HUD's $30.5M Asset Manager contract awarded to BLB Resources, Inc. for California region
Contract Overview
Contract Amount: $30,530,355 ($30.5M)
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: $29.5K/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 2S
Place of Performance
Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90001
Plain-Language Summary
Department of Housing and Urban Development obligated $30.5 million to BLB RESOURCES, INC. for work described as: ASSET MANAGER (AM) M&M III - AREA 2S Key points: 1. Contract value appears reasonable given the 3-year duration and scope of asset management services. 2. Full and open competition suggests a healthy market for these services. 3. No immediate red flags regarding contractor performance or risk indicators are apparent from the provided data. 4. This contract falls within the broader category of real estate and property management services for federal agencies. 5. The contract was awarded as a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.
Value Assessment
Rating: good
The contract value of approximately $30.5 million over three years for asset management services in California seems within a reasonable range for the scope of work. Benchmarking against similar contracts would provide a more precise value-for-money assessment, but the price per year ($10.17M) is not inherently excessive for managing a portfolio of assets. The fixed-price nature of the contract helps control costs for the government.
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 had the opportunity to compete. The presence of 27 bids suggests a robust competitive environment. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing for the services rendered.
Taxpayer Impact: A full and open competition with 27 bidders likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.
Public Impact
The primary beneficiaries are the Department of Housing and Urban Development (HUD), which receives asset management services. Services delivered include the management of real estate assets, likely foreclosed properties or other holdings. The geographic impact is focused on California, where the assets are located. The contract supports the real estate services sector, potentially involving brokers, agents, and property managers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract type helps manage cost certainty.
- Contract duration of over 3 years allows for consistent service delivery.
Sector Analysis
This contract falls within the Real Estate and Property Management sector, specifically focusing on asset management. The North American Industry Classification System (NAICS) code 531210, 'Offices of Real Estate Agents and Brokers,' further defines the industry. The total value of $30.5 million over three years represents a significant, albeit localized, investment in managing federal real estate assets. Comparable spending benchmarks would involve analyzing other federal contracts for similar asset management services across different regions or agencies.
Small Business Impact
The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from set-aside requirements. However, the prime contractor, BLB Resources, Inc., may engage small businesses as subcontractors, which would indirectly benefit the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Housing and Urban Development (HUD). As a delivery order under an IDIQ, the contracting officer and program managers within HUD are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract award databases like FPDS. Specific Inspector General jurisdiction would depend on HUD's internal policies and the nature of any potential issues arising from the contract.
Related Government Programs
- Federal Housing Administration (FHA) asset management
- Government-owned real estate management
- Property disposition services
Risk Flags
- Contract duration is relatively short for comprehensive asset management.
- No specific performance metrics provided to assess contractor effectiveness.
- Potential for cost overruns if asset management scope is complex.
Tags
real-estate-services, asset-management, hud, department-of-housing-and-urban-development, california, full-and-open-competition, delivery-order, firm-fixed-price, large-contract, property-management
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $30.5 million to BLB RESOURCES, INC.. ASSET MANAGER (AM) M&M III - AREA 2S
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 $30.5 million.
What is the period of performance?
Start: 2010-06-01. End: 2013-03-31.
What is the track record of BLB Resources, Inc. in managing federal contracts, particularly for HUD?
Information on BLB Resources, Inc.'s specific track record with federal contracts, especially with HUD, is not detailed in the provided data. A comprehensive analysis would require reviewing past performance evaluations, any contract disputes or terminations, and the overall history of their awards. Examining their performance on this specific 'ASSET MANAGER (AM) M&M III - AREA 2S' contract, including any quality assurance reviews or user feedback, would be crucial for a complete assessment. Without access to these performance metrics, it's difficult to definitively gauge their reliability and effectiveness as a federal contractor.
How does the $30.5 million contract value compare to similar asset management contracts awarded by HUD or other agencies?
The $30.5 million contract value for three years of asset management services in California is difficult to benchmark precisely without more granular data on the scope of assets managed (e.g., number of properties, types of assets, complexity of management required). However, on an annual basis, the contract averages over $10 million. This figure needs to be compared against contracts for similar services in comparable geographic regions and for similar asset portfolios. Agencies like the General Services Administration (GSA) or the Department of Veterans Affairs (VA) also manage significant real estate portfolios and may have comparable contracts. A detailed comparison would involve analyzing contract duration, service requirements, and the number/type of assets managed to determine if the pricing is competitive.
What are the primary risks associated with this type of asset management contract for HUD?
Key risks for HUD in this asset management contract include potential underperformance by the contractor, leading to decreased asset value or increased holding costs. There's also a risk of non-compliance with federal regulations and property management standards. Financial risks could arise if the contractor's pricing model is inefficient or if unforeseen costs emerge. Operational risks include issues with property maintenance, tenant relations (if applicable), and timely disposition of assets. Reputational risk for HUD could increase if the contractor's actions lead to negative public perception or legal challenges related to property management.
How effective has BLB Resources, Inc. been in fulfilling the objectives of the 'ASSET MANAGER (AM) M&M III - AREA 2S' contract?
The provided data does not include specific metrics on the effectiveness of BLB Resources, Inc. in fulfilling the objectives of this contract. Effectiveness would typically be measured by key performance indicators (KPIs) such as the speed of property disposition, the cost-effectiveness of property maintenance, tenant satisfaction (if applicable), and the overall return on investment for the managed assets. A thorough assessment would require reviewing performance reports, audits, and feedback from HUD officials who oversaw the contract. Without this performance data, the effectiveness remains an unknown factor based solely on the award information.
What are the historical spending patterns for asset management services by HUD, and how does this contract fit in?
Historical spending patterns for asset management by HUD are not detailed in the provided data. However, HUD, through programs like the Federal Housing Administration (FHA), manages a significant portfolio of properties, often acquired through foreclosure. This contract, valued at $30.5 million over three years, represents a portion of HUD's overall expenditure on managing these assets. Understanding historical spending would involve analyzing trends in contract awards for asset management over several fiscal years, identifying the average contract values, durations, and the number of contractors utilized. This specific contract appears to be a significant award for a particular region (California) and likely contributes to HUD's ongoing efforts to manage and dispose of its real estate holdings efficiently.
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: $37,434,425
Exercised Options: $37,434,425
Current Obligation: $30,530,355
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS23F0021V
IDV Type: FSS
Timeline
Start Date: 2010-06-01
Current End Date: 2013-03-31
Potential End Date: 2013-03-31 00:00:00
Last Modified: 2016-09-30
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