HUD's $40.7M Asset Manager Contract with Chronos Real Estate Awarded Under Full and Open Competition

Contract Overview

Contract Amount: $40,748,305 ($40.7M)

Contractor: Chronos Real Estate, LLC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2010-06-01

End Date: 2019-09-30

Contract Duration: 3,408 days

Daily Burn Rate: $12.0K/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: COPPELL, DALLAS County, TEXAS, 75019

State: Texas Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $40.7 million to CHRONOS REAL ESTATE, LLC for work described as: ASSET MANAGER (AM) M&M III - AREA 1D Key points: 1. The contract, valued at $40.7 million, was awarded to Chronos Real Estate, LLC. 2. It falls under the Mortgage and Nonmortgage Loan Brokers NAICS code (522310). 3. The contract was awarded via full and open competition, suggesting a competitive bidding process. 4. The duration of the contract was 3408 days, ending in September 2019. 5. The contract type was Firm Fixed Price, providing cost certainty.

Value Assessment

Rating: fair

The total award amount of $40.7 million over approximately 9.3 years suggests an average annual spend of around $4.37 million. Without specific unit metrics or comparable contracts for asset management services in real estate, a precise pricing assessment is difficult. However, the firm fixed price structure implies that the contractor bore the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and can lead to more competitive pricing compared to sole-source or limited competition scenarios.

Taxpayer Impact: Full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment that drives down costs and improves service quality.

Public Impact

This contract supported the Department of Housing and Urban Development's asset management functions, likely involving the management of properties or loans. The significant duration and value suggest a substantial role in HUD's operations. The contract's completion in 2019 means its direct impact on current housing market conditions may be limited, but it reflects past federal real estate management practices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it hard to assess value for money.
No indication of small business participation.
The 'Asset Manager' role can be broad; specific duties and outcomes are not detailed.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract provides cost predictability.
Long-term contract suggests a stable and potentially effective partnership.

Sector Analysis

The contract falls under financial services, specifically mortgage and loan brokerage, which is a key sector for government agencies managing real estate assets or portfolios. Spending benchmarks for such specialized asset management contracts can vary widely based on the complexity and volume of assets managed.

Small Business Impact

The data indicates that small business participation (sb) was false (ss: false, sb: false). This suggests that small businesses were not a primary focus or were not awarded this specific contract, potentially limiting opportunities for smaller firms in this area.

Oversight & Accountability

The contract was awarded by the Department of Housing and Urban Development (HUD), which has established oversight mechanisms for its contracts. However, the provided data does not detail specific oversight activities, performance reviews, or accountability measures related to this particular contract.

Related Government Programs

Mortgage and Nonmortgage Loan Brokers
Department of Housing and Urban Development Contracting
Department of Housing and Urban Development Programs

Risk Flags

No small business participation noted.
Limited insight into specific performance metrics and value delivered.
The broad nature of 'Asset Manager' requires further definition for full understanding.
Contract ended in 2019; current relevance needs assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $40.7 million to CHRONOS REAL ESTATE, LLC. ASSET MANAGER (AM) M&M III - AREA 1D

Who is the contractor on this award?

The obligated recipient is CHRONOS REAL ESTATE, LLC.

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 $40.7 million.

What is the period of performance?

Start: 2010-06-01. End: 2019-09-30.

What specific asset management services were provided under this contract, and how did they contribute to HUD's mission?

The contract likely involved managing foreclosed properties, distressed loans, or other real estate assets on behalf of HUD. These services are crucial for minimizing losses on government-held assets, maintaining property standards, and facilitating the disposition of these assets, ultimately supporting HUD's broader goals of housing affordability and community development.

Given the firm fixed price structure, what risks did Chronos Real Estate assume, and how were potential cost overruns managed?

Under a firm fixed price contract, Chronos Real Estate assumed the primary risk of cost overruns. If the expenses associated with managing the assets exceeded their projections, the company would absorb those additional costs. HUD's role would be to monitor performance and ensure contract terms were met, but the financial risk of execution largely rested with the contractor.

How effective was the full and open competition in ensuring competitive pricing for these asset management services?

Full and open competition generally promotes competitive pricing by allowing multiple qualified vendors to bid. While this method increases the likelihood of obtaining fair market value, the ultimate effectiveness depends on the number and quality of bids received, the clarity of the solicitation requirements, and the evaluation criteria used by HUD. Without bid data, it's difficult to definitively assess the pricing outcome.

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: 1199 S BELT LINE RD STE 105, COPPELL, TX, 75019

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

Financial Breakdown

Contract Ceiling: $40,748,305

Exercised Options: $40,748,305

Current Obligation: $40,748,305

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS23F0009V

IDV Type: FSS

Timeline