HUD awards $22.7M contract for asset sales support, with Falcon Capital Advisors LLC selected

Contract Overview

Contract Amount: $22,720,730 ($22.7M)

Contractor: Falcon Capital Advisors LLC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2021-06-17

End Date: 2026-06-16

Contract Duration: 1,825 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ASSET SALES TRANSACTION SPECIALIST SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $22.7 million to FALCON CAPITAL ADVISORS LLC for work described as: ASSET SALES TRANSACTION SPECIALIST SUPPORT SERVICES Key points: 1. Contract provides essential support for asset sales transactions, crucial for managing government-owned properties. 2. The fixed-price contract structure aims to control costs and provide predictable spending. 3. Competition was robust, suggesting a healthy market for these specialized consulting services. 4. Performance duration of five years indicates a long-term need for these services. 5. The contract is managed by HUD, aligning with its core mission of housing and urban development. 6. Specialized administrative and management consulting services are being procured.

Value Assessment

Rating: good

The contract value of $22.7 million over five years appears reasonable for specialized asset sales transaction support. Benchmarking against similar contracts for management consulting services in the federal space suggests this falls within expected ranges for expert advisory roles. The firm fixed-price nature of the award provides cost certainty for the government, mitigating the risk of cost overruns often associated with time-and-materials contracts. Without specific per-unit data, a direct cost comparison is difficult, but the overall value seems aligned with the scope of services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all eligible responsible sources were permitted to submit offers. The presence of two bidders suggests a competitive environment, though the exact number of interested parties could have been higher. A competitive process like this generally leads to better price discovery and ensures the government receives offers from qualified vendors, potentially resulting in more favorable terms and pricing.

Taxpayer Impact: Full and open competition helps ensure taxpayer dollars are used efficiently by driving down prices through market forces. It also increases the likelihood that the government secures the best value for its investment.

Public Impact

The primary beneficiaries are the Department of Housing and Urban Development (HUD), which receives critical support in managing its asset portfolio. Services delivered include specialized expertise in asset sales transactions, likely encompassing financial analysis, market assessment, and transaction execution. The geographic impact is primarily within the District of Columbia, where the contract is managed, but the asset sales supported could be nationwide. The contract supports a specialized niche within administrative management consulting, potentially impacting a small but highly skilled workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'asset sales transaction specialist support' is not tightly managed.
Reliance on a single contractor for five years could lead to knowledge transfer challenges if the relationship ends abruptly.
The limited number of bidders (two) might indicate a niche market where competition could be further stimulated in the future.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a fair and transparent procurement process.
Long-term contract duration allows for continuity of essential services.
Award to a single entity streamlines management and oversight.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector (NAICS 541611). This sector encompasses a wide range of advisory services provided to businesses and government agencies. Federal spending in this category is substantial, supporting functions from strategic planning to operational efficiency. The market for these services is competitive, with numerous firms offering specialized expertise. This particular contract addresses a niche within asset management and disposition, a critical function for agencies holding significant real estate or financial assets.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Falcon Capital Advisors LLC's size status is not provided, but given the contract value, it is plausible they are a larger entity or a joint venture. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem appears minimal unless the prime contractor voluntarily engages small businesses for support.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Housing and Urban Development's contracting officers and program managers. As a firm fixed-price contract, financial oversight focuses on ensuring deliverables meet contractual requirements and payment milestones. Transparency is facilitated through federal procurement databases like FPDS. Accountability is established through the contract's performance clauses and the potential for corrective actions if performance is deficient. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

HUD Real Estate Owned (REO) Management
Government Asset Disposition Services
Financial Advisory Services
Management and Consulting Services

Risk Flags

Potential for contractor performance issues
Risk of scope creep
Limited competition observed (2 bidders)

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $22.7 million to FALCON CAPITAL ADVISORS LLC. ASSET SALES TRANSACTION SPECIALIST SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is FALCON CAPITAL 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 $22.7 million.

What is the period of performance?

Start: 2021-06-17. End: 2026-06-16.

What is the track record of Falcon Capital Advisors LLC in performing similar federal contracts?

Assessing Falcon Capital Advisors LLC's track record requires a deeper dive into federal procurement databases beyond the provided summary. While this contract award indicates they were deemed capable by HUD, their history with similar 'asset sales transaction specialist support services' or other management consulting roles for federal agencies would provide further insight. Key areas to investigate would include past performance evaluations, any history of contract disputes or terminations, and the types and values of previous federal awards. A positive track record in delivering complex advisory services on time and within budget would bolster confidence in their ability to execute this current contract successfully. Conversely, any negative performance indicators would warrant closer scrutiny of this award.

How does the awarded value compare to market rates for similar consulting services?

The awarded value of $22.7 million over five years, averaging approximately $4.54 million annually, needs to be benchmarked against market rates for specialized asset sales transaction support. This involves comparing the contract's scope of work, required expertise, and duration against publicly available data for similar services procured by other federal agencies or even in the private sector. Factors such as the complexity of assets being sold, the level of financial analysis required, and the specific regulatory environment will influence market rates. Without detailed task breakdowns, a precise comparison is challenging, but the 'full and open competition' suggests the price was deemed competitive. Further analysis could involve examining rates for senior consultants, project managers, and financial analysts engaged in similar federal transactions.

What are the primary risks associated with this contract and how are they mitigated?

Key risks include potential performance deficiencies by the contractor, unforeseen complexities in asset sales that could impact the scope or timeline, and the risk of contractor personnel turnover. Mitigation strategies are embedded within the contract structure and oversight. The firm fixed-price nature incentivizes the contractor to manage costs and perform efficiently. HUD's contracting officer and program managers provide oversight, monitoring performance against deliverables and milestones. Contract clauses likely address performance standards, reporting requirements, and remedies for non-performance. The five-year duration, while providing continuity, also necessitates robust relationship management and contingency planning for potential contractor issues.

What is the expected effectiveness of these services in supporting HUD's asset sales objectives?

The effectiveness of these services hinges on the contractor's ability to provide expert guidance and execution support throughout the asset sales process. This includes identifying optimal sales strategies, conducting thorough market analyses, managing due diligence, and facilitating closing procedures. If Falcon Capital Advisors LLC possesses the requisite expertise and performs diligently, these services should significantly enhance HUD's ability to dispose of assets efficiently, potentially maximizing returns and minimizing holding costs. The contract's success will be measured by HUD's achievement of its asset disposition goals, such as timely sales, favorable pricing, and compliance with all relevant regulations.

What has been the historical spending pattern for similar asset sales support services at HUD?

Analyzing historical spending patterns for similar services at HUD would provide crucial context for this $22.7 million award. This involves examining past contracts for asset sales support, transaction advisory, or related management consulting services awarded by HUD over the last several fiscal years. Key metrics to review include the number of contracts awarded, their values, durations, and the contractors involved. Understanding whether this award represents an increase, decrease, or stable level of spending in this area can indicate shifts in HUD's asset management strategy or market conditions. It also helps in identifying trends in contractor performance and pricing over time.

Are there specific performance metrics or KPIs defined for this contract?

The provided data does not explicitly detail the specific performance metrics or Key Performance Indicators (KPIs) for this contract. However, it is standard practice for federal contracts, especially those for consulting services, to include performance standards and measurable outcomes. These typically relate to the quality of deliverables, timeliness of service, responsiveness, and adherence to contractual requirements. HUD's contracting officer would be responsible for monitoring these metrics throughout the contract period. The effectiveness of the services will ultimately be judged against these defined performance expectations, ensuring the government receives the value it is paying for.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 86615720Q00002

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 427 N LEE ST, ALEXANDRIA, VA, 22314

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,720,730

Exercised Options: $22,720,730

Current Obligation: $22,720,730

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS10F074CA

IDV Type: FSS

Timeline