HUD's $51.6M SF REO M&M Contract Awarded to BESTASSETS, Inc. for Multi-State Region
Contract Overview
Contract Amount: $51,560,140 ($51.6M)
Contractor: Bestassets, Inc
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: $25.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: COMBINATION (TWO OR MORE)
Sector: Other
Official Description: SF REO M&M CONTRACT FOR ND, SD, NE, MN, WI, IA
Place of Performance
Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55402
Plain-Language Summary
Department of Housing and Urban Development obligated $51.6 million to BESTASSETS, INC for work described as: SF REO M&M CONTRACT FOR ND, SD, NE, MN, WI, IA Key points: 1. Contract awarded to BESTASSETS, Inc. for property management services. 2. The contract covers a significant multi-state region (ND, SD, NE, MN, WI, IA). 3. Full and open competition was utilized after exclusion of sources, suggesting a competitive process. 4. The sector appears to be related to real estate and property management within the housing sector.
Value Assessment
Rating: fair
The contract value of $51.6 million over approximately 5.5 years suggests a moderate annual spend. Benchmarking against similar property management contracts would be necessary to fully assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates an initial exclusion, followed by a competitive process. The impact on price discovery depends on the specifics of the exclusion and the subsequent competition.
Taxpayer Impact: Taxpayer funds are being utilized for property management services, the efficiency and effectiveness of which will determine the ultimate taxpayer impact.
Public Impact
Ensures maintenance and management of residential properties, potentially impacting housing availability and quality. Supports the Department of Housing and Urban Development's mission in managing its real estate portfolio. The multi-state scope suggests a broad impact on regional housing markets and local economies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics or outcomes in provided data.
- Potential for cost overruns if property conditions are worse than anticipated.
- Dependence on a single contractor for a large geographic area.
Positive Signals
- Utilized full and open competition, promoting a degree of market fairness.
- Contract duration of over 5 years suggests potential for stable service delivery.
- Awarded by a major federal agency (HUD), implying adherence to established procurement standards.
Sector Analysis
This contract falls within the Real Estate and Property Management sector, specifically related to residential dwellings. Federal spending in this area is often tied to agency asset management and housing programs. Benchmarks would typically compare per-unit management costs or percentage of property value.
Small Business Impact
The provided data does not indicate any specific set-aside for small businesses. The contract was awarded to BESTASSETS, INC, and further analysis would be needed to determine if they are a small business or if subcontracting opportunities exist for small businesses.
Oversight & Accountability
Oversight would typically be conducted by the Department of Housing and Urban Development's contracting officers and program managers. Accountability would be measured against contract terms, performance standards, and service level agreements.
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
- Contract duration is lengthy (over 5 years), increasing exposure to market changes.
- Geographic scope is broad, potentially leading to logistical challenges and varied regional costs.
- Lack of detail on specific performance metrics makes objective evaluation difficult.
- The 'exclusion of sources' clause warrants further investigation into its necessity and impact.
Tags
lessors-of-residential-buildings-and-dwe, department-of-housing-and-urban-developm, mn, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $51.6 million to BESTASSETS, INC. SF REO M&M CONTRACT FOR ND, SD, NE, MN, WI, IA
Who is the contractor on this award?
The obligated recipient is BESTASSETS, 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 $51.6 million.
What is the period of performance?
Start: 2004-08-01. End: 2010-01-31.
What specific services are included under 'M&M' (Management & Maintenance) for these residential properties, and how are they quantified?
The 'M&M' likely encompasses a range of services including tenant relations, rent collection, property upkeep, repairs, and ensuring compliance with housing regulations. Quantifying these services would involve metrics like units managed, maintenance requests resolved, vacancy rates, and tenant satisfaction scores, which are crucial for assessing performance and value.
What was the rationale for excluding certain sources before the 'full and open competition' phase, and did this exclusion impact the final price?
Excluding sources prior to full and open competition typically occurs when there's a specific justification, such as a need for specialized capabilities or to address prior performance issues. The impact on price is variable; while it might limit initial competition, the subsequent open phase aims to drive competitive pricing. Understanding the initial exclusion's basis is key to assessing its price impact.
How does the performance of BESTASSETS, INC. on this contract compare to industry benchmarks for residential property management in the covered states?
Comparing BESTASSETS, INC.'s performance requires access to specific contract metrics such as cost per unit managed, maintenance turnaround times, tenant retention rates, and property condition reports. Benchmarking against similar contracts or private sector property management firms in ND, SD, NE, MN, WI, and IA would reveal efficiency, effectiveness, and overall value for taxpayer money.
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: 2
Pricing Type: COMBINATION (TWO OR MORE) (2)
Evaluated Preference: NONE
Contractor Details
Address: 12808 W AIRPORT BLVD STE 260, SUGAR LAND, TX, 22
Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $51,560,140
Exercised Options: $51,560,140
Current Obligation: $51,560,140
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-08-01
Current End Date: 2010-01-31
Potential End Date: 2010-01-31 00:00:00
Last Modified: 2012-08-27
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