HUD's $19.5M lease agreement for residential dwellings in Maryland, awarded in 2004, highlights long-term real estate needs
Contract Overview
Contract Amount: $19,517,593 ($19.5M)
Contractor: Homesource Real Estate Asset Services, Inc.
Awarding Agency: Department of Housing and Urban Development
Start Date: 2004-10-14
End Date: 2010-04-30
Contract Duration: 2,024 days
Daily Burn Rate: $9.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MANAGEMENT AND MARKETING - MD AND DC
Place of Performance
Location: LANHAM, PRINCE GEORGE'S County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
Department of Housing and Urban Development obligated $19.5 million to HOMESOURCE REAL ESTATE ASSET SERVICES, INC. for work described as: MANAGEMENT AND MARKETING - MD AND DC Key points: 1. The contract's duration of 2024 suggests a long-term commitment to securing residential properties. 2. The firm fixed-price structure provides cost certainty for the agency. 3. The award was made under full and open competition, indicating a robust bidding process. 4. The contract's value of $19.5 million over its lifespan requires careful monitoring of market rent fluctuations. 5. The specific use of 'Lessors of Residential Buildings and Dwellings' points to a focus on housing services. 6. The geographic focus on Maryland (MD) indicates a localized need for these services.
Value Assessment
Rating: fair
The contract value of $19.5 million over approximately 16 years (from 2004 to 2010, with a duration extending to 2024 indicated, though the award date suggests the initial period ended in 2010) averages to roughly $1.2 million per year. Benchmarking this against market rental rates for residential buildings in Maryland would be necessary to assess value for money. Without specific details on the properties leased, a direct comparison is difficult, but the long-term nature suggests a strategic decision to secure housing stock.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while the competition was initially open, certain sources were later excluded. This could be due to specific requirements or pre-qualification processes. The presence of 3 bidders (no: 3) suggests a moderate level of competition, which is generally positive for price discovery.
Taxpayer Impact: A competitive process, even with exclusions, generally benefits taxpayers by encouraging multiple firms to offer their best pricing and terms to secure the contract.
Public Impact
The primary beneficiaries are likely individuals or families requiring residential housing facilitated by the Department of Housing and Urban Development (HUD). The services delivered involve the leasing of residential buildings and dwellings. The geographic impact is concentrated in Maryland (MD), specifically within the state. Workforce implications are likely related to property management, maintenance, and administrative support for the leased properties.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for increased rental costs if market rates rise significantly over the contract's extended duration.
- Risk of underutilization if housing needs decrease in the specified geographic area.
- Dependence on the contractor's ability to maintain property quality over a long period.
Positive Signals
- Long-term commitment provides stability in housing provision.
- Firm fixed-price contract offers budget predictability.
- Competitive award process suggests a reasonable initial price.
Sector Analysis
This contract falls within the Real Estate and Leasing sector, specifically focusing on residential property rentals. The NAICS code 531110 ('Lessors of Residential Buildings and Dwellings') confirms this. Federal agencies often lease properties to fulfill operational needs or provide housing assistance. The market for residential leasing is vast, but federal contracts represent a specific segment driven by government requirements and procurement processes. Comparable spending would involve other federal agencies leasing residential properties or long-term housing solutions.
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 competition was open, meaning small businesses could have participated if they met the requirements, but it was not a targeted initiative.
Oversight & Accountability
Oversight would typically be managed by the Department of Housing and Urban Development (HUD) contracting officers and program managers. Accountability measures would be embedded in the contract terms, including performance standards and payment schedules. Transparency is generally facilitated through federal procurement databases like FPDS-NG (where this data originates). Inspector General jurisdiction would apply to investigate fraud, waste, or abuse related to the contract.
Related Government Programs
- Federal Housing Administration (FHA) Programs
- Public Housing Programs
- Section 8 Housing Choice Vouchers
- Government Employee Housing
Risk Flags
- Long contract duration may not align with evolving agency needs.
- Potential for cost overruns if market rents increase significantly beyond projections.
- Property maintenance quality over an extended period requires diligent oversight.
Tags
real-estate-leasing, residential-buildings, lessors, department-of-housing-and-urban-development, hud, maryland, firm-fixed-price, full-and-open-competition, long-term-contract, management-and-marketing, federal-spending
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $19.5 million to HOMESOURCE REAL ESTATE ASSET SERVICES, INC.. MANAGEMENT AND MARKETING - MD AND DC
Who is the contractor on this award?
The obligated recipient is HOMESOURCE REAL ESTATE ASSET SERVICES, 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 $19.5 million.
What is the period of performance?
Start: 2004-10-14. End: 2010-04-30.
What was the specific nature of the residential properties leased under this contract?
The contract data specifies the NAICS code 531110, 'Lessors of Residential Buildings and Dwellings.' This indicates that the leased properties were intended for residential use. However, the exact type of properties (e.g., single-family homes, apartment complexes, dormitories) and their specific locations within Maryland are not detailed in the provided summary data. Further investigation into the contract's statement of work or associated documentation would be required to ascertain the precise nature and scale of the leased residential assets. This information is crucial for understanding the scope of services and the potential impact on housing availability or specific demographic groups.
How does the average annual cost of this lease compare to market rates for similar residential properties in Maryland during the contract period?
The contract value is $19,517,593, with an award date of October 14, 2004, and an end date of April 30, 2010, though the duration is listed as 2024. Assuming the initial period (2004-2010) is the primary focus for initial value assessment, this is approximately 5.5 years. The average annual cost for this period would be roughly $3.55 million ($19.5M / 5.5 years). To compare this to market rates, one would need to research average rental prices for comparable residential properties (based on size, amenities, and location) in Maryland during that specific timeframe. Without detailed property specifications and granular market data for the period, a precise benchmark is challenging. However, if the properties were large apartment complexes or significant housing stock, this annual figure might be reasonable; if they were individual units, it could indicate a premium.
What were the key performance indicators (KPIs) used to evaluate the contractor's performance?
The provided summary data does not explicitly list the Key Performance Indicators (KPIs) for this contract. Typically, for a lease agreement of residential properties, KPIs would likely revolve around property condition and maintenance, timely response to tenant/agency needs, adherence to lease terms, occupancy rates, and potentially tenant satisfaction if applicable. The contracting agency, HUD, would have established specific metrics within the contract's Performance Work Statement (PWS) to ensure the lessor met their obligations. Regular performance reviews and site inspections would be standard oversight mechanisms to track adherence to these KPIs.
What is the historical spending trend for similar residential leasing contracts by HUD in Maryland?
Analyzing historical spending trends for similar residential leasing contracts by HUD in Maryland requires access to comprehensive federal procurement data over multiple fiscal years. The provided data point represents a single contract awarded in 2004. To establish a trend, one would need to query databases like FPDS-NG or USASpending.gov for all contracts awarded by HUD for 'Lessors of Residential Buildings and Dwellings' (NAICS 531110) or similar categories within Maryland, spanning several years before and after this contract's award. This would reveal patterns in contract volume, average award values, and the prevalence of long-term leases versus shorter-term arrangements, providing context for the $19.5 million commitment.
What risks were identified during the procurement process, and how were they mitigated?
The provided summary data does not detail specific risks identified during the procurement process for this contract. However, common risks associated with long-term real estate leases include market rent fluctuations, property deterioration over time, changes in agency needs, and contractor performance issues. The mitigation strategies would typically be embedded within the contract itself. For instance, the 'firm fixed price' structure helps mitigate cost uncertainty for the government. Clauses related to property maintenance standards, renewal options, and termination conditions would also serve as risk mitigation tools. The 'full and open competition after exclusion of sources' might suggest specific technical or capability requirements that, if not met by all potential bidders, could pose a risk if not properly managed.
Industry Classification
NAICS: Real Estate and Rental and Leasing › Lessors of Real Estate › Lessors of Residential Buildings and Dwellings
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8403 COLESVILLE RD, SILVER SPRING, MD, 08
Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $19,517,593
Exercised Options: $19,517,593
Current Obligation: $19,517,593
Timeline
Start Date: 2004-10-14
Current End Date: 2010-04-30
Potential End Date: 2010-04-30 00:00:00
Last Modified: 2012-08-27
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