Status of PBCA Awards

New Performance Based Contract Administrator contracts, effective October 1, 2011, were awarded in late July.  However, the PBCA transition only proceeded in the 11 states and territories for which HUD only received one bid:  Iowa, Maine, Minnesota, Montana, New Hampshire, North Dakota, South Dakota, Vermont, Wyoming, Puerto Rico and the U.S. Virgin Islands.

HUD withdrew the competition in the 42 states/territories for which protests were filed with the General Administration Office (GAO).  HUD offered 6-month contracts, effective through March 31, 2012 (with the possibility of three, 3-month extensions) to the current PBCAs in those 42 states, and they all accepted them.  These extension contracts were for reduced fees, and MORs have been suspended under this arrangement.

In August, HUD announced its goal of beginning a re-compete through a NOFA (Notice of Funds Available) process, with the NOFA being published within 60 days.  However, to date, the NOFA has not been released, and HUD has not yet made any announcement as to how the rebid will proceed.

According to SAHMA President George Caruso, in early October an internal memo from the Deputy Assistant Secretary was issued to HUD field offices advising them that they are now responsible for performing management reviews, as well as follow-ups on REAC EH&S citations.  For the most part, HUD field offices have limited travel funds, and several are short of staff as well.  It is likely the various HUD offices will only do a very limited number of MORs, focusing primarily on troubled properties.

It is not clear when the formal rebidding process will restart.  HUD policymakers in DC have not been willing to discuss the process going forward, with either the PBCAs or with owner/agents.

If your property is administered by a TCA (Traditional Contract Administrator), or one of the 11 PBCAs operating under their new contracts, you should not have noticed any major bumps in the road.  If you are in one of the 42 states/territories with contract extensions, it is very likely that you will not have a Management and Occupancy Review (MOR) until at least July of 2012.