HUD awards $4.1M IT support contract to Nish Consulting, Inc. for 5 years

Contract Overview

Contract Amount: $4,102,184 ($4.1M)

Contractor: Nish Consulting, Inc.

Awarding Agency: Department of Housing and Urban Development

Start Date: 2020-12-14

End Date: 2025-09-29

Contract Duration: 1,750 days

Daily Burn Rate: $2.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INFORMATION TECHNOLOGY INVESTMENT MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20410

State: District of Columbia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $4.1 million to NISH CONSULTING, INC. for work described as: INFORMATION TECHNOLOGY INVESTMENT MANAGEMENT SUPPORT SERVICES Key points: 1. Contract value appears reasonable for a 5-year IT support engagement. 2. Limited competition raises concerns about potential overpricing and reduced value. 3. Contract duration of nearly 5 years presents performance and adaptability risks. 4. Firm Fixed Price contract type offers cost certainty but may limit flexibility. 5. This contract supports essential IT management functions for HUD. 6. The awardee, Nish Consulting, Inc., is a new entrant in federal contracting for this service.

Value Assessment

Rating: fair

The contract's total value of $4.1 million over nearly five years averages to approximately $820,000 annually. Benchmarking this against similar IT management support services is challenging without more detailed scope information. However, given the firm-fixed-price structure, the government has a defined cost ceiling. The value proposition hinges on the quality and effectiveness of the services delivered by Nish Consulting, Inc., which is a relatively new contractor in this space. Further analysis of the specific deliverables and performance metrics would be needed for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This significantly limits the opportunity for price discovery and potentially leads to higher costs for the government compared to a fully competed contract. The justification for a sole-source award is not provided in the available data, but typically it involves unique capabilities or circumstances. The lack of competition means taxpayers do not benefit from the cost savings that can arise from a competitive bidding process.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the best possible price for these IT support services. The absence of competition removes a key mechanism for driving down costs and ensuring efficiency.

Public Impact

Federal employees within the Department of Housing and Urban Development (HUD) will benefit from improved IT management and support. The contract ensures the continuity of essential IT investment management services for HUD's operations. Services are primarily delivered within the District of Columbia, supporting the agency's headquarters. The contract supports a small number of IT management positions, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Contract duration of nearly five years could lead to vendor lock-in or outdated solutions.
Limited contractor history in federal IT support services warrants close performance monitoring.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Contract supports critical IT investment management functions for a major federal agency.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT investment management support services. The federal IT services market is vast and highly competitive, with numerous large and small businesses offering a wide range of solutions. HUD's spending on IT support is part of a broader government-wide effort to modernize and manage its technology infrastructure effectively. Comparable spending benchmarks for similar IT management support contracts can vary significantly based on scope, duration, and agency needs.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does the data indicate any specific subcontracting requirements for small businesses. Therefore, it is unlikely to have a direct positive impact on the small business ecosystem through this specific award. The absence of set-aside provisions means that larger businesses or those not specifically focused on small business participation were eligible and potentially awarded the contract.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Housing and Urban Development's contracting officers and program managers. Performance will be monitored against the terms and conditions of the firm-fixed-price contract, including delivery schedules and service level agreements. Transparency is facilitated through public contract databases, though detailed performance reports are typically internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

IT Management Consulting Services
Federal IT Modernization Programs
Agency IT Investment Planning
IT Support Services Contracts

Risk Flags

Sole-source award
Limited contractor performance history in specific service area
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $4.1 million to NISH CONSULTING, INC.. INFORMATION TECHNOLOGY INVESTMENT MANAGEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is NISH CONSULTING, INC..

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 $4.1 million.

What is the period of performance?

Start: 2020-12-14. End: 2025-09-29.

What is the specific scope of work for Nish Consulting, Inc. under this contract?

The provided data indicates the contract is for 'INFORMATION TECHNOLOGY INVESTMENT MANAGEMENT SUPPORT SERVICES.' While the specific tasks are not detailed, this generally includes activities such as IT portfolio management, strategic IT planning, budget formulation and execution support, IT investment analysis, performance measurement, and ensuring compliance with federal IT regulations and policies. The firm-fixed-price nature suggests a defined set of deliverables or services are expected, rather than an open-ended time-and-materials arrangement. A detailed statement of work (SOW) would outline the precise responsibilities, reporting requirements, and performance metrics.

How does the $4.1 million contract value compare to similar IT support contracts at HUD or other agencies?

Direct comparison of the $4.1 million value is difficult without knowing the precise scope and duration of services. However, for a nearly five-year contract supporting IT investment management, this figure appears within a reasonable range for a federal agency like HUD. Annualized costs are around $820,000. Larger agencies with more complex IT infrastructures might award significantly larger contracts for similar services, while smaller agencies might have smaller engagements. The sole-source nature of this award, however, prevents a direct value-for-money comparison against competitive bids, which could have potentially yielded lower costs.

What are the potential risks associated with awarding this contract on a sole-source basis?

The primary risk of a sole-source award is the lack of competition, which can lead to inflated prices and reduced incentive for the contractor to innovate or provide exceptional service. Taxpayers may not receive the best value for their money. Additionally, it limits the government's ability to leverage the broader market's capabilities and potentially find more cost-effective or technologically advanced solutions. Without a competitive process, there's also less transparency into the pricing structure and justification for the selected vendor.

What is Nish Consulting, Inc.'s track record with federal IT support contracts?

Based on the provided data, Nish Consulting, Inc. appears to be a relatively new entrant or has limited publicly documented history specifically for IT investment management support services at this scale. The data does not indicate prior large-scale federal contracts for similar services. This lack of extensive federal contracting history in this specific domain represents a potential performance risk. HUD will need to closely monitor the contractor's performance against the contract requirements to ensure successful delivery and mitigate any risks associated with inexperience.

How does the firm-fixed-price contract type affect risk and flexibility for HUD?

A firm-fixed-price (FFP) contract type offers significant cost certainty for HUD, as the total price is established upfront. This shifts the risk of cost overruns to the contractor, Nish Consulting, Inc. It simplifies financial planning and budgeting. However, FFP contracts can reduce flexibility. If HUD's requirements change significantly during the contract period, modifications may be necessary, potentially leading to negotiations and increased costs or delays. The contractor has less incentive to control costs beyond what is needed to meet the FFP, compared to other contract types like cost-plus.

What is the expected impact of this contract on HUD's IT infrastructure and operations?

This contract is intended to ensure the effective management and strategic direction of HUD's IT investments. By securing support services for IT investment management, HUD aims to optimize its technology spending, align IT initiatives with agency goals, improve IT governance, and enhance the overall efficiency and effectiveness of its IT infrastructure. This support is crucial for maintaining and modernizing the systems that underpin HUD's mission delivery, ultimately benefiting federal employees and the public services they provide.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 86615321Q00005

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 521 C STREET, QUANTICO, VA, 22134

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,102,184

Exercised Options: $4,102,184

Current Obligation: $4,102,184

Actual Outlays: $3,915,465

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline