USDA Awards $209M for Nationwide Default and REO Services to Information Systems & Networks Corp

Contract Overview

Contract Amount: $209,363,324 ($209.4M)

Contractor: Information Systems & Networks Corporation

Awarding Agency: Department of Agriculture

Start Date: 2023-06-20

End Date: 2026-06-30

Contract Duration: 1,106 days

Daily Burn Rate: $189.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NDMS SAMPLE TASK ORDER FOR NON-PERSONAL SERVICES TO PROVIDE NATIONWIDE POST ACCELERATION DEFAULT, PROPERTY PRESERVATION AND REAL ESTATE OWNED (REO) SERVICES ON THE RD SINGLE FAMILY DIRECT LOAN PORTFOLIO. THESE SERVICES INCLUDE BUT NOT LIMITED TO FORE

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Agriculture obligated $209.4 million to INFORMATION SYSTEMS & NETWORKS CORPORATION for work described as: NDMS SAMPLE TASK ORDER FOR NON-PERSONAL SERVICES TO PROVIDE NATIONWIDE POST ACCELERATION DEFAULT, PROPERTY PRESERVATION AND REAL ESTATE OWNED (REO) SERVICES ON THE RD SINGLE FAMILY DIRECT LOAN PORTFOLIO. THESE SERVICES INCLUDE BUT NOT LIMITED TO FORE Key points: 1. Significant contract value of $209.36 million for essential real estate services. 2. Information Systems & Networks Corporation is the sole awardee for this task order. 3. Potential risk associated with a single awardee for nationwide services. 4. Spending falls under 'Other Activities Related to Real Estate' (NAICS 531390).

Value Assessment

Rating: questionable

The contract is a firm-fixed-price delivery order. Without specific performance metrics or benchmarks for similar nationwide REO services, assessing the value for money is difficult. The large contract value warrants close monitoring.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, this is a delivery order under a larger contract, and the specific competition for this order is not detailed.

Taxpayer Impact: Taxpayer funds are being used for this contract. The effectiveness and efficiency of the awarded services will determine the ultimate taxpayer impact.

Public Impact

Ensures the preservation and management of USDA's single-family direct loan portfolio properties. Supports homeowners facing default by managing foreclosed properties. Impacts the stability and value of USDA's real estate assets nationwide.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Single awardee for nationwide services
Lack of detailed performance metrics for value assessment

Positive Signals

Firm-fixed-price contract type
Full and open competition utilized

Sector Analysis

This contract falls under the 'Other Activities Related to Real Estate' sector. Benchmarking against similar large-scale, nationwide property preservation and REO service contracts is challenging due to the specialized nature and scale.

Small Business Impact

The data indicates that small business participation (sb) is false for this contract. This suggests that small businesses were not significantly involved in this specific task order.

Oversight & Accountability

Oversight will be crucial to ensure Information Systems & Networks Corporation meets performance expectations and delivers services efficiently. The Rural Housing Service will need robust contract management to monitor this significant award.

Related Government Programs

Other Activities Related to Real Estate
Department of Agriculture Contracting
Rural Housing Service Programs

Risk Flags

Reliance on a single contractor for nationwide services.
Potential for cost overruns if not managed tightly despite FFP.
Limited transparency on specific competition details for this delivery order.
Lack of explicit small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $209.4 million to INFORMATION SYSTEMS & NETWORKS CORPORATION. NDMS SAMPLE TASK ORDER FOR NON-PERSONAL SERVICES TO PROVIDE NATIONWIDE POST ACCELERATION DEFAULT, PROPERTY PRESERVATION AND REAL ESTATE OWNED (REO) SERVICES ON THE RD SINGLE FAMILY DIRECT LOAN PORTFOLIO. THESE SERVICES INCLUDE BUT NOT LIMITED TO FORE

Who is the contractor on this award?

The obligated recipient is INFORMATION SYSTEMS & NETWORKS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Rural Housing Service).

What is the total obligated amount?

The obligated amount is $209.4 million.

What is the period of performance?

Start: 2023-06-20. End: 2026-06-30.

What is the expected impact on property values and default rates given the services provided?

The services aim to mitigate further property value decline and manage the default process efficiently. By ensuring properties are maintained and prepared for sale, the goal is to minimize losses for the USDA and potentially facilitate quicker sales, thereby reducing the duration of default and its associated negative impacts on the housing market.

How does the firm-fixed-price structure incentivize cost control and quality for the contractor?

A firm-fixed-price contract shifts the risk of cost overruns to the contractor. This structure incentivizes Information Systems & Networks Corporation to manage its costs effectively to maximize profit. However, it could potentially lead to compromises in service quality if not rigorously overseen, making performance monitoring essential.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key performance indicators likely include metrics such as property preservation timelines, cost per property managed, time to REO sale, and reduction in property damage or vandalism. The Rural Housing Service would establish specific KPIs to ensure the contractor is meeting service level agreements and achieving desired outcomes for the loan portfolio.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Activities Related to Real Estate › Other Activities Related to Real Estate

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12SAD122R0001

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10411 MOTOR CITY DR, BETHESDA, MD, 20817

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $209,363,324

Exercised Options: $209,363,324

Current Obligation: $209,363,324

Actual Outlays: $4,489,885

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 12SAD223D0004

IDV Type: IDC

Timeline