HUD's $55M REO Management Contracts Awarded Under Full and Open Competition

Contract Overview

Contract Amount: $55,052,379 ($55.1M)

Contractor: Harrington, Moran, Barksdale, Inc.

Awarding Agency: Department of Housing and Urban Development

Start Date: 2004-08-01

End Date: 2014-02-28

Contract Duration: 3,498 days

Daily Burn Rate: $15.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

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: FORT WORTH, TARRANT County, TEXAS, 76102

State: Texas Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $55.1 million to HARRINGTON, MORAN, BARKSDALE, INC. for work described as: SINGLE FAMILY REAL ESTATE OWNED (REO) MANAGEMENT AND MARKETING CONTRACTS (REPROCUREMENT) Key points: 1. The Department of Housing and Urban Development (HUD) awarded contracts totaling $55,052,378.96 for Single Family Real Estate Owned (REO) Management and Marketing. 2. The contracts were awarded under a 'Full and Open Competition After Exclusion of Sources' method, indicating a competitive process with specific source exclusions. 3. The incumbent contractor, HARRINGTON, MORAN, BARKSDALE, INC., secured the definitive contract, suggesting a continuation of services. 4. The duration of the contract was 3498 days, spanning from August 1, 2004, to February 28, 2014. 5. The North American Industry Classification System (NAICS) code 531110 points to Lessors of Residential Buildings and Dwellings as the sector.

Value Assessment

Rating: fair

The total award amount of $55,052,378.96 over approximately 9.6 years suggests a significant investment in REO management. Benchmarking against similar contracts is difficult without specific service details, but the scale indicates substantial operational costs.

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 method implies that while the competition was open, certain sources were excluded, potentially impacting the breadth of price discovery and the final negotiated price.

Taxpayer Impact: The significant expenditure on REO management suggests a substantial taxpayer investment in maintaining and marketing foreclosed properties. The effectiveness of this spending in recouping losses or stabilizing housing markets is a key consideration.

Public Impact

Taxpayers fund the management and marketing of foreclosed single-family homes, impacting the federal budget. The contracts influence the housing market by affecting the disposition of distressed properties. The duration of the contracts (nearly a decade) suggests a long-term strategy for managing HUD's real estate portfolio. The specific exclusion of sources in the procurement process raises questions about the extent of competition achieved.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific service details for benchmarking.
Potential impact of 'exclusion of sources' on competition.
Long contract duration may not reflect current market conditions.

Positive Signals

Awarded under full and open competition.
Significant contract value indicates a robust program.
Long-term contract provides stability for REO management.

Sector Analysis

The sector involves the leasing and management of residential properties, specifically focusing on foreclosed homes (REO). The spending benchmark for such services can vary widely based on the volume of properties, geographic scope, and required marketing efforts.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The long duration of the contract (nearly 10 years) necessitates robust oversight to ensure continued adherence to contract terms, performance standards, and fair market practices. Accountability for property management and marketing outcomes is crucial.

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 reduced competition due to source exclusion.
Long contract duration may lead to outdated service models or pricing.
Lack of transparency on small business participation.
Effectiveness of REO management and marketing outcomes not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $55.1 million to HARRINGTON, MORAN, BARKSDALE, INC.. SINGLE FAMILY REAL ESTATE OWNED (REO) MANAGEMENT AND MARKETING CONTRACTS (REPROCUREMENT)

Who is the contractor on this award?

The obligated recipient is HARRINGTON, MORAN, BARKSDALE, 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 $55.1 million.

What is the period of performance?

Start: 2004-08-01. End: 2014-02-28.

What specific services are included in 'REO Management and Marketing' to justify the $55M expenditure?

The $55 million expenditure likely covers a broad range of services including property preservation (maintenance, repairs, landscaping), marketing and sales efforts, eviction processing, and legal support for foreclosed single-family homes. Detailed contract statements of work would clarify the exact scope, but these functions are standard for managing distressed real estate portfolios to minimize losses and facilitate resale.

How did the 'exclusion of sources' impact the competitiveness and pricing of these REO management contracts?

The 'exclusion of sources' clause, while allowing for full and open competition among the remaining eligible sources, could limit the overall pool of potential bidders. This limitation might reduce competitive pressure, potentially leading to less favorable pricing for the government compared to a scenario with unrestricted competition. The specific reasons for exclusion would determine the extent of this impact.

What was the effectiveness of these contracts in managing HUD's REO portfolio and mitigating financial losses?

The effectiveness of these contracts in managing HUD's REO portfolio and mitigating financial losses is not directly quantifiable from the provided data. While the significant investment suggests a commitment to managing these assets, the ultimate success would depend on metrics like property sale speed, sale price versus market value, and reduction in holding costs. Post-award performance reports would be necessary for a thorough assessment.

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: 6

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

Evaluated Preference: NONE

Contractor Details

Address: 306 W 7TH ST STE 415, FORT WORTH, TX, 76102

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $55,052,379

Exercised Options: $55,052,379

Current Obligation: $55,052,379

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline