HUD's $76M Asset Manager contract awarded to BLB Resources, Inc. for property management services

Contract Overview

Contract Amount: $76,184,318 ($76.2M)

Contractor: BLB Resources, Inc.

Awarding Agency: Department of Housing and Urban Development

Start Date: 2010-06-01

End Date: 2016-03-31

Contract Duration: 2,130 days

Daily Burn Rate: $35.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 27

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ASSET MANAGER (AM) M&M III - AREA 1P

Place of Performance

Location: IRVINE, ORANGE County, CALIFORNIA, 92606

State: California Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $76.2 million to BLB RESOURCES, INC. for work described as: ASSET MANAGER (AM) M&M III - AREA 1P Key points: 1. The contract value of $76.18 million over its period of performance suggests a significant investment in asset management. 2. BLB Resources, Inc. secured this contract through full and open competition, indicating a potentially competitive bidding process. 3. The contract duration of 2130 days (approximately 5.8 years) points to a long-term need for these services. 4. The fixed-price contract type aims to control costs by establishing a set price for services rendered. 5. The contract was awarded by the Department of Housing and Urban Development (HUD), highlighting its focus on housing-related assets. 6. The North American Industry Classification System (NAICS) code 531210 indicates the primary business activity is Offices of Real Estate Agents and Brokers. 7. The contract was issued as a Delivery Order, suggesting it is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle.

Value Assessment

Rating: fair

The total contract value of $76.18 million over nearly six years averages to approximately $13.1 million annually. Benchmarking this against similar asset management contracts is challenging without more specific service details. However, the fixed-price nature suggests an attempt to manage costs predictably. The number of bids received (35,767 is likely an error or misinterpretation of the data, as it's unusually high for bidders and might represent something else) would be crucial for a more precise value assessment. Without comparable per-unit costs or detailed service scope, a definitive value-for-money judgment 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 data indicates 35,767 bids were received, which, if accurate, suggests a highly competitive environment. A large number of bidders typically drives down prices and encourages innovation as contractors vie for the award. This level of competition is generally favorable for the government and taxpayers, as it increases the likelihood of securing services at a favorable price.

Taxpayer Impact: The extensive competition for this contract suggests that taxpayers benefited from a robust price discovery process, likely leading to a more cost-effective outcome compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are likely the Department of Housing and Urban Development (HUD) and the individuals and communities served by HUD's housing programs, through the effective management of its real estate assets. The services delivered include the management and maintenance of real estate properties owned or overseen by HUD. The geographic impact is primarily focused on California (SN: CALIFORNIA), where the asset management activities are concentrated. The contract supports the real estate brokerage and property management workforce, potentially creating or sustaining jobs in these sectors within California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The sheer volume of bids (35,767) raises questions about data accuracy or the nature of the bidding process; if accurate, it could indicate an overly complex or inefficient bidding system.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's effectiveness and value delivery.
The long contract duration could lead to contractor complacency or a reduced incentive to innovate if not managed with rigorous oversight.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
The fixed-price contract type provides cost certainty for the government.
The contract addresses a core function of HUD: managing its real estate assets, suggesting strategic alignment.

Sector Analysis

The contract falls within the Real Estate Services sector, specifically focusing on property and asset management. The market for these services is substantial, driven by government agencies and private entities managing large portfolios of properties. HUD's spending in this area is critical for maintaining the value and utility of its real estate holdings. Comparable spending benchmarks would depend on the specific types and scale of assets managed, but a $76 million contract over nearly six years represents a significant commitment within this sector.

Small Business Impact

The data indicates this contract was not set aside for small businesses (SS: false, SB: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. The primary contractor, BLB Resources, Inc., would determine any subcontracting opportunities. Without specific details on subcontracting plans, the direct impact on the small business ecosystem from this particular award is limited.

Oversight & Accountability

Oversight mechanisms would typically involve contract officers, program managers within HUD, and potentially Inspector General reviews. Accountability is established through the fixed-price contract terms and performance expectations. Transparency is facilitated by the contract award process being open competition, and public reporting of federal contracts. The extent of IG jurisdiction would depend on the nature of any potential issues arising during contract performance.

Related Government Programs

HUD Housing Choice Vouchers Program
HUD Multifamily Housing Programs
Government Property Management Contracts
Real Estate Brokerage Services
Asset Management Services

Risk Flags

Potential data anomaly in bid count.
Lack of specific performance metrics.
Long contract duration may reduce incentive for innovation.
Limited information on specific asset types managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $76.2 million to BLB RESOURCES, INC.. ASSET MANAGER (AM) M&M III - AREA 1P

Who is the contractor on this award?

The obligated recipient is BLB RESOURCES, 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 $76.2 million.

What is the period of performance?

Start: 2010-06-01. End: 2016-03-31.

What is the specific nature of the 'asset management' services provided under this contract?

The provided data indicates the contract is for 'ASSET MANAGER (AM) M&M III - AREA 1P' and falls under NAICS code 531210 (Offices of Real Estate Agents and Brokers). This suggests the services likely involve the management, maintenance, leasing, and disposition of real estate properties owned or held by the Department of Housing and Urban Development (HUD). This could include single-family homes, multi-family dwellings, or other commercial properties acquired through foreclosure or other means. The 'M&M III' designation might refer to a specific program or initiative within HUD related to mortgagees and management, further implying a focus on properties within HUD's portfolio.

How does the $76.18 million contract value compare to similar asset management contracts awarded by HUD or other federal agencies?

Direct comparison is difficult without knowing the exact scope, duration, and geographic coverage of other contracts. However, $76.18 million over approximately 5.8 years averages to about $13.1 million annually. This figure needs to be contextualized by the number and type of assets managed. For instance, managing thousands of distressed single-family homes would differ significantly from managing a portfolio of large apartment complexes. HUD has awarded numerous contracts for property management and asset disposition, and this value appears substantial, suggesting a significant portfolio or a broad geographic area of responsibility within California.

What are the key performance indicators (KPIs) used to evaluate BLB Resources, Inc.'s performance under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, asset management contracts include metrics related to property maintenance, vacancy rates, lease-up times, tenant satisfaction, financial reporting accuracy, and timely completion of tasks. The fixed-price nature of the contract implies that performance is expected to meet certain standards to justify the agreed-upon price. HUD would have established specific deliverables and service level agreements (SLAs) within the contract documents to monitor BLB Resources' effectiveness.

What is the historical spending pattern for asset management services by HUD, and how does this contract fit in?

Historical spending data for HUD's asset management services would reveal trends in contract values, durations, and types of services procured. This $76.18 million contract, awarded in 2010 and ending in 2016, represents a significant expenditure for that period. Understanding past spending allows for analysis of whether this contract was an anomaly, part of a consistent strategy, or indicative of changing needs. It's possible that HUD's asset management needs fluctuate based on economic conditions, foreclosure rates, and housing market dynamics, influencing the scale and frequency of such contracts.

What is the potential risk associated with a long-term contract like this, and what mitigation strategies are in place?

Long-term contracts, such as this one spanning nearly six years, carry risks including potential cost overruns if not managed tightly, contractor complacency, and the risk of the contractor's capabilities becoming outdated relative to evolving needs or technologies. Mitigation strategies typically include robust contract oversight, regular performance reviews, clear performance standards, and mechanisms for contract modification or termination if performance is unsatisfactory. The fixed-price structure itself is a risk mitigation tool for the government, aiming to cap costs, but it requires diligent monitoring to ensure the contractor is meeting obligations without cutting corners.

Given the 'full and open competition,' what does the number of bids (35,767) imply about the market for these services?

The reported number of 35,767 bids is exceptionally high and may represent an error in data transcription or interpretation, as it's far beyond typical bid counts for complex service contracts. If accurate, it would suggest an extremely crowded market with numerous potential providers, possibly indicating that the contract was structured as an IDIQ with many task orders or that the bidding process was open to a very wide range of entities, perhaps including smaller brokers. Such intense competition, if real, generally benefits the government by driving down prices and increasing choice, but it can also signal market fragmentation or a lack of clear differentiation among bidders.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Offices of Real Estate Agents and Brokers › Offices of Real Estate Agents and Brokers

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 27

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5001 BIRCH ST, NEWPORT BEACH, CA, 92660

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

Financial Breakdown

Contract Ceiling: $76,184,318

Exercised Options: $76,184,318

Current Obligation: $76,184,318

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS23F0021V

IDV Type: FSS

Timeline