HUD awards $4.46M for housing demonstration services, with MDRC leading Phase 2

Contract Overview

Contract Amount: $4,461,950 ($4.5M)

Contractor: Mdrc

Awarding Agency: Department of Housing and Urban Development

Start Date: 2024-09-30

End Date: 2029-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $2.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: STEPPED AND TIERED RENT DEMONSTRATION (STRD) PHASE 2

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10281

State: New York Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $4.5 million to MDRC for work described as: STEPPED AND TIERED RENT DEMONSTRATION (STRD) PHASE 2 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger contract, indicating a phased approach. 3. The fixed-price contract type aims to control costs for the government. 4. The duration of the contract is 5 years, allowing for sustained program implementation. 5. The administrative management and general management consulting services sector is broad, requiring specific context for value assessment.

Value Assessment

Rating: fair

The contract value of $4.46 million over five years for a demonstration project is moderate. Without specific benchmarks for similar housing demonstration projects or detailed service breakdowns, a precise value-for-money assessment is challenging. The fixed-price nature is a positive indicator for cost control. However, the absence of detailed performance metrics or comparison data makes it difficult to definitively assess if this represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically involves a broad solicitation to all eligible offerors. This process is designed to maximize the pool of potential bidders and foster competitive pricing. The number of bidders is not specified, but the open competition suggests a robust process aimed at achieving fair market prices.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple companies to bid, driving down prices and increasing the likelihood of selecting the most cost-effective solution.

Public Impact

The Department of Housing and Urban Development (HUD) is the primary beneficiary, seeking to demonstrate innovative housing solutions. The services delivered will likely involve research, analysis, and program management for the STEPPED AND TIERED RENT DEMONSTRATION (STRD) Phase 2. The contract is geographically focused on New York (NY), indicating a specific regional impact for the demonstration. The project may indirectly impact the housing sector workforce through research and policy development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to gauge contractor effectiveness beyond project completion.
The broad nature of 'Administrative Management and General Management Consulting Services' could lead to scope creep if not tightly managed.
Limited public information on the specific goals and expected outcomes of STRD Phase 2.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
Fixed-price contract type helps to manage and control costs for the government.
The 5-year duration allows for a comprehensive demonstration and evaluation period.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative and management consulting. This sector is characterized by a wide range of service providers, from large consulting firms to specialized research organizations. The market size for such services is substantial, driven by government needs for policy analysis, program evaluation, and management support. HUD's spending in this area supports its mission to address housing needs and improve communities.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, small businesses would have had to compete under the full and open solicitation. There is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem is likely minimal unless they were prime contractors or significant subcontractors in the competitive bidding process.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Housing and Urban Development (HUD). As a delivery order under a larger contract, existing oversight mechanisms for the parent contract would likely apply. Transparency is dependent on HUD's public reporting practices regarding demonstration projects and contract performance. The Inspector General for HUD would have jurisdiction for audits and investigations if any issues arise.

Related Government Programs

Housing Choice Vouchers Program
Public Housing Management
Community Development Block Grants
Research and Evaluation Contracts
Housing Policy Analysis

Risk Flags

Potential for findings to be inconclusive
Implementation challenges in demonstration projects
Scope creep in consulting services

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $4.5 million to MDRC. STEPPED AND TIERED RENT DEMONSTRATION (STRD) PHASE 2

Who is the contractor on this award?

The obligated recipient is MDRC.

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 $4.5 million.

What is the period of performance?

Start: 2024-09-30. End: 2029-09-29.

What is the specific objective of the STEPPED AND TIERED RENT DEMONSTRATION (STRD) Phase 2?

The STEPPED AND TIERED RENT DEMONSTRATION (STRD) Phase 2, awarded to MDRC, aims to test and evaluate innovative rental assistance or housing subsidy models. While the provided data does not detail the specific objectives, demonstration projects like STRD typically seek to assess the effectiveness of new approaches in improving housing affordability, stability, and access for low-income households. Phase 2 likely builds upon findings from a previous phase, refining the demonstration design, expanding its scope, or testing different variations of the rent structure. The services procured will likely involve program design, implementation support, data collection, and rigorous evaluation to inform future housing policy.

How does the $4.46 million contract value compare to similar housing demonstration projects managed by HUD?

Comparing the $4.46 million contract value for STRD Phase 2 requires context on the scope and duration of similar HUD demonstration projects. HUD often funds complex, multi-year research and demonstration initiatives that can range from a few million to tens of millions of dollars, depending on the scale, geographic reach, and evaluation rigor. A 5-year duration for a demonstration project is common for allowing sufficient time for implementation, data collection, and analysis. Without specific details on the number of participants, geographic spread, or the complexity of the interventions being tested in STRD Phase 2, a direct comparison is difficult. However, the value appears moderate for a multi-year federal demonstration initiative.

What are the key risks associated with this contract for HUD?

Key risks for HUD in this contract include potential challenges in program implementation, such as difficulties in recruiting participants or ensuring compliance with the demonstration's parameters. There's also a risk that the demonstration's findings may not yield conclusive or actionable policy recommendations, potentially limiting the return on investment. Contractor performance risk exists, where MDRC might not deliver the expected research, analysis, or management services effectively, impacting the project timeline and outcomes. Finally, external factors, such as changes in housing markets or federal housing policy, could affect the relevance or applicability of the demonstration's results.

What is MDRC's track record with HUD or similar government agencies?

MDRC (Manpower Demonstration Research Corporation) is a well-established research organization known for its rigorous evaluations of social and economic policies, particularly in areas related to poverty, employment, education, and housing. They have a significant track record of working with federal agencies, including HUD, as well as state and local governments, on large-scale demonstration projects and policy evaluations. Their expertise lies in designing and implementing complex research studies, collecting and analyzing data, and producing high-quality reports. Given their reputation, MDRC is generally considered a reliable contractor for such initiatives, though specific past performance on HUD contracts would require a deeper dive into contract databases.

How will the success of the STRD Phase 2 be measured?

The success of the STRD Phase 2 will be measured through a combination of process and outcome evaluations, managed by MDRC under HUD's oversight. Process evaluation metrics would likely focus on the fidelity of program implementation, participant engagement rates, operational efficiency, and adherence to the demonstration's design. Outcome evaluation metrics would assess the impact of the stepped and tiered rent strategies on key housing indicators, such as housing stability, affordability, housing quality, and potentially broader economic or social outcomes for participants. The final success will be determined by the quality and conclusiveness of the research findings and their utility in informing future HUD policies and programs.

What is the historical spending pattern for administrative management and general management consulting services at HUD?

HUD historically spends significant amounts on administrative management and general management consulting services to support its vast array of housing and community development programs. This spending covers a wide range of activities, including policy analysis, program evaluation, strategic planning, IT consulting, and operational efficiency improvements. While the specific annual spending fluctuates based on agency priorities and budget allocations, consulting services are a consistent component of HUD's operational budget. Contracts in this category can vary widely in value, from small task orders to large, multi-year engagements like the one awarded to MDRC, reflecting the diverse needs for expert support across the department.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 86614624Q00005

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 VESEY ST, NEW YORK, NY, 10281

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,704,897

Exercised Options: $4,571,122

Current Obligation: $4,461,950

Actual Outlays: $914,875

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $2,558,428

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAA23D0032

IDV Type: FSS

Timeline