HUD awards $7.56M contract for field service management to 24 Asset Management Corp

Contract Overview

Contract Amount: $7,562,943 ($7.6M)

Contractor: 24 Asset Management Corp

Awarding Agency: Department of Housing and Urban Development

Start Date: 2025-12-19

End Date: 2027-02-15

Contract Duration: 423 days

Daily Burn Rate: $17.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FIELD SERVICE MANAGEMENT AREA 4D/5D

Place of Performance

Location: MIAMI, MIAMI-DADE County, FLORIDA, 33175

State: Florida Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $7.6 million to 24 ASSET MANAGEMENT CORP for work described as: FIELD SERVICE MANAGEMENT AREA 4D/5D Key points: 1. Contract value represents a significant investment in property management services. 2. Competition dynamics suggest a potentially competitive bidding process for this award. 3. Contract duration of over three years indicates a need for sustained service delivery. 4. The award is for residential property management, a critical function for HUD. 5. Fixed-price contract type aims to control costs and provide budget certainty.

Value Assessment

Rating: fair

The contract value of $7.56 million over approximately 2.5 years (from award to end date) averages to about $3 million annually. Benchmarking this against similar large-scale residential property management contracts is challenging without more specific service details. However, the firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for value if the price is competitive. Further analysis would require comparing the scope of services and performance metrics to other HUD or agency contracts for similar properties.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This suggests a robust bidding environment, which typically leads to better price discovery and potentially more favorable terms for the government. The number of bidders is not specified, but the 'full and open' designation implies that multiple proposals were likely received and evaluated.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by driving down prices and encouraging innovation among contractors, leading to more efficient use of public funds.

Public Impact

Residents of HUD-managed properties in Florida will benefit from consistent and professional property management services. The contract ensures the upkeep and operational efficiency of residential properties overseen by HUD. Geographic impact is focused on Florida, specifically where the managed properties are located. The contract supports jobs within the property management sector, potentially including maintenance, administrative, and supervisory roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if service requirements are not clearly defined and managed.
Risk of service quality degradation if contractor resources are overstretched or performance monitoring is inadequate.
Dependency on a single contractor for critical property management functions in the specified region.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a potentially competitive pricing environment.
Contract duration allows for stable service delivery and relationship building.

Sector Analysis

The residential property management sector is a vital component of the real estate services industry. This contract falls within the broader category of facilities management and support services. Government contracts for property management are common, supporting agencies like HUD in maintaining their real estate assets. Spending in this area is influenced by the size and condition of government-owned or managed housing portfolios.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. Without this information, it's difficult to assess the direct impact on the small business ecosystem. However, large contracts like this can sometimes create opportunities for small businesses as subcontractors, depending on the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Housing and Urban Development's contracting officers and program managers. Accountability measures are embedded within the contract terms, including performance standards and payment schedules tied to successful service delivery. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible.

Related Government Programs

HUD Public Housing Management
HUD Section 8 Housing Choice Vouchers
Federal Housing Administration (FHA) Property Disposition

Risk Flags

Contract performance risk
Contract pricing risk
Contract duration risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $7.6 million to 24 ASSET MANAGEMENT CORP. FIELD SERVICE MANAGEMENT AREA 4D/5D

Who is the contractor on this award?

The obligated recipient is 24 ASSET MANAGEMENT CORP.

Which agency awarded this contract?

Awarding agency: Department of Housing and Urban Development (Department of Housing and Urban Development).

What is the total obligated amount?

The obligated amount is $7.6 million.

What is the period of performance?

Start: 2025-12-19. End: 2027-02-15.

What is the track record of 24 Asset Management Corp. with federal contracts, particularly with HUD?

A thorough review of federal contract databases (like SAM.gov or FPDS) would be necessary to ascertain 24 Asset Management Corp.'s historical performance with federal agencies, including HUD. This would involve examining past contract awards, their values, the services provided, and any reported performance issues or successes. Understanding their experience with similar-sized contracts and property management responsibilities would provide crucial context for assessing their capability to fulfill the current award effectively. Without specific historical data, it's difficult to definitively gauge their track record.

How does the awarded price compare to market rates for similar residential property management services in Florida?

To benchmark the awarded price of $7.56 million against market rates, one would need to gather data on comparable residential property management contracts in Florida. This involves identifying contracts with similar scopes of work, property types (e.g., multi-family housing, single-family units), geographic coverage, and service levels (e.g., maintenance, leasing, tenant relations). Industry reports, commercial real estate data providers, and analyses of private sector property management fees could offer benchmarks. The firm fixed-price nature of this contract suggests a negotiated rate, and comparing it to prevailing commercial rates would indicate whether the government secured a competitive price.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for this contract are not detailed in the provided data. Typically, for residential property management, KPIs might include metrics such as response times for maintenance requests, tenant satisfaction scores, vacancy rates, lease renewal rates, and compliance with safety and housing codes. SLAs would define the expected standards for these metrics, often with associated penalties for non-performance or incentives for exceeding targets. These details are crucial for evaluating the contractor's performance and ensuring the effective management of HUD's properties.

What is the historical spending pattern for field service management or residential property management by HUD?

Analyzing HUD's historical spending on field service management and residential property management would provide context for the current $7.56 million award. This involves examining past contract awards for similar services over several fiscal years. Trends in spending could reveal whether HUD's investment in these services is increasing, decreasing, or remaining stable. Understanding the average contract values, durations, and the number of contracts awarded annually would help determine if this new award is typical, unusually large, or represents a shift in procurement strategy.

What is the potential impact of this contract on the local Florida housing market and tenant services?

This contract's primary impact will be on the operational management of specific HUD-managed residential properties within Florida. By ensuring professional management, it aims to maintain property standards, facilitate tenant services, and ensure compliance with housing regulations. This can lead to improved living conditions for residents and more efficient use of government assets. The contract could also influence local employment in property management and maintenance sectors. The extent of its impact on the broader local housing market depends on the scale of properties managed under this award relative to the overall market.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13155 SW 42ND ST, MIAMI, FL, 33175

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,562,943

Exercised Options: $7,562,943

Current Obligation: $7,562,943

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 86614524D00004

IDV Type: IDC

Timeline