HUD awards $35M contract for property management services in Texas, spanning over 4 years

Contract Overview

Contract Amount: $34,970,806 ($35.0M)

Contractor: First Preston Management, Inc.

Awarding Agency: Department of Housing and Urban Development

Start Date: 1999-12-15

End Date: 2004-02-01

Contract Duration: 1,509 days

Daily Burn Rate: $23.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 51

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: ADDISON, DALLAS County, TEXAS, 75001

State: Texas Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $35.0 million to FIRST PRESTON MANAGEMENT, INC. for work described as: Key points: 1. Contract value of $35M over 4 years suggests a significant investment in property management. 2. The contract was awarded through full and open competition, indicating a robust bidding process. 3. A fixed-price contract type aims to control costs, but requires careful scope management. 4. The duration of the contract (1509 days) allows for long-term service provision and relationship building. 5. The award to FIRST PRESTON MANAGEMENT, INC. represents a substantial business opportunity for the contractor. 6. Geographic focus on Texas (st: TX) highlights regional service delivery needs for HUD.

Value Assessment

Rating: fair

The contract value of $35 million over approximately 4 years averages to about $8.75 million annually. Without specific details on the scope of services (e.g., number of properties managed, types of services), it's challenging to benchmark against similar contracts. However, the firm fixed-price structure suggests an attempt to lock in costs. The absence of detailed performance metrics or comparisons makes a definitive value assessment difficult, but the scale of the award indicates a significant need for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' meaning all responsible sources were permitted to submit a bid. This typically leads to a wider range of proposals and potentially more competitive pricing. The fact that 51 bids were received (no: 51) suggests strong interest and a healthy competitive environment for this type of service.

Taxpayer Impact: A competitive bidding process like this generally benefits taxpayers by driving down prices and encouraging efficiency from the winning contractor.

Public Impact

The primary beneficiaries are the Department of Housing and Urban Development (HUD) and potentially the residents of public housing or other properties managed under this contract. Services delivered likely include property maintenance, tenant relations, financial management, and compliance oversight for HUD-managed properties. The geographic impact is concentrated within Texas (st: TX), addressing HUD's operational needs in that state. This contract supports jobs within the property management sector, particularly in Texas, for FIRST PRESTON MANAGEMENT, INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed price does not adequately account for unforeseen maintenance or operational challenges.
Risk of service quality degradation if contractor focuses solely on cost-cutting to maintain profit margins.
Dependency on a single contractor for a significant period could lead to complacency or reduced responsiveness.

Positive Signals

Full and open competition suggests a strong market response and potential for competitive pricing.
The firm fixed-price contract type provides cost certainty for the government.
A long contract duration allows for stability and the development of specialized expertise by the contractor.

Sector Analysis

This contract falls within the broader real estate and property management services sector. The federal government is a significant consumer of such services to manage its vast portfolio of properties, including public housing, foreclosed assets, and administrative facilities. Benchmarking this $35 million award would require comparing it to other large-scale property management contracts awarded by federal agencies, considering factors like the number of units managed, geographic scope, and service complexity.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (sb: false), nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless FIRST PRESTON MANAGEMENT, INC. voluntarily engages small businesses for subcontracted work.

Oversight & Accountability

Oversight would typically be managed by contracting officers and program managers within the Department of Housing and Urban Development. Accountability is enforced through the firm fixed-price contract terms, performance expectations, and potential penalties for non-compliance. Transparency is generally facilitated through contract databases like FPDS, though detailed operational oversight information may not be publicly available.

Related Government Programs

Public Housing Management
Federal Real Estate Management
Property Maintenance Services
HUD Field Operations

Risk Flags

Lack of detailed scope of services
Absence of performance metrics
Limited historical spending context
No information on contractor past performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $35.0 million to FIRST PRESTON MANAGEMENT, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is FIRST PRESTON MANAGEMENT, INC..

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 $35.0 million.

What is the period of performance?

Start: 1999-12-15. End: 2004-02-01.

What specific types of properties are being managed under this contract, and what is the estimated number of units or facilities?

The provided data does not specify the exact types of properties managed (e.g., public housing developments, administrative buildings, foreclosed assets) or the quantity (e.g., number of units, square footage). This information is crucial for understanding the scope and complexity of the services rendered by FIRST PRESTON MANAGEMENT, INC. and for accurately benchmarking the contract's value against similar agreements. Without this detail, the $35 million award is difficult to contextualize in terms of service volume.

How does the $35 million contract value compare to historical HUD spending on property management in Texas?

To assess this, one would need to analyze historical HUD spending data specifically for property management services within Texas over previous contract periods. Comparing the $35 million award to the average annual spending or the total spending over similar contract durations in the past would reveal whether this represents an increase, decrease, or consistent level of investment. The current data point alone does not provide this historical context, making it difficult to determine trends or significant shifts in spending patterns.

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

The provided data does not include details on the specific KPIs or SLAs that FIRST PRESTON MANAGEMENT, INC. must meet. These are critical components of any service contract, defining the expected quality, timeliness, and effectiveness of the property management services. Understanding these metrics would allow for an assessment of performance risk and the contractor's accountability for delivering satisfactory results to HUD.

What is the track record of FIRST PRESTON MANAGEMENT, INC. with federal contracts, particularly with HUD?

The data indicates FIRST PRESTON MANAGEMENT, INC. is the awardee, but does not provide information on their past performance history with federal agencies, including HUD. A review of their contract history, including past performance evaluations, any disputes, or contract terminations, would be necessary to assess their reliability and capability to fulfill the obligations of this $35 million award effectively.

Were there any specific challenges or risks identified during the solicitation or award process for this contract?

The available data focuses on the outcome (award details) and does not detail the solicitation process itself, including any challenges encountered or risks identified by HUD. Information regarding potential bid protests, contractor qualifications assessments, or specific risk mitigation strategies incorporated into the contract would provide further insight into the robustness of the procurement and the potential success of the contract.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 51

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 5040 ADDISON CIR, ADDISON, TX, 90

Business Categories: Category Business, Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $34,970,806

Exercised Options: $34,970,806

Current Obligation: $34,970,806

Timeline