PBCA Awards Update

As we previously reported, the lawsuit brought against HUD by eight Performance-Based Contract Administrators is in the appeals process.  In late April 2013 the Court of Federal Claims ruled in favor of HUD, saying that the NOFA system was appropriate to use for PBCA awards.  The plaintiffs appealed to the U.S. Court of Appeals for the Federal Circuit, and the court ordered HUD to stop all PBCA award proceedings until the appeal was decided.

On October 10, 2013, the Court of Appeals heard oral arguments from both sides.  Now, its panel of three judges will consider the case; they’re expected to issue a decision by the end of December 2013.  In the meantime, HUD cannot move forward with the NOFA awards announced in August of this year.  PBCAs in 42 states and territories are continuing to operate (without conducting MORs) under a series of 3-month extensions that is expected to last until awards can be made.

In the 11 uncontested states, HUD had planned to offer new 2-year contracts to PBCAs beginning January 1, 2014, so that all 53 states and territories would be back on the same contract cycle.  This is still the goal, so HUD is currently providing those eleven PBCAs with continuing 3-month extensions of their existing contracts.