HUD Awards $8.69M for Field Service Management in Michigan
Contract Overview
Contract Amount: $8,686,861 ($8.7M)
Contractor: J G M Property Group, Inc.
Awarding Agency: Department of Housing and Urban Development
Start Date: 2025-12-12
End Date: 2026-12-19
Contract Duration: 372 days
Daily Burn Rate: $23.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FIELD SERVICE MAANGEMENT SERVICES AREA 3P
Place of Performance
Location: SHELBY TOWNSHIP, MACOMB County, MICHIGAN, 48316
State: Michigan Government Spending
Plain-Language Summary
Department of Housing and Urban Development obligated $8.7 million to J G M PROPERTY GROUP, INC. for work described as: FIELD SERVICE MAANGEMENT SERVICES AREA 3P Key points: 1. Contract awarded to J G M PROPERTY GROUP, INC. for residential property management. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is 372 days, ending in December 2026. 4. The contract is a delivery order under a larger agreement.
Value Assessment
Rating: fair
The contract value of $8.69 million for 372 days of service is difficult to benchmark without specific service details. However, for residential property management, this value suggests a significant scope of operations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was used, which typically allows for the widest range of potential bidders and can lead to better price discovery. The award was a delivery order, indicating it's part of a pre-existing contract vehicle.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for service providers.
Public Impact
Ensures continued management of residential properties, maintaining housing standards. Supports local economy through service provision by J G M PROPERTY GROUP, INC. Impacts residents of HUD-managed properties in Michigan.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics or service details.
- Potential for cost overruns if scope expands beyond initial estimates.
- Dependence on a single contractor for critical property management functions.
Positive Signals
- Utilized full and open competition, promoting fairness.
- Clear contract end date provides a defined service period.
- Awarded as a delivery order, potentially leveraging existing contract efficiencies.
Sector Analysis
The residential property management sector involves managing rental properties, including maintenance, tenant relations, and rent collection. Spending in this area is driven by government housing initiatives and the need to maintain public housing stock.
Small Business Impact
The data does not indicate if J G M PROPERTY GROUP, INC. is a small business. Further analysis would be needed to determine the impact on small business participation.
Oversight & Accountability
Oversight will be managed by the Department of Housing and Urban Development. Accountability will be tied to the terms of the delivery order and the performance of J G M PROPERTY GROUP, INC.
Related Government Programs
- Residential Property Managers
- Department of Housing and Urban Development Contracting
- Department of Housing and Urban Development Programs
Risk Flags
- Lack of detailed service scope.
- Potential for scope creep.
- Limited duration may require re-competition soon.
- No indication of small business participation.
Tags
residential-property-managers, department-of-housing-and-urban-developm, mi, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $8.7 million to J G M PROPERTY GROUP, INC.. FIELD SERVICE MAANGEMENT SERVICES AREA 3P
Who is the contractor on this award?
The obligated recipient is J G M PROPERTY GROUP, 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 $8.7 million.
What is the period of performance?
Start: 2025-12-12. End: 2026-12-19.
What specific services are included under 'Field Service Management' for these residential properties?
The specific services are not detailed in the provided data. Typically, field service management in this context could include property inspections, maintenance coordination, repairs, landscaping, security, and ensuring compliance with housing regulations. A more granular breakdown of tasks and deliverables would be necessary for a comprehensive value assessment.
What is the benchmark cost for similar residential property management contracts of this scale?
Benchmarking is challenging without detailed service scope. However, typical property management fees range from 8-12% of gross rental income. For an $8.69 million contract over approximately one year, this implies a substantial portfolio size or a comprehensive service package beyond basic management.
How effectively does the 'full and open competition' process ensure optimal value for taxpayer dollars in this specific award?
Full and open competition is designed to maximize value by encouraging multiple bids. Its effectiveness here depends on the number and quality of bids received, the clarity of the solicitation, and the evaluation criteria used. Without knowing these details, we assume the process was followed rigorously to achieve competitive pricing.
Industry Classification
NAICS: Real Estate and Rental and Leasing › Activities Related to Real Estate › Residential Property Managers
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7747 25 MILE RD, SHELBY TOWNSHIP, MI, 48316
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $8,686,861
Exercised Options: $8,686,861
Current Obligation: $8,686,861
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 86614524D00001
IDV Type: IDC
Timeline
Start Date: 2025-12-12
Current End Date: 2026-12-19
Potential End Date: 2026-12-19 00:00:00
Last Modified: 2025-12-19
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