HUD's $4.9M contract for residential care facility management awarded to LTC-PRN ADVISORS, LLC

Contract Overview

Contract Amount: $4,925,880 ($4.9M)

Contractor: Ltc-Prn Advisors, LLC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2019-08-27

End Date: 2022-02-26

Contract Duration: 914 days

Daily Burn Rate: $5.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MANAGEMENT, CLAIMS PROCESSING PROPERTY DISPOSITION OF RESIDENTIAL CARE FACILITIES

Place of Performance

Location: BOWIE, PRINCE GEORGES County, MARYLAND, 20720

State: Maryland Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $4.9 million to LTC-PRN ADVISORS, LLC for work described as: MANAGEMENT, CLAIMS PROCESSING PROPERTY DISPOSITION OF RESIDENTIAL CARE FACILITIES Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract duration of 914 days suggests a need for ongoing support. 3. The firm fixed-price structure aims to control costs for the government. 4. Administrative Management and General Management Consulting Services are the primary focus. 5. The contract was awarded by the Department of Housing and Urban Development. 6. The contract value is approximately $4.9 million over its term.

Value Assessment

Rating: fair

The contract value of $4.9 million for administrative management services over approximately 2.5 years appears reasonable for the scope of managing residential care facilities. However, without specific benchmarks for similar property disposition services or detailed performance metrics, a precise value-for-money assessment is challenging. The firm fixed-price nature provides cost certainty, but the lack of competition could lead to a less optimal price than a competed contract might yield.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or qualifications required for the service. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices through market forces.

Taxpayer Impact: Sole-source awards can potentially result in higher costs for taxpayers compared to competitively awarded contracts, as there is less pressure on the contractor to offer the lowest possible price.

Public Impact

The primary beneficiaries are the Department of Housing and Urban Development (HUD) and potentially residents of the residential care facilities managed under this contract. The services delivered include management and claims processing related to the disposition of residential care facilities. The geographic impact is likely concentrated in areas where HUD has oversight of these facilities, primarily Maryland based on the contract data. Workforce implications are tied to the contractor's staff performing these management and claims processing functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Lack of detailed performance metrics in the provided data makes it difficult to assess contractor effectiveness.
The specific nature of 'property disposition' could involve complex legal and financial processes requiring specialized expertise.

Positive Signals

Firm fixed-price contract provides budget certainty for the agency.
The contractor, LTC-PRN ADVISORS, LLC, is specialized in administrative management.
The contract duration suggests a sustained need for these services.

Sector Analysis

This contract falls within the professional services sector, specifically administrative management and consulting. The market for such services is broad, encompassing various government agencies and private organizations requiring expertise in managing complex portfolios, processing claims, and facilitating property disposition. Benchmarking would typically involve comparing pricing and service delivery models of similar contracts for property management and disposition services within government or large-scale private real estate operations.

Small Business Impact

The contract data indicates that this was not a small business set-aside, nor does it appear to involve significant subcontracting opportunities for small businesses based on the information provided. The award to a single entity, LTC-PRN ADVISORS, LLC, suggests a focus on specialized capabilities rather than broad distribution of work to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Housing and Urban Development's contracting officers and program managers. Accountability measures would be defined within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, though detailed operational oversight and Inspector General jurisdiction would depend on the specific nature of the services and any potential fraud, waste, or abuse concerns.

Related Government Programs

HUD Property Disposition Programs
Residential Care Facility Oversight
Government Claims Processing Contracts
Administrative Management Consulting Services

Risk Flags

Sole-source award may limit cost savings.
Lack of competitive bidding could impact price discovery.
Performance metrics not detailed, making effectiveness assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $4.9 million to LTC-PRN ADVISORS, LLC. MANAGEMENT, CLAIMS PROCESSING PROPERTY DISPOSITION OF RESIDENTIAL CARE FACILITIES

Who is the contractor on this award?

The obligated recipient is LTC-PRN ADVISORS, 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 $4.9 million.

What is the period of performance?

Start: 2019-08-27. End: 2022-02-26.

What is the track record of LTC-PRN ADVISORS, LLC with federal contracts, particularly in property disposition?

Information on LTC-PRN ADVISORS, LLC's specific track record with federal contracts, especially concerning property disposition of residential care facilities, is limited in the provided data. While the contract indicates they were awarded this $4.9 million sole-source contract by HUD, further investigation into their past performance on similar government contracts, client satisfaction, and any history of disputes or contract terminations would be necessary for a comprehensive assessment. Their specialization in 'Administrative Management and General Management Consulting Services' suggests a potential capability, but the depth and breadth of their experience in this niche area require more detailed public records or agency performance evaluations.

How does the pricing of this contract compare to similar services for property disposition?

A direct comparison of the pricing for this $4.9 million contract is challenging without access to detailed cost breakdowns and benchmarks for similar sole-source contracts for property disposition of residential care facilities. Typically, sole-source awards are less transparent regarding pricing competitiveness. To assess value, one would ideally compare the per-unit costs or overall contract value against market rates for comparable services, factoring in the specific complexities of HUD-regulated facilities. The firm fixed-price structure provides cost certainty but does not inherently guarantee the best possible price due to the lack of competition.

What are the primary risks associated with this sole-source contract?

The primary risk associated with this sole-source contract is the potential for suboptimal pricing due to the absence of competitive bidding. Without competing offers, there is less market pressure on LTC-PRN ADVISORS, LLC to offer the most cost-effective solution. Another risk could be contractor performance; if the contractor fails to deliver the required services effectively, the government may face challenges in finding and transitioning to a new provider, especially if the services are highly specialized. The duration of the contract also presents a risk if the agency's needs change significantly over time.

How effective is the management and claims processing for residential care facilities under this contract?

The provided data does not contain specific metrics to evaluate the effectiveness of the management and claims processing services delivered under this contract. Effectiveness would typically be measured by factors such as the efficiency of claims resolution, the successful disposition of properties, adherence to regulatory requirements, and overall satisfaction of stakeholders, including residents and HUD. A thorough assessment would require reviewing performance reports, audit findings, and feedback from the contracting agency.

What is the historical spending pattern for similar services by HUD?

The provided data snippet focuses on a single contract and does not offer historical spending patterns for similar services by HUD. To understand historical spending, one would need to analyze procurement data over several fiscal years, identifying contracts for property management, disposition, and claims processing related to residential care facilities or similar housing programs. This analysis would reveal trends in contract values, types of services procured, and the extent to which these services were competed or awarded sole-source.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 86543F19R00012

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Latoria Thompson Consulting, LLC

Address: 12820 ODENS BEQUEST DR, BOWIE, MD, 20720

Business Categories: Black American Owned Business, Category Business, Joint Venture Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $4,925,880

Exercised Options: $4,925,880

Current Obligation: $4,925,880

Actual Outlays: $4,825,440

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline