. 2. The firm fixed-price contract type suggests predictable costs for the government. 3. A single award without competition raises questions about potential cost efficiencies and market responsiveness. 4. The contract duration of one year with options for extension allows for flexibility. 5. The service area is limited to Kansas, suggesting a localized need for these services. 6. The North American Industry Classification System (NAICS) code 531311 points to specialized property management expertise.

Value Assessment

Rating: fair

The contract value of $1.44 million over one year for property management services appears reasonable for a single property or a small portfolio. However, without specific details on the scope of services (e.g., number of units, types of maintenance required, tenant services), a direct comparison to similar contracts is difficult. The firm fixed-price structure provides cost certainty, but the lack of competition means there's no benchmark to assess if this price represents the best value achievable in the market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source purchase order, meaning it was not competed. The absence of a competitive bidding process limits the government's ability to explore different service providers and potentially secure more favorable pricing or innovative solutions. This approach may be justified if Van Binsbergen & Associates, LLC possesses unique qualifications or if there are specific circumstances necessitating a direct award, but it bypasses the standard mechanisms for ensuring market-driven pricing.

Taxpayer Impact: Taxpayers may not be receiving the best possible value due to the lack of competitive pressure to drive down costs. Without a bidding process, it's harder to ensure that the selected contractor's price is aligned with market rates.

Public Impact

Residents of Maple Winds Village I in Kansas will benefit from continued professional property management services. The contract ensures the ongoing maintenance, operation, and administration of the residential property. The geographic impact is localized to Kansas, specifically serving the residents of the designated village. The contract supports the operational workforce of Van Binsbergen & Associates, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award bypasses standard procurement processes designed to ensure best value.
Limited transparency into the justification for not competing the contract.

Positive Signals

Firm fixed-price contract provides cost predictability.
Contract duration allows for stable service delivery.
Focus on property management ensures continued housing support for residents.

Sector Analysis

The property management sector is a critical component of the real estate industry, encompassing the oversight and operation of residential and commercial properties. Federal spending in this area often supports government-owned or subsidized housing initiatives. While specific benchmarks for federal residential property management contracts are not readily available, the market typically involves a mix of large property management firms and smaller, specialized local operators. This contract fits within the broader category of government support for housing infrastructure.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. As a sole-source award to Van Binsbergen & Associates, LLC, its direct impact on the small business ecosystem is limited unless the contractor itself is a small business and utilizes other small businesses for subcontracting, which is not specified here.

Oversight & Accountability

Oversight for this contract would typically fall under the Rural Housing Service within the Department of Agriculture. Accountability measures are established through the terms and conditions of the purchase order, including performance standards and payment schedules. Transparency is limited due to the sole-source nature of the award; the justification for this procurement method would be the primary document for understanding the decision-making process.

Related Government Programs

Rural Housing Service Programs
Department of Agriculture Property Management
Federal Housing Administration Contracts
Government-Subsidized Housing Management

Risk Flags

Sole-source award
Lack of competition
Limited performance data available

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $14,400 to VAN BINSBERGEN & ASSOCIATES, LLC. MANAGEMENT CONTRACT FOR MAPLE WINDS VILLAGE I

Who is the contractor on this award?

The obligated recipient is VAN BINSBERGEN & ASSOCIATES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Rural Housing Service).

What is the total obligated amount?

The obligated amount is $14,400.

What is the period of performance?

Start: 2026-03-01. End: 2027-02-28.

What is the track record of Van Binsbergen & Associates, LLC in managing federal contracts, particularly for rural housing?

Information regarding Van Binsbergen & Associates, LLC's specific track record with federal contracts, especially within the Rural Housing Service or for managing rural housing properties, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history with federal agencies, and any reported issues or successes. Without this data, it's difficult to gauge their experience and reliability in fulfilling federal obligations. Further investigation into federal procurement databases and agency performance records would be necessary to establish their performance history.

How does the $1.44 million contract value compare to market rates for similar property management services in Kansas?

Benchmarking the $1.44 million contract value against market rates for similar property management services in Kansas is challenging without detailed scope of work. Property management fees typically range from 4% to 12% of gross rents collected, depending on the services provided (e.g., leasing, maintenance, financial reporting, tenant relations) and the type/size of the property. To assess value, one would need to know the number of units managed, the average rent, and the specific services included. A sole-source award makes it difficult to determine if this price reflects competitive market pricing or if it's a premium due to the lack of competition.

What are the specific risks associated with awarding a sole-source contract for property management?

The primary risk associated with a sole-source contract for property management is the potential for inflated costs due to the absence of competitive bidding. Without competing the requirement, the government may overpay compared to what could be achieved in an open market. Another risk is a lack of innovation, as the incumbent contractor may have less incentive to introduce efficiencies or new technologies. Furthermore, there's a reduced opportunity to vet alternative providers who might offer superior service quality or specialized expertise. This procurement method can also raise concerns about fairness and equal opportunity for other qualified firms.

What is the expected effectiveness of Van Binsbergen & Associates, LLC in managing Maple Winds Village I based on past performance?

The provided data does not include information on the expected effectiveness of Van Binsbergen & Associates, LLC in managing Maple Winds Village I, nor does it offer insights into their past performance. Effectiveness would typically be measured by factors such as tenant satisfaction, property upkeep, financial management efficiency, and compliance with housing regulations. To assess expected effectiveness, one would need to review the contractor's performance history on similar contracts, any client testimonials or references, and the specific performance metrics outlined in the contract itself. Without this context, the assessment remains speculative.

What has been the historical spending pattern for property management services by the Rural Housing Service?

The provided data focuses on a single contract and does not offer insights into the historical spending patterns of the Rural Housing Service for property management. To understand historical spending, one would need to analyze aggregated contract data over several fiscal years, identifying trends in contract values, number of awards, types of services procured, and the contractors utilized. This analysis would reveal whether spending has increased or decreased, if there's a reliance on specific contractors, and the typical cost ranges for such services. Without this broader dataset, it's impossible to comment on historical spending patterns.

Are there any performance metrics or service level agreements (SLAs) defined in this contract to ensure quality of service?

The provided data indicates the contract is a 'PURCHASE ORDER' with a 'FIRM FIXED PRICE' type and a duration, but it does not specify the presence or details of performance metrics or Service Level Agreements (SLAs). Typically, government contracts, especially for services like property management, include clauses that define expected performance standards, quality requirements, and consequences for non-performance. To determine if such metrics exist, one would need to review the full contract document. The absence of this information in the summary suggests it might not be a primary focus of the provided data points, but it is crucial for evaluating the contractor's accountability and service quality.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Activities Related to Real Estate › Residential Property Managers

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 540 S 1ST ST, MONTEVIDEO, MN, 56265

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,400

Exercised Options: $14,400

Current Obligation: $14,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline