HUD Spends $78M on REO Marketing & Management with Hooks Van Holm Inc. over 5 Years
Contract Overview
Contract Amount: $77,956,426 ($78.0M)
Contractor: Hooks VAN Holm Incorporated
Awarding Agency: Department of Housing and Urban Development
Start Date: 2004-08-01
End Date: 2010-01-31
Contract Duration: 2,009 days
Daily Burn Rate: $38.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: 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 $78.0 million to HOOKS VAN HOLM INCORPORATED for work described as: SINGLE FAMILY REO MARKETING & MANAGEMENT Key points: 1. Significant contract value of $77.9M awarded to a single vendor. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Contract duration of over 5 years indicates a long-term need for these services. 4. Fixed-price contract type aims to control costs for the government. 5. No small business participation noted, which could be a missed opportunity.
Value Assessment
Rating: fair
The contract value of $77.9M over approximately 5.5 years averages around $14M annually. Benchmarking this against similar large-scale property management contracts would be necessary to fully assess its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. The fixed-price nature further supports cost control, assuming the initial bids were competitive.
Taxpayer Impact: Taxpayers funded a substantial contract for REO marketing and management, with the expectation that competitive bidding and fixed pricing would ensure reasonable expenditure.
Public Impact
Ensures management and marketing of foreclosed single-family homes, impacting housing availability. Supports the Department of Housing and Urban Development's mission in managing its real estate owned properties. The long-term nature of the contract suggests a sustained need for these services, potentially reflecting market conditions or agency strategy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration could lead to price escalation if not managed carefully.
- Potential for vendor lock-in despite initial competition.
Positive Signals
- Awarded under full and open competition.
- Fixed-price contract type.
- Clear definition of services (REO Marketing & Management).
Sector Analysis
This contract falls within the professional services sector, specifically property management. The value is substantial, suggesting a large portfolio of REO properties managed by HUD.
Small Business Impact
The data indicates no small business participation in this contract. This suggests that either small businesses were not involved in the bidding process or were not awarded any portion of the work, which is a common concern for large federal contracts.
Oversight & Accountability
The contract was awarded by HUD, a federal agency with established oversight mechanisms. The fixed-price structure and full and open competition are standard practices aimed at ensuring accountability and value for taxpayer money.
Related Government Programs
- Residential Property Managers
- Department of Housing and Urban Development Contracting
- Department of Housing and Urban Development Programs
Risk Flags
- Potential for vendor complacency due to long contract duration.
- Lack of transparency regarding small business utilization.
- Risk of market fluctuations impacting property values and sale timelines.
- Dependence on a single vendor for critical housing management functions.
Tags
residential-property-managers, department-of-housing-and-urban-developm, ga, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $78.0 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 $78.0 million.
What is the period of performance?
Start: 2004-08-01. End: 2010-01-31.
What was the specific scope of 'REO Marketing & Management' services provided under this contract, and how did it align with HUD's strategic goals for distressed properties?
The 'REO Marketing & Management' services likely encompassed a broad range of activities including property preservation, maintenance, marketing for sale, and facilitating the sale of Real Estate Owned (REO) properties. This aligns with HUD's mission to stabilize communities and manage its inventory of foreclosed homes effectively, aiming to return them to productive use and minimize taxpayer losses.
Given the $78M contract value and 5+ year duration, what were the key performance indicators (KPIs) and how was vendor performance measured to ensure effectiveness and prevent cost overruns?
Key performance indicators likely included metrics such as time-to-market for properties, sale price achieved versus appraised value, property condition upon sale, and adherence to marketing strategies. Vendor performance would be monitored through regular reporting, site inspections, and potentially client satisfaction surveys, with penalties or incentives tied to meeting or exceeding these KPIs.
What was the rationale for awarding such a large contract to a single entity, and were there any provisions for subcontracting to smaller, specialized firms, particularly those focused on marketing or
The rationale for a single large award could stem from the need for a unified, streamlined approach to managing a vast portfolio of REO properties across a wide geographic area (Georgia). While the data doesn't explicitly mention subcontracting, large prime contractors are often encouraged or required to engage small businesses, so it's possible smaller firms were involved indirectly, though not reflected as prime awardees.
Industry Classification
NAICS: Real Estate and Rental and Leasing › Activities Related to Real Estate › Residential Property Managers
Product/Service Code: RESEARCH AND DEVELOPMENT › Commerce and Housing Credit R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 6
Pricing Type: FIXED PRICE (J)
Contractor Details
Address: 8010 ROSWELL ROAD, ATLANTA, GA, 30350
Business Categories: Category Business, Small Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $77,956,824
Exercised Options: $77,956,824
Current Obligation: $77,956,426
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Timeline
Start Date: 2004-08-01
Current End Date: 2010-01-31
Potential End Date: 2010-01-31 00:00:00
Last Modified: 2019-11-27
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