HUD's $34M Home Equity Conversion Mortgage contract awarded to Compu-Link Corp

Contract Overview

Contract Amount: $34,176,686 ($34.2M)

Contractor: Compu-Link Corp

Awarding Agency: Department of Housing and Urban Development

Start Date: 2022-09-01

End Date: 2023-03-11

Contract Duration: 191 days

Daily Burn Rate: $178.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HOME EQUITY CONVERSION MORTGAGE (HECM

Place of Performance

Location: TULSA, TULSA County, OKLAHOMA, 74101

State: Oklahoma Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $34.2 million to COMPU-LINK CORP for work described as: HOME EQUITY CONVERSION MORTGAGE (HECM Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract duration of 191 days is relatively short, suggesting a specific, time-bound need. 3. Fixed-price contract type may offer cost certainty but could limit flexibility. 4. The North American Industry Classification System (NAICS) code 522390 indicates services related to credit intermediation. 5. The contract was awarded by the Department of Housing and Urban Development (HUD). 6. The contractor, Compu-Link Corp, received a single award. 7. The contract's performance period is from September 1, 2022, to March 11, 2023.

Value Assessment

Rating: questionable

Benchmarking the value for this specific contract is challenging due to its sole-source nature and limited public data. Without competitive bids, it's difficult to assess if the $34.18 million price represents a fair market value. The fixed-price structure suggests a defined scope, but the absence of comparative contract data makes a definitive value-for-money assessment difficult. Further analysis would require understanding the specific services rendered and comparing them to industry standards for similar credit intermediation activities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source procurement method, meaning only one vendor, Compu-Link Corp, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities or urgent needs), they generally lead to less price discovery and potentially higher costs for the government compared to fully competed contracts.

Taxpayer Impact: Sole-source awards limit opportunities for other businesses to compete for government contracts and can result in taxpayers paying a premium due to the lack of competitive pressure on pricing.

Public Impact

The primary beneficiaries are likely individuals seeking Home Equity Conversion Mortgages (HECM), a program administered by HUD. The services delivered are related to credit intermediation, supporting the HECM program's operational needs. The geographic impact is national, as HECM is a federal program. Workforce implications may include employment at Compu-Link Corp and potentially within HUD's related departments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced innovation.
Sole-source awards can limit transparency in the procurement process.
The short contract duration might indicate a reactive or emergency procurement, which can sometimes be less cost-effective.

Positive Signals

The contract is a fixed-price type, which can provide cost predictability for the government.
The award was made by a major federal agency (HUD), suggesting a level of established process.
The contractor received a 'ST: OK' and 'SN: OK' status, indicating no immediate performance issues were flagged at the time of award.

Sector Analysis

The financial services sector, specifically credit intermediation, is a broad area encompassing various lending and financial management activities. Contracts within this sector often support government programs aimed at housing, consumer finance, or economic stability. HUD's involvement in the Home Equity Conversion Mortgage (HECM) program places this contract within the specialized niche of reverse mortgages, supporting senior homeowners. Comparable spending benchmarks are difficult to establish without more specific details on the services provided, but the overall federal spending on financial services and housing support is substantial.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'SB: false'. Furthermore, there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary contractor, Compu-Link Corp, is expected to perform the work itself or through its own chosen partners, potentially limiting opportunities for small businesses to participate in this specific federal spending.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Housing and Urban Development (HUD). As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency is limited due to the sole-source nature of the award. The Inspector General for HUD would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Home Equity Conversion Mortgage (HECM) Program
Federal Housing Administration (FHA) Programs
Department of Housing and Urban Development (HUD) Operations
Credit Intermediation Services

Risk Flags

Sole-source award limits competition and price discovery.
Potential for higher costs due to lack of competitive bidding.
Limited transparency in the procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $34.2 million to COMPU-LINK CORP. HOME EQUITY CONVERSION MORTGAGE (HECM

Who is the contractor on this award?

The obligated recipient is COMPU-LINK CORP.

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 $34.2 million.

What is the period of performance?

Start: 2022-09-01. End: 2023-03-11.

What specific services did Compu-Link Corp provide under this contract?

The provided data indicates the contract is for 'HOME EQUITY CONVERSION MORTGAGE (HECM)' and falls under NAICS code 522390, 'Other Activities Related to Credit Intermediation.' This suggests Compu-Link Corp likely provided services essential to the administration, processing, or support of HUD's HECM program. These services could include loan origination support, servicing, data management, actuarial analysis, or other operational functions necessary for the program's effective functioning. Without more detailed contract line item information or a statement of work, the precise nature of the services remains general.

How does the $34.18 million award compare to historical spending on similar HECM support contracts?

Direct historical spending comparisons for this specific HECM support contract are difficult without access to a comprehensive database of past HUD procurements for similar services. The sole-source nature of this award also complicates benchmarking, as competitive bids typically establish market rates. To perform a robust comparison, one would need to identify previous contracts for HECM program support, analyze their scope, duration, and value, and adjust for inflation and changes in program requirements. The $34.18 million figure for a contract spanning less than a year suggests a significant operational or administrative function is being supported.

What are the potential risks associated with a sole-source award for HECM services?

The primary risk associated with a sole-source award is the lack of competitive pressure, which can lead to inflated pricing and reduced value for taxpayers. Without competing bids, the government may not secure the most cost-effective solution. Additionally, sole-source awards can limit opportunities for other qualified vendors, potentially stifling innovation and market competition in the long run. There's also a risk that the government may not be aware of more capable or efficient solutions available from other providers. Transparency and accountability can also be diminished compared to a fully competed process.

What is the significance of the NAICS code 522390 for this contract?

The North American Industry Classification System (NAICS) code 522390, 'Other Activities Related to Credit Intermediation,' categorizes the business activities performed under this contract. This code signifies that Compu-Link Corp's role is related to facilitating credit transactions, which in the context of the HECM program, likely involves supporting the origination, servicing, or management of home equity conversion mortgages. This classification helps in understanding the nature of the services provided and allows for comparison with other federal contracts within the broader financial services and credit sector.

What does the contract status 'ST: OK' and 'SN: OK' imply?

The status indicators 'ST: OK' and 'SN: OK' likely refer to the contractor's performance and financial status, respectively, at the time the data was recorded or the contract was awarded. 'ST: OK' suggests that Compu-Link Corp's performance on previous or ongoing contracts was satisfactory, meeting the required standards. 'SN: OK' typically indicates that the contractor's financial status is considered sound and stable, posing no significant risk to the government. These positive indicators suggest that the agency had confidence in the contractor's ability to fulfill the contract requirements.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 86614922R00009

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3900 CAPITOL CITY BLVD, LANSING, MI, 48906

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,176,686

Exercised Options: $34,176,686

Current Obligation: $34,176,686

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline