Are The HUD Awardees Prepared For The Fines?

HUD Awardees To Labor: How Low Will You Go To Play?!

This entry is part 7 of 7 in the series HUD, DoL And SCA

The US Department of Housing and Urban Development (HUD) recently awarded nearly $300 Million in Management and Marketing (M&M) Field Service Manager (FSM) official and presumptive contracts in Georgia; Tennessee, Alabama, and Mississippi; and Indiana and Kentucky. And while many within the Mortgage Field Services Industry see the issuance of three contracts to stand alone, small businesses, Minority Females and Labor have yet to hear from Purdy Enterprise, Market Ready, or Alpine Companies with respect to performing services upon HUD Assets. To date, only the final amount of Purdy Enterprise’s bid has been released and it is troubling, to say the least. Doing some rough math on the $96,589,525.01 award over five years, it appears that Purdy Enterprise has calculated roughly $8.5 Million for the first year. Let me put this into perspective in a way in which only a trained media professional such as myself is capable of doing,

Thomas and Lila Purdy of Purdy Enterprise must obtain an office. Purdy Enterprise will then have to set up the lease, utilities, and insurance policies. In addition to the office, Purdy Enterprise must obtain all the computers, telephones and printers for that office; all the furniture for that office; all the paper and folders and accouterments associated with the office; and all required cleaning materials and the establishment of an MSDS Storage Locker and proper safety protocols. This will easily approach half a million dollars if not more.

Purdy Enterprise will have to hire an entire office staff which will potentially be dozens of personnel totalling at least one million dollars when salaries, insurance, and compensation packages are put together. Foreclosurepedia is able to report that Purdy Enterprise has been attempting to hire A2Z Field Services (A2ZFS) personnel and while they are sending over recruitment packages, Purdy Enterprise is refusing to place any dollar figures as part of their recruitment drive. One question which will present is whether or not those onboarded will have pay compliant with the Service Contract Act (SCA).

Purdy Enterprise will additionally have to lease property preservation software which could easily approach nearly a quarter of a million dollars — per year. Purdy Enterprise will also have to contemplate the purchase of vehicles and equipment to perform in field quality control along with accouterments such as laptops and cell phones. As Purdy Enterprise will most assuredly lease a performance bond, that will come in around $10,000 per month according to some experts and they will additionally have to purchase insurance for their overall operations.

What this means to Minority Females and Labor, at the end of the day, is that pricing will probably be below even that which was paid under the HUD M&M FSM 3.8 contract. And at the end of the day, Minority Females and Labor are going to have to determine whether or not the HUD Contract is even worth the time and aggravation. In this I mean that as opposed to having properties drop in lump sums say on the first and the fifteenth, the reality is that each and every day they are going to be going in different directions. This was the reason Foreclosurepedia eventually left the HUD Sector and the pay was good back then. More than likely, we are going to see Purdy Enterprise attempt to package multiple items such as the lawn maintenance and inspection together and I would be surprised to see those at more than $35 per occurrence regardless of what was actually promised to HUD.

The spectre of the $50 per day, per occurrence fine for missing deadlines is also going to be problematic for Purdy Enterprise. This, coupled with the requirements to foot all of the electric bills, will ensure that after Thomas Purdy pays himself and his wife the profit margins they require, there will be virtually nothing left over for Minority Females and Labor which has always been the case with respect to how firms have treated Minority Females and Labor in the past. Obviously, zero concern is being paid to the nearly six pages of WordPress orphan pages which are strewn across the Purdy Enterprise website.

                      Even Weeks After Award, Purdy Enterprise Unable To Fix Website Issues

While Purdy Enterprise has stated they want to work direct with Labor, it is starting to look unlikely. What I mean is that there has been zero recruiting or even interest in Minority Females or Labor in the social media spheres since the presumptive award was announced weeks ago.

It is not looking good for HUD’s first official pick for the HUD M&M FSM 3.10 and many are beginning to question the wisdom of those in the Atlanta Field Office. As the official announcements are issued for Market Ready and Alpine Companies — the very same Alpine Companies whom also have a HUD M&M Asset Manager award as a joint venture with First Preston — Foreclosurepedia will walk you through the pros and cons of these firms. While Market Ready already has seasoned HUD Veterans under their umbrella, Alpine Companies will be hard pressed to scale up and perform their services in Georgia if official awards come down. Regardless, all three companies receive an F with respect to their websites. Market Ready’s website login is insecure as is Alpine Companies’ and the Alpine Companies website has not been updated since 2016 as they still display the image to the right on their website.

While HUD’s mandate appeared to be to assist small businesses obtain market share in the HUD Contracting Process, it looks as if it will come at the expense of Minority Females and Labor. Unless something changes soon, Foreclosurepedia’s recommendation is that the HUD Sector be avoided like the plague unless and until these Awardees come forward with public and transparent pricing so that it may be properly examined in light of the Service Contract Act and brought in front of the US Department of Labor’s Wage and Hour Division in light of the recent Bowerman Decision pertaining to the misclassification of employees as independent contractors.

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