HUD awards $191K for Area 4P Asset Management Services to Raine & Company, LLC

Contract Overview

Contract Amount: $190,957 ($191.0K)

Contractor: Raine & Company, LLC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2023-09-01

End Date: 2024-02-29

Contract Duration: 181 days

Daily Burn Rate: $1.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AREA 4P ASSET MANAGEMENT SERVICES

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30305

State: Georgia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $190,956.83 to RAINE & COMPANY, LLC for work described as: AREA 4P ASSET MANAGEMENT SERVICES Key points: 1. Contract awarded for asset management services in Area 4P. 2. Raine & Company, LLC is the sole awardee. 3. The contract is a firm fixed price delivery order. 4. The total award amount is $190,956.83. 5. The contract duration is 181 days.

Value Assessment

Rating: questionable

The contract value of $190,956.83 for 181 days of service appears high for asset management without further context on the scope of work. Benchmarking against similar contracts for asset management services is difficult without more detailed information on the specific assets and services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.

Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been competitively bid.

Public Impact

Citizens may question the justification for a sole-source award in asset management. Transparency regarding the services rendered and the necessity of a sole-source approach is important. The relatively short duration of the contract (181 days) suggests a specific, potentially urgent need.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under 'Other Activities Related to Real Estate' (NAICS 531390). Spending in this sector can vary widely depending on the scale and complexity of real estate assets managed by federal agencies.

Small Business Impact

The awardee, Raine & Company, LLC, is not identified as a small business in the provided data. There is no indication of small business participation goals or achievements for this contract.

Oversight & Accountability

Oversight would focus on the justification for the sole-source award and the performance of Raine & Company, LLC to ensure the services meet HUD's requirements and represent good value.

Related Government Programs

Risk Flags

Tags

other-activities-related-to-real-estate, department-of-housing-and-urban-developm, ga, delivery-order, 100k-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $190,956.83 to RAINE & COMPANY, LLC. AREA 4P ASSET MANAGEMENT SERVICES

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 $190,956.83.

What is the period of performance?

Start: 2023-09-01. End: 2024-02-29.

What was the specific justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, urgent and compelling needs, or specific government property requirements. Without further documentation from HUD, the exact reason remains unclear, but it implies a situation where competition was deemed impractical or impossible.

How does the per-unit cost of these asset management services compare to industry benchmarks, given the lack of competition?

Directly comparing the per-unit cost is challenging without knowing the specific metrics used (e.g., cost per property managed, cost per asset). However, the absence of competition inherently raises concerns that the price may not be benchmarked against market rates. A sole-source award bypasses the competitive process that typically drives down costs, suggesting the price might be higher than if multiple firms had bid.

What is the expected effectiveness of Raine & Company, LLC in managing Area 4P assets under this short-term contract?

The effectiveness will depend on Raine & Company, LLC's experience and the clarity of the scope of work defined in the delivery order. Given the 181-day duration, the focus is likely on immediate or interim asset management needs. HUD's oversight will be crucial in ensuring performance standards are met and that the services contribute to the preservation or disposition of the assets as intended.

Industry Classification

NAICS: Real Estate and Rental and LeasingActivities Related to Real EstateOther 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: $190,957

Exercised Options: $190,957

Current Obligation: $190,957

Actual Outlays: $455

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

Start Date: 2023-09-01

Current End Date: 2024-02-29

Potential End Date: 2024-02-29 00:00:00

Last Modified: 2026-04-06

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