HUD's $16.3M contract for asset management services awarded to OFORI & ASSOCIATES PC shows a high per-unit cost

Contract Overview

Contract Amount: $16,273,083 ($16.3M)

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: $8.0K/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 3P

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 $16.3 million to OFORI & ASSOCIATES PC for work described as: ASSET MANAGER (AM) M&M III - AREA 3P Key points: 1. The contract value of $16.3 million over approximately 5.5 years suggests a significant investment in asset management. 2. Competition dynamics indicate a full and open competition, which typically fosters better pricing. 3. The fixed-price contract type aims to control costs, but the per-unit cost warrants further scrutiny. 4. Performance context is limited without specific deliverables and outcomes tied to the asset management services. 5. Sector positioning places this contract within the professional services sector, specifically accounting and auditing. 6. Risk indicators are moderate, with the primary concern being the potential for overpayment given the per-unit cost.

Value Assessment

Rating: fair

The total contract value of $16.3 million for asset management services over 2039 days (approx. 5.5 years) appears substantial. Benchmarking against similar contracts for asset management services is difficult without more specific details on the scope of work and deliverables. However, the calculated per-unit cost of $8,000 per day is on the higher end, suggesting that while the competition was open, the pricing may not reflect the most cost-effective solution available in the market. Further analysis of the specific services rendered and their impact on asset performance would be needed for a more definitive value assessment.

Cost Per Unit: $8,000 per day

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 27 bids suggests a robust level of interest and competition for this contract. A high number of bidders generally indicates a healthy market and provides the agency with a wide range of options to choose from, potentially leading to more competitive pricing and better service offerings.

Taxpayer Impact: A full and open competition with numerous bidders is generally favorable for taxpayers, as it increases the likelihood of securing services at a competitive price and encourages innovation among contractors.

Public Impact

The primary beneficiaries are the Department of Housing and Urban Development (HUD), which receives asset management services to oversee its assets. The services delivered include accounting and auditing functions related to asset management, crucial for financial oversight. The geographic impact is centered in the District of Columbia, where the contract is managed and likely where many of the assets are located. Workforce implications are primarily for the contractor, OFORI & ASSOCIATES PC, and potentially for HUD staff who interact with the asset management services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost may indicate potential for overspending if not carefully managed.
Lack of detailed performance metrics makes it difficult to assess the true value and effectiveness of the services.
The long duration of the contract could lead to vendor lock-in or reduced flexibility for HUD.

Positive Signals

Awarded through full and open competition, ensuring a broad selection of potential contractors.
A significant number of bids (27) suggests a competitive marketplace and potential for good service.
The firm-fixed-price contract type provides cost certainty for the government.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically under the Offices of Certified Public Accountants (NAICS 541211). This sector is characterized by a wide range of specialized services, including accounting, auditing, tax preparation, and management consulting. The market size for such services is substantial, driven by government and private sector needs for financial expertise. This contract represents a portion of HUD's spending on essential financial and asset management functions, comparable to other government agencies procuring similar accounting and auditing support.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). While the primary award went to OFORI & ASSOCIATES PC, there is no explicit information on subcontracting plans or performance related to small businesses within this specific contract. The impact on the small business ecosystem is therefore neutral to unknown based solely on this data, as there's no indication of set-aside goals or specific subcontracting requirements being met or missed.

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 inherent in the firm-fixed-price structure, requiring the contractor to deliver specified services within the agreed-upon budget. Transparency is facilitated by the public nature of federal contract awards, though detailed performance reports and internal oversight processes are not publicly disclosed. The Inspector General's office for HUD would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

HUD Asset Management Programs
Federal Accounting and Auditing Services
Government Financial Management Contracts
Professional Services Contracts
Office of Management and Budget (OMB) Financial Oversight

Risk Flags

High Per-Unit Cost
Limited Performance Data
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $16.3 million to OFORI & ASSOCIATES PC. ASSET MANAGER (AM) M&M III - AREA 3P

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 $16.3 million.

What is the period of performance?

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

What is the track record of OFORI & ASSOCIATES PC in performing similar federal contracts?

Information regarding the specific track record of OFORI & ASSOCIATES PC in performing similar federal contracts is not detailed in the provided data. To assess their performance history, one would typically need to review past contract awards, performance evaluations (such as Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or corrective actions. Without this information, it's difficult to gauge their reliability and past success in delivering asset management or accounting services to federal agencies. A deeper dive into federal procurement databases and performance review systems would be necessary to provide a comprehensive answer on their track record.

How does the per-unit cost of $8,000 per day compare to market rates for similar asset management services?

The per-unit cost of $8,000 per day for asset management services is notably high when benchmarked against typical market rates. While the exact scope of services is not detailed, standard asset management functions, even those requiring specialized accounting expertise, often fall within a lower daily rate range, especially when procured through competitive processes. Factors influencing this rate could include the complexity of HUD's assets, specific regulatory compliance requirements, or the inclusion of highly specialized advisory services. However, without a detailed breakdown of the services included in this daily rate, it is challenging to make a precise comparison. Generally, such a high daily rate would warrant a thorough justification from the contractor and careful scrutiny by the agency to ensure value for money.

What are the primary risks associated with this contract for the government?

The primary risks associated with this contract for the government, specifically HUD, revolve around cost-effectiveness and performance assurance. The high per-unit cost of $8,000 per day presents a significant financial risk if the services provided do not yield commensurate value or if efficiencies could have been achieved through a more competitive bid or different contract structure. Another risk is the potential for inadequate performance; while the contract is fixed-price, ensuring the quality and impact of the asset management services requires diligent oversight. Finally, the long duration of the contract (over 5 years) could pose a risk of vendor lock-in, potentially limiting HUD's flexibility to adapt to changing needs or to seek alternative solutions if the contractor's performance or market conditions change.

How effective has OFORI & ASSOCIATES PC been in managing HUD's assets based on available data?

The provided data does not contain specific metrics or performance evaluations to assess the effectiveness of OFORI & ASSOCIATES PC in managing HUD's assets. The data primarily includes contract details such as award amount, duration, competition level, and contractor information. To determine effectiveness, one would need access to performance reports, key performance indicators (KPIs) related to asset performance, financial outcomes achieved, and potentially feedback from HUD program managers. Without such performance-related information, any assessment of effectiveness would be purely speculative. Future analysis should focus on retrieving and evaluating these performance metrics.

What is the historical spending pattern for asset management services at HUD, and how does this contract compare?

The provided data focuses on a single contract award ($16.3 million) and does not offer historical spending patterns for asset management services at HUD. To establish a comparative context, one would need to analyze HUD's budget allocations and actual expenditures for asset management over several fiscal years. This would involve looking at the total amount spent, the number and value of contracts awarded, the types of services procured, and the contractors utilized. Comparing this specific contract's value and per-unit cost to historical averages and trends would reveal whether HUD's spending in this area has increased, decreased, or remained consistent, and whether this particular award is an outlier in terms of cost or scope.

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: $23,451,567

Exercised Options: $23,451,567

Current Obligation: $16,273,083

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F0214N

IDV Type: FSS

Timeline