SOLICITATION NOTICE
R -- Administrative Receivership Services
- Notice Date
- 12/17/2009
- Notice Type
- Justification and Approval (J&A)
- NAICS
- 541611
— Administrative Management and General Management Consulting Services
- Contracting Office
- Department of Housing and Urban Development, OCPO, Western (Denver) Field Contracting Operations, Denver Operations Branch, NFW, 1670 Broadway, 23rd Floor, Denver, Colorado, 80202-4801
- ZIP Code
- 80202-4801
- Solicitation Number
- C-DEN-02437
- Point of Contact
- Gay E Julian, Phone: 303-672-5281 x1819
- E-Mail Address
-
Gay.E.Julian@hud.gov
(Gay.E.Julian@hud.gov)
- Small Business Set-Aside
- N/A
- Award Number
- C-DEN-02437
- Award Date
- 10/9/2009
- Description
- Justification For Other Than Full And Open Competition Administrative Receiver for the Housing Authority of New Orleans •1. Requesting Agency : U.S. Department of Housing and Urban Development (HUD ), Office of Public and Indian Housing (PIH) •2. Nature And/Or Description Of The Action : The action provides for t he appointment of an Administrative Receiver to oversee all recovery and redevelopment efforts at the Housing Authority of New Orleans (HANO). The Administrative Receiver will immediately assume oversight and management of the ongoing and critical operations necessary to continue the troubled agency recovery efforts of HANO. Due to HANO's numerous and prolonged failures; HUD took over the agency as a party to a cooperative endeavor agreement in 1992 and; in 2002 began the arduous task of cleaning its books and embarked on an ambitious $700 million mixed-use, redevelopment plan. HUD envisioned the creation of new, safe neighborhoods with homeownership opportunities for anyone who wished to pursue the American dream, including public housing residents. And then Hurricane Katrina hit - and HUD and HANO were forced to start from scratch to rebuild and revitalize the city. Over the last several years there have been several leadership teams put in place to try to turn HANO around but it has been an incredible challenge. In addition to rebuilding much of the Big Four projects, HANO has been plagued by ongoing and extreme malfeasance at the highest levels. Many of these actions have been widely publicized in the news media. Consequently, it is with this in mind that HUD proposes a radical reorganization and a new Administrative Receivership approach for HANO. •3. A Description Of The Supplies Or Services Required To Meet The Agency's Needs : The estimated value of the procurement is $2,000,000 for a nine-month period of performance. The contractor shall serve as Administrative Receiver (AR). The AR will assume the duties and responsibilities of oversight of the day-to-day operations of the housing agency for the identified period of performance. Attachment 'A' is the statement of work. •4. An Identification Of The Statutory Authority Permitting Other Than Full And Open Competition: This Justification for Other than Full and Open Competition is pursuant to the authority under 41 U.S.C. 253(c) and FAR 6.302-2, which allows for the award of contracts without full and open competition when unusual and compelling circumstances exist. The exigency of the situation was discovered through HUD's work with of HANO under the cooperative endeavor agreement, and after a review of recent reports and information provided in response to specific inquiries made by the Assistant Secretary for the Office of Public and Indian Housing, reports of malfeasance widely reported in the news, and an investigation by the Office of the Inspector General (OIG). •5. A Demonstration That The Proposed Contractor's Unique Qualification Or The Nature Of The Acquisition Requires Use Of The Authority Cited : The nature of this acquisition required immediate contract award and use of the cited authority because any delay in the award would result in a substantial financial loss for HANO, causing the potential displacement of numerous families. HANO is in a precarious financial position and needs all of the resources available to it. The failure of HUD to take immediate action to award a contract could result in a loss of funds, would further exacerbate the financial condition of the housing agency, and would jeopardize the housing assistance now provided to more than eighteen thousand families. Any further delay would impose additional costs to HUD if a competitive contract in contemplated and conditions become critical. Due to the opposition already expected, any further delay in getting new management onboard could further hinder the process. The contractor, Gilmore Kean, LLC; possesses significant senior management, leadership and public housing experience. The principal of the company, David Gilmore, has served as a Receiver before, including the Judicial Receiver of the DC Housing Authority, and has successfully recovered agencies from the troubled status. He is thoroughly familiar with the circumstances surrounding HANO. Mr. Gilmore is regarded as one of three subject matter experts who have served in the capacity of Receiver for public housing agencies around the country. He is regarded as one of the foremost authorities in the area of receiverships by HUD and the federal court system. While he is one of three with a proven track record managing agencies in receivership, he is currently the only one available. The other two are presently engaged in a full-time capacity, serving as court appointed Receivers at the Chester,( PA) Housing Authority and the Kansas City Housing Authority. Mr. Gilmore's intricate knowledge of the issues pertaining to housing agencies in receivership, their operations and financial standing, and of the steps necessary to undertake in a recovery effort, makes him uniquely qualified for the Administrative Receiver position at HANO. It is therefore determined that only the proposed and available contractor with the capabilities and qualifications to immediately address the urgent needs of the agency and to oversee the activities of other vendors and workers, and start helping HANO make significant progress. It is also important to note that the installation of a new management strategy, which was announced by the Secretary of HUD in New Orleans on Friday, October 9, 2009, was anticipated to be met with significant opposition from local forces in an attempt to hinder the process. Therefore, it was critical that the implementation of the new strategy be imposed immediately after the announcement of the Secretary, which will be followed-up with a visit from the President a week later. Award of this action was not made using FAR Part 8, FSS. •6. A Description Of Efforts Made To Ensure That Offers Are Solicited From As Many Potential Sources As Is Practicable, Including Whether A Notice Was Or Will Be Publicized, As Is Required By Subpart 5.2 And, If Not, Which Exception Under FAR 5.202 Applies: This action was not published in FEDBIZOPPS and a waiver of the synopsis is not required in accordance with 5.202 Exception, paragraph 2 which states the proposed action is made under conditions described in 6.302-2 Unusual and Compelling Urgency. Because of urgent and compelling circumstances the government would be seriously injured if it complied with the time periods in FAR 5.203. •7. A Determination By The Contracting Officer That The Anticipated Cost To The Government Will Be Fair And Reasonable: The estimated cost and the definitive price for this contract are deemed fair and reasonable. The Contracting Officer has reviewed historical data in which contractors provided same or similar services for the Virgin Islands Housing Authority (VIHA) over the past five years and found very similar overall costs. Three contracts were procured under a directed 8a award. In those the acquisition costs for a twelve-month performance period were $2M; a six-month performance period was $1.4M; and another six-month performance period was $1.5M versus the $1.7M for the nine-month here. While the estimated per month costs are higher for performance at HANO and the VIHA was four years ago, there are very similar direct labor categories and very similar direct labor rates. However, the costs associated with travel and per diem rates have rise significantly. •8. A description of the market research conducted (see Item 10) and the results or a statement of the reason market research was not conducted: This is an emergency action being issued as an unusual and compelling urgency. Market research was done on three companies with a proven track record managing agencies in receivership that could provide this service. Two companies are serving in a full time capacity as court appointed Receivers. Off the three, Gilmore Kean was the only company available at this time. •9. Any Other Facts Supporting The Use Of Other Than Full And Open Competition : This is an emergency action being issued under unusual and compelling urgency. As stated in item five above, installation of a new management strategy was anticipated to be met with significant opposition from local forces in an attempt to hinder the process. Therefore, it was critical that the implementation of the new strategy be imposed immediately after the announcement of the Secretary on October 9, 2009, which was followed-up with a visit from the President a week later. •10. A List Of The Sources, If Any, That Expressed, In Writing, An Interest In The Acquisition: This is an emergency action being issued as an unusual and compelling urgency for which no other companies have expressed a written interest. An attempt was made to procure this from at least three sources known for their abilities in this arena; however, two of the sources were already involved in judicial receiverships as noted in item five above. •11. A Statement Of The Actions, If Any, That The Agency May Take To Remove Or Overcome Any Barriers To Competition Before Any Subsequent Acquisition Of The Supplies Or Services Required : HUD's Office of Public and Indian Housing needed to award this contract on an emergency basis on October 9, 2009. Prior to the expiration of the contract, they will be performing a review to determine if the services will be needed on a continued basis. If so, steps will be taken to award any follow on contract on a competitive basis. •12. Certification Requirement : The signatures with this Justification for Other than Full and Open Competition certify that all of the supporting data, which form a basis for the justification, are complete and accurate. Attachment A - Statement of Work TASK 1: Perform administrative receivership functions The contractor shall: Provide an experienced General Manager to direct the day ‐ to ‐ day operations, while a cadre of housing and management experts will support existing staff in all functional areas. Not later than 30 days of the appointment of the Administrative Receiver, the contractor shall provide three full ‐ time housing professionals to perform the functions of Deputy General Manager for Administration, Deputy General Manager for Operations and Financial Officer at HANO. Manage HANO in a manner that will transform it into a public housing authority that provides safe, decent and sanitary housing to all people HANO is meant to serve, in compliance with all applicable housing codes, laws and HUD regulations. Build or strengthen HANO's capacity to manage its own personnel system and legal and financial affairs. Oversee, supervise and direct all financial, contractual, legal, administrative and personnel functions of HANO, including payroll, labor relations, employee benefits, training, procurement and facilities management. Pay out of the funds of HANO or its successor agency, to the extent required by law, any settlements or judgments arising out of claims or actions based upon acts of the employees or agents of HANO or its successor agency committed during the term of receivership. Any settlements and payments require prior HUD approval. Preserve, protect, and administer all property and assets of HANO. Develop and improve management systems, performance standards, and resident management and employee/management relations. Provide Monthly Status Reports on (a) major actions taken during the period, (b) progress made toward achieving the established objectives, and (c) changes, modifications, and/or additions to the established objectives. TASK 2: OPERATIONAL ASSESSMENT During the initial recovery effort, the contractor shall conduct an organizational and management assessment of all functional areas including Housing Choice Voucher Program, Program Administration, Finance, Housing Management, Capital Funds, Development, Property Maintenance, Public Safety and Security, Resident Services, Procurement, Information Technology, and Audit and Compliance. The contractor shall carefully examine every aspect of the HANO operation and assess the performance of every HANO employee and contractor. The contractor shall make full use of information from previous studies, assessments, and operational and financial audits. The contractor shall provide the results of this investigation to the GTR in sufficient detail that HUD may then begin to formulate a detailed recovery plan and obtain services of a follow on contract to implement the recovery effort. All assessments and the final report shall be completed within the first 90 days of the contract period. As the contractor performs the assessments, the contractor shall provide an updated management work plan to the GTR for approval to facilitate actions needed to adequately manage the agency in accordance with the requirements of task 1 above.
- Web Link
-
FBO.gov Permalink
(https://www.fbo.gov/spg/HUD/NFW/NFW/C-DEN-02437/listing.html)
- Place of Performance
- Address: Houring Authority of New Orleans, New Orleans, Louisiana, United States
- Record
- SN02026410-W 20091219/091217234851-32e345ed952fc74f13fe0487314b1c02 (fbodaily.com)
- Source
-
FedBizOpps Link to This Notice
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