HUD awards $50.4M for Asset Management Services to OFORI & ASSOCIATES PC under Full and Open Competition

Contract Overview

Contract Amount: $50,397,036 ($50.4M)

Contractor: Ofori & Associates PC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2010-06-01

End Date: 2015-12-31

Contract Duration: 2,039 days

Daily Burn Rate: $24.7K/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 1A

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 $50.4 million to OFORI & ASSOCIATES PC for work described as: ASSET MANAGER (AM) M&M III - AREA 1A Key points: 1. The contract value of $50.4 million over approximately 5.5 years indicates a significant investment in asset management. 2. OFORI & ASSOCIATES PC secured this contract through full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs, but the duration and potential for change orders present some risk. 4. The sector is professional services, specifically accounting and auditing, supporting HUD's operational needs.

Value Assessment

Rating: good

The contract value of $50.4 million over 5.5 years averages to roughly $9.15 million annually. Without specific benchmarks for similar asset management contracts at HUD, it's difficult to definitively assess pricing, but the fixed-price structure suggests an attempt at cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, which typically leads to better price discovery and value for the government. The existence of multiple bidders, indicated by the 27 bids received, supports this.

Taxpayer Impact: The competitive award process likely resulted in a fair market price, maximizing taxpayer value for the asset management services procured.

Public Impact

Ensures proper management of housing assets, potentially impacting the quality and availability of housing programs. Supports the Department of Housing and Urban Development's mission to create strong, sustainable communities. The services provided by OFORI & ASSOCIATES PC are crucial for maintaining the integrity and efficiency of HUD's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is long (over 5 years), increasing risk of cost escalation or changing needs.
Small business participation is not indicated (sb: false).

Positive Signals

Awarded under full and open competition.
Firm fixed-price contract type helps control costs.
Multiple bids received (27) suggest a competitive process.

Sector Analysis

This contract falls within the professional services sector, specifically accounting and auditing services (NAICS 541211). Spending in this area is essential for government agencies to ensure financial compliance and efficient operations. Benchmarks for similar contracts would typically focus on hourly rates or project-based fees for accounting and auditing expertise.

Small Business Impact

The data indicates that this contract was not awarded to a small business (sb: false). There is no information provided on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The contract was awarded by the Department of Housing and Urban Development (HUD), which has established oversight mechanisms for its contracts. The fixed-price nature and competitive award suggest a degree of accountability, but ongoing performance monitoring is key.

Related Government Programs

Offices of Certified Public Accountants
Department of Housing and Urban Development Contracting
Department of Housing and Urban Development Programs

Risk Flags

Long contract duration
No indication of small business subcontracting
Potential for scope creep over 5+ years
Fixed-price risk if costs escalate significantly

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $50.4 million to OFORI & ASSOCIATES PC. ASSET MANAGER (AM) M&M III - AREA 1A

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 $50.4 million.

What is the period of performance?

Start: 2010-06-01. End: 2015-12-31.

What is the average annual cost of this contract and how does it compare to industry benchmarks for similar asset management services?

The contract averages approximately $9.15 million annually ($50.4M / 5.5 years). Direct comparison to industry benchmarks is challenging without specific details on the scope of services and the types of assets managed. However, the competitive full and open award process suggests the pricing is likely aligned with market rates for comparable professional accounting and auditing services.

What are the potential risks associated with a long-term (over 5 years) fixed-price contract for asset management services?

Long-term fixed-price contracts carry risks of scope creep, unforeseen cost increases due to inflation or changing regulations, and potential for the contractor to become complacent. For asset management, evolving market conditions or changes in HUD's portfolio could also render the initial pricing assumptions less accurate over time, potentially leading to reduced value for money if not managed proactively.

How effectively does this contract support HUD's core mission of managing housing assets and ensuring program integrity?

This contract is critical for HUD's mission by providing essential accounting and auditing services for asset management. By ensuring financial accuracy and compliance, it helps maintain the integrity of housing programs and the assets they represent. The competitive award suggests HUD has selected a capable provider to fulfill these vital functions.

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) › 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: 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: $62,417,282

Exercised Options: $62,417,282

Current Obligation: $50,397,036

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F0214N

IDV Type: FSS

Timeline