HUD awards $27.6M for Field Service Manager services in Pennsylvania over 4 years

Contract Overview

Contract Amount: $27,640,304 ($27.6M)

Contractor: Asset Management Specialists LLC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2010-06-01

End Date: 2014-05-31

Contract Duration: 1,460 days

Daily Burn Rate: $18.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FIELD SERVICE MANAGER (FSM) M&M III- CONTRACT AREA 1P-1.

Place of Performance

Location: LEVITTOWN, BUCKS County, PENNSYLVANIA, 19057, UNITED STATES OF AMERICA

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $27.6 million to ASSET MANAGEMENT SPECIALISTS LLC for work described as: FIELD SERVICE MANAGER (FSM) M&M III- CONTRACT AREA 1P-1. Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type may limit cost overruns but could disincentivize contractor innovation. 4. Contract awarded to Asset Management Specialists LLC, a single entity. 5. Services provided under NAICS code 531311 (Residential Property Managers). 6. Contract duration of 1460 days indicates a long-term need for these services.

Value Assessment

Rating: good

The contract value of $27.6 million over four years for Field Service Manager (FSM) services in Pennsylvania appears to be within a reasonable range for the scope of work. Benchmarking against similar contracts for property management and asset management services would provide a more precise assessment of value for money. The firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be advantageous for the government if managed effectively. However, it's important to ensure the pricing reflects fair market value and doesn't unduly burden the contractor, potentially impacting service quality.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 12 bids suggests a healthy level of interest and competition for this requirement. A competitive process like this generally leads to better price discovery and can result in more favorable pricing for the government compared to sole-source or limited competition awards. The number of bidders provides a good indication that the market was adequately reached.

Taxpayer Impact: The full and open competition for this contract likely resulted in a more competitive pricing structure, potentially saving taxpayer dollars by ensuring the government received the best value offer.

Public Impact

Residents in the serviced areas benefit from professional property and asset management, ensuring the upkeep and operational efficiency of HUD-managed properties. The contract delivers essential field service management, including maintenance, repairs, and oversight of residential properties. Geographic impact is focused on Pennsylvania, specifically within Contract Area 1P-1. The contract supports employment for individuals in roles related to property management, maintenance, and administrative support within the contracted firm.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor to prioritize cost-saving measures over optimal service quality due to fixed-price nature.
Limited transparency into the specific performance metrics and quality control measures employed by the contractor.
Dependence on a single contractor for a significant duration may reduce flexibility in adapting to changing needs.

Positive Signals

Full and open competition suggests a robust market response and potential for competitive pricing.
Firm-fixed-price contract type shifts cost overrun risk to the contractor.
Long contract duration provides stability and continuity of services for HUD-managed properties.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically focusing on asset and property management. The market for residential property management services is substantial, driven by the need to maintain and operate housing portfolios for government agencies and private entities. HUD's spending in this area is critical for ensuring the quality and availability of housing. Comparable spending benchmarks would involve analyzing other federal contracts for similar property management services across different regions and agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses likely competed for and were awarded this contract. There is no explicit information regarding subcontracting plans for small businesses within this data snippet. Further analysis would be needed to determine if subcontracting opportunities were mandated or utilized, and what impact this had on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Housing and Urban Development (HUD) contracting officers and program managers. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases and reporting requirements. The specific jurisdiction of an Inspector General would depend on HUD's internal policies and the nature of any potential investigations into contract performance or compliance.

Related Government Programs

HUD Housing Choice Vouchers Program
HUD Public Housing Operating Fund
Federal Housing Administration (FHA) Loan Programs
General Services Administration (GSA) Real Estate Services

Risk Flags

Contract Duration
Fixed-Price Risk
Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $27.6 million to ASSET MANAGEMENT SPECIALISTS LLC. FIELD SERVICE MANAGER (FSM) M&M III- CONTRACT AREA 1P-1.

Who is the contractor on this award?

The obligated recipient is ASSET MANAGEMENT SPECIALISTS LLC.

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 $27.6 million.

What is the period of performance?

Start: 2010-06-01. End: 2014-05-31.

What is the track record of Asset Management Specialists LLC in performing similar federal contracts?

Information regarding the specific track record of Asset Management Specialists LLC in performing similar federal contracts is not detailed in the provided data snippet. To assess their performance history, one would need to consult federal procurement databases such as FPDS-NG or SAM.gov, looking for past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. A review of their past performance on contracts of similar size, scope, and duration would be crucial for understanding their capabilities and reliability in delivering Field Service Manager services.

How does the awarded price compare to market rates for similar Field Service Manager services?

The provided data does not include specific cost breakdowns or unit pricing that would allow for a direct comparison to current market rates for Field Service Manager (FSM) services. The total award of $27.6 million over approximately four years averages to about $6.9 million per year. To benchmark this against market rates, one would need to research average salaries for FSMs, overhead costs, and typical profit margins in the property management sector, particularly in Pennsylvania. Additionally, comparing this contract's value to other similar government contracts awarded through competitive bidding for comparable services would offer a more robust market assessment.

What are the primary risks associated with this firm-fixed-price contract?

The primary risk associated with a firm-fixed-price (FFP) contract, such as this one, is that the contractor may be incentivized to reduce costs in ways that could compromise service quality or performance to maximize profit. If the scope of work is not precisely defined or if unforeseen issues arise, the contractor might resist additional work not explicitly covered, potentially leading to disputes or gaps in service. Conversely, if the government's requirements change significantly, an FFP contract can be inflexible and costly to modify. The government also bears the risk if the contractor's initial pricing was too low and they become unable to fulfill the contract obligations.

How effective has Asset Management Specialists LLC been in managing HUD properties based on past performance?

The provided data does not contain information on the effectiveness of Asset Management Specialists LLC in managing HUD properties. A thorough assessment would require accessing performance evaluation reports (e.g., CPARS) for this contractor on previous HUD contracts or similar government engagements. These reports typically detail contractor performance in areas such as technical execution, management, cost control, schedule adherence, and customer satisfaction. Without access to these evaluations, it is impossible to definitively state their effectiveness.

What is the historical spending trend for Field Service Manager services by HUD?

The provided data snippet only details one specific contract award. To understand historical spending trends for Field Service Manager (FSM) services by HUD, a broader analysis of procurement data over several fiscal years would be necessary. This would involve querying databases like FPDS-NG for all contracts awarded under relevant NAICS codes (e.g., 531311) and contract types related to property and asset management services by HUD. Analyzing the total obligated amounts, number of contracts, and average contract values over time would reveal trends in HUD's investment in these services.

What is the potential impact of the 12 bids on the final contract price?

The fact that 12 bids were received for this contract, awarded under full and open competition, strongly suggests that the competitive environment likely drove down the final contract price. With multiple bidders vying for the contract, each likely submitted their most competitive offer to secure the award. This level of competition generally leads to a price that is closer to the fair market value, as bidders anticipate that their offers will be compared against those of their rivals. Therefore, the 12 bids are a positive indicator that the government likely achieved good value for money.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Activities Related to Real Estate › Residential Property Managers

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2021 HARTEL ST, LEVITTOWN, PA, 19057

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $27,640,304

Exercised Options: $27,640,304

Current Obligation: $27,640,304

Timeline