HUD awards $2.4M for residential healthcare facility inspections, with 6 bidders vying for the contract

Contract Overview

Contract Amount: $2,400,811 ($2.4M)

Contractor: PMA Associates, Inc.

Awarding Agency: Department of Housing and Urban Development

Start Date: 2021-03-01

End Date: 2026-02-28

Contract Duration: 1,825 days

Daily Burn Rate: $1.3K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD), OFFICE OF HEALTHCARE PROGRAMS (OHP) REQUIRES THE SERVICES OF A CONTRACTOR TO PROVIDE ON-SITE INSPECTIONS OF NEW CONSTRUCTION AND SUBSTANTIAL REHABILITATION OF RESIDENTIAL HEALTHCARE FACILITIES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20410

State: District of Columbia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $2.4 million to PMA ASSOCIATES, INC. for work described as: THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD), OFFICE OF HEALTHCARE PROGRAMS (OHP) REQUIRES THE SERVICES OF A CONTRACTOR TO PROVIDE ON-SITE INSPECTIONS OF NEW CONSTRUCTION AND SUBSTANTIAL REHABILITATION OF RESIDENTIAL HEALTHCARE FACILITIES. Key points: 1. The contract value appears reasonable for the scope of services, which includes on-site inspections of new construction and substantial rehabilitation. 2. With six bidders, the competition level suggests a healthy market for these specialized inspection services. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. The contract duration of five years allows for consistent oversight of healthcare facility development. 5. The geographic focus on Washington D.C. indicates a targeted approach to facility development in the capital region.

Value Assessment

Rating: good

The contract's total value of approximately $2.4 million over five years averages to about $480,000 annually. This figure seems aligned with the costs associated with specialized building inspection services, particularly for healthcare facilities which often have stringent regulatory requirements. Benchmarking against similar contracts for building inspections, especially those involving healthcare-related construction, would provide a more precise value assessment, but the initial figures do not raise immediate concerns regarding overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating an expectation of a relatively straightforward procurement process. The presence of six bidders suggests that the solicitation attracted a reasonable level of interest from qualified firms. This level of competition is generally sufficient to promote price discovery and ensure that the government receives competitive pricing for the services rendered.

Taxpayer Impact: The competition level indicates that taxpayers are likely benefiting from a fair market price, as multiple firms vied for the opportunity to provide these essential inspection services.

Public Impact

Residents of new and rehabilitated residential healthcare facilities will benefit from improved safety and quality standards due to thorough inspections. The services delivered ensure compliance with construction and rehabilitation standards for healthcare facilities. The contract's impact is geographically focused on the District of Columbia, supporting development and oversight within the nation's capital. The contract supports a workforce of skilled inspectors and potentially administrative staff involved in the inspection process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited geographic reach beyond the immediate DC area if similar needs arise elsewhere.
Reliance on a single contractor for a critical oversight function could pose a risk if performance falters.
The specific expertise required for healthcare facility inspections might limit the pool of truly qualified bidders in future procurements.

Positive Signals

The use of a full and open competition, even under SAP, suggests a broad outreach to potential providers.
The firm-fixed-price contract type provides cost certainty for the government.
The five-year duration allows for continuity and deep understanding of HUD's specific requirements.
The contract is awarded to a single entity, potentially leading to specialized knowledge development within that firm.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically focusing on building inspection services (NAICS code 541350). This market involves firms that provide specialized expertise in evaluating construction quality, code compliance, and safety standards. The total federal spending on building inspection services can vary significantly year to year, but this contract represents a modest investment by HUD for a critical oversight function within the healthcare facility development domain.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information about subcontracting plans. Given the nature of the services and the competition level, it's possible that small businesses participated in the bidding process, but their specific role or success is not detailed in the provided data. Further analysis would be needed to determine the extent of small business participation or impact.

Oversight & Accountability

Oversight of this contract is managed by the Department of Housing and Urban Development, Office of Healthcare Programs. As a competed contract with a firm-fixed-price structure, accountability is primarily tied to the contractor's adherence to the contract's statement of work and performance standards. Transparency is facilitated through the federal procurement data system, where contract awards are recorded. Specific Inspector General jurisdiction would typically fall under HUD's OIG for any potential fraud, waste, or abuse.

Related Government Programs

HUD Healthcare Facility Programs
Residential Construction Oversight
Building Code Compliance Services
Federal Construction Inspection Contracts

Risk Flags

Contractor Performance Risk
Scope Creep Potential
Regulatory Compliance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $2.4 million to PMA ASSOCIATES, INC.. THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD), OFFICE OF HEALTHCARE PROGRAMS (OHP) REQUIRES THE SERVICES OF A CONTRACTOR TO PROVIDE ON-SITE INSPECTIONS OF NEW CONSTRUCTION AND SUBSTANTIAL REHABILITATION OF RESIDENTIAL HEALTHCARE FACILITIES.

Who is the contractor on this award?

The obligated recipient is PMA ASSOCIATES, 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 $2.4 million.

What is the period of performance?

Start: 2021-03-01. End: 2026-02-28.

What is the track record of PMA Associates, Inc. with federal contracts, particularly with HUD?

PMA Associates, Inc. has a history of federal contracting, though the provided data does not detail their specific track record with HUD or the volume/nature of previous contracts. A deeper dive into federal procurement databases like FPDS-NG would reveal the extent of their past performance, including contract values, agencies served, and performance ratings. Understanding their prior experience, especially with similar inspection services or healthcare facilities, is crucial for assessing their capability to fulfill this current contract effectively and mitigate performance risks.

How does the $2.4 million contract value compare to similar building inspection services procured by federal agencies?

The $2.4 million contract value over five years, averaging $480,000 annually, appears to be within a reasonable range for specialized building inspection services, particularly those focused on healthcare facilities which often involve complex regulatory compliance. However, a precise comparison requires benchmarking against contracts with similar scopes of work, geographic locations, and facility types (e.g., new construction vs. rehabilitation). Without direct comparable data, it's difficult to definitively state if this represents exceptional value, but it does not immediately suggest overpricing given the specialized nature of the services.

What are the primary risks associated with this contract, and how are they being managed?

Key risks include potential performance issues by the contractor (PMA Associates, Inc.), such as inadequate inspection quality or missed compliance issues, which could impact the safety and quality of healthcare facilities. Another risk is the potential for cost increases if the scope of work expands beyond the initial estimates, although the firm-fixed-price structure mitigates this. The government manages these risks through the contract's performance standards, regular oversight by HUD, and the competitive bidding process which selected a presumably capable vendor. The five-year duration also allows for consistent monitoring.

How effective is HUD's current approach to overseeing the construction and rehabilitation of residential healthcare facilities?

The effectiveness of HUD's approach is directly tied to the quality and thoroughness of the inspections performed under this contract. By engaging a specialized contractor like PMA Associates, Inc., HUD aims to ensure compliance with construction standards and safety regulations, thereby enhancing the quality of residential healthcare facilities. The success of this approach can be measured by the reduction in construction defects, improved facility safety records, and positive resident outcomes. Ongoing monitoring and performance reviews of the contractor are essential to gauge the overall effectiveness of this oversight strategy.

What are the historical spending patterns for building inspection services at HUD or similar agencies?

Historical spending patterns for building inspection services at HUD and similar agencies can fluctuate based on the volume of construction and rehabilitation projects undertaken. Agencies like HUD, which are involved in housing and community development, would typically allocate funds for such services as needed for their programs. Analyzing past budgets and contract awards for inspection services would reveal trends, peak spending periods, and the typical contract values and durations. This contract's $2.4 million award over five years should be viewed in the context of these historical expenditures to assess its relative scale and significance.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Building Inspection Services

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › INSPECTION SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 86615621Q00002

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 306 BATHURST ST, UPPER MARLBORO, MD, 20774

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

Financial Breakdown

Contract Ceiling: $2,400,811

Exercised Options: $2,400,811

Current Obligation: $2,400,811

Actual Outlays: $815,503

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline