Agriculture Department's $29.3M property management contract awarded to CoreLogic Solutions, LLC

Contract Overview

Contract Amount: $29,293,294 ($29.3M)

Contractor: Corelogic Solutions, LLC

Awarding Agency: Department of Agriculture

Start Date: 2014-09-18

End Date: 2016-09-29

Contract Duration: 742 days

Daily Burn Rate: $39.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF AG-31ME-C-11-1010 TYPE 60 CSC REO PROPERTY MGMT/MAINTENANCE (CORELOGIC) RECOVERABLE- 9/30/14 TO 9/29/15 RICH COHEN COR, ALESEIA SAUNDERS CO. FY14 TYPE 60 FUNDS ARE AVAILABLE.

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS CITY County, MISSOURI, 63120

State: Missouri Government Spending

Plain-Language Summary

Department of Agriculture obligated $29.3 million to CORELOGIC SOLUTIONS, LLC for work described as: IGF::OT::IGF AG-31ME-C-11-1010 TYPE 60 CSC REO PROPERTY MGMT/MAINTENANCE (CORELOGIC) RECOVERABLE- 9/30/14 TO 9/29/15 RICH COHEN COR, ALESEIA SAUNDERS CO. FY14 TYPE 60 FUNDS ARE AVAILABLE. Key points: 1. Contract value represents a significant investment in property management services for USDA Rural Housing Service. 2. CoreLogic Solutions, LLC, a single awardee, suggests a focused relationship for these services. 3. The contract duration of 742 days indicates a medium-term commitment for ongoing property maintenance. 4. Fixed-price contract type aims to control costs by establishing a set price for services. 5. The contract was awarded using full and open competition, implying a broad search for qualified vendors. 6. Geographic focus on Missouri (MO) highlights a specific regional need for these services.

Value Assessment

Rating: fair

The contract's total value of $29.3 million over approximately two years requires careful benchmarking against similar property management contracts. Without specific details on the scope of services (e.g., number of properties managed, types of maintenance), a precise value-for-money assessment is challenging. However, the fixed-price nature suggests an attempt to manage cost predictability. Further analysis would involve comparing the per-property or per-unit cost to industry averages for comparable government or commercial contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the agency sought proposals from all responsible sources. The number of bidders is not specified, but this approach generally fosters a competitive environment, potentially leading to better pricing and service offerings. The agency's decision to use full and open competition suggests confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value by encouraging multiple vendors to offer their most competitive terms and pricing.

Public Impact

The primary beneficiaries are the USDA Rural Housing Service, which receives essential property management and maintenance for its portfolio. Services delivered include property management and maintenance, crucial for preserving the value and usability of real estate assets. The geographic impact is concentrated in Missouri, indicating a specific regional focus for this contract. Workforce implications may include employment opportunities for property managers, maintenance staff, and administrative personnel within CoreLogic Solutions, LLC and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the quality and efficiency of property management.
Limited information on the scope of 'property management/maintenance' could lead to unaddressed needs or scope creep.
The fixed-price contract might incentivize cost-cutting that could impact service quality if not closely monitored.
Reliance on a single vendor for an extended period could reduce flexibility in adapting to changing needs.

Positive Signals

Awarded through full and open competition, suggesting a robust vetting of potential contractors.
Fixed-price contract type provides cost certainty for the agency and taxpayers.
The contract duration indicates a stable, ongoing need for these services, suggesting a well-defined requirement.
CoreLogic Solutions, LLC's award implies they met the agency's technical and financial requirements.

Sector Analysis

The real estate services sector, particularly property management and maintenance, is a critical component of government operations, especially for agencies managing physical assets. This contract falls under the 'Other Activities Related to Real Estate' NAICS code (531390). Government spending in this area is substantial, covering diverse needs from facility upkeep to specialized property recovery. Benchmarking would involve comparing the cost per property or per square foot managed against similar government contracts and private sector benchmarks.

Small Business Impact

This contract does not appear to have been set aside for small businesses, nor is there an indication of specific small business subcontracting goals. The award to CoreLogic Solutions, LLC, a presumably larger entity, suggests that the primary focus was on securing comprehensive property management services. Further investigation into subcontracting plans would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the USDA Rural Housing Service contracting officers and program managers. The contract's fixed-price nature and defined period suggest clear accountability for deliverables. Transparency would be enhanced by public access to contract performance reports and any associated Inspector General audits, if applicable. The contract's recoverable nature implies some level of financial oversight.

Related Government Programs

USDA Property Management Contracts
Federal Real Estate Services
Rural Housing Programs
Government Property Maintenance

Risk Flags

Potential for service quality degradation due to fixed-price incentives.
Lack of detailed performance metrics hinders objective evaluation.
Geographic concentration may limit broader applicability or scalability.
Contract duration could lead to vendor lock-in if not managed proactively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $29.3 million to CORELOGIC SOLUTIONS, LLC. IGF::OT::IGF AG-31ME-C-11-1010 TYPE 60 CSC REO PROPERTY MGMT/MAINTENANCE (CORELOGIC) RECOVERABLE- 9/30/14 TO 9/29/15 RICH COHEN COR, ALESEIA SAUNDERS CO. FY14 TYPE 60 FUNDS ARE AVAILABLE.

Who is the contractor on this award?

The obligated recipient is CORELOGIC SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Rural Housing Service).

What is the total obligated amount?

The obligated amount is $29.3 million.

What is the period of performance?

Start: 2014-09-18. End: 2016-09-29.

What specific property management and maintenance services were included in this contract?

The provided data indicates the contract was for 'PROPERTY MGMT/MAINTENANCE (CORELOGIC) RECOVERABLE'. While the exact scope is not detailed, typical services under such contracts include leasing, rent collection, tenant relations, routine maintenance, repairs, inspections, and ensuring properties are kept in good condition. The 'recoverable' designation suggests that costs incurred under this contract might be recouped from specific programs or assets, implying a focus on properties associated with USDA loan or grant programs. A more granular understanding of the service deliverables would require reviewing the contract's Statement of Work (SOW).

How does the contract value of approximately $29.3 million compare to similar federal property management contracts?

Comparing this $29.3 million contract requires context regarding the number of properties managed, their size, location, and the specific services rendered. Federal property management contracts can vary widely in cost. For instance, managing a large portfolio of diverse properties across multiple states would naturally incur higher costs than managing a smaller, localized set. Without detailed service metrics (e.g., cost per unit, cost per square foot, number of properties), a direct comparison is difficult. However, for a contract spanning roughly two years and covering property management and maintenance, this value suggests a significant operational scope, likely involving a substantial number of properties or complex maintenance requirements.

What are the potential risks associated with a fixed-price contract for property management?

Fixed-price contracts offer cost certainty but can introduce risks if not managed carefully. For property management, a key risk is that the contractor might cut corners on maintenance or service quality to maximize profit, potentially leading to deteriorating property conditions or tenant dissatisfaction. Conversely, if the scope of work is underestimated by the contractor, they may incur losses, potentially leading to disputes or requests for contract modifications. Effective oversight is crucial to ensure the contractor meets performance standards despite the fixed-price incentive. The 'recoverable' nature of this contract might mitigate some risks by tying costs to specific asset performance.

What does the 'recoverable' designation imply for this contract?

The term 'recoverable' in the contract description (IGF::OT::IGF AG-31ME-C-11-1010 TYPE 60 CSC REO PROPERTY MGMT/MAINTENANCE (CORELOGIC) RECOVERABLE) suggests that the funds expended under this contract are intended to be recouped from specific sources, likely related to Real Estate Owned (REO) properties or assets managed through USDA loan programs. This often means the costs are charged against the specific properties or loan portfolios they pertain to, rather than being treated as general operating expenses. This designation implies a direct link between the contract's spending and the financial performance of the underlying real estate assets.

What is the track record of CoreLogic Solutions, LLC in managing federal contracts?

CoreLogic Solutions, LLC is a known entity in the real estate data and analytics industry, often involved in property information, analytics, and services. While this specific contract is for property management and maintenance, the company's broader experience likely includes managing large datasets and complex operational processes. To assess their track record specifically for federal property management, a review of their past federal contract awards, performance evaluations (e.g., CPARS), and any history of disputes or contract terminations would be necessary. Their ability to secure this contract suggests they met the agency's requirements at the time of award.

How has federal spending on property management and maintenance evolved over recent years?

Federal spending on property management and maintenance is a consistent and significant expenditure across various agencies, driven by the government's vast real estate holdings. Spending trends are influenced by factors such as the size and condition of the federal real estate portfolio, infrastructure modernization initiatives, and budget appropriations. Agencies like the General Services Administration (GSA) manage a large portion of federal buildings, while others, like the Department of Defense or USDA, manage specialized portfolios. Overall spending fluctuates based on economic conditions, policy priorities, and the lifecycle of federal assets, often showing gradual increases for maintenance and modernization.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Activities Related to Real Estate › Other Activities Related to Real Estate

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Corelogic, Inc. (UEI: 156863011)

Address: 4 FIRST AMERICAN WAY, SANTA ANA, CA, 92707

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,293,294

Exercised Options: $29,293,294

Current Obligation: $29,293,294

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: SUPPLIES OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: AG31MEC111010

IDV Type: IDC

Timeline