HUD's $29.2M Asset Manager contract for Texas awarded to Hometelos, L.P. under full and open competition

Contract Overview

Contract Amount: $29,206,512 ($29.2M)

Contractor: Hometelos, L.P.

Awarding Agency: Department of Housing and Urban Development

Start Date: 2010-06-01

End Date: 2019-04-11

Contract Duration: 3,236 days

Daily Burn Rate: $9.0K/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 1D

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75254

State: Texas Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $29.2 million to HOMETELOS, L.P. for work described as: ASSET MANAGER (AM) M&M III - AREA 1D Key points: 1. The contract value of $29.2 million over its period of performance suggests a significant investment in asset management services. 2. Awarded under full and open competition, this contract indicates a market where multiple firms were likely capable of performing the required services. 3. The fixed-price contract type may offer cost certainty for the government, provided the scope of work was well-defined. 4. The duration of the contract (over 8 years) suggests a long-term need for these asset management services. 5. The geographic focus on Texas (ST: TX) indicates a specific regional requirement for asset management. 6. The absence of small business set-aside flags suggests the primary competition was not specifically targeted towards small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contracts for asset management services in Texas. The total value of $29.2 million spread over approximately 8.9 years suggests an average annual expenditure of around $3.3 million. This figure needs to be assessed against the volume and complexity of assets managed. Without detailed service descriptions or performance data, it's difficult to definitively assess value for money. However, the firm fixed-price nature of the contract provides a degree of cost control.

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. With 27 bids received, this suggests a robust level of competition for this asset management requirement. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government. The agency likely benefited from a competitive process that allowed them to select the most advantageous offer.

Taxpayer Impact: The strong competition indicates that taxpayers likely benefited from a more competitive pricing environment, as multiple firms vied for the contract. This reduces the risk of overpayment and encourages efficiency from the winning contractor.

Public Impact

The primary beneficiaries are likely the Department of Housing and Urban Development (HUD) and potentially homeowners or property owners whose assets are being managed. The services delivered involve the management of mortgage and nonmortgage loans, likely focusing on distressed or underperforming assets within HUD's portfolio. The geographic impact is concentrated in Texas, suggesting a specific need for asset management services within that state. Workforce implications could include employment opportunities for asset managers, real estate professionals, and administrative staff within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 8 years) could lead to contractor complacency or reduced responsiveness if not actively managed.
Firm Fixed Price contracts can be disadvantageous if unforeseen circumstances significantly increase costs for the contractor, potentially leading to disputes or requests for modification.
Reliance on a single contractor for asset management in a specific region could create a dependency that is difficult to break if performance issues arise.

Positive Signals

Awarded under full and open competition with 27 bids suggests a healthy market and competitive pricing.
Firm Fixed Price contract type provides cost certainty for the government.
The contract is for asset management, a critical function for government agencies managing financial assets and properties.

Sector Analysis

The mortgage and nonmortgage loan brokerage sector (NAICS 522310) is a specialized area within financial services. Contracts in this sector often involve managing portfolios of loans, including distressed assets, for government agencies. The size of this contract, over $29 million, indicates a substantial portfolio or a significant level of activity. Comparable spending benchmarks would depend on the specific types of loans and assets being managed and the geographic scope.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the competition was open to all qualified bidders, including large businesses. While there's no direct indication of subcontracting requirements for small businesses, the absence of a set-aside means that opportunities for small business participation would likely depend on the prime contractor's own subcontracting plan and initiatives.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Housing and Urban Development (HUD). Specific oversight mechanisms would include contract performance reviews, financial audits, and adherence to the terms and conditions of the firm fixed-price delivery order. Transparency would be facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

HUD Single Family Mortgage Insurance Programs
HUD Multifamily Housing Programs
Government National Mortgage Association (Ginnie Mae)
Federal Housing Administration (FHA) Loan Servicing
Department of Veterans Affairs (VA) Loan Guaranty Program

Risk Flags

Long contract duration may increase risk of complacency.
Firm Fixed Price contracts can pose risks if scope changes significantly.
Dependency on a single contractor for regional asset management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $29.2 million to HOMETELOS, L.P.. ASSET MANAGER (AM) M&M III - AREA 1D

Who is the contractor on this award?

The obligated recipient is HOMETELOS, L.P..

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 $29.2 million.

What is the period of performance?

Start: 2010-06-01. End: 2019-04-11.

What is the track record of HOMETELOS, L.P. in managing federal contracts, particularly for HUD?

Analyzing the track record of HOMETELOS, L.P. requires accessing historical federal procurement data. While this specific contract (ASSET MANAGER (AM) M&M III - AREA 1D) was awarded to them by HUD, further investigation into their past performance on other contracts, including their timeliness, quality of service, and any past performance issues or awards, would provide a more comprehensive view. Information on their prior experience with similar asset management tasks, especially for government agencies, is crucial for assessing their capability and reliability. Without access to detailed performance reviews or a broader contract history, it's difficult to definitively assess their overall track record beyond this single award.

How does the $29.2 million contract value compare to similar asset management contracts awarded by HUD or other agencies?

Comparing the $29.2 million value requires identifying comparable contracts based on service type (asset management, loan servicing), agency (HUD, other housing finance agencies), and geographic scope (Texas or similar regions). The duration of this contract (over 8 years) means the annual value is approximately $3.3 million. This figure needs to be benchmarked against the number and type of assets managed. For instance, if this contract covers a large portfolio of distressed single-family or multifamily properties, the annual expenditure might be reasonable. However, if it pertains to a smaller or less complex set of assets, it could indicate a higher cost per asset. Detailed analysis of contract scope and deliverables is necessary for a meaningful comparison.

What are the key performance indicators (KPIs) used to measure the success of this asset management contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, asset management contracts include metrics related to loan recovery rates, property disposition timelines, maintenance costs, tenant satisfaction (if applicable), and compliance with agency regulations. For a contract focused on mortgage and nonmortgage loans, KPIs might include delinquency reduction, foreclosure prevention rates, successful loan modifications, and the efficiency of selling or managing foreclosed properties. The firm fixed-price nature suggests that the scope and expected outcomes were clearly defined upfront, implying that performance against these defined outcomes would be monitored.

What is the risk associated with a single contractor managing a significant asset portfolio in Texas for an extended period?

The primary risks associated with a single contractor managing a significant asset portfolio for an extended period include potential over-reliance, reduced incentive for innovation, and the impact of contractor failure. If HOMETELOS, L.P. were to underperform or face financial difficulties, HUD would face challenges in transitioning asset management responsibilities, potentially leading to disruptions in property management, loan servicing, and financial recovery efforts. The long duration (over 8 years) increases the risk of the contractor becoming complacent or less responsive to evolving market conditions or agency needs. Robust oversight and contingency planning by HUD are essential to mitigate these risks.

How has HUD's spending on asset management services in Texas evolved over time, and does this contract represent a trend?

To assess the evolution of HUD's spending on asset management in Texas, historical data beyond this single contract award would be required. This contract, awarded in 2010 and ending in 2019, represents a specific period. Analyzing prior contracts for similar services in Texas, as well as subsequent contracts awarded after 2019, would reveal trends. Factors influencing spending include economic conditions (e.g., housing market fluctuations, foreclosure rates), changes in HUD's portfolio size and composition, and shifts in federal policy regarding asset disposition and management. This contract's value and duration provide a data point, but a broader analysis is needed to identify trends.

What is the potential impact of this contract on the local Texas real estate and financial services market?

This contract, valued at $29.2 million over its term, likely had a notable impact on the local Texas real estate and financial services market. HOMETELOS, L.P., as the asset manager, would be responsible for activities such as property maintenance, leasing, sales, and loan servicing. This would create demand for local services, including property management firms, real estate agents, contractors for repairs and renovations, legal services for foreclosure processes, and potentially local financial institutions for loan servicing functions. The scale of the contract suggests a significant injection of business activity and employment opportunities within the Texas market related to managing HUD's assets.

Industry Classification

NAICS: Finance and Insurance › Activities Related to Credit Intermediation › Mortgage and Nonmortgage Loan 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: 16850 DALLAS PKWY STE 1000, DALLAS, TX, 75248

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $38,975,307

Exercised Options: $38,975,307

Current Obligation: $29,206,512

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS23F0024V

IDV Type: FSS

Timeline