HUD awards $227K for asset management services in Georgia, with limited competition

Contract Overview

Contract Amount: $227,076 ($227.1K)

Contractor: Raine & Company, LLC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2023-03-01

End Date: 2023-08-31

Contract Duration: 183 days

Daily Burn Rate: $1.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ASSET MANAGER SERVICES AREA 6A

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30305

State: Georgia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $227,075.84 to RAINE & COMPANY, LLC for work described as: ASSET MANAGER SERVICES AREA 6A Key points: 1. The contract value represents a modest investment for asset management services. 2. Limited competition raises questions about potential price overruns and optimal value. 3. The short duration of the contract may indicate a pilot program or interim solution. 4. The fixed-price contract type offers cost certainty for the government. 5. The contractor, Raine & Company, LLC, is the sole awardee, suggesting a specific capability or relationship. 6. The service falls under 'Other Activities Related to Real Estate', a broad category.

Value Assessment

Rating: fair

The contract value of $227,075.84 for six months of asset management services appears within a reasonable range for specialized real estate services. However, without specific benchmarks for 'Area 6A' or comparable contracts for similar geographic scopes and service complexities, a definitive value-for-money assessment is challenging. The lack of competition further complicates a robust price comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified for unique capabilities or urgent needs, they limit the government's ability to explore a wider range of pricing and service offerings from multiple providers.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the benefit of competitive pressure on pricing is lost.

Public Impact

The Department of Housing and Urban Development (HUD) benefits from specialized asset management services. Services are delivered within Georgia, impacting properties managed by HUD in that state. The contract supports the effective management of HUD's real estate assets. The contract likely supports a small team of professionals focused on asset oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Limited contract duration could indicate a temporary solution rather than a long-term strategy.
The specific geographic area ('Area 6A') is not clearly defined, making performance assessment difficult.

Positive Signals

The firm fixed-price contract provides cost predictability.
The award is to a single, presumably qualified, vendor for a specific service area.

Sector Analysis

The real estate services sector within federal contracting encompasses a wide range of activities, from property acquisition and management to appraisal and brokerage. This contract for asset management services fits within the 'Other Activities Related to Real Estate' NAICS code (531390). Federal spending in this area is driven by the government's extensive property holdings and the need for efficient management to maintain asset value and ensure compliance.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned. The award to Raine & Company, LLC, a single entity, does not provide direct opportunities for small business participation through set-asides or mandated subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Housing and Urban Development's contracting officers and program managers. Transparency is limited due to the sole-source nature of the award. Further oversight details would depend on HUD's internal policies and any specific reporting requirements stipulated in the contract.

Related Government Programs

HUD Real Estate Asset Management
Federal Property Management Services
Government Real Estate Services

Risk Flags

Sole-source award may limit price competition.
Lack of detailed scope and KPIs hinders performance assessment.
Contract duration is relatively short.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $227,075.84 to RAINE & COMPANY, LLC. ASSET MANAGER SERVICES AREA 6A

Who is the contractor on this award?

The obligated recipient is RAINE & COMPANY, 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 $227,075.84.

What is the period of performance?

Start: 2023-03-01. End: 2023-08-31.

What is the specific scope of 'Asset Manager Services Area 6A' and what are the key performance indicators for this contract?

The provided data does not detail the specific scope of 'Asset Manager Services Area 6A' beyond its classification under 'Other Activities Related to Real Estate'. Key performance indicators (KPIs) are also not specified in the available information. Typically, asset management services involve monitoring property performance, ensuring maintenance, managing leases, and optimizing the financial return on real estate assets. For HUD, this could involve managing foreclosed properties, public housing assets, or other real estate holdings. Without the Statement of Work (SOW) or contract clauses, the precise KPIs and deliverables remain unknown, making a performance evaluation impossible.

Can Raine & Company, LLC's past performance and track record with HUD or other federal agencies be assessed?

The provided data does not include information on Raine & Company, LLC's past performance or track record. A comprehensive assessment would require accessing contract databases (like FPDS or SAM.gov) to review their award history, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or terminations. Without this information, it is difficult to gauge their reliability, experience, and success in fulfilling similar federal contracts. The sole-source nature of this award might imply prior positive experience or a pre-existing relationship, but this cannot be confirmed from the given data.

What is the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The justification for a sole-source award is not provided in the given data. Federal Acquisition Regulation (FAR) Part 6 outlines the policies for contracting without full and open competition. Common justifications include the availability of only one responsible source, urgent and compelling needs, or specific statutory authority. For this contract, HUD would have had to document why Raine & Company, LLC was the only viable option or why competition was not feasible or not in the government's best interest. Without this justification document, the rationale remains unclear, raising questions about whether competitive opportunities were missed.

How does the $227,075.84 contract value compare to similar asset management contracts awarded by HUD or other agencies?

Comparing the $227,075.84 contract value for six months of asset management services requires access to a broader dataset of similar federal contracts. Without specific details on the scope, geographic coverage, and complexity of 'Area 6A', direct comparisons are difficult. However, this value appears to be a moderate-sized award for specialized services. Larger contracts might involve managing extensive portfolios or complex portfolios, while smaller ones could be for very specific tasks or limited geographic areas. The lack of competition for this award makes benchmarking against competitively bid contracts even more challenging, as market-driven pricing dynamics are absent.

What are the potential risks associated with a sole-source award for asset management services, and how are they mitigated?

The primary risks associated with a sole-source award for asset management services include potentially higher costs due to the absence of competitive pricing, limited innovation from a single provider, and a lack of vendor accountability that competition often fosters. Mitigation strategies would typically involve robust contract management by the agency, clearly defined performance standards and deliverables in the contract, and potentially incorporating incentive clauses. HUD would need to closely monitor Raine & Company, LLC's performance against the contract requirements to ensure value and service quality are maintained despite the lack of competition.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Activities Related to Real Estate › Other Activities Related to Real Estate

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Raine & Company LLC

Address: 15 PIEDMONT CTR NE STE 120, ATLANTA, GA, 30305

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $227,076

Exercised Options: $227,076

Current Obligation: $227,076

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 86616022D00013

IDV Type: IDC

Timeline