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HomeBlogHUD 3.12 To Award After 3 Long Years Of Punting

HUD 3.12 To Award After 3 Long Years Of Punting

Senior HUD Official Believes The M&M FSM 3.12 May Finally Hit The Road

One of the most lucrative Housing and Urban Development‘s (HUD) contracts, the Management and Marketing (M&M) Field Service Manager (FSM) 3.12 is set to re-award out after three long years of perpetual squabbling. The legal gymnastics of these awards would have made even Olympian medalist Nadia Comăneci blush! To put it into perspective, the current award pool, without counting major extensions granted over the past year or so, total in upwards of $195.6 Million to Guardian Asset Management according to GovTribe. And there is no doubt whatsoever that Guardian has earned every penny of that. In fact, HUD itself stated, early on while removing other awardees such as Alpine, BLM REO, Innotion Enterprises, and PK Management performing as Strategic Alliance JV, via corrective actions and task orders, that there was no other firm capable of performing the services desired by HUD. In pertinent part, here is what was said,

DGG [Guardian Asset Management] was the only company considered for realignment of the entire requirement because it has a contract providing service to each of the HOCs (Atlanta, Denver, and Philadelphia) that need coverage, and it has an overall performance of satisfactory or higher for each of its contract areas.

There are several things to understand in order to properly formulate an opinion with respect to the HUD M&M FSM 3.12 Award cycle. First, the utilization of the System for Award Management (SAM) by HUD, for contracting on the M&M FSM, is antiquated and long overdue for a migration to a GSA Schedule. The revolving door of firms whom are removed for cause and then re-awarded contracts the next go around, simply because they can underbid everyone, is insane and antithetical to a fiscally responsible US government agency. No one wants to publicly admit it, but even HUD is aware of the financial black hole it has created by offering Solicitations on SAM specific to the M&M FSM. Second, the reality is that Lowest Price Technically Acceptable (LPTA) is the epitome of insanity, as opposed to Best Value (higher price), when it comes to protecting assets. The reasoning is self-evident. These are assets which are covered under the FHA insurance policies. Ergo, sum, the highest return in value on them, at sale or auction, is in the best interests of the US taxpayer — there is no such thing as a Good Job Done Cheap! Finally, HUD’s desire to let things slide; HUD’s desire to not fiscally and transparently hold accountable poor workmanship, needs to be placed under a microscope lest the Good ‘Ol Boy network continues awarding contracts with the proverbial wink and a nod.

So, four years after the original HUD 3.12 contract process began on SAM in 2018, how did we get here? Glad you asked! We reached out for comment as to the status of the HUD M&M FSM 3.12 Award process and a Senior HUD Official, speaking on condition of anonymity, stated, in part,

HUD has completed what it said would do relative to the corrective action, and the reannouncement of the FSM 3.12 awards should happen any day now!  There will need to be at least some minimal extension for transition purposes, and it’s still likely that we’ll get hit with protests, but at least at this point, things should be able to run their course.

So, will this prove to be the actual case for Awards? Yeah, I am fairly confident that it will. The problem here, though, is that I am extremely skeptical that 24 Asset Management or say JGM Property Group. Now, as many will remember when we published the original awards, as seen below, we had extreme issues with the stacking of the deck with respect to 24 Asset Management operated by Lee Mertins and Eduardo San Roman. A simple search of our Newswire will relate that, in intimate detail. The threats of violence aside from San Roman, the reality is that 24 Asset Management is in no position to operate, a year later, based on under pricing to HUD and a nearly seventy percent Labor attrition rate due to lack of pricing increases in 30+ years. Here is how it last played out,

24 Asset Management came in with 5 Awards located in 3A, 4A, 5A, 8A, 1D, 4D, and 5D. Spectrum Solutions Acquisitions LLC was next up with 2 Awards located in 2D, 4S, and 6S. And finally, JGM Property Group landed 3 Awards located in 6A and 7A and 1P, 3P, and 4P. All of the aforementioned Awards are for a period of One Year with 4 One Year Options.

In closing, we will keep you updated on the Awards and the  colloquial press gang opportunities — err, pricing — as it rolls out. I think that the most important takeaway here is that had HUD done the fiscally responsible thing and moved the M&M FSM — and the Asset Manager (AM) contract if we get real here — to a GSA Schedule, Guardian would continue doing what they do best which is providing a value added performance to HUD as well as the US taxpayer. Building on that, as we release the latest Northsight Management pricing, offering $20 a cubic yard for debris removal, $12 Refrigerator and Freezer cleaning, MSI’s latest failure to pay, and our interview with the US Trustee appointed over the NFN Bankruptcy, it is a jam packed weekend of keeping Labor informed!

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