HUD's $13.5M Mark-to-Market Asset Management Contract Awarded to RER Solutions, Inc

Contract Overview

Contract Amount: $13,508,516 ($13.5M)

Contractor: RER Solutions, Inc.

Awarding Agency: Department of Housing and Urban Development

Start Date: 2001-09-25

End Date: 2006-09-24

Contract Duration: 1,825 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ASSET MANAGEMENT SERVICESFOR THE MARK-TO-MARKET PROGRAM

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20026

State: District of Columbia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $13.5 million to RER SOLUTIONS, INC. for work described as: ASSET MANAGEMENT SERVICESFOR THE MARK-TO-MARKET PROGRAM Key points: 1. Contract awarded for asset management services, indicating a need for specialized administrative and consulting expertise. 2. The contract duration of 1825 days suggests a long-term requirement for these services. 3. Awarded under full and open competition, implying a robust bidding process. 4. The fixed-price contract type aims to control costs and provide predictability. 5. The contract was awarded by the Department of Housing and Urban Development, aligning with its mission. 6. The North American Industry Classification System (NAICS) code 541611 points to management consulting services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The firm fixed-price structure suggests an attempt to manage costs, but the overall value depends on the effectiveness of the asset management services provided. Without more granular data on the scope of work and outcomes, a definitive value assessment is difficult. The contract's value of $13.5 million over five years averages to approximately $2.7 million annually, which needs to be evaluated against the portfolio size and complexity it manages.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of three bids suggests a reasonable level of competition, which typically helps in achieving fair market prices. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the competitive dynamics and their impact on the final award price.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and better pricing. It ensures that the government explores a wide range of options before selecting a contractor.

Public Impact

The primary beneficiaries are likely the Department of Housing and Urban Development (HUD) and the owners/stakeholders of properties within the Mark-to-Market program. The services delivered are crucial for managing and optimizing the financial performance of multifamily housing properties. The geographic impact is concentrated in the District of Columbia, where the contract was awarded, but the services likely extend to properties managed under the Mark-to-Market program nationwide. The contract supports administrative and consulting roles, potentially impacting a specialized workforce in asset management and real estate finance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the Mark-to-Market program's needs evolve significantly beyond initial projections.
Reliance on a single contractor for critical asset management functions could pose a risk if performance falters.
The effectiveness of asset management is highly dependent on market conditions and property-specific challenges.

Positive Signals

Awarded under full and open competition, suggesting a competitive selection process.
Firm fixed-price contract type helps to control costs and provides budget certainty.
Long contract duration (5 years) indicates a stable, ongoing need for these services, suggesting successful past performance or a well-defined requirement.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector, specifically related to real estate asset management. The Mark-to-Market program aims to restructure the debt of eligible multifamily housing projects to reduce rents to market levels, making these properties more affordable. Contracts like this are essential for managing the financial and operational aspects of these restructured properties, ensuring they remain viable and continue to provide affordable housing. Comparable spending in this sector often involves large-scale portfolio management and financial advisory services.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information about subcontracting requirements for small businesses. The award to RER SOLUTIONS, INC. suggests it may not be a small business, or if it is, the set-aside status was not specified. Further analysis would be needed to determine if small businesses are involved in subcontracting opportunities related to this contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Housing and Urban Development (HUD). Accountability measures are typically embedded within the contract's performance work statement, including reporting requirements and service level agreements. Transparency is facilitated through federal contract databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply to ensure the integrity of the contracting process and the proper use of funds.

Related Government Programs

HUD Multifamily Housing Programs
Affordable Housing Preservation
Government Contract Administration
Real Estate Asset Management
Financial Consulting Services

Risk Flags

Contract Duration
Performance Monitoring
Scope Definition

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $13.5 million to RER SOLUTIONS, INC.. ASSET MANAGEMENT SERVICESFOR THE MARK-TO-MARKET PROGRAM

Who is the contractor on this award?

The obligated recipient is RER SOLUTIONS, 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 $13.5 million.

What is the period of performance?

Start: 2001-09-25. End: 2006-09-24.

What is the specific scope of 'Asset Management Services' for the Mark-to-Market program under this contract?

The 'Asset Management Services' for the Mark-to-Market program under this contract likely encompass a range of activities aimed at overseeing and optimizing the financial performance of multifamily housing properties whose debt has been restructured. This typically includes monitoring property operations, ensuring compliance with program requirements, managing financial reporting, evaluating property performance against benchmarks, and potentially identifying strategies for value enhancement or risk mitigation. The services are critical for HUD to ensure that the Mark-to-Market initiative achieves its goals of preserving affordability while maintaining property viability. The exact scope would be detailed in the contract's Performance Work Statement (PWS), outlining specific deliverables, reporting frequencies, and performance standards expected from RER SOLUTIONS, INC.

How does the $13.5 million contract value compare to similar asset management contracts for federal housing programs?

Comparing the $13.5 million contract value for HUD's Mark-to-Market asset management services requires context regarding the size and complexity of the portfolio managed. If this contract covers a substantial number of properties or properties with significant financial challenges, the value might be considered reasonable. However, without knowing the exact number of units, properties, or the specific financial restructuring involved, a direct comparison is difficult. Generally, large-scale asset management contracts for federal housing programs can range from several million to tens of millions of dollars annually, depending on the scope. The average annual value of this contract is approximately $2.7 million, which appears to be within a typical range for managing a significant portfolio of multifamily housing assets.

What are the key performance indicators (KPIs) used to evaluate RER SOLUTIONS, INC.'s performance on this contract?

Key Performance Indicators (KPIs) for this asset management contract would likely focus on the financial health and operational efficiency of the properties managed under the Mark-to-Market program. Potential KPIs could include metrics such as occupancy rates, rent collection rates, operating expense ratios, net operating income (NOI) growth, compliance with program regulations, and timely submission of financial reports. Performance might also be assessed based on the contractor's ability to identify and mitigate risks, implement cost-saving measures, and ensure tenant satisfaction. The specific KPIs and their targets would be defined in the contract's Performance Work Statement (PWS) and used by HUD to monitor RER SOLUTIONS, INC.'s effectiveness in fulfilling its contractual obligations and achieving the program's objectives.

What is RER SOLUTIONS, INC.'s track record with federal contracts, particularly with HUD?

RER SOLUTIONS, INC. has a history of federal contracting, with this specific contract from HUD being a significant award. Analyzing their past performance on similar contracts, especially those involving asset management or housing program administration, would provide insight into their capabilities and reliability. Federal procurement data often includes past performance ratings and contract history. A review of this data would reveal whether RER SOLUTIONS, INC. has a consistent record of meeting performance expectations, managing funds effectively, and complying with contractual terms. Understanding their experience with HUD's specific programs and requirements is crucial for assessing their suitability for this role.

What is the historical spending trend for asset management services related to HUD's Mark-to-Market program?

To assess historical spending trends for asset management services related to HUD's Mark-to-Market program, one would need to examine procurement data over several fiscal years. This would involve looking at the total amount obligated annually for this specific service category, identifying the primary contractors, and observing any fluctuations in spending. Factors influencing these trends could include changes in program funding, the number of properties undergoing restructuring, shifts in HUD's strategic priorities, and the overall economic climate affecting the housing market. A consistent or increasing spending trend might indicate the program's ongoing importance and the sustained need for asset management expertise, while a decreasing trend could suggest program maturation or shifts in federal investment.

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) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 950 HERNDON PKWY STE 200, HERNDON, VA, 11

Business Categories: Category Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $13,508,516

Exercised Options: $13,508,516

Current Obligation: $13,508,516

Timeline