HUD's $44M Loan Servicing Contract Awarded to Novad Management Consulting LLC
Contract Overview
Contract Amount: $44,178,552 ($44.2M)
Contractor: Novad Management Consulting LLC
Awarding Agency: Department of Housing and Urban Development
Start Date: 2020-09-25
End Date: 2022-04-17
Contract Duration: 569 days
Daily Burn Rate: $77.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: NATIONAL SERVICING CENTER LOAN SERVICING
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73107
State: Oklahoma Government Spending
Plain-Language Summary
Department of Housing and Urban Development obligated $44.2 million to NOVAD MANAGEMENT CONSULTING LLC for work described as: NATIONAL SERVICING CENTER LOAN SERVICING Key points: 1. Contract Value: $44.18 million over 569 days. 2. Awardee: Novad Management Consulting LLC. 3. Agency: Department of Housing and Urban Development (HUD). 4. Competition: Full and open competition. 5. Contract Type: Firm Fixed Price.
Value Assessment
Rating: good
The contract value of $44.18 million for loan servicing appears reasonable given the duration of 569 days. Benchmarking against similar contracts for credit intermediation services would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors had the opportunity to bid.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value for the government.
Public Impact
Ensures continued loan servicing operations for HUD programs. Supports the housing market by maintaining loan portfolios. Provides employment opportunities through the awarded contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Small business participation not indicated.
- Contract duration is relatively short for a critical function.
Positive Signals
- Full and open competition utilized.
- Firm Fixed Price contract type.
Sector Analysis
This contract falls under 'Other Activities Related to Credit Intermediation' (NAICS 522390). Spending in this sector is driven by the need for financial services, loan management, and credit support, often influenced by economic conditions and government housing policies.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses for this contract. Further analysis would be needed to determine if small business participation goals were met or considered.
Oversight & Accountability
The contract was awarded by the Department of Housing and Urban Development, indicating internal agency oversight. The firm fixed price structure provides cost certainty, but performance monitoring is crucial for accountability.
Related Government Programs
- Other Activities Related to Credit Intermediation
- Department of Housing and Urban Development Contracting
- Department of Housing and Urban Development Programs
Risk Flags
- Lack of small business participation noted.
- Potential for performance issues if oversight is inadequate.
- Contract duration may not reflect long-term needs.
- Dependence on a single contractor for critical loan servicing functions.
Tags
other-activities-related-to-credit-inter, department-of-housing-and-urban-developm, ok, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $44.2 million to NOVAD MANAGEMENT CONSULTING LLC. NATIONAL SERVICING CENTER LOAN SERVICING
Who is the contractor on this award?
The obligated recipient is NOVAD MANAGEMENT CONSULTING LLC.
Which agency awarded this contract?
Awarding agency: Department of Housing and Urban Development (Department of Housing and Urban Development).
What is the total obligated amount?
The obligated amount is $44.2 million.
What is the period of performance?
Start: 2020-09-25. End: 2022-04-17.
What is the specific scope of 'loan servicing' covered by this contract, and how does it align with HUD's overall mission objectives?
The contract likely encompasses a range of activities such as payment processing, delinquency management, loan modifications, and borrower communication for HUD-held or insured loans. This aligns with HUD's mission to create strong, sustainable communities and affordable housing by ensuring the stability and proper management of its loan portfolios.
What were the key performance indicators (KPIs) established for Novad Management Consulting LLC under this contract, and how was performance measured?
While specific KPIs are not detailed in the provided data, typical performance metrics for loan servicing contracts include timely payment processing, low delinquency rates, effective loss mitigation, and high borrower satisfaction scores. HUD would have established specific metrics and conducted regular performance reviews to ensure Novad met contractual obligations.
How does the pricing structure of this contract compare to industry benchmarks for similar loan servicing contracts, considering the specific loan types and volumes managed?
The firm fixed price of $44.18 million for 569 days suggests a pre-determined cost for the services. A detailed comparison would require analyzing the per-loan servicing fees, the volume and complexity of loans managed, and prevailing market rates for similar services to assess if it represents good value.
Industry Classification
NAICS: Finance and Insurance › Activities Related to Credit Intermediation › Other Activities Related to Credit Intermediation
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 86614920R00008
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8181 PROFESSIONAL PL STE 208, LANDOVER, MD, 20785
Business Categories: Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $44,178,552
Exercised Options: $44,178,552
Current Obligation: $44,178,552
Actual Outlays: $33,147,687
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2020-09-25
Current End Date: 2022-04-17
Potential End Date: 2022-04-17 00:00:00
Last Modified: 2025-09-24
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