HUD awards $111M for REO Marketing & Management Services across CA, HI, GA
Contract Overview
Contract Amount: $111,381,926 ($111.4M)
Contractor: Pemco, Limited
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: $55.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COMBINATION (TWO OR MORE)
Sector: Other
Official Description: SINGLE FAMILY REO MARKETING & MANAGEMENT SERVICES FOR CALIFORNIA, HAWAII & GEORGIA
Place of Performance
Location: ATLANTA, FULTON County, GEORGIA, 30303
State: Georgia Government Spending
Plain-Language Summary
Department of Housing and Urban Development obligated $111.4 million to PEMCO, LIMITED for work described as: SINGLE FAMILY REO MARKETING & MANAGEMENT SERVICES FOR CALIFORNIA, HAWAII & GEORGIA Key points: 1. Contract awarded to PEMCO, Limited for REO marketing and management. 2. Services cover single-family residential properties in California, Hawaii, and Georgia. 3. The contract duration spans from August 2004 to January 2010. 4. This falls under the Lessors of Residential Buildings and Dwellings NAICS code. 5. The award value is approximately $111.4 million.
Value Assessment
Rating: fair
The contract value of $111.4 million over approximately 5.5 years suggests a significant investment. Benchmarking against similar property management contracts would be necessary to assess if this pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method is generally expected to yield fair market prices.
Taxpayer Impact: Taxpayer funds are utilized for managing foreclosed single-family homes, aiming to mitigate losses and maintain property value.
Public Impact
Ensures proper management and marketing of foreclosed homes, potentially stabilizing local housing markets. Supports the Department of Housing and Urban Development's mission in managing its real estate owned (REO) portfolio. Provides services that could impact property values and neighborhood aesthetics in affected areas. The contract's success relies on efficient property maintenance and timely sales.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics provided.
- Potential for cost overruns if market conditions are unfavorable.
- Geographic scope may present logistical challenges.
Positive Signals
- Awarded through full and open competition.
- Clear geographic focus for services.
- Long-term contract provides stability.
Sector Analysis
The real estate services sector involves property management, marketing, and sales. Spending benchmarks for such services can vary widely based on property type, location, and market conditions.
Small Business Impact
The data indicates that this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
Oversight by the Department of Housing and Urban Development is crucial to ensure PEMCO, Limited fulfills its contractual obligations effectively and efficiently, safeguarding taxpayer interests.
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
- Lack of detailed performance metrics.
- Potential for market fluctuations impacting sale prices.
- Geographic dispersion may increase management complexity.
- No indication of small business subcontracting.
Tags
lessors-of-residential-buildings-and-dwe, department-of-housing-and-urban-developm, ga, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $111.4 million to PEMCO, LIMITED. SINGLE FAMILY REO MARKETING & MANAGEMENT SERVICES FOR CALIFORNIA, HAWAII & GEORGIA
Who is the contractor on this award?
The obligated recipient is PEMCO, LIMITED.
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 $111.4 million.
What is the period of performance?
Start: 2004-08-01. End: 2010-01-31.
What were the key performance indicators (KPIs) used to evaluate PEMCO, Limited's success in marketing and managing these properties?
The provided data does not specify the key performance indicators (KPIs) used to evaluate PEMCO, Limited's success. Typically, such contracts would include metrics related to property maintenance, marketing timelines, sale prices achieved relative to market value, and tenant/buyer satisfaction. Without these KPIs, a thorough assessment of the contract's value and effectiveness is challenging.
How did the full and open competition process ensure the best possible price for these property management services?
Full and open competition theoretically ensures the best price by allowing all qualified vendors to submit bids, fostering a competitive environment. The agency then selects the offer that provides the best value, considering both price and other factors. However, the actual effectiveness depends on the clarity of the solicitation, the number and quality of bids received, and the evaluation criteria used by HUD.
What was the estimated taxpayer impact of managing these REO properties versus alternative approaches?
The taxpayer impact is tied to the cost of services ($111.4M) versus the potential recovery from selling the properties. Effective management should minimize holding costs, prevent further deterioration, and maximize sale prices, thereby reducing the net cost to taxpayers. Alternative approaches might include direct agency management or different disposition strategies, each with its own cost-benefit profile.
Industry Classification
NAICS: Real Estate and Rental and Leasing › Lessors of Real Estate › Lessors of Residential Buildings and Dwellings
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COMBINATION (TWO OR MORE) (2)
Contractor Details
Address: 1632 S. KING STREET, SUITE 100, HONOLULU, HI, 01
Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $111,381,926
Exercised Options: $111,381,926
Current Obligation: $111,381,926
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-08-01
Current End Date: 2010-01-31
Potential End Date: 2010-01-31 00:00:00
Last Modified: 2014-08-06
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