HUD awards $7.96M contract for Emergency Rental Assistance voucher support services to Koniag Management Solutions LLC

Contract Overview

Contract Amount: $7,958,564 ($8.0M)

Contractor: Koniag Management Solutions LLC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2021-09-01

End Date: 2025-08-31

Contract Duration: 1,460 days

Daily Burn Rate: $5.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE SUPPORT SERVICES TO IMPLEMENT AND MONITOR THE ISSUANCE OF THE EMERGENCY RENTAL ASSISTANCE VOUCHERS THROUGH PROGRAM OVERSIGHT AND ANALYSIS. THE SUPPORT SERVICES SHALL INCLUDE: FINANCIAL MANAGEMENT AND REPORTING VOUCHER UTILIZATION AND ANALY

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $8.0 million to KONIAG MANAGEMENT SOLUTIONS LLC for work described as: PROVIDE SUPPORT SERVICES TO IMPLEMENT AND MONITOR THE ISSUANCE OF THE EMERGENCY RENTAL ASSISTANCE VOUCHERS THROUGH PROGRAM OVERSIGHT AND ANALYSIS. THE SUPPORT SERVICES SHALL INCLUDE: FINANCIAL MANAGEMENT AND REPORTING VOUCHER UTILIZATION AND ANALY Key points: 1. The contract focuses on program oversight and analysis for Emergency Rental Assistance vouchers. 2. Key services include financial management and reporting on voucher utilization. 3. The contract duration is approximately four years, indicating a need for sustained support. 4. The award was made via a definitive contract, suggesting a specific, pre-defined need. 5. The procurement method was 'not available for competition', raising questions about market research and potential alternatives. 6. The fixed-price contract type aims to control costs for the government. 7. The contractor, Koniag Management Solutions LLC, is tasked with critical program monitoring.

Value Assessment

Rating: fair

The contract value of $7.96 million over four years for administrative and management consulting services appears reasonable given the scope of supporting a critical federal program like Emergency Rental Assistance. However, without direct comparable contracts for similar voucher oversight and analysis, a precise value-for-money assessment is challenging. The fixed-price nature of the contract provides some cost certainty for the government. Benchmarking against other government-wide administrative support contracts would be beneficial for a more robust comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a 'not available for competition' procurement method, indicating that a sole-source justification was likely made. This means that only one contractor was considered capable of meeting the government's needs, or that the circumstances of the requirement did not allow for a competitive process. The lack of competition limits the government's ability to explore a wider range of solutions and potentially secure more favorable pricing through bidding.

Taxpayer Impact: The absence of competition means taxpayers may not benefit from the cost savings that can arise from a competitive bidding process, potentially leading to a higher overall cost for these essential support services.

Public Impact

The primary beneficiaries are individuals and families seeking rental assistance through the Emergency Rental Assistance program. The services delivered will ensure the effective implementation and monitoring of voucher issuance. The geographic impact is national, supporting the distribution of federal rental assistance funds across the country. The contract supports the administration and oversight of a program designed to prevent evictions and ensure housing stability for vulnerable populations. The contract indirectly supports the housing sector by facilitating the flow of funds and ensuring program integrity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and limited innovation.
The 'not available for competition' justification requires thorough review to ensure it was appropriate.
Performance monitoring will be crucial to ensure the contractor meets all service delivery requirements.
The fixed-price contract type, while offering cost certainty, could incentivize cost-cutting that impacts service quality if not closely managed.

Positive Signals

The contract aims to provide essential support for a critical federal program addressing housing instability.
The fixed-price contract type helps manage government expenditures.
The contractor is tasked with vital oversight and analysis functions, contributing to program integrity.
The four-year duration suggests a stable partnership for ongoing program support.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector (NAICS 541611). This sector encompasses a wide range of services aimed at improving organizational efficiency and effectiveness. The Emergency Rental Assistance program is a significant federal initiative, and contracts supporting its implementation and oversight are crucial for ensuring taxpayer funds are used effectively and that program goals are met. Comparable spending in this sector often involves large-scale program management, financial oversight, and data analysis for government agencies.

Small Business Impact

The data indicates that small business participation (ss and sb fields) is not a stated requirement or focus for this specific contract. There is no indication of small business set-asides or subcontracting plans. This means the primary contractor, Koniag Management Solutions LLC, will likely handle the majority of the work, with limited direct opportunities for small businesses within this particular award. Further analysis would be needed to determine if Koniag has its own small business subcontracting goals across its broader operations.

Oversight & Accountability

Oversight for this contract will primarily be conducted by the Department of Housing and Urban Development (HUD) contracting officers and program managers. Accountability measures are embedded within the contract's performance work statement, which will dictate the services and deliverables expected. Transparency will depend on HUD's reporting practices regarding the Emergency Rental Assistance program and contract performance. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Emergency Rental Assistance Program
Housing Choice Vouchers Program
Federal Housing Administration (FHA) Programs
Department of Treasury - ERA Program

Risk Flags

Sole-source award requires justification review.
Performance monitoring is critical due to lack of competition.
Potential for cost overruns if not managed tightly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $8.0 million to KONIAG MANAGEMENT SOLUTIONS LLC. PROVIDE SUPPORT SERVICES TO IMPLEMENT AND MONITOR THE ISSUANCE OF THE EMERGENCY RENTAL ASSISTANCE VOUCHERS THROUGH PROGRAM OVERSIGHT AND ANALYSIS. THE SUPPORT SERVICES SHALL INCLUDE: FINANCIAL MANAGEMENT AND REPORTING VOUCHER UTILIZATION AND ANALY

Who is the contractor on this award?

The obligated recipient is KONIAG MANAGEMENT SOLUTIONS LLC.

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 $8.0 million.

What is the period of performance?

Start: 2021-09-01. End: 2025-08-31.

What is the specific justification for awarding this contract on a sole-source basis, and what market research was conducted to confirm no other vendors could meet the requirement?

The provided data states the contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' which typically implies a sole-source justification. This usually occurs when only one responsible source is available or capable of meeting the agency's needs, or in specific emergency situations. The Department of Housing and Urban Development (HUD) would have conducted market research to determine this. Common reasons include unique capabilities, proprietary technology, or a critical need arising from unforeseen circumstances. Without access to HUD's official justification document (e.g., a Justification for Other Than Full and Open Competition - JOFOC), the precise details of the market research and the specific rationale remain undisclosed. This lack of competition limits the government's ability to leverage market forces for potentially better pricing and broader solution options.

How does the annual cost of this contract compare to the overall budget or spending on the Emergency Rental Assistance program?

This contract is valued at approximately $7.96 million over its four-year term, averaging about $1.99 million per year. The total federal allocation for the Emergency Rental Assistance (ERA) program, established by the Consolidated Appropriations Act, 2021, and the American Rescue Plan Act, was substantial, totaling tens of billions of dollars. For instance, the ERA1 program alone received $25 billion, and ERA2 received an additional $21.55 billion. Therefore, the $1.99 million annual cost for administrative and oversight support represents a relatively small fraction of the total program funding. This suggests that the spending on these support services is proportionate to the scale of the overall assistance being provided, focusing on ensuring program integrity and efficient voucher management.

What are Koniag Management Solutions LLC's past performance and track record with similar federal contracts, particularly in housing or financial management oversight?

Koniag Management Solutions LLC has a history of performing federal contracts, including work with various government agencies. While specific details on their past performance for *this exact type* of service (Emergency Rental Assistance voucher oversight and analysis) are not provided in the summary data, the company generally offers management and professional services. A deeper dive into their contract history, available through resources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS), would reveal their performance ratings on previous engagements. Agencies typically review past performance as a key factor in contract awards, especially for sole-source procurements. Given the nature of this contract, HUD would have assessed Koniag's demonstrated ability to handle financial management, reporting, and program oversight effectively.

What specific metrics or Key Performance Indicators (KPIs) will be used to measure the success and effectiveness of Koniag Management Solutions LLC's services?

The provided data summary does not explicitly list the Key Performance Indicators (KPIs) or specific metrics that will be used to measure the success of Koniag Management Solutions LLC's services. However, based on the contract's objective to 'PROVIDE SUPPORT SERVICES TO IMPLEMENT AND MONITOR THE ISSUANCE OF THE EMERGENCY RENTAL VOUCHERS THROUGH PROGRAM OVERSIGHT AND ANALYSIS,' typical KPIs would likely include: accuracy and timeliness of financial reporting, efficiency in voucher utilization tracking, adherence to program guidelines, effectiveness of analysis in identifying program risks or improvements, and overall compliance with federal regulations. The contract's Performance Work Statement (PWS) would detail these requirements and the associated metrics. HUD's contracting officer and program managers would be responsible for monitoring Koniag's performance against these defined standards.

How does the total spending on administrative support for the Emergency Rental Assistance program compare to previous large-scale federal housing assistance initiatives?

Comparing the administrative support costs for the Emergency Rental Assistance (ERA) program to previous large-scale federal housing initiatives requires careful consideration of program scope, duration, and the specific services contracted. ERA was a rapid-response initiative with significant funding ($46.55 billion total) aimed at immediate relief during an unprecedented economic crisis. Contracts for its administration and oversight, like this one with Koniag ($7.96M over 4 years), are essential for managing such large sums and ensuring accountability. Historically, large housing programs like the Housing Choice Voucher Program (Section 8) have ongoing administrative costs that are a percentage of the total program budget. While direct comparisons are difficult due to differing program structures and economic contexts, the focus on robust oversight and financial management for ERA reflects a standard practice for large federal spending programs to ensure fiscal responsibility and program effectiveness.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 86614821R00009

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3800 CENTERPOINT DR STE 502, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,958,564

Exercised Options: $7,958,564

Current Obligation: $7,958,564

Actual Outlays: $7,958,564

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline