HUD's $23.8M contract for field service management awarded to Cityside Management Corp

Contract Overview

Contract Amount: $23,836,192 ($23.8M)

Contractor: Cityside Management Corp

Awarding Agency: Department of Housing and Urban Development

Start Date: 2010-06-01

End Date: 2015-05-31

Contract Duration: 1,825 days

Daily Burn Rate: $13.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FIELD SERVICE MANAGER (FSM) M&M III- CONTRACT AREA 2S-2

Place of Performance

Location: ANTELOPE, WASCO County, OREGON, 97001

State: Oregon Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $23.8 million to CITYSIDE MANAGEMENT CORP for work described as: FIELD SERVICE MANAGER (FSM) M&M III- CONTRACT AREA 2S-2 Key points: 1. Contract value of $23.8 million over five years suggests a significant investment in property management services. 2. Awarded under full and open competition, indicating a potentially competitive bidding process. 3. The contract's duration of 1825 days (5 years) allows for long-term service provision and relationship building. 4. The North American Industry Classification System (NAICS) code 531311 points to specialized residential property management services. 5. The contract was awarded by the Department of Housing and Urban Development (HUD), aligning with its mission. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 7. The presence of 13061 bids suggests a high level of interest and a robust competition. 8. The contract area '2S-2' likely refers to a specific geographic region or set of properties managed by HUD.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details and performance metrics. However, a $23.8 million expenditure over five years for residential property management implies a substantial operational cost. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for value if managed effectively. Without comparable contract data for similar services or geographic areas, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The high number of bids (13061) indicates a robust and competitive marketplace for these services. A large number of bidders generally suggests that the government is likely to receive competitive pricing and a wide range of potential solutions, leading to better price discovery.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured that the government secured services at a favorable rate. It also suggests that public funds are being used efficiently by seeking the best value from a broad pool of providers.

Public Impact

Residents in the designated contract areas (2S-2) benefit from professional management of their residential properties. The contract ensures the upkeep and operational efficiency of HUD-managed residential properties. The services delivered likely include property maintenance, tenant relations, rent collection, and compliance monitoring. The geographic impact is concentrated within the specific 'Contract Area 2S-2' managed by HUD. The contract supports employment within the property management sector, potentially creating jobs for property managers, maintenance staff, and administrative personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inconsistent service delivery across different properties if oversight is lacking.
Risk of cost escalation if the fixed price does not adequately account for unforeseen maintenance or regulatory changes.
Dependence on a single contractor for an extended period could lead to complacency or reduced responsiveness over time.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely secured favorable terms.
Firm Fixed Price contract type shifts cost overrun risk to the contractor, protecting the government from unexpected expenses.
Long contract duration (5 years) allows for stability and potentially deeper expertise development by the contractor.
The high number of bids (13061) indicates a strong market interest and a wide selection of qualified providers.

Sector Analysis

The residential property management sector is a significant part of the real estate services industry. This contract falls under the broader umbrella of real estate services and property operations. The market for property management services is competitive, with numerous firms offering specialized services. HUD's spending in this area is crucial for maintaining its portfolio of residential properties, ensuring they are well-managed and habitable for residents. Comparable spending benchmarks would depend on the specific size and type of properties managed.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program. However, the prime contractor, Cityside Management Corp, may choose to subcontract portions of the work to small businesses as part of their own business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Housing and Urban Development (HUD). Specific oversight mechanisms would include regular performance reviews, site inspections, and financial audits to ensure compliance with contract terms and service level agreements. Accountability measures are embedded in the firm fixed-price structure, incentivizing the contractor to meet performance standards to ensure profitability. Transparency is generally maintained through contract award databases and public reporting, though detailed operational performance data may be less accessible.

Related Government Programs

HUD Public Housing Management
HUD Multifamily Housing Programs
Federal Housing Administration (FHA) Property Management
Government Property Management Services
Residential Real Estate Services

Risk Flags

Potential for service quality degradation over the contract term due to fixed pricing.
Lack of detailed performance metrics in the provided data makes value assessment difficult.
Geographic specificity ('Contract Area 2S-2') requires further definition for full understanding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $23.8 million to CITYSIDE MANAGEMENT CORP. FIELD SERVICE MANAGER (FSM) M&M III- CONTRACT AREA 2S-2

Who is the contractor on this award?

The obligated recipient is CITYSIDE MANAGEMENT CORP.

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 $23.8 million.

What is the period of performance?

Start: 2010-06-01. End: 2015-05-31.

What is the track record of Cityside Management Corp. in managing federal contracts, particularly with HUD?

Assessing Cityside Management Corp.'s track record requires a deep dive into federal contract databases beyond the provided summary. While this specific contract was awarded, information on past performance, any contract disputes, or successful completion of similar federal projects is crucial. A review of their history with HUD and other agencies would reveal their reliability, adherence to timelines, and quality of service. Without this historical data, it's difficult to gauge their experience level and past successes or failures in managing government contracts of this scale and complexity.

How does the awarded amount of $23.8 million compare to similar residential property management contracts awarded by HUD or other federal agencies?

Comparing the $23.8 million award requires identifying contracts with similar scope, duration, and geographic coverage. HUD manages a vast portfolio, and property management costs can vary significantly based on property type (e.g., public housing, multifamily), condition, and location. If this contract covers a large number of units or particularly challenging properties, the cost might be justified. Conversely, if it's for a smaller or less complex portfolio, it could indicate overpayment. Benchmarking against contracts for similar services in comparable regions would provide a clearer picture of whether this represents good value for money.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how is performance measured?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for residential property management, KPIs might include tenant satisfaction rates, response times for maintenance requests, vacancy rates, rent collection efficiency, and compliance with housing regulations. Performance measurement would likely involve regular reporting by the contractor, site visits by HUD officials, and potentially tenant surveys. The effectiveness of the contract hinges on clearly defined and measurable KPIs that align with HUD's objectives for property management.

What specific types of residential properties are covered under this 'Contract Area 2S-2', and what is their general condition?

The designation 'Contract Area 2S-2' is specific to HUD's internal organization and likely refers to a defined geographic region or a specific portfolio of residential properties managed by the agency. Without further information, it's impossible to determine the exact types of properties (e.g., single-family homes, apartment complexes, public housing units) or their condition. The condition of the properties is a critical factor in assessing the scope of work and the appropriateness of the contract value, as older or more dilapidated properties often require more intensive and costly management.

What is the historical spending pattern for residential property management services by HUD, and does this contract represent an increase or decrease?

Analyzing historical spending requires accessing HUD's budget and contract award data over several fiscal years. Understanding past expenditures on similar property management services would provide context for the $23.8 million award. If HUD has historically spent similar amounts for comparable services, this contract may represent a continuation of established spending levels. However, if this amount is significantly higher or lower than previous expenditures, it warrants further investigation into the reasons, such as changes in the number of properties managed, market conditions, or contract scope.

What are the potential risks associated with a five-year Firm Fixed Price contract for residential property management, and how are they mitigated?

A five-year Firm Fixed Price (FFP) contract for residential property management carries risks such as the contractor potentially cutting corners on maintenance or services to maximize profit if costs increase unexpectedly over the long term. Conversely, if market conditions improve significantly, the government might be locked into paying above-market rates. Mitigation strategies typically include robust performance monitoring, clear contract clauses for service quality, and potentially annual reviews or adjustments for specific unforeseen circumstances, although FFP contracts aim to minimize such flexibility. HUD's oversight would be critical in ensuring the contractor upholds service standards throughout the contract duration.

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: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 22 GREELEY ST STE 5, MERRIMACK, NH, 01

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,836,192

Exercised Options: $23,836,192

Current Obligation: $23,836,192

Timeline