On March 10, the U.S. Department of Housing and Urban Development (HUD) posted the notice of funding availability (NOFA) to restart the competition for the awarding of the outstanding 42 contracts for administration of the project-based Section 8 program.
The initial deadline of April 10 was extended within the first week of the announcement to June 11, meaning that the earliest the new contracts can take effect will be Dec. 1, 2012.
What's new in this NOFA
The NOFA and the new contract reflect a number of significant changes in the manner of selection and the content of expected work, now call “performance-based tasks” (PBT). Among the most significant, in-state applicants will have a distinct advantage over potential out-of-state applicants; and management reviews will no longer be required annually.
Contrasting this NOFA with the contract offered as part of the earlier 2011 procurement process, the main changes are:
- Introduction of “risk based” management reviews (essentially a tiered process, so that properties with “above average” or “superior” scores the last time they were visited will not have to be visited every year).
- Reduction in the cap on allowable administrative fees (2011 procurement bids could seek no more than a 2.5% profit margin; this NOFA caps the fee at no more than 2% - and the selection process scoring will awards more points for those willing/able to do the work for less).
- A preference for applications of in-state entities such that, if there is an eligible applicant from a given state, no out-of-state applicant will be considered; but if no in-state application is made, out-of-state (but still eligible) entities will be considered.
- Significant changes in the scoring methodology for review of the applications.
Applications to be considered for the Performance-Based Contract Administration (PBCA) program are due June 11. You can check out the full details, including the contract, NOFA and state attorneys general opinions on prior actions. There is also a summary of highlights and the latest Q&A document.
PBCA NOFA: updated timeline 2012
- Published NOFA March 9
- Application Deadline June 11 (initially April 10, changed March 15/6)
- Award Announcements August 31
- PBCA Transition period September 1 - November 30
- Interim ACC’s will expire September 30
- Interim ACC’s will extend October 1 – November 30
- Effective date of new ACC’s December 1
MOR Schedule Changes
The new “risk based” management reviews schedule, based off the last MOR inspection score received at the property, is as follows:
- All properties that received “below average” or “substandard” shall be inspected annually.
- Those that most recently scored a “satisfactory” shall be visited once within the initial 2-year total ACC term.
- Sites that last received “Above Average” or “Superior” shall not be reviewed during the initial 2 year term.
One major exception, however, is that all Mark-to-Market Projects with PBCA Administered HAP Contracts must still be inspected annually.
PBCA Contract/Rebid History
In August of 2011, HUD withdrew 42 previously announced awards of new performance-based contracts and stated that HUD would re-compete them again shortly under a new NOFA. Implementation of the new contracts continued in 9 uncontested states and 2 territories. Six-month extensions were offered to current contract administrators in the interim.
On Aug. 10, the HUD explained that it is withdrawing 42 previously announced awards for new performance-based contract administrator (PBCA) contracts due to “the large number of protests” filed at the Government Accountability Office (GAO) on the awarding of the contracts
HUD said it will re-compete the contracts again shortly under a new notice of funding availability (NOFA), which it hopes to issue within 60 days.
11 jurisdictions will move forward
While 42 jurisdictions will have to go through the aforementioned re-compete process, 9 states and 2 territories had only 1 applicant and had no protests filled. These areas will move forward with the new contract as awarded effective Oct. 1, 2011:
- Iowa
- Maine
- Minnesota
- Montana
- New Hampshire
- North Dakota
- South Dakota
- Vermont
- Wyoming
- Puerto Rico
- The U.S. Virgin Islands
With the exception of the Virgin Islands, which did not previously have a PBCA, this will involve no change in selected PBCAs.
HUD offers 6-month extension to incumbent PBCA
To insure a continuity of services during the interim, HUD intends to offer the incumbent PBCA a 6-month extension contract. This contract will be amended, and will include fewer duties, but also less money. If the incumbent PBCA chooses not to accept, HUD will administer the contract until the new contract is awarded. HUD expects no disruption in payments or operations.
Following are details of the earlier announcements and transition plans. It is unknown at this time if the same transition timelines, relative to a 90-day transition period, will be part of future changes, which may come subsequent to the second competition.
Initial plans and info as announced July 1, 2011
The U.S. Department of Housing and Urban Development (HUD) announced July 1, 2011, its selections for the new PBCAs, who will perform Section 8 contract administration duties under a new contract that takes effect on Oct. 1, 2011.
HUD received and reviewed a total of 130 applications for the 53 contracts under consideration nation-wide:
PBCA Transition Guidebook
For states experiencing a change in PBCA, there is a PBCA Transition Guidebook, which provides details including what to expect in terms of communications from new PBCAs to owners, to residents, what steps will be taken to transition work in progress related to management reviews, subsidy payments, contract renewals and more.
In addition to HUD's formal list of awardees, LeadingAge staff have additional details regarding contractor/awardees and their subcontractors. Please contact cbloom@leadingage.org for more details.
[NOTE: All HUD properties with Section 8 rental assistance contracts are impacted, including all Section 202/8s. Section 202/PRAC and Section 811 PRAC properties are not involved in this Section 8 contract administration/rebid initiative. As has been the case with PRAC programs and other non-Section 8 issues, the HUD field offices will continue to do the daily operational oversight including budget and management reviews, subsidy payment authorization, etc.]