HUD's $51M Asset Manager Contract Awarded to BESTASSETS, INC. Under Full and Open Competition
Contract Overview
Contract Amount: $51,249,937 ($51.2M)
Contractor: Bestassets, Inc
Awarding Agency: Department of Housing and Urban Development
Start Date: 2010-06-01
End Date: 2013-05-31
Contract Duration: 1,095 days
Daily Burn Rate: $46.8K/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 3D
Place of Performance
Location: SUGAR LAND, FORT BEND County, TEXAS, 77478
State: Texas Government Spending
Plain-Language Summary
Department of Housing and Urban Development obligated $51.2 million to BESTASSETS, INC for work described as: ASSET MANAGER (AM) M&M III - AREA 3D Key points: 1. Contract Value: $51.25 million over 3 years. 2. Competition: Awarded via full and open competition. 3. Risk: Low risk indicated by fixed-price contract and established agency. 4. Sector: Financial services and real estate asset management.
Value Assessment
Rating: good
The contract value of $51.25 million for a 3-year term appears reasonable given the scope of asset management services. Benchmarking against similar HUD contracts for asset management would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple bidders vie for the contract.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value.
Public Impact
Ensures efficient management of housing assets, potentially impacting housing availability and quality. Supports the Department of Housing and Urban Development's mission to create strong, sustainable communities. The contract's success relies on BESTASSETS, INC.'s ability to effectively manage and dispose of assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- No small business participation noted.
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type.
Sector Analysis
This contract falls within the financial services and real estate sector, specifically focusing on mortgage and nonmortgage loan brokerage and asset management. Spending in this area is crucial for managing government-backed loan portfolios and ensuring market stability.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award. Further analysis would be needed to determine if opportunities were missed or if the contract scope was not conducive to small business involvement.
Oversight & Accountability
The Department of Housing and Urban Development is the contracting agency, implying internal oversight mechanisms are in place. The contract's duration and value suggest regular performance reviews would be standard procedure.
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.
- Contract duration of 3 years may require re-evaluation of market conditions.
- Asset management complexity can lead to unforeseen challenges.
Tags
mortgage-and-nonmortgage-loan-brokers, department-of-housing-and-urban-developm, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $51.2 million to BESTASSETS, INC. ASSET MANAGER (AM) M&M III - AREA 3D
Who is the contractor on this award?
The obligated recipient is BESTASSETS, INC.
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 $51.2 million.
What is the period of performance?
Start: 2010-06-01. End: 2013-05-31.
What specific asset management tasks are included in this contract, and how do they align with HUD's strategic goals?
The contract likely encompasses tasks such as property management, loan servicing, disposition of foreclosed properties, and market analysis for assets within Area 3D. These activities directly support HUD's mission to ensure the availability of affordable housing and community development, by maintaining the value of its portfolio and facilitating the return of assets to productive use.
What are the key performance indicators (KPIs) used to evaluate BESTASSETS, INC.'s performance under this contract?
Key performance indicators would likely include metrics such as property vacancy rates, time-on-market for asset disposition, maintenance costs, tenant satisfaction (if applicable), and adherence to regulatory compliance. These KPIs are crucial for ensuring the contractor is effectively managing assets and achieving the desired financial and programmatic outcomes for HUD.
How does the firm fixed price structure mitigate potential cost overruns for the government?
The firm fixed price (FFP) structure shifts the majority of cost risk to the contractor, BESTASSETS, INC. This means the government pays a predetermined price regardless of the contractor's actual costs. This structure incentivizes the contractor to manage its expenses efficiently and effectively to maintain profitability, thereby protecting the government from unexpected cost increases.
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: 12808 W AIRPORT BLVD STE 260, SUGAR LAND, TX, 77478
Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $51,249,937
Exercised Options: $51,249,937
Current Obligation: $51,249,937
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS23F0025V
IDV Type: FSS
Timeline
Start Date: 2010-06-01
Current End Date: 2013-05-31
Potential End Date: 2013-05-31 00:00:00
Last Modified: 2016-10-03
More Contracts from Bestassets, Inc
- SF REO M&M Contract for ND, SD, NE, MN, WI, IA — $51.6M (Department of Housing and Urban Development)
Other Department of Housing and Urban Development Contracts
- Single Family Master Subservicer Services in Support of Ginnie Mae's Mortgage-Backed Securities (MBS) Programs — $982.0M (Carrington Mortgage Services LLC)
- TAS::86 4585::TAS Award of Portion of Hits Solicitation Under RFP R-Opc-21970 Pursuant to Settlement Agreement. the Contractor Shall Provide Data Center, Help Desk, and Disaster Recovery Services — $620.3M (Peraton Enterprise Solutions LLC)
- TAS::86 4585::TAS Award of Portion of Hits RFP to LMC. the Contractor IS Responsible for Lotus Notes, Desktops, Laptops, Field Office Servers, Lans, Printers, and Kiosks — $498.6M (Lockheed Martin Services, LLC)
- Single Family Master Subservicer Igf::ot::igf — $343.6M (Carrington Mortgage Services LLC)
- Single Family Master Subservicer Igf::ot::igf — $314.2M (Selene Finance LP)
View all Department of Housing and Urban Development contracts →