HUD's $54.3M Field Service Manager contract awarded to Asset Management Specialists LLC for property management services

Contract Overview

Contract Amount: $54,292,427 ($54.3M)

Contractor: Asset Management Specialists LLC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2010-06-01

End Date: 2013-05-31

Contract Duration: 1,095 days

Daily Burn Rate: $49.6K/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 1A-3

Place of Performance

Location: LEVITTOWN, BUCKS County, PENNSYLVANIA, 19057

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $54.3 million to ASSET MANAGEMENT SPECIALISTS LLC for work described as: FIELD SERVICE MANAGER (FSM) M&M III CONTRACT AREA 1A-3 Key points: 1. The contract's value of $54.3 million over approximately three years suggests a significant investment in property management. 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 duration of 1095 days (3 years) provides a stable period for service delivery and performance evaluation. 5. The contract's focus on residential property management aligns with HUD's mission to support housing needs. 6. The absence of small business set-aside flags suggests the competition was not specifically tailored to small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more granular data on the scope of services and the number of properties managed. However, a $54.3 million contract for three years of property management services for HUD properties indicates a substantial financial commitment. Without comparable contract data for similar services or geographic areas, it is difficult to definitively assess value for money. The firm-fixed-price structure is generally favorable for cost control, but the overall value depends on the efficiency and effectiveness of the services provided by Asset Management Specialists LLC.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The presence of 22 bids suggests a competitive environment for this type of service. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government. The fact that 22 entities competed indicates that the market for these services is robust enough to support multiple providers.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces, ensuring that the government receives competitive bids and avoids overpaying for services.

Public Impact

The primary beneficiaries of this contract are residents living in HUD-managed properties, who receive essential property management services. The contract ensures the upkeep, maintenance, and operational management of residential properties overseen by the Department of Housing and Urban Development. Services delivered include property maintenance, tenant relations, and ensuring compliance with housing regulations. The geographic impact is concentrated in Pennsylvania, as indicated by the 'PENNSYLVANIA' designation in the data. The contract supports the workforce involved in property management, maintenance, and administrative roles within Asset Management Specialists LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed price does not adequately account for unforeseen maintenance or management challenges.
Risk of service quality degradation if contractor prioritizes cost-cutting over essential maintenance or tenant support.
Dependence on a single contractor for a significant period could lead to complacency or reduced responsiveness.
Limited flexibility to adapt to changing property management needs or regulatory requirements mid-contract.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government, minimizing the risk of budget overruns.
Full and open competition suggests a healthy market and potential for high-quality service providers.
The contract duration of three years allows for stable service delivery and performance evaluation.
Award to a single entity implies a focused approach to managing the specified properties.

Sector Analysis

This contract falls within the Real Estate and Property Management sector, specifically focusing on residential property management for government-affiliated housing. The market for property management services is substantial, encompassing residential, commercial, and industrial properties. HUD's spending in this area is crucial for maintaining its housing stock and ensuring the well-being of residents in public and subsidized housing. Comparable spending benchmarks would typically be assessed against per-unit management costs or percentage of rental income managed, which are not detailed here.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the competition was open to all eligible firms, regardless of size. While there is no explicit subcontracting requirement mentioned, large prime contractors often utilize small businesses for specialized services. The absence of a small business set-aside means that opportunities for small businesses to directly contract with HUD on this specific award were limited, though they may still participate as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Housing and Urban Development (HUD) contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract award databases and public reporting mechanisms. While specific Inspector General (IG) jurisdiction for this contract isn't detailed, HUD's Office of Inspector General typically has oversight over HUD programs and contracts to detect and prevent fraud, waste, and abuse.

Related Government Programs

HUD Public Housing Management
HUD Section 8 Housing Choice Vouchers
Federal Housing Administration (FHA) Loan Programs
Government Property Management Services
Residential Property Management Contracts

Risk Flags

Potential for cost overruns if fixed price does not account for unforeseen property maintenance needs.
Risk of service quality issues if contractor prioritizes cost savings over essential maintenance or tenant support.
Dependence on a single contractor for a significant duration may reduce responsiveness.
Lack of explicit small business set-aside may limit direct opportunities for smaller firms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $54.3 million to ASSET MANAGEMENT SPECIALISTS LLC. FIELD SERVICE MANAGER (FSM) M&M III CONTRACT AREA 1A-3

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 $54.3 million.

What is the period of performance?

Start: 2010-06-01. End: 2013-05-31.

What is the track record of Asset Management Specialists LLC in managing HUD properties or similar government contracts?

Assessing the track record of Asset Management Specialists LLC requires a review of their past performance on federal contracts, particularly those with HUD or other housing authorities. Information on past performance, including any awards, penalties, or contract terminations, would provide insight into their reliability and capability. Without specific data on their history with government contracts, it's difficult to definitively gauge their experience and success rate in managing properties of this scale and nature. A thorough review would involve checking contract databases for previous awards, performance evaluations, and any reported disputes or issues.

How does the awarded amount of $54.3 million compare to the typical cost of managing similar residential properties for federal agencies?

Comparing the $54.3 million award requires understanding the scope of services, the number of units managed, and the geographic distribution of the properties. A direct comparison to 'typical' costs is challenging without specific benchmarks for HUD property management. However, the amount suggests a substantial portfolio of properties requiring comprehensive management. Factors influencing cost include maintenance levels, tenant services, administrative overhead, and local labor rates. If this contract covers a large number of units or properties in high-cost areas, the amount might be within a reasonable range. Conversely, if the portfolio is smaller or less complex, it could indicate a higher per-unit cost compared to industry averages.

What are the key performance indicators (KPIs) used to evaluate the performance of Asset Management Specialists LLC under this contract?

Key Performance Indicators (KPIs) for a contract of this nature typically focus on property maintenance, tenant satisfaction, financial management, and regulatory compliance. Examples of KPIs could include response times for maintenance requests, vacancy rates, tenant complaint resolution times, budget adherence for operational expenses, and successful completion of property inspections. The firm-fixed-price contract structure implies that the contractor is incentivized to manage these KPIs efficiently to maintain profitability. The specific KPIs would be detailed in the contract's Statement of Work (SOW) and performance standards.

What is the historical spending pattern for Field Service Manager (FSM) contracts by HUD, and how does this award compare?

Analyzing historical spending patterns for HUD's Field Service Manager (FSM) contracts would involve examining previous awards for similar services, including contract values, durations, and awarded contractors. This specific $54.3 million award for Area 1A-3 needs to be contextualized within the broader FSM program's budget and spending trends. If HUD has consistently awarded multi-million dollar contracts for FSM services, this award may represent a standard allocation. However, if historical spending has been significantly lower or higher, it could indicate a change in program scope, market conditions, or contracting strategy. A detailed analysis would require access to historical contract data for the FSM program.

What are the potential risks associated with a firm-fixed-price contract for property management services, especially over a three-year period?

Firm-fixed-price contracts, while offering cost certainty, carry risks for both the government and the contractor, particularly in long-term service agreements like property management. For the government, the primary risk is that the fixed price might become uncompetitive if market rates decrease or if the contractor's efficiency significantly outpaces initial estimates, leading to potential overpayment relative to actual service value. Conversely, the contractor bears the risk of cost overruns due to unforeseen issues such as unexpected repair needs, increased labor costs, or regulatory changes that inflate operational expenses. For a three-year period, these risks are amplified due to the longer exposure to market fluctuations and potential for unforeseen property issues.

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: 2021 HARTEL ST, LEVITTOWN, PA, 19057

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $54,292,427

Exercised Options: $54,292,427

Current Obligation: $54,292,427

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline