HUD awarded $1.6M for LBP inspections in Philadelphia, a sole-source contract to First Preston Management

Contract Overview

Contract Amount: $163,561,770 ($163.6M)

Contractor: First Preston Management, Inc.

Awarding Agency: Department of Housing and Urban Development

Start Date: 1999-10-20

End Date: 2004-10-15

Contract Duration: 1,822 days

Daily Burn Rate: $89.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REVISED EXHIBIT 15 - LBP INSPECTIONS IN PHILA.

Place of Performance

Location: ADDISON, DALLAS County, TEXAS, 75001

State: Texas Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $163.6 million to FIRST PRESTON MANAGEMENT, INC. for work described as: REVISED EXHIBIT 15 - LBP INSPECTIONS IN PHILA. Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. Long contract duration of 1822 days suggests a need for sustained services, but also potential for cost overruns. 3. The contract was awarded in 1999, indicating a long-standing relationship with the contractor for these services. 4. No specific performance metrics or outcomes are detailed, making it difficult to assess value for money. 5. The contract's focus on Lead-Based Paint (LBP) inspections highlights a critical public health concern in urban areas. 6. The absence of small business subcontracting requirements warrants further investigation into potential impacts.

Value Assessment

Rating: questionable

The contract's total award of $1.6 million over approximately five years for LBP inspections in Philadelphia is difficult to benchmark without comparable sole-source contracts. Given the lack of competition, it's challenging to assess if the pricing represents fair market value. The absence of detailed performance data makes a definitive value-for-money assessment problematic. However, the duration and total value suggest a significant investment in public health services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The data indicates that only one offer was solicited and received. This approach bypasses the competitive bidding process, which typically drives down prices and encourages innovation. Without competition, there is a reduced incentive for the contractor to offer the most cost-effective solution.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive bidding. The absence of multiple offers means there was no market pressure to ensure the lowest possible price for these essential public health services.

Public Impact

Residents of Philadelphia, particularly those in older housing stock, benefit from inspections aimed at identifying and mitigating lead-based paint hazards. The services delivered include inspections crucial for ensuring compliance with housing safety regulations and protecting children from lead poisoning. The geographic impact is focused on Philadelphia, addressing a specific urban environmental health challenge. The contract supports a workforce of inspectors and related administrative staff, contributing to local employment in the Philadelphia area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Long contract duration without clear performance metrics makes assessing effectiveness difficult.
Lack of transparency regarding the justification for sole-source award.
No indication of small business participation or subcontracting goals.

Positive Signals

Addresses a critical public health issue (lead-based paint hazards).
Provides essential inspection services to a specific urban area.
Long-term contract suggests a consistent need for these services.

Sector Analysis

This contract falls within the broader category of government services, specifically focusing on environmental health and housing inspections. The market for such services involves specialized inspection firms and consultants. While specific market size data for LBP inspections in Philadelphia is not readily available, the federal government, through agencies like HUD, regularly contracts for such services to ensure housing safety and compliance with regulations. Comparable spending benchmarks are difficult to establish due to the sole-source nature of this award.

Small Business Impact

The contract data indicates that this was not a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses. This suggests that opportunities for small businesses to participate in this contract may have been limited. Without explicit provisions for small business engagement, the broader small business ecosystem may not have benefited from this procurement.

Oversight & Accountability

Oversight mechanisms for this contract are not explicitly detailed in the provided data. As a HUD contract, it would typically fall under the purview of HUD's Office of Inspector General (OIG) for audit and investigative oversight. However, the effectiveness of this oversight is difficult to assess without information on performance reviews, audits conducted, or any accountability measures implemented during the contract's lifecycle.

Related Government Programs

HUD Lead Hazard Reduction Program
EPA Lead Renovation, Repair and Painting Rule (RRP)
Public Housing Authority (PHA) Inspections
Healthy Homes Initiative

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
Lack of detailed performance metrics hinders value-for-money assessment.
Long contract duration without clear performance standards.
Limited transparency regarding the justification for sole-source procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $163.6 million to FIRST PRESTON MANAGEMENT, INC.. REVISED EXHIBIT 15 - LBP INSPECTIONS IN PHILA.

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 $163.6 million.

What is the period of performance?

Start: 1999-10-20. End: 2004-10-15.

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

The provided data indicates the contract was 'NOT COMPETED' and awarded to 'FIRST PRESTON MANAGEMENT, INC.' on a sole-source basis. Federal procurement regulations typically require full and open competition unless specific exceptions apply, such as the availability of only one responsible source, or in cases of urgent need. Without further documentation from HUD, the precise justification for bypassing the competitive bidding process remains unclear. This could be due to factors like specialized expertise, proprietary technology, or a pre-existing sole-source justification that was approved. The lack of competition raises concerns about potential overpricing and reduced value for taxpayer dollars, as competitive bidding usually leads to better price discovery and more favorable terms.

How does the cost of this contract compare to similar LBP inspection contracts in other major cities?

Direct cost comparison is challenging due to the sole-source nature of this $1.6 million contract awarded in 1999 for services in Philadelphia. Sole-source awards often lack the price benchmarks established through competitive bidding. To conduct a meaningful comparison, one would need to identify similar, competitively awarded contracts for LBP inspections in comparable urban areas during the same time period. Factors such as the scope of work (e.g., number of inspections, types of properties), local labor costs, and specific regulatory requirements would need to be standardized. Without such comparable data, assessing whether First Preston Management's pricing was fair and reasonable is speculative.

What were the key performance indicators (KPIs) or service level agreements (SLAs) for this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. The contract duration is listed as 1822 days (approximately 5 years), and the award amount is $1,635,617. However, details regarding the expected number of inspections, turnaround times, quality standards for inspection reports, or client satisfaction metrics are absent. Effective oversight and assessment of value for money typically rely on clearly defined and measurable performance standards. The lack of such information makes it difficult to evaluate the contractor's performance and the overall effectiveness of the services delivered under this sole-source award.

What is the historical spending pattern for LBP inspections by HUD in Philadelphia?

The provided data focuses on a single contract awarded in 1999. To understand historical spending patterns for LBP inspections by HUD in Philadelphia, a broader analysis of procurement data over multiple years would be necessary. This would involve identifying all contracts related to LBP inspections awarded by HUD (or other relevant agencies) in Philadelphia, examining their award dates, amounts, durations, and whether they were competed or sole-sourced. Analyzing this historical data could reveal trends in spending, identify key contractors, and highlight any shifts in procurement strategies or program focus over time. Without this broader dataset, it's impossible to establish a historical spending pattern from the information given.

What is the track record of First Preston Management, Inc. with federal contracts, particularly with HUD?

First Preston Management, Inc. was awarded this specific contract by the Department of Housing and Urban Development (HUD) in 1999. To assess their overall track record, a comprehensive review of their federal contract history would be required. This would involve searching federal procurement databases (like SAM.gov or FPDS) for all contracts awarded to First Preston Management across various agencies and contract types. Key aspects to examine would include contract performance ratings (if available), any past performance issues or disputes, the types of services they have provided, and their success in competitive versus sole-source procurements. Understanding their broader history would provide context for their performance on this particular HUD contract.

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 5040 ADDISON CIR STE 400, ADDISON, TX, 90

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $199,079,268

Exercised Options: $199,079,268

Current Obligation: $163,561,770

Contract Characteristics

Multi-Year Contract: Yes

Timeline