HUD's $34.5M Field Service Manager contract awarded to CWIS LLC shows a high number of modifications

Contract Overview

Contract Amount: $34,472,531 ($34.5M)

Contractor: Cwis LLC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2010-06-01

End Date: 2016-09-30

Contract Duration: 2,313 days

Daily Burn Rate: $14.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 19

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FIELD SERVICE MANAGER (FSM) M&M III-CONTRACT AREA 2A-5.

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80903

State: Colorado Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $34.5 million to CWIS LLC for work described as: FIELD SERVICE MANAGER (FSM) M&M III-CONTRACT AREA 2A-5. Key points: 1. The contract's duration and value suggest a significant need for property management services. 2. A high number of contract modifications could indicate evolving requirements or potential scope creep. 3. The firm-fixed-price structure aims to control costs, but modifications warrant scrutiny. 4. Performance context is limited without specific metrics on service delivery quality. 5. The contract falls within the residential property management sector, supporting HUD's mission. 6. Analysis of CWIS LLC's track record with similar contracts is crucial for assessing performance. 7. The contract's value places it in the mid-to-large tier for federal service contracts.

Value Assessment

Rating: fair

The contract's total value of approximately $34.5 million over its period of performance (2010-2016) is substantial. Benchmarking against similar residential property management contracts would be necessary to definitively assess value for money. The firm-fixed-price type suggests an attempt to cap costs, but the high number of modifications (19) could indicate that the initial pricing may not have fully captured the scope of work or that changes were frequent, potentially impacting overall cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of 19 modifications suggests that the scope or terms of the contract evolved significantly after the initial award. While full and open competition is generally positive for price discovery, the extent of modifications warrants an examination of whether the initial competitive process adequately defined the full scope of services required.

Taxpayer Impact: A competitive award process is beneficial for taxpayers by encouraging multiple vendors to bid, potentially driving down prices. However, the significant number of modifications suggests that the initial bid may not have fully accounted for the eventual work performed, potentially leading to costs that were not fully optimized through the initial competition.

Public Impact

The primary beneficiaries are residents of HUD-managed properties in Colorado, who receive property management and maintenance services. Services delivered include residential property management, maintenance, and potentially other related support functions. The geographic impact is focused on Contract Area 2A-5 within Colorado. The contract supports a workforce involved in property management, maintenance, and administrative tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High number of modifications (19) could indicate poor initial scope definition or scope creep, potentially increasing costs beyond initial projections.
Lack of specific performance metrics makes it difficult to assess the quality and effectiveness of the services provided.
The long duration of the contract (over 6 years) could lead to vendor complacency if not actively managed.
The specific nature of 'Field Service Manager' tasks requires detailed understanding to ensure efficient service delivery.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract type generally provides cost certainty for the government.
The contract supports HUD's core mission of managing residential properties.
The contract has a defined period of performance, allowing for periodic re-evaluation.

Sector Analysis

This contract falls within the professional services sector, specifically focusing on residential property management. The federal government, through agencies like HUD, frequently contracts for property management services to maintain its housing stock and ensure compliance with housing regulations. The market for such services is competitive, with numerous firms capable of providing these specialized skills. Benchmarking this contract's value against similar federal or large-scale private property management contracts would provide further context on its cost-effectiveness.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, CWIS LLC, is likely a larger entity capable of handling the full scope of this contract. Analysis would need to focus on whether CWIS LLC has its own small business subcontracting plan if applicable to this type of service contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Housing and Urban Development (HUD). As a definitive contract, it implies a level of established terms and conditions. Accountability measures would be embedded in the contract clauses, performance standards, and payment schedules. Transparency would be facilitated through contract databases like FPDS-NG. Inspector General jurisdiction would depend on whether HUD's IG has oversight over this specific type of procurement and service delivery.

Related Government Programs

HUD Housing Choice Vouchers Program
Public Housing Management
Federal Housing Administration (FHA) Loan Servicing
Property Maintenance Contracts
Government Real Estate Management

Risk Flags

High number of modifications
Lack of specific performance metrics
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $34.5 million to CWIS LLC. FIELD SERVICE MANAGER (FSM) M&M III-CONTRACT AREA 2A-5.

Who is the contractor on this award?

The obligated recipient is CWIS 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 $34.5 million.

What is the period of performance?

Start: 2010-06-01. End: 2016-09-30.

What was the primary reason for the 19 contract modifications?

The provided data does not specify the reasons for the 19 contract modifications. Typically, modifications can arise from various factors including changes in government requirements, unforeseen site conditions, adjustments to scope of work, corrections of errors in the original contract, or extensions of time. To understand the impact on cost and performance, a detailed review of each modification's justification, associated cost changes, and impact on the delivery schedule would be necessary. Without this granular detail, it's difficult to ascertain if these modifications represent necessary adjustments or potential indicators of poor initial planning or scope creep, which could affect the overall value for money.

How does CWIS LLC's performance on this contract compare to industry benchmarks for residential property management?

Assessing CWIS LLC's performance against industry benchmarks requires access to specific performance metrics that are not included in the provided data. Key performance indicators (KPIs) for residential property management typically include tenant satisfaction rates, response times for maintenance requests, property upkeep quality, lease enforcement, and financial management efficiency (e.g., rent collection rates, budget adherence). Without data on these specific metrics for this HUD contract, a direct comparison to industry standards or similar contracts is not possible. A thorough performance review would necessitate examining contractor reports, government quality assurance assessments, and any available feedback from residents or stakeholders.

What is the potential risk associated with the high number of contract modifications?

The high number of contract modifications (19) for this $34.5 million contract presents several potential risks. Firstly, it could indicate that the initial contract scope was poorly defined, leading to frequent changes and potentially increasing the overall cost beyond what was initially anticipated through the competitive process. Secondly, extensive modifications can complicate contract administration and oversight, increasing the burden on government personnel. Thirdly, if modifications involve significant scope changes, they might deviate from the original intent of the full and open competition, potentially reducing the value derived from the initial bidding process. Finally, frequent changes can sometimes signal underlying issues with the contractor's ability to meet the original requirements or unforeseen complexities in the service environment.

What was the total cost increase or decrease attributed to the 19 modifications?

The provided data does not include information on the cost impact of the 19 contract modifications. While the total award amount is $34,472,530.91, this figure represents the contract's value as awarded or potentially modified up to a certain point. To determine the net cost change resulting from modifications, one would need to access the contract's modification history, which details the value (increase or decrease) associated with each change. This information is typically available through contract management systems or official contract files. Without this specific data, it's impossible to quantify the financial effect of the modifications on the contract's final cost.

How does the contract's duration (2313 days) and value align with typical federal property management contracts?

A contract duration of 2313 days (approximately 6.3 years) is relatively long for a federal service contract, although not uncommon for large-scale, complex service requirements like comprehensive property management. The value of $34.5 million over this period averages roughly $5.5 million per year. This places it in the mid-to-large range for federal contracts within the property management and facilities support categories. Many federal property management contracts are awarded for shorter base periods with options for extension, allowing for more frequent re-competition and adaptation to changing needs. However, longer durations can provide stability and allow contractors to achieve economies of scale. A comparative analysis against similar HUD or GSA property management contracts would provide better context on whether this duration and value are typical or outliers.

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: 19

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 102 E PIKE PEAK STE 303, COLORADO SPRINGS, CO, 80903

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $34,472,531

Exercised Options: $34,472,531

Current Obligation: $34,472,531

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline