January 19, 2007

At the Project-Based
Section 8 Contract Administration module of the HFA Institute, HUD contract
administration officials Lanier Hylton and Deborah Lear said the preliminary
report of HUD’s consultants studying the performance-based contract
administration (PBCA) initiative have found that the program is working
well, but could be improved by greater consistency among HUD field offices. 
Hylton and Lear also said HUD will begin working on a new PBCA contract and
reallocating the amount of fees PBCAs receive to more accurately reflect the
amount of effort they put into their various assigned tasks.   

Hylton and Lear also said
they did not know and could not predict whether HUD would rebid state PBCA
contracts and whether the fees would change under the new contract.  Lear
said HUD would continue to renew expiring contracts for two years until they
develop the new contract.  They said they did not believe ending the PBCA
initiative and returning the contract administration work to HUD employees
was a viable option.