HUD's $48M Field Service Manager contract awarded to Innotion Enterprises Inc. for property management in Maryland

Contract Overview

Contract Amount: $48,162,251 ($48.2M)

Contractor: Innotion Enterprises, Inc.

Awarding Agency: Department of Housing and Urban Development

Start Date: 2010-06-01

End Date: 2017-08-17

Contract Duration: 2,634 days

Daily Burn Rate: $18.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FIELD SERVICE MANAGER (FSM) M&M III - CONTRACT AREA 1A-2.

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20879

State: Maryland Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $48.2 million to INNOTION ENTERPRISES, INC. for work described as: FIELD SERVICE MANAGER (FSM) M&M III - CONTRACT AREA 1A-2. Key points: 1. Contract value of $48.16 million over its period of performance. 2. Awarded under full and open competition, indicating a broad search for qualified bidders. 3. The contract was a definitive contract, suggesting a long-term agreement for services. 4. Innotion Enterprises, Inc. secured this significant award. 5. Services were focused on residential property management in Maryland. 6. The contract utilized a firm fixed-price payment structure.

Value Assessment

Rating: fair

The contract's total value of $48.16 million over approximately 7 years represents a significant investment by HUD. Benchmarking this against similar large-scale property management contracts is challenging without more specific service details. However, the firm fixed-price nature suggests that the contractor bore the risk of cost overruns, which can be a positive indicator for value if performance was met. The absence of detailed performance metrics makes a definitive value assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The presence of 12 bidders suggests a competitive environment, which typically leads to better price discovery and potentially more favorable terms for the government. The number of bidders indicates that the market for these services is robust enough to attract multiple interested parties.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovation among contractors.

Public Impact

Residents in HUD-managed properties in Maryland benefited from consistent property management services. The contract supported the operational efficiency of HUD's housing programs in the specified region. The contract likely involved a workforce of property managers, maintenance staff, and administrative personnel. Geographic impact is concentrated within Maryland, specifically in areas managed by HUD.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of over 7 years (2634 days) may indicate potential for complacency or evolving needs not fully captured in the initial scope.
Lack of specific performance metrics in the provided data makes it difficult to assess the quality of services delivered.
Firm Fixed Price contracts can sometimes lead to contractors cutting corners if not closely monitored, impacting service quality.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
The definitive contract type implies a stable, long-term relationship, potentially leading to efficiencies and specialized expertise.
The contract was awarded to a single entity, Innotion Enterprises, Inc., suggesting they met all requirements and were deemed the best value.

Sector Analysis

This contract falls within the broader sector of government contracting for professional services, specifically property and facility management. The market for such services is substantial, with numerous private sector firms competing for government contracts. HUD's spending in this area is crucial for maintaining its housing stock and ensuring the well-being of residents in public housing. Comparable spending benchmarks would depend on the specific scope of services, such as the number of units managed and the complexity of maintenance required.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The primary award went to Innotion Enterprises, Inc., and any subcontracting would be at their discretion, not mandated by a small business set-aside provision.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Housing and Urban Development (HUD) contracting officers and program managers. Accountability measures would be embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HUD Public Housing Management
Federal Real Estate Management Services
Government Property Services
Residential Property Management Contracts

Risk Flags

Contract duration exceeds 7 years, potentially leading to outdated service models if not actively managed.
Lack of detailed performance metrics in summary data hinders objective assessment of value and quality.
Firm Fixed Price contracts require diligent oversight to ensure quality is maintained.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $48.2 million to INNOTION ENTERPRISES, INC.. FIELD SERVICE MANAGER (FSM) M&M III - CONTRACT AREA 1A-2.

Who is the contractor on this award?

The obligated recipient is INNOTION ENTERPRISES, 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 $48.2 million.

What is the period of performance?

Start: 2010-06-01. End: 2017-08-17.

What was the specific scope of services provided under the Field Service Manager (FSM) contract?

The provided data indicates the contract was for 'FIELD SERVICE MANAGER (FSM) M&M III - CONTRACT AREA 1A-2' and involved 'Residential Property Managers'. While the exact scope isn't detailed, it likely encompassed a range of property management duties for HUD-owned or managed residential properties in Maryland. This could include tenant relations, rent collection, maintenance coordination, property inspections, lease administration, and ensuring compliance with housing regulations. The 'M&M III' designation might refer to a specific program or phase of HUD's asset management initiatives.

How does the awarded amount of $48.16 million compare to similar HUD property management contracts?

Direct comparison of the $48.16 million award is difficult without knowing the precise scale and services covered. HUD manages a vast portfolio, and contract values can vary significantly based on the number of units, geographic spread, and complexity of services (e.g., basic maintenance vs. full-service property management). However, for a contract spanning over 7 years and covering a specific region like Maryland, $48 million suggests a substantial operational scope. To benchmark effectively, one would need to compare it to contracts with similar unit counts, property types (e.g., public housing, Section 8 properties), and service requirements within comparable geographic areas.

What were the key performance indicators (KPIs) or metrics used to evaluate Innotion Enterprises, Inc.'s performance?

The provided data does not include specific Key Performance Indicators (KPIs) or metrics used to evaluate Innotion Enterprises, Inc.'s performance. Typically, for property management contracts, KPIs might include tenant satisfaction rates, response times for maintenance requests, vacancy rates, property condition scores, and financial management accuracy (e.g., timely rent collection and disbursement). The contract's firm fixed-price nature implies that performance standards were likely defined, and failure to meet them could result in penalties or contract termination, but these details are not present in the summary data.

What is the historical spending pattern for Field Service Manager contracts by HUD?

Analyzing the historical spending pattern for HUD's Field Service Manager (FSM) contracts requires access to comprehensive federal procurement data over multiple fiscal years. This specific contract (M&M III - Contract Area 1A-2) was awarded in 2010 and ended in 2017. To understand broader trends, one would need to examine spending on similar FSM or property management contracts across different HUD program offices and contract vehicles over time. Factors influencing historical spending include changes in housing policy, the size of HUD's property portfolio, and the agency's budget allocations for asset and property management.

Were there any significant issues or disputes reported during the performance of this contract?

Information regarding significant issues or disputes during the performance of this specific contract (FSM M&M III - Contract Area 1A-2 awarded to Innotion Enterprises, Inc.) is not available in the provided summary data. Contract performance issues are often documented in contract close-out reports, agency Inspector General reports, or through litigation records, none of which are included here. Without access to these detailed records, it's impossible to ascertain if there were any major problems, disputes, or corrective actions taken during the contract's lifecycle.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Activities Related to Real Estate › Residential Property Managers

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 610 PROFESSIONAL DR STE 215, GAITHERSBURG, MD, 20879

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $48,162,251

Exercised Options: $48,162,251

Current Obligation: $48,162,251

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline