HUD Awards $6.6M IT/O&M Support to Cloud Nine Alliance LLC for REAC

Contract Overview

Contract Amount: $6,595,582 ($6.6M)

Contractor: Cloud Nine Alliance LLC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2023-03-24

End Date: 2026-09-23

Contract Duration: 1,279 days

Daily Burn Rate: $5.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: REAL ESTATE ASSESSMENT CENTER (REAC) INFORMATION TECHNOLOGY (IT) AND OPERATION AND MAINTENANCE (O&M) SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204

State: Virginia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $6.6 million to CLOUD NINE ALLIANCE LLC for work described as: REAL ESTATE ASSESSMENT CENTER (REAC) INFORMATION TECHNOLOGY (IT) AND OPERATION AND MAINTENANCE (O&M) SUPPORT SERVICES Key points: 1. Contract awarded to Cloud Nine Alliance LLC for IT and O&M support. 2. The contract value is $6,595,581.88 over 1279 days. 3. Awarded by the Department of Housing and Urban Development (HUD) for REAC. 4. The contract type is Firm Fixed Price. 5. This contract was not available for competition.

Value Assessment

Rating: questionable

The contract value of $6.6M for IT and O&M support over approximately 3.5 years appears high without a competitive benchmark. Pricing details are not available, making direct comparison difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited competition approach. This lack of competition may have impacted price discovery and potentially led to a higher price than if multiple vendors had bid.

Taxpayer Impact: Without competitive bidding, taxpayers may not be receiving the best possible value for these IT and O&M support services.

Public Impact

HUD's REAC relies on this contract for critical IT and operational support. The duration of the contract (over 3 years) suggests a long-term need for these services. Lack of competition raises concerns about potential overspending of taxpayer funds. The specific services provided are essential for the functioning of the Real Estate Assessment Center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing due to no-bid award
Limited transparency on pricing structure

Positive Signals

Contract supports critical IT and O&M functions for REAC
Firm Fixed Price contract provides cost certainty for the government

Sector Analysis

This contract falls under IT services, specifically Other Computer Related Services. The IT services sector is highly competitive, making the lack of competition for this contract notable. Benchmarks for similar IT support contracts vary widely based on scope and complexity.

Small Business Impact

The contract was awarded to Cloud Nine Alliance LLC. Information regarding whether this company is a small business is not provided in the data. The contract was not competed, which limits opportunities for small businesses to participate.

Oversight & Accountability

The Department of Housing and Urban Development is responsible for oversight of this contract. The lack of competition warrants closer scrutiny to ensure fair pricing and effective service delivery.

Related Government Programs

Other Computer Related Services
Department of Housing and Urban Development Contracting
Department of Housing and Urban Development Programs

Risk Flags

Lack of competitive bidding
Potential for inflated costs
Limited transparency on service details
No indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $6.6 million to CLOUD NINE ALLIANCE LLC. REAL ESTATE ASSESSMENT CENTER (REAC) INFORMATION TECHNOLOGY (IT) AND OPERATION AND MAINTENANCE (O&M) SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CLOUD NINE ALLIANCE LLC.

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 $6.6 million.

What is the period of performance?

Start: 2023-03-24. End: 2026-09-23.

What specific IT and O&M services are included in this contract, and how do they align with REAC's core mission?

The contract covers 'Other Computer Related Services' for REAC's IT and Operations & Maintenance. These services are crucial for maintaining the technological infrastructure and operational efficiency of the Real Estate Assessment Center, which is responsible for assessing the condition of public housing properties nationwide. The exact breakdown of services is not detailed but likely includes system maintenance, network support, software updates, and potentially help desk functions.

What justification was provided for awarding this contract on a limited competition basis, and what steps were taken to ensure fair pricing?

The data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source or limited justification was used. Without this justification, it's impossible to assess the validity of the limited competition. Steps to ensure fair pricing in such scenarios typically involve detailed cost analysis, comparison to historical data, or independent government estimates, none of which are detailed here.

How will HUD ensure accountability and effective performance from Cloud Nine Alliance LLC given the lack of competitive pressure?

HUD will likely rely on robust contract management, performance metrics, and service level agreements (SLAs) outlined in the contract. Regular performance reviews, clear deliverables, and established payment milestones tied to successful completion will be key. The Contracting Officer's Representative (COR) will play a vital role in monitoring progress and ensuring compliance with contract terms to maintain accountability.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 86615623Q00001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3312 6TH ST S, ARLINGTON, VA, 22204

Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,595,582

Exercised Options: $6,595,582

Current Obligation: $6,595,582

Actual Outlays: $4,664,757

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline