HUD's $86.8M contract for property management services awarded to A2Z Field Services LLC over 7 years

Contract Overview

Contract Amount: $86,796,786 ($86.8M)

Contractor: A2Z Field Services LLC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2010-06-01

End Date: 2017-09-27

Contract Duration: 2,675 days

Daily Burn Rate: $32.4K/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 2P-1

Place of Performance

Location: DUBLIN, FRANKLIN County, OHIO, 43016

State: Ohio Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $86.8 million to A2Z FIELD SERVICES LLC for work described as: FIELD SERVICE MANAGER (FSM ) M&M III-CONTRACT AREA 2P-1 Key points: 1. The contract's duration of over 7 years suggests a long-term need for these services. 2. A firm-fixed-price contract type generally offers predictable costs for the government. 3. The award was made under full and open competition, indicating a broad search for qualified contractors. 4. The contract's value places it in the mid-to-large range for federal service contracts. 5. The North American Industry Classification System (NAICS) code 531311 points to a specialized service sector. 6. The contract was awarded by the Department of Housing and Urban Development (HUD), aligning with its mission.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data from HUD. The firm-fixed-price structure provides cost certainty, but the total value over nearly 8 years suggests a significant investment. Without details on the scope of services and the number of properties managed, a precise value-for-money assessment is difficult. However, the duration and total value indicate a substantial commitment by the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 19 bids suggests a healthy level of interest and competition for this type of service. This broad competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The extensive competition indicates that taxpayer dollars were likely used efficiently, as multiple companies vied to provide the required services at the best possible price.

Public Impact

Residents in properties managed under this contract benefit from maintained housing conditions. The services delivered include residential property management, ensuring operational efficiency. The geographic impact is concentrated in Ohio, as indicated by the 'OH' state code. The contract supports jobs within the property management and field services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope of work expands beyond initial estimates.
Risk of service quality degradation if contractor's performance monitoring is insufficient.
Dependence on a single contractor for an extended period could limit future flexibility.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition likely resulted in a competitive price.
Long contract duration suggests a stable and reliable service provider was selected.

Sector Analysis

This contract falls within the Real Estate and Property Management sector, specifically residential property management. This sector is crucial for maintaining housing stock and ensuring the smooth operation of rental properties. Federal spending in this area supports government-owned or managed properties, ensuring they are well-maintained and functional for their intended use. Comparable spending benchmarks would involve analyzing other federal contracts for similar property management services across different agencies and geographic locations.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside requirement (ss: false, sb: false). Therefore, the primary focus was on securing the best value through open competition. There is no explicit information on subcontracting plans for small businesses within the provided data. The impact on the small business ecosystem is likely indirect, as larger firms may subcontract, but this is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Housing and Urban Development's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services. Transparency is generally facilitated through federal contract databases, though specific performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Housing Administration (FHA) programs
Public and Indian Housing programs
Community Planning and Development grants

Risk Flags

Long contract duration may reduce agency flexibility.
Potential for performance degradation over extended period.
Dependence on a single contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $86.8 million to A2Z FIELD SERVICES LLC. FIELD SERVICE MANAGER (FSM ) M&M III-CONTRACT AREA 2P-1

Who is the contractor on this award?

The obligated recipient is A2Z FIELD SERVICES 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 $86.8 million.

What is the period of performance?

Start: 2010-06-01. End: 2017-09-27.

What was the contractor's performance history prior to this award?

Information regarding A2Z Field Services LLC's specific performance history prior to this award is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, any debriefings from previous solicitations, and any documented instances of contract deficiencies or successes. Federal agencies typically maintain internal records of contractor performance, which are used in source selection decisions. Without access to these records, it's difficult to definitively assess their track record beyond their ability to win this significant contract.

How does the per-unit cost of this contract compare to similar federal property management contracts?

The provided data does not include a specific per-unit cost metric (e.g., cost per property managed, cost per unit). The total contract value of $86.8 million over 2675 days (approximately 7.3 years) averages to roughly $11.9 million per year. To compare this to similar contracts, one would need to identify federal property management contracts with comparable scopes of work, geographic coverage, and service levels. Benchmarking would involve calculating the average annual cost or a cost per service unit for those comparable contracts and then comparing it to the average annual cost of this contract. Without such a detailed comparative analysis, a precise benchmark is not possible.

What are the primary risks associated with a contract of this duration and value?

Contracts of this duration (over 7 years) and value ($86.8 million) carry several inherent risks. Firstly, there's the risk of contractor performance degradation over time; initial high performance may wane, requiring active oversight. Secondly, market conditions or agency needs might change, making the contracted services less relevant or requiring costly modifications. Thirdly, a long-term commitment can reduce an agency's flexibility to adopt new technologies or approaches if the contractor is not equipped or willing. Finally, there's the risk of contractor financial instability over such an extended period, potentially disrupting service delivery. Robust performance management and contingency planning are crucial to mitigate these risks.

How effective has HUD been in managing its property portfolio through contracts like this?

Assessing the overall effectiveness of HUD's property portfolio management through contracts like this requires analyzing key performance indicators (KPIs) related to property maintenance, resident satisfaction, operational efficiency, and budget adherence. The provided data focuses on a single contract award and does not offer insights into HUD's broader contract management capabilities or the outcomes achieved across its portfolio. A thorough evaluation would involve reviewing HUD's Inspector General reports, GAO audits, and internal performance metrics related to property management contracts. Without this broader context, it's impossible to definitively state HUD's effectiveness based solely on this contract.

What has been the historical spending trend for residential property management services by HUD?

The provided data only includes details for one specific contract awarded in 2010. To understand HUD's historical spending trends for residential property management services, one would need to analyze spending data over multiple fiscal years. This would involve aggregating contract awards for NAICS code 531311 (Residential Property Managers) and similar codes awarded by HUD. Examining this trend would reveal whether spending has increased, decreased, or remained stable, and identify any significant shifts in contract values, durations, or types of services procured over time.

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: 7450 INDUSTRIAL PKWY STE 105, PLAIN CITY, OH, 43064

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

Financial Breakdown

Contract Ceiling: $86,796,786

Exercised Options: $86,796,786

Current Obligation: $86,796,786

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline