HUD awards $25M for Field Service Manager contract to First Preston Management, Inc
Contract Overview
Contract Amount: $25,072,103 ($25.1M)
Contractor: First Preston Management, Inc.
Awarding Agency: Department of Housing and Urban Development
Start Date: 2010-06-01
End Date: 2013-01-31
Contract Duration: 975 days
Daily Burn Rate: $25.7K/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 3D-2
Place of Performance
Location: ADDISON, DALLAS County, TEXAS, 75001, UNITED STATES OF AMERICA
State: Texas Government Spending
Plain-Language Summary
Department of Housing and Urban Development obligated $25.1 million to FIRST PRESTON MANAGEMENT, INC. for work described as: FIELD SERVICE MANAGER (FSM) M&M III-CONTRACT AREA 3D-2 Key points: 1. Contract awarded for residential property management services. 2. First Preston Management, Inc. is the sole awardee. 3. The contract duration is 975 days. 4. The contract was awarded under full and open competition.
Value Assessment
Rating: good
The contract value of $25,007,210.11 for 975 days suggests a per-day cost of approximately $25,700. This appears reasonable for comprehensive property management services, especially considering the scope of residential property management.
Cost Per Unit: $25,700 per day
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the agency to select the best value.
Taxpayer Impact: The use of full and open competition is expected to yield a fair market price, ensuring taxpayer funds are used efficiently for essential housing services.
Public Impact
Ensures continued management and maintenance of HUD-managed properties. Supports the operational stability of residential housing programs. Provides essential services to residents in HUD-managed housing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- No small business participation noted.
- Contract duration is substantial, requiring ongoing performance monitoring.
Positive Signals
- Awarded under full and open competition.
- Clear contract scope for property management.
Sector Analysis
The housing sector, particularly residential property management, requires specialized skills in maintenance, tenant relations, and regulatory compliance. Spending benchmarks vary widely based on property size, location, and service intensity.
Small Business Impact
The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business set-asides were considered or if there were insufficient small business capabilities for this specific requirement.
Oversight & Accountability
The Department of Housing and Urban Development (HUD) is responsible for overseeing this contract. Standard oversight mechanisms for contract performance, financial management, and compliance would be in place.
Related Government Programs
- Residential Property Managers
- Department of Housing and Urban Development Contracting
- Department of Housing and Urban Development Programs
Risk Flags
- No small business participation.
- Potential for vendor complacency over contract duration.
- Reliance on a single vendor for critical property management functions.
Tags
residential-property-managers, department-of-housing-and-urban-developm, tx, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $25.1 million to FIRST PRESTON MANAGEMENT, INC.. FIELD SERVICE MANAGER (FSM) M&M III-CONTRACT AREA 3D-2
Who is the contractor on this award?
The obligated recipient is FIRST PRESTON MANAGEMENT, 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 $25.1 million.
What is the period of performance?
Start: 2010-06-01. End: 2013-01-31.
What specific services are included under 'Field Service Manager' for residential properties?
Field Service Manager (FSM) services typically encompass a broad range of activities including property inspections, maintenance coordination, repairs, landscaping, security, and ensuring compliance with housing regulations. For residential properties, this also includes managing tenant relations, rent collection, and eviction processes if necessary, ensuring the properties are safe, habitable, and well-maintained.
What are the potential risks associated with a long-term contract for property management?
Long-term contracts for property management carry risks such as potential cost escalation over time if not properly structured, vendor complacency leading to decreased service quality, and difficulty adapting to changing market conditions or agency needs. There's also a risk of vendor lock-in, making it harder to switch providers if performance issues arise or better options become available.
How effectively does this contract ensure the quality of residential property management?
The effectiveness hinges on the detailed performance work statement and HUD's contract management. Full and open competition suggests a competitive selection process, but ongoing monitoring of service delivery, resident satisfaction, and adherence to property standards are crucial. Performance metrics and regular evaluations are key to ensuring quality over the contract's life.
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: 5040 ADDISON CIR STE 400, ADDISON, TX, 75001
Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $25,123,414
Exercised Options: $25,123,414
Current Obligation: $25,072,103
Timeline
Start Date: 2010-06-01
Current End Date: 2013-01-31
Potential End Date: 2015-05-31 00:00:00
Last Modified: 2015-09-15
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