HUD's $97M REO Management Contract Awarded to Michaelson Connor & Boul Amidst Full and Open Competition
Contract Overview
Contract Amount: $96,992,648 ($97.0M)
Contractor: Michaelson Connor & Boul
Awarding Agency: Department of Housing and Urban Development
Start Date: 2004-08-01
End Date: 2010-01-31
Contract Duration: 2,009 days
Daily Burn Rate: $48.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)
Sector: Other
Official Description: SINGLE FAMILY REAL ESTATE OWNED (REO) MANAGEMENT AND MARKETING CONTRACTS (REPROCUREMENT)
Place of Performance
Location: HUNTINGTON BEACH, ORANGE County, CALIFORNIA, 92649, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Housing and Urban Development obligated $97.0 million to MICHAELSON CONNOR & BOUL for work described as: SINGLE FAMILY REAL ESTATE OWNED (REO) MANAGEMENT AND MARKETING CONTRACTS (REPROCUREMENT) Key points: 1. The contract, valued at $96,992,648.20, focuses on Single Family Real Estate Owned (REO) Management and Marketing. 2. Awarded under full and open competition after exclusion of sources, indicating a competitive bidding process. 3. The contract duration spans from August 1, 2004, to January 31, 2010, with a reported duration of 2009. 4. The primary agency is the Department of Housing and Urban Development (HUD). 5. The North American Industry Classification System (NAICS) code is 531110 (Lessors of Residential Buildings and Dwellings).
Value Assessment
Rating: fair
The contract value of approximately $97 million over its term suggests a significant investment in REO management. Benchmarking against similar large-scale real estate management contracts would be necessary to fully assess pricing effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through 'Full and Open Competition After Exclusion of Sources,' which implies a competitive process was intended. However, the 'exclusion of sources' aspect warrants further investigation to understand its impact on price discovery and overall competition.
Taxpayer Impact: The significant contract value means taxpayer funds are being utilized for REO management. Ensuring efficient and cost-effective services is crucial for maximizing the return on this investment.
Public Impact
Impacts homeowners and communities by managing foreclosed properties. Affects the real estate market through the marketing and sale of REO properties. Ensures the maintenance and disposition of government-owned residential properties.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Ambiguity in 'exclusion of sources' within full and open competition.
- Contract duration and potential for cost overruns if not managed tightly.
- Lack of specific performance metrics provided in the data.
Positive Signals
- Awarded through a competitive process.
- Addresses a critical need for REO management.
- Managed by a dedicated federal agency (HUD).
Sector Analysis
The real estate services sector, particularly property management and marketing, is crucial for government agencies dealing with foreclosed assets. Benchmarks for such contracts vary widely based on property volume, location, and service scope.
Small Business Impact
The data does not indicate any specific set-asides for small businesses for this contract. The large value suggests it may have been awarded to a larger entity, potentially limiting small business participation.
Oversight & Accountability
Oversight by the Department of Housing and Urban Development is expected. The 'exclusion of sources' clause may require additional scrutiny to ensure fair competition and prevent potential impropriety.
Related Government Programs
- Lessors of Residential Buildings and Dwellings
- Department of Housing and Urban Development Contracting
- Department of Housing and Urban Development Programs
Risk Flags
- Potential for limited competition due to 'exclusion of sources'.
- Lack of transparency regarding the specific services and performance metrics.
- Contract duration may lead to complacency or cost creep if not actively managed.
- No clear indication of small business participation.
Tags
lessors-of-residential-buildings-and-dwe, department-of-housing-and-urban-developm, ca, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $97.0 million to MICHAELSON CONNOR & BOUL. SINGLE FAMILY REAL ESTATE OWNED (REO) MANAGEMENT AND MARKETING CONTRACTS (REPROCUREMENT)
Who is the contractor on this award?
The obligated recipient is MICHAELSON CONNOR & BOUL.
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 $97.0 million.
What is the period of performance?
Start: 2004-08-01. End: 2010-01-31.
What was the specific rationale for 'exclusion of sources' within the full and open competition framework, and did it limit competitive bids or inflate costs?
The 'exclusion of sources' clause within a 'full and open competition' is unusual and requires clarification. Typically, full and open competition means all responsible sources are considered. Excluding specific sources, even if the competition is open to others, can raise questions about the breadth of competition and whether it led to suboptimal pricing or limited innovation. Further documentation would be needed to understand the justification and its impact.
How effectively did the awarded contractor manage and market the REO properties to minimize taxpayer losses and expedite sales?
Assessing the effectiveness requires performance reports, sales data, and comparison to market trends during the contract period. Without specific metrics on property turnover time, sale prices achieved versus market value, and maintenance costs, it's difficult to definitively gauge the contractor's performance and the overall value delivered to taxpayers.
Were there any performance issues or contract modifications during the 2004-2010 period that impacted the final cost or service delivery?
The provided data does not detail contract modifications, performance issues, or extensions. Understanding the contract's lifecycle, including any challenges encountered and how they were resolved, is essential for a complete assessment of its value and the agency's management of the contract.
Industry Classification
NAICS: Real Estate and Rental and Leasing › Lessors of Real Estate › Lessors of Residential Buildings and Dwellings
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)
Evaluated Preference: NONE
Contractor Details
Address: 5312 BOLSA AVE STE 200, HUNTINGTON BEACH, CA, 92649
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $96,992,648
Exercised Options: $96,992,648
Current Obligation: $96,992,648
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-08-01
Current End Date: 2010-01-31
Potential End Date: 2015-08-07 00:00:00
Last Modified: 2015-08-10
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