USDA Awards $232M for Nationwide Property Preservation Services to Dawson's Realty & Mortgages, Inc

Contract Overview

Contract Amount: $232,260,655 ($232.3M)

Contractor: Dawson's Realty & Mortgages, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2023-06-20

End Date: 2026-06-30

Contract Duration: 1,106 days

Daily Burn Rate: $210.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NDMS SAMPLE TASK ORDER FOR NON-PERSONAL SERVICES TO PROVIDE NATIONWIDE POST ACCELERATION DEFAULT, PROPERTY PRESERVATION AND REAL ESTATE OWNED (REO) SERVICES ON THE RD SINGLE FAMILY DIRECT LOAN PORTFOLIO.

Place of Performance

Location: DULUTH, GWINNETT County, GEORGIA, 30096

State: Georgia Government Spending

Plain-Language Summary

Department of Agriculture obligated $232.3 million to DAWSON'S REALTY & MORTGAGES, INC. for work described as: NDMS SAMPLE TASK ORDER FOR NON-PERSONAL SERVICES TO PROVIDE NATIONWIDE POST ACCELERATION DEFAULT, PROPERTY PRESERVATION AND REAL ESTATE OWNED (REO) SERVICES ON THE RD SINGLE FAMILY DIRECT LOAN PORTFOLIO. Key points: 1. Significant contract value of $232.26 million for nationwide real estate services. 2. Dawson's Realty & Mortgages, Inc. is the sole awardee for this task order. 3. The contract covers default, property preservation, and REO services for single-family loans. 4. This spending falls under 'Other Activities Related to Real Estate' (NAICS 531390).

Value Assessment

Rating: questionable

The contract is a firm-fixed-price delivery order, which helps control costs. However, without benchmarks for similar nationwide property preservation contracts, assessing the value for money is difficult. The total value is substantial, requiring careful monitoring.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair pricing, but the specific price discovery mechanisms and the final negotiated price are not detailed.

Taxpayer Impact: Taxpayers are impacted by the significant expenditure of $232.26 million, intended to manage distressed single-family loan portfolios and protect government assets.

Public Impact

Ensures the preservation of foreclosed properties, protecting the government's investment. Supports the Rural Housing Service's mission to maintain a stable housing market. Potential impact on local economies through property maintenance and management activities. Provides services to borrowers facing default on single-family direct loans.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown for services.
Potential for cost overruns if property conditions are worse than anticipated.
Limited visibility into the specific performance metrics and quality control.

Positive Signals

Firm-fixed-price contract structure limits cost uncertainty.
Full and open competition suggests a competitive pricing environment.
Nationwide scope allows for standardized service delivery.

Sector Analysis

This contract falls under the real estate services sector, specifically focusing on property management for distressed assets within the Department of Agriculture's loan portfolio. Benchmarks for such specialized nationwide services are not readily available, making direct comparison challenging.

Small Business Impact

The data indicates that this contract was awarded to Dawson's Realty & Mortgages, Inc. There is no explicit information provided regarding small business participation or subcontracting goals within this specific task order.

Oversight & Accountability

Oversight will be crucial to ensure Dawson's Realty & Mortgages, Inc. meets the performance requirements and manages costs effectively throughout the contract duration. The Department of Agriculture's Rural Housing Service is responsible for monitoring this delivery order.

Related Government Programs

Other Activities Related to Real Estate
Department of Agriculture Contracting
Rural Housing Service Programs

Risk Flags

Lack of detailed cost breakdown.
No specified KPIs or quality assurance metrics.
Potential for unforeseen property conditions increasing costs.
Limited information on contractor's past performance.
Long contract duration (nearly 3 years) increases exposure to market changes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $232.3 million to DAWSON'S REALTY & MORTGAGES, INC.. NDMS SAMPLE TASK ORDER FOR NON-PERSONAL SERVICES TO PROVIDE NATIONWIDE POST ACCELERATION DEFAULT, PROPERTY PRESERVATION AND REAL ESTATE OWNED (REO) SERVICES ON THE RD SINGLE FAMILY DIRECT LOAN PORTFOLIO.

Who is the contractor on this award?

The obligated recipient is DAWSON'S REALTY & MORTGAGES, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Rural Housing Service).

What is the total obligated amount?

The obligated amount is $232.3 million.

What is the period of performance?

Start: 2023-06-20. End: 2026-06-30.

What is the breakdown of costs for different services (e.g., preservation, REO management) within this contract?

The provided data does not include a detailed cost breakdown for the specific services rendered under this task order. The total award amount is a lump sum for nationwide services. A comprehensive understanding of value for money would require a more granular analysis of how the $232.26 million is allocated across preservation, default management, and REO activities.

What are the key performance indicators (KPIs) and quality assurance measures for property preservation and REO services?

The data does not specify the key performance indicators or quality assurance measures for this contract. Effective oversight would necessitate clearly defined KPIs related to property condition, timeliness of services, and successful REO disposition. Without these, assessing the contractor's performance and the overall effectiveness of the spending is challenging.

How does the pricing compare to similar nationwide property preservation contracts awarded by other federal agencies?

Direct comparison of pricing for similar nationwide property preservation contracts is difficult without access to detailed contract data from other agencies. While this contract was awarded under full and open competition, the specific unit costs or service rates are not provided, making it hard to benchmark against industry standards or other government procurements.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Activities Related to Real Estate › Other Activities Related to Real Estate

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

Solicitation ID: 12SAD122R0001

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3775 VENTURE DR BLDG K STE 200, DULUTH, GA, 30096

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $232,260,655

Exercised Options: $232,260,655

Current Obligation: $232,260,655

Actual Outlays: $4,515,529

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 12SAD223D0001

IDV Type: IDC

Timeline