HUD's $19.2M REO Management Contract Awarded to Cityside Management Corp in 2004

Contract Overview

Contract Amount: $19,196,870 ($19.2M)

Contractor: Cityside Management Corp

Awarding Agency: Department of Housing and Urban Development

Start Date: 2004-08-01

End Date: 2010-01-31

Contract Duration: 2,009 days

Daily Burn Rate: $9.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SINGLE FAMILY REAL ESTATE OWNED (REO) MANAGEMENT AND MARKETING CONTRACTS (REPROCUREMENT)

Place of Performance

Location: MERRIMACK, HILLSBOROUGH County, NEW HAMPSHIRE, 03054

State: New Hampshire Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $19.2 million to CITYSIDE MANAGEMENT CORP for work described as: SINGLE FAMILY REAL ESTATE OWNED (REO) MANAGEMENT AND MARKETING CONTRACTS (REPROCUREMENT) Key points: 1. Contract awarded for single-family real estate owned (REO) management and marketing. 2. Duration of the contract was over 5 years, ending in January 2010. 3. The contract was a reprocurement, indicating a continuation of services. 4. Awarded by the Department of Housing and Urban Development (HUD). 5. The contract type was Firm Fixed Price, providing cost certainty. 6. The contract was competed under 'Full and Open Competition After Exclusion of Sources'.

Value Assessment

Rating: fair

The contract value of $19.2 million over approximately 5.5 years averages to about $3.5 million annually. Benchmarking this against similar REO management contracts is challenging without specific service scope and performance metrics. However, the fixed-price nature suggests an attempt to control costs. The 'fair' rating reflects the lack of detailed performance data to definitively assess value for money, but the competitive nature provides some assurance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was intended to be broad, certain sources may have been excluded for specific reasons. With 11 bidders, there was a reasonable level of competition, which should have contributed to price discovery. However, the 'exclusion of sources' aspect warrants further investigation to understand its potential impact on the breadth of competition and final pricing.

Taxpayer Impact: The exclusion of certain sources, even with 11 bidders, could potentially limit the most competitive offers from reaching taxpayers. However, the presence of multiple bidders generally supports a more efficient use of taxpayer funds compared to sole-source awards.

Public Impact

Benefits homeowners by managing foreclosed properties, potentially stabilizing neighborhoods. Services include marketing and management of single-family real estate owned (REO) properties. Geographic impact is focused on areas where HUD has REO properties, primarily in New Hampshire. Supports the real estate and property management workforce through contract activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the effectiveness of REO management.
The 'exclusion of sources' in the competition method raises questions about the full extent of market participation.
Contract duration of over 5 years may not have allowed for flexibility to adapt to changing market conditions.
No specific information on small business subcontracting is provided, raising potential concerns for small business participation.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
A significant number of bidders (11) indicates a healthy level of interest and potential competition.
The contract is a reprocurement, suggesting a need for these services and a proven model.
Awarded by a major federal agency (HUD), implying adherence to established procurement processes.

Sector Analysis

The contract falls within the Real Estate and Property Management sector, specifically dealing with distressed assets (REO). The market for REO management services is driven by foreclosure rates and government housing policies. HUD's role in managing foreclosed properties is crucial for neighborhood stabilization and asset disposition. Comparable spending benchmarks would depend on the volume and type of properties managed, but HUD is a significant player in this space.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information regarding subcontracting plans or performance. This suggests that small businesses may not have been primary awardees, and their involvement would likely be through subcontracting opportunities with the prime contractor, Cityside Management Corp. Further investigation into subcontracting reports would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight would typically be managed by the contracting officers and program managers within the Department of Housing and Urban Development. Accountability measures would be tied to the terms of the Firm Fixed Price contract, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases, but detailed operational oversight information is often internal.

Related Government Programs

HUD Single Family Mortgage Insurance Programs
Government-Owned Real Estate Management
Foreclosure Prevention Programs
Property Disposition Services

Risk Flags

Competition method 'Full and Open Competition After Exclusion of Sources' requires further scrutiny.
Lack of detailed performance metrics hinders value assessment.
No explicit small business subcontracting data available.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $19.2 million to CITYSIDE MANAGEMENT CORP. SINGLE FAMILY REAL ESTATE OWNED (REO) MANAGEMENT AND MARKETING CONTRACTS (REPROCUREMENT)

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 $19.2 million.

What is the period of performance?

Start: 2004-08-01. End: 2010-01-31.

What was the specific scope of services provided under this REO management contract?

The contract was for Single Family Real Estate Owned (REO) Management and Marketing. This typically includes services such as property preservation (maintenance, repairs, securing the property), marketing the property for sale, managing the sales process, and ensuring compliance with federal regulations. The goal is to maintain the value of foreclosed properties and facilitate their sale to new homeowners or investors, thereby minimizing losses for the government and stabilizing communities.

How did the 'Full and Open Competition After Exclusion of Sources' process impact the bidding landscape?

This procurement method suggests that while the competition was intended to be open to all responsible sources, certain categories or specific sources were intentionally excluded from consideration. The reasons for exclusion could range from past performance issues, specific technical requirements not met by all, or strategic sourcing decisions. With 11 bidders, the exclusion did not appear to stifle overall interest, but it means the most competitive price might have been achieved if all potential sources were allowed to bid. Understanding the rationale behind the exclusion is key to assessing its impact on value.

What were the key performance indicators (KPIs) for Cityside Management Corp under this contract?

Specific Key Performance Indicators (KPIs) are not detailed in the provided data. However, typical KPIs for REO management contracts include metrics such as time to secure and preserve properties, time to list properties for sale, average days on market, sale price as a percentage of list price, number of successful sales, and compliance with HUD's property standards and reporting requirements. Performance would be evaluated against these or similar metrics outlined in the contract's statement of work.

Were there any notable issues or disputes with Cityside Management Corp during the contract period?

The provided data does not contain information regarding specific issues, disputes, or contract modifications related to Cityside Management Corp's performance. A thorough review of contract performance reports, payment histories, and any official correspondence or legal actions would be necessary to identify any such occurrences. The fact that it was a reprocurement might suggest satisfactory performance, but this is not guaranteed without further investigation.

How does the annual spending on this contract compare to other HUD REO management contracts?

The contract's annual value averaged approximately $3.5 million ($19.2M / ~5.5 years). Comparing this to other HUD REO contracts requires access to a broader dataset of similar contracts, including their duration, volume of properties managed, geographic scope, and specific services rendered. Without such comparative data, it's difficult to definitively state whether this represents high, low, or average spending. Factors like regional real estate market conditions and the specific portfolio of REO assets managed by HUD in New Hampshire would influence this.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Lessors of Real Estate › Lessors of Residential Buildings and Dwellings

Product/Service Code: RESEARCH AND DEVELOPMENT › Commerce and Housing Credit R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 22 GREELEY ST, SUITE #5, MERRIMACK, NH, 01

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,196,870

Exercised Options: $19,196,870

Current Obligation: $19,196,870

Contract Characteristics

Multi-Year Contract: Yes

Timeline