HUD's $133M Field Service Manager contract awarded to Sigma Services Inc. for residential property management

Contract Overview

Contract Amount: $133,209,049 ($133.2M)

Contractor: Sigma Services, Inc.

Awarding Agency: Department of Housing and Urban Development

Start Date: 2010-06-01

End Date: 2016-05-09

Contract Duration: 2,169 days

Daily Burn Rate: $61.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 22

Pricing Type: FIRM FIXED PRICE

Sector: Other

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

Place of Performance

Location: VENTURA, VENTURA County, CALIFORNIA, 93003

State: California Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $133.2 million to SIGMA SERVICES, INC. for work described as: FIELD SERVICE MANAGER (FSM) M&M III-CONTRACT AREA 1D-1 Key points: 1. The contract's value of $133 million over its period of performance suggests a significant investment in property management services. 2. Awarded under full and open competition, the contract indicates a market where multiple vendors could potentially bid. 3. The firm-fixed-price contract type aims to control costs by establishing a set price for services. 4. The contract duration of approximately 6 years (2169 days) allowed for sustained service delivery. 5. The geographic focus on California (SN: CALIFORNIA) highlights a regional concentration for these property management services. 6. The absence of small business set-aside (SS: false, SB: false) suggests the primary award was not specifically targeted to small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this $133 million contract requires more granular data on the specific services rendered and the number of properties managed. However, the firm-fixed-price structure suggests an attempt to manage costs predictably. Without comparable contract data for similar large-scale residential property management services within HUD or other agencies, a precise value-for-money assessment is challenging. The duration and scale imply a substantial operational requirement.

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 22 bids (NO: 22) suggests a competitive environment, which typically benefits price discovery and potentially leads to more favorable pricing for the government. A higher number of bidders generally correlates with a more robust competition.

Taxpayer Impact: The robust competition for this contract likely resulted in a more competitive pricing structure, potentially saving taxpayer dollars compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the residents of HUD-managed properties in California, who receive property management services. The contract ensures the maintenance and operational upkeep of residential properties overseen by the Department of Housing and Urban Development. The geographic impact is concentrated within California, affecting local communities and housing markets in that state. The contract supports jobs within the property management sector, including roles for field service managers and administrative staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite fixed-price contract.
Dependence on a single contractor for a large portfolio could lead to service disruptions if performance falters.
Limited visibility into day-to-day operational efficiency without detailed performance metrics.
Geographic concentration in California might not reflect broader national needs or opportunities for diverse contractor engagement.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a healthy market and potential for competitive pricing.
Award to a single entity (Sigma Services, Inc.) can streamline management and oversight.
Long contract duration allows for stable service delivery and relationship building.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically focusing on property management. The market for residential property management services is substantial, encompassing both private and public entities. HUD's spending in this area is critical for maintaining its housing stock and ensuring the well-being of residents. Comparable spending benchmarks would involve analyzing other large-scale government contracts for property management or facilities maintenance.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem for this specific contract may be limited unless Sigma Services, Inc. voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Housing and Urban Development's contracting officers and program managers. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed operational oversight is internal to the agency. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HUD Housing Choice Vouchers Program
Public Housing Agency (PHA) Operations
Federal Housing Administration (FHA) Loan Servicing
Government Property Management Contracts
Department of Defense Facilities Management

Risk Flags

Potential for service gaps if contractor performance is subpar.
Risk associated with large contract value concentrated in one firm.
Geographic concentration may limit broader market engagement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $133.2 million to SIGMA SERVICES, INC.. FIELD SERVICE MANAGER (FSM) M&M III-CONTRACT AREA 1D-1

Who is the contractor on this award?

The obligated recipient is SIGMA SERVICES, 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 $133.2 million.

What is the period of performance?

Start: 2010-06-01. End: 2016-05-09.

What was the specific scope of services provided by Sigma Services, Inc. under this contract?

The contract data indicates the scope was 'FIELD SERVICE MANAGER (FSM) M&M III-CONTRACT AREA 1D-1', which pertains to residential property management. This typically involves tasks such as property inspections, maintenance coordination, tenant relations, rent collection, lease enforcement, and ensuring properties comply with HUD regulations and standards. The 'M&M III' designation might refer to a specific program or initiative within HUD related to property disposition or management. Detailed service requirements would be outlined in the contract's Statement of Work (SOW).

How does the awarded amount of $133 million compare to similar large-scale residential property management contracts?

Direct comparison of the $133 million award is difficult without access to a comprehensive database of similar government contracts for residential property management. However, for a contract spanning approximately six years (2169 days), this equates to an average annual value of roughly $22 million. This figure suggests a significant portfolio of properties requiring management. Larger federal agencies like the Department of Defense or the General Services Administration (GSA) may have contracts of similar or larger magnitudes for facilities and property management, but the specific focus on residential properties managed by HUD makes direct benchmarking challenging without more granular data on property count and service intensity.

What were the key performance indicators (KPIs) used to evaluate Sigma Services, Inc.'s performance?

The provided data does not specify the Key Performance Indicators (KPIs) used for this contract. However, typical KPIs for residential property management contracts awarded by agencies like HUD often include metrics related to property condition (e.g., inspection pass rates, maintenance response times), tenant satisfaction, lease compliance, financial management (e.g., timely rent collection, accurate financial reporting), and adherence to regulatory requirements. Performance would likely be assessed through regular reports, site visits, and potentially tenant feedback mechanisms.

What is the historical spending pattern for Field Service Manager contracts by HUD?

Analyzing historical spending patterns for HUD's Field Service Manager (FSM) contracts requires access to historical contract databases. This specific contract (ID: 531311) was awarded in 2010 and ended in 2016. To understand patterns, one would need to examine prior and subsequent FSM contracts, their values, durations, awardees, and the number of bids received. This would reveal trends in contract size, competition levels, and potentially shifts in service providers or contract types over time, indicating whether HUD's reliance on such contracts has increased or decreased and if spending has fluctuated significantly.

Were there any significant challenges or disputes during the performance of this contract?

The provided summary data does not contain information regarding challenges or disputes encountered during the performance of this contract. Such details would typically be found in contract performance reports, agency audit findings, or legal case files if disputes escalated. Without access to these internal or public records, it is impossible to assess if there were any significant performance issues, contract modifications due to unforeseen circumstances, or formal disagreements between HUD and Sigma Services, Inc.

What is the significance of the 'M&M III' designation in the contract title?

The 'M&M III' designation likely refers to a specific program, initiative, or contract vehicle used by the Department of Housing and Urban Development (HUD). 'M&M' could stand for 'Mortgagee and Management' or a similar term related to property disposition and management. The 'III' suggests it is the third iteration or phase of such a program. These designations are often used to categorize contracts for specific purposes, such as managing foreclosed properties, distressed assets, or specific types of housing programs. Understanding the exact meaning would require consulting HUD's internal program documentation or contract history.

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: 22

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2140 EASTMAN AVE., SUITE 200, VENTURA, CA, 93003

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $164,402,608

Exercised Options: $164,402,608

Current Obligation: $133,209,049

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline