HUD's $702M HECM contract with Compu-Link Corp awarded without competition

Contract Overview

Contract Amount: $70,204,206 ($70.2M)

Contractor: Compu-Link Corp

Awarding Agency: Department of Housing and Urban Development

Start Date: 2023-09-08

End Date: 2026-05-31

Contract Duration: 996 days

Daily Burn Rate: $70.5K/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, 74133

State: Oklahoma Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $70.2 million to COMPU-LINK CORP for work described as: HOME EQUITY CONVERSION MORTGAGE (HECM Key points: 1. Significant contract value ($702M) for HECM services. 2. Sole-source award to Compu-Link Corp raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. Contract supports credit intermediation activities within HUD.

Value Assessment

Rating: questionable

The contract value of $702,042,060 is substantial. Without competitive data, it's difficult to assess if this pricing is optimal compared to similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Compu-Link Corp. This limits price discovery and potentially leads to less favorable terms for the government.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these HECM services.

Public Impact

Homeowners relying on HECM services may experience service continuity. The financial services sector could see reduced opportunities due to the sole-source nature. HUD's ability to manage its mortgage insurance programs is directly impacted.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Potential for service continuity

Sector Analysis

This contract falls under 'Other Activities Related to Credit Intermediation,' a broad category. Benchmarks for similar sole-source contracts in this niche are not readily available, making direct comparison difficult.

Small Business Impact

The data indicates no specific set-aside for small businesses, and the sole-source nature of this large contract likely limits opportunities for small business participation.

Oversight & Accountability

Oversight is crucial for sole-source contracts to ensure fair pricing and performance. The Department of Housing and Urban Development is responsible for managing this contract and ensuring 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

Sole-source award limits competition.
Potential for overpayment due to lack of price discovery.
Limited transparency on justification for sole-source.
No clear small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $70.2 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 $70.2 million.

What is the period of performance?

Start: 2023-09-08. End: 2026-05-31.

What is the justification for awarding this substantial HECM contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other qualified sources. Without further details from HUD, it's impossible to determine the specific rationale. This lack of transparency is a concern for ensuring the government is obtaining the best value.

What are the risks associated with a sole-source award of this magnitude?

The primary risks include inflated pricing due to the absence of competitive pressure, potential for complacency from the contractor, and missed opportunities to leverage innovation or cost savings from other potential providers. It also raises questions about the thoroughness of market research conducted prior to the award.

How will HUD ensure effective performance and value for money on this non-competed contract?

HUD must implement robust contract management practices, including detailed performance monitoring, regular reviews of contractor deliverables, and potentially independent cost analyses. Strong oversight and clear performance metrics are essential to mitigate the risks inherent in a sole-source award and ensure taxpayer funds are used efficiently.

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: 86614923R00005

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: $74,720,625

Exercised Options: $70,204,206

Current Obligation: $70,204,206

Actual Outlays: $49,102,464

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline