HUD's $41.7M Asset Manager contract awarded to Ofori & Associates PC for accounting services

Contract Overview

Contract Amount: $41,760,163 ($41.8M)

Contractor: Ofori & Associates PC

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: $19.6K/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 2P

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036

State: District of Columbia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $41.8 million to OFORI & ASSOCIATES PC for work described as: ASSET MANAGER (AM) M&M III - AREA 2P Key points: 1. Contract awarded for accounting and auditing services, indicating a need for financial oversight. 2. The contract duration of 2130 days suggests a long-term need for these services. 3. Awarded under full and open competition, implying a robust bidding process. 4. The firm fixed-price contract type helps control costs by establishing a set price. 5. The contract was awarded to a single entity, Ofori & Associates PC. 6. The contract was awarded by the Department of Housing and Urban Development (HUD). 7. The North American Industry Classification System (NAICS) code 541211 points to certified public accounting services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details or comparable contract data. The total award amount of $41.7 million over approximately 5.8 years suggests an average annual spend of around $7.2 million. This figure needs to be assessed against the scope of services provided, the complexity of HUD's asset management needs, and the market rates for similar accounting and auditing services. Without more granular data on deliverables and performance metrics, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 27 bids suggests a competitive environment, which generally leads to better pricing and service options for the government. The number of bidders provides a reasonable indication of market interest and the potential for price discovery. However, the specific details of the bidding process and the evaluation criteria would offer further insight into the effectiveness of the competition.

Taxpayer Impact: A competitive bidding process for essential services like asset management helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery.

Public Impact

The primary beneficiaries are the Department of Housing and Urban Development, which receives essential accounting and auditing support. The services delivered likely include financial statement audits, accounting advisory, and asset management support, crucial for HUD's operations. The geographic impact is centered in the District of Columbia, where the contractor is located and likely where the primary services are rendered. The contract supports the accounting and auditing profession by providing work for a professional services firm.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the contractor's effectiveness beyond contract completion.
The specific nature of 'asset management' is broad and could encompass a wide range of activities, making it hard to pinpoint value without further definition.
The contract's duration and value could indicate a significant reliance on this single contractor for critical financial functions.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
The firm fixed-price contract type provides cost certainty for the government.
The contract was awarded to a firm specializing in accounting services (NAICS 541211), indicating relevant expertise.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on accounting, tax preparation, bookkeeping, and payroll services. The market for these services is large and diverse, with many firms competing for government contracts. HUD's need for asset management and accounting services is typical for large federal agencies managing significant financial portfolios and public funds. Comparable spending benchmarks would involve looking at other large federal agencies' contracts for similar accounting and auditing services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The award to Ofori & Associates PC, a single entity, does not inherently preclude small business participation as subcontractors if Ofori & Associates PC chooses to engage them, but this is not a mandated requirement of the contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Housing and Urban Development's contracting officers and program managers. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards and payment schedules tied to deliverables. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would likely fall under HUD's Office of Inspector General, which investigates fraud, waste, and abuse in HUD programs and operations.

Related Government Programs

Federal Accounting Standards Advisory Board (FASAB) guidance
Government Accountability Office (GAO) Auditing Standards
HUD Inspector General Audits
Office of Management and Budget (OMB) Circulars on Financial Management

Risk Flags

Potential for vendor lock-in due to single award
Lack of detailed performance metrics in summary data
Scope of 'asset management' requires further definition for full value assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $41.8 million to OFORI & ASSOCIATES PC. ASSET MANAGER (AM) M&M III - AREA 2P

Who is the contractor on this award?

The obligated recipient is OFORI & ASSOCIATES PC.

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 $41.8 million.

What is the period of performance?

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

What specific asset management tasks were performed under this contract?

The provided data does not specify the exact asset management tasks performed. However, given the NAICS code 541211 (Offices of Certified Public Accountants), the services likely encompassed financial accounting, auditing, financial reporting, and potentially advisory services related to the management of HUD's assets. This could include ensuring compliance with financial regulations, managing financial records, preparing financial statements, and conducting audits to verify the accuracy and integrity of financial data. Without access to the contract's statement of work, a precise breakdown of 'asset management' activities remains undefined.

How does the $41.7 million award compare to similar contracts for accounting services at HUD or other agencies?

Comparing the $41.7 million award requires context on the duration and scope of services. This contract spanned approximately 5.8 years (2130 days), averaging about $7.2 million annually. To benchmark effectively, one would need to analyze contracts for similar accounting, auditing, and financial advisory services awarded by HUD or comparable large federal agencies (e.g., Treasury, GSA) over similar timeframes. Factors like the specific services rendered (e.g., routine audits vs. complex financial system implementation), the number of bidders, and the contractor's qualifications would influence pricing. Without such comparative data, it's difficult to definitively state if this award represents a particularly high or low value.

What is the track record of Ofori & Associates PC with federal contracts?

The provided data indicates Ofori & Associates PC was awarded this specific contract by the Department of Housing and Urban Development. To assess their broader track record, one would need to query federal procurement databases (like FPDS or SAM.gov) for all contracts awarded to this entity across all agencies. This would reveal the number of contracts, their values, the agencies involved, the types of services rendered, and performance history (if available). A review of past performance evaluations and any contract disputes or terminations would provide a more comprehensive understanding of their reliability and effectiveness as a federal contractor.

What are the potential risks associated with a single award for such a significant amount?

A significant risk associated with a single award, even under full and open competition, is the potential for vendor lock-in and reduced leverage for the government in future procurements. If Ofori & Associates PC underperforms or if market conditions change, HUD might be constrained in finding alternatives, especially if the contract is long-term. There's also the risk that the competitive process, while open, may not have yielded the absolute best value if only one highly qualified bidder emerged or if the evaluation criteria favored specific approaches. Ensuring robust performance monitoring and clear exit strategies are crucial mitigation steps.

How does the firm fixed-price contract type influence cost control and risk for this accounting service contract?

A firm fixed-price (FFP) contract type is generally advantageous for the government in controlling costs, as the price is set at the time of award and does not typically increase due to contractor cost overruns. For accounting services, where the scope of work can often be well-defined, FFP provides cost certainty. This shifts the risk of cost overruns to the contractor, incentivizing them to manage their resources efficiently. However, if unforeseen complexities arise that significantly deviate from the initially defined scope, the contractor might seek change orders, potentially increasing the overall cost. The effectiveness of FFP relies heavily on a clear and comprehensive statement of work.

What is the historical spending pattern for asset management or accounting services at HUD?

The provided data only details one specific contract ($41.7M from 2010-2016). To understand historical spending patterns for asset management or accounting services at HUD, a broader analysis of procurement data over multiple fiscal years is necessary. This would involve identifying all contracts awarded by HUD for similar services (using relevant NAICS codes and contract descriptions), summing their values, and analyzing trends. Such an analysis could reveal whether HUD's spending in this area has increased or decreased, whether competition levels have changed, and if there are dominant contractors or service types.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT 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: 1900 L ST NW STE 609, WASHINGTON, DC, 20036

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $41,760,163

Exercised Options: $41,760,163

Current Obligation: $41,760,163

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F0214N

IDV Type: FSS

Timeline