HUD Spends $53M on REO Marketing & Management with Hooks Van Holm Inc

Contract Overview

Contract Amount: $53,013,425 ($53.0M)

Contractor: Hooks VAN Holm Incorporated

Awarding Agency: Department of Housing and Urban Development

Start Date: 2004-08-01

End Date: 2013-09-18

Contract Duration: 3,335 days

Daily Burn Rate: $15.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SINGLE FAMILY REO MARKETING & MANAGEMENT

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30350

State: Georgia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $53.0 million to HOOKS VAN HOLM INCORPORATED for work described as: SINGLE FAMILY REO MARKETING & MANAGEMENT Key points: 1. Contract awarded to Hooks Van Holm Inc. for $53M over 9+ years. 2. Full and open competition was utilized. 3. The contract covers residential property management services. 4. No small business participation noted.

Value Assessment

Rating: fair

The contract value of $53M over 9 years suggests a significant investment. Benchmarking against similar REO marketing and management contracts is difficult without more granular cost data, but the duration and scale indicate a substantial commitment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically promotes competitive pricing. However, the long duration and the specific nature of REO management might limit the number of truly competitive bids.

Taxpayer Impact: Taxpayer funds are being used for property management services, aiming to maintain and market foreclosed properties. The effectiveness of this spending in maximizing returns or minimizing losses is key to its taxpayer impact.

Public Impact

Ensures management of single-family foreclosed properties. Supports the housing market by maintaining property values. Potential impact on local housing markets where properties are located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation.
Long contract duration may reduce flexibility.
Performance metrics not detailed.

Positive Signals

Full and open competition utilized.
Services essential for managing distressed properties.

Sector Analysis

The housing sector, particularly the management of distressed assets like REO (Real Estate Owned) properties, requires specialized services. Spending in this area is often tied to economic cycles and housing market health.

Small Business Impact

The contract explicitly states no small business participation. This is a missed opportunity for supporting small businesses in the real estate services sector and could indicate a lack of targeted outreach or capability requirements.

Oversight & Accountability

Oversight by the Department of Housing and Urban Development (HUD) is crucial for ensuring the contractor effectively manages properties and adheres to contract terms. Regular performance reviews and audits would be standard.

Related Government Programs

Lessors of Residential Buildings and Dwellings
Department of Housing and Urban Development Contracting
Department of Housing and Urban Development Programs

Risk Flags

No small business participation.
Long contract duration.
Lack of detailed cost breakdown.
Potential for vendor complacency over time.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $53.0 million to HOOKS VAN HOLM INCORPORATED. SINGLE FAMILY REO MARKETING & MANAGEMENT

Who is the contractor on this award?

The obligated recipient is HOOKS VAN HOLM INCORPORATED.

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: 2004-08-01. End: 2013-09-18.

What was the average annual cost for REO marketing and management under this contract?

The total contract value was $53,013,424.91 over a period of 3,335 days (approximately 9.14 years). This averages out to roughly $5.8 million per year. This figure represents the overall expenditure and doesn't break down costs for marketing versus management specifically.

What risks are associated with a long-term contract for REO management?

Long-term contracts can pose risks such as vendor lock-in, potential for cost overruns if market conditions change, and reduced flexibility for the agency to adapt to new strategies or technologies. There's also a risk that contractor performance may decline over time without sufficient oversight.

How effectively does this contract contribute to HUD's mission of stabilizing housing markets?

This contract directly supports HUD's mission by ensuring that foreclosed properties are maintained and marketed, which helps prevent blight and stabilize local housing values. The effectiveness hinges on the contractor's performance in minimizing vacancy, damage, and time-on-market for these properties.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Lessors of Real Estate › Lessors of Residential Buildings and Dwellings

Product/Service Code: RESEARCH AND DEVELOPMENT › Commerce and Housing Credit R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 8010 ROSWELL ROAD, ATLANTA, GA, 90

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $79,742,178

Exercised Options: $79,742,178

Current Obligation: $53,013,425

Timeline