HUD's $53M Asset Manager contract for Arizona awarded to BLB Resources, Inc. under full and open competition

Contract Overview

Contract Amount: $52,985,770 ($53.0M)

Contractor: BLB Resources, Inc.

Awarding Agency: Department of Housing and Urban Development

Start Date: 2010-06-01

End Date: 2013-03-31

Contract Duration: 1,034 days

Daily Burn Rate: $51.2K/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 1S

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85001

State: Arizona Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $53.0 million to BLB RESOURCES, INC. for work described as: ASSET MANAGER (AM) M&M III - AREA 1S Key points: 1. The contract's value of approximately $53 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 providing 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 3 years) implies a need for sustained asset management support within the specified region. 5. The contract's focus on asset management points to its role in overseeing and maintaining government-held properties or assets. 6. The relatively high number of bids (27) suggests robust interest and a competitive landscape for this type of service.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of asset management services provided. However, the total award of nearly $53 million over approximately three years indicates a substantial commitment. The fixed-price nature of the contract suggests an attempt to control costs, but the ultimate value for money depends on the efficiency and effectiveness of BLB Resources' management of the assets. Comparing this to other similar asset management contracts would require detailed service level agreements and performance metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that the solicitation was broadly advertised and all responsible sources were permitted to submit bids. The fact that 27 bids were received suggests a healthy level of competition for this asset management requirement. A higher number of bidders generally leads to more competitive pricing and a greater likelihood that the government will receive proposals that meet its needs effectively.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured that the government secured services at a competitive market rate, maximizing the value of federal funds.

Public Impact

The primary beneficiaries are likely the Department of Housing and Urban Development (HUD), which receives asset management services to support its mission. The services delivered include the management and oversight of real estate assets, potentially involving property maintenance, leasing, sales, or other related functions. The geographic impact is focused on Arizona, as indicated by the 'AZ' state code and 'ARIZONA' state name. Workforce implications could include employment opportunities for real estate agents, brokers, property managers, and administrative staff involved in asset management within Arizona.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'asset management' is not tightly controlled, leading to cost overruns.
Dependence on a single contractor for a significant duration could pose risks if performance degrades or if the contractor faces financial instability.
Ensuring consistent service quality across all managed assets in Arizona may be challenging.
The fixed-price nature might disincentivize the contractor from going above and beyond if not explicitly required by the contract terms.

Positive Signals

Awarded through full and open competition with a substantial number of bidders, indicating a competitive process.
The firm fixed-price contract type provides cost predictability for the government.
The contract duration suggests a stable, long-term relationship for consistent asset management.
The contractor, BLB Resources, Inc., was selected, implying they met the government's requirements and offered competitive terms.
The contract is for asset management, a critical function for agencies holding real estate.

Sector Analysis

The real estate services sector, particularly within government contracting, involves managing and brokering properties. This contract falls under the 'Offices of Real Estate Agents and Brokers' (NAICS 531210) category. The market for such services can be substantial, especially for agencies like HUD that manage a large portfolio of properties. Benchmarking requires comparing the scope of services, property types, and geographic coverage against similar contracts awarded to other asset management firms.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is unclear, though large prime contractors are often encouraged or required to utilize small businesses in their subcontracting efforts.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Housing and Urban Development (HUD). Specific oversight mechanisms would typically include contract performance reviews, financial audits, and adherence to reporting requirements outlined in the contract. Transparency is generally facilitated through contract award databases and reporting requirements. The extent of Inspector General (IG) involvement would depend on any identified issues or performance concerns.

Related Government Programs

Real Estate Services
Property Management Contracts
Government Asset Management
HUD Real Estate Portfolio

Risk Flags

Potential for performance issues if contractor capacity is exceeded.
Risk of undefined scope leading to cost increases or disputes.
Dependence on a single contractor for a critical function.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $53.0 million to BLB RESOURCES, INC.. ASSET MANAGER (AM) M&M III - AREA 1S

Who is the contractor on this award?

The obligated recipient is BLB RESOURCES, 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 $53.0 million.

What is the period of performance?

Start: 2010-06-01. End: 2013-03-31.

What specific types of real estate assets are managed under this contract?

The provided data does not specify the exact types of real estate assets managed under the 'ASSET MANAGER (AM) M&M III - AREA 1S' contract. However, given the awarding agency is the Department of Housing and Urban Development (HUD), these assets could potentially include foreclosed properties (REO), multifamily housing complexes, public housing properties, or other real estate holdings acquired or managed by HUD through its various programs. The 'M&M III' designation might refer to a specific program or initiative within HUD related to mortgage servicing or asset disposition. A detailed review of the contract's Statement of Work (SOW) would be necessary to ascertain the precise nature and scope of the assets being managed.

How does the per-unit cost of managing these assets compare to industry benchmarks?

Determining a per-unit cost for asset management is highly dependent on the specific services rendered and the nature of the assets. This contract does not provide the necessary granular data (e.g., number of units managed, types of services per asset, cost per service) to calculate a meaningful per-unit cost for comparison. Industry benchmarks for asset management fees vary widely based on property type (residential, commercial, industrial), management intensity (e.g., leasing, maintenance, financial reporting), and geographic location. Without a defined 'unit' and associated costs from the contract, a direct comparison to industry benchmarks is not feasible with the available information.

What is the track record of BLB Resources, Inc. in managing similar federal contracts?

Information on BLB Resources, Inc.'s specific track record with similar federal contracts is not detailed in the provided data. However, the award of this significant $53 million contract by the Department of Housing and Urban Development suggests that the company possesses the necessary qualifications, experience, and capacity to handle large-scale asset management requirements for federal agencies. To fully assess their track record, one would need to examine their past performance evaluations on federal contracts, any history of contract disputes or awards, and the duration and scope of previous engagements, particularly those involving real estate asset management for government entities.

How has HUD's spending on asset management services evolved over the past five years?

The provided data is specific to a single contract awarded in 2010 and ending in 2013. It does not offer historical spending trends for HUD's asset management services. To analyze HUD's spending evolution, one would need access to broader contract databases or agency budget reports covering multiple fiscal years. Such an analysis would involve aggregating spending across all asset management and related real estate service contracts awarded by HUD, identifying trends in contract values, number of awards, and types of services procured over time.

What are the key performance indicators (KPIs) used to evaluate BLB Resources, Inc.'s performance on this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate BLB Resources, Inc.'s performance on this contract. Typically, asset management contracts include KPIs related to property maintenance standards, lease-up rates, tenant satisfaction, financial reporting accuracy and timeliness, eviction/foreclosure rates (if applicable), and adherence to budget. The specific KPIs would be detailed within the contract's Statement of Work (SOW) and Quality Assurance Surveillance Plan (QASP). Performance evaluations would be conducted by the Contracting Officer's Representative (COR) at HUD.

Were there any significant risks identified during the procurement process for this contract?

The provided data does not detail the risks identified during the procurement process for this specific contract. However, common risks associated with large asset management contracts include contractor performance failures, cost overruns (less likely with fixed-price but possible with scope changes), security vulnerabilities if sensitive data is handled, and potential organizational conflicts of interest. Given the full and open competition and the number of bidders, the procurement process likely included standard risk mitigation strategies, such as thorough vetting of bidders' qualifications and financial stability, and clear definition of contract requirements to minimize ambiguity.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Offices of Real Estate Agents and Brokers › Offices of Real Estate Agents and 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: 5001 BIRCH ST, NEWPORT BEACH, CA, 92660

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $52,985,770

Exercised Options: $52,985,770

Current Obligation: $52,985,770

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS23F0021V

IDV Type: FSS

Timeline