HQS pricing

[Markus Keller]

Hi guys, hoping someone has experience with high volume HQS pricing. I'm working on an RFP for 2500 units in the next year inspected using the HQS.
I've done HQS inspections and am familiar with the form, work, etc. When I have done these in the past it's been through various referrals, etc so I was able to price it as was necessary.
In this case, I'm submitting an RFP along with who knows how many competitors. I don't know what going rates, standards, preferred pricing, etc are for such larger quantity. Of course I would like to provide a competitive price so that I have a shot at getting the contract.
Anyone have any ideas, thoughts, experience?
Thanks for the help, Markus

[Jim Luttrall]

What the heck is HQS and RFP?
I'm sure that is a common term that you are familiar with but not me.

[Markus Keller]

Sorry, figured it was more known.
RFP = Request for Proposal, standard term and fishline put out by large Corp's and Gov agencies when looking for proposals for goods, extended/ongoing services, or large capital cost services
One answers the RFP by submitting a proposal for the work requested. One's RFP answer MUST contain all the info and requirements set forth in the RFP in order to even get considered. It's not that it is that hard to do, it's just that you have to make sure all your i's are dotted and t's are crossed, so to speak.
HQS = Housing Quality Standards, a standard put out by HUD; it is basically a dozen page inspection form for rental units
I have attached a PDF of the form to this post for those not familiar with it.
This RFP isn't for HUD. Many agencies and Corps use the HQS as a basis. There is usually HUD money involved somewhere along the stream.
Hope that clarifies things Jim.

[Jim Luttrall]

Ah Ha, now I'm with you.
I did a bit of the rental unit inspections a number of years ago for small town housing authority. Looks like the same basic form in use back then.
The hardest thing for me was NOT writing things up that were not on the form and catching the tenant at home to get the inspection done.
I got paid on piece work basis and had it set up so that I got paid a minimal amount every time I showed up at the scheduled time and the tenant was a no show (VERY COMMON) and then a full fee for the completed inspection. I was basically doing a QC (quality control) for their in-house staff inspections. I made some decent money but you have to get in, get out, and get to the next one to make it worthwhile. It was pretty easy to do 5-6 per hour if they were close to each other. The inspections themselves were a breeze but you needed a strong stomach and hand sanitizer on some of the units, then go take a hot shower when your done!
My work was basically open ended and a small organization that a lawyer friend recommended me for, never had to do a formal RFP.

It can be a very political, bureaucratic nightmare dealing with the government, so don't hang your hat on the income long term and document everything, retain copies forever.
Hope that helps.

[Scott Patterson]

About 7 years ago I had a 900 unit job that consisted of 6 complexes that were all within 20 miles of each other. We used the HQS standards. I hired ten guys, with 5 of them being inspectors and the others just friends of friends. The non inspectors were paid $3 per unit and the inspectors were paid $6 per unit.

Most of the buildings had 16 units in them, 8 up and 8 down. Most were 1bth two bedrooms. They also had two central laundry rooms for the complex.

The fee was $41 per unit and $600 per complex. That came out to $40,500 for the entire bid.

We hit each complex with two teams. They were escorted by a property manager who unlocked the doors. On the average they did about 5 an hour per team. Our goal was to have each complex done in 3 days.

When they were all completed it took me and two of the other inspectors (I gave them a bonus) two days to compile the field notes into a report. I then had to have 15 copies printed and bound per the contract.

I was able to keep payroll and expenses down to about a third of the bid cost. This also included additional insurance I had to takeout and a performance bond.

According to my notes, I was the lowest bid. The next highest bid was for $42.30 per unit and $800 per complex. The highest bid came in at a per unit bid of $68 and $2,000 per complex.
This was in Mississippi in 2004

[Markus Keller]

Hi Scott, that's extremely helpful even though the numbers are from 04. I'm trying to figure out the costs and get close enough to make it to the 2nd round. If I can make it to the 2nd round there's usually enough more detailed info available that I can better gauge the overall scope. This would be a one year contract with a lot of buildings. I send you a PM.
Those are good thoughts Jim, billing myself out as a 'Troubled Buildings Specialist' I'm well aware of the sanitizer and hot showers. Often times, I take my clothes off outside and leave them there for a few days and head straight for the shower. I know it is difficult to stop writing what you see in these situations. I've gotten more Ok with just giving the client what they want. Even when it isn't what's really in their best interest. Clients don't like it when you tell them they need something besides what they've decided they want.
Thanks, Markus

[Scott Patterson]

Hi Scott, that's extremely helpful even though the numbers are from 04. I'm trying to figure out the costs and get close enough to make it to the 2nd round. If I can make it to the 2nd round there's usually enough more detailed info available that I can better gauge the overall scope. This would be a one year contract with a lot of buildings. I send you a PM.
Those are good thoughts Jim, billing myself out as a 'Troubled Buildings Specialist' I'm well aware of the sanitizer and hot showers. Often times, I take my clothes off outside and leave them there for a few days and head straight for the shower. I know it is difficult to stop writing what you see in these situations. I've gotten more Ok with just giving the client what they want. Even when it isn't what's really in their best interest. Clients don't like it when you tell them they need something besides what they've decided they want.
Thanks, Markus

With the way the economy has tanked those 04' numbers might be in the ballpark! What we did was a onetime shot.