HUD awards $2.96M IT support contract to Nelson Enterprise Technology Services LLC

Contract Overview

Contract Amount: $2,966,400 ($3.0M)

Contractor: Nelson Enterprise Technology Services LLC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2023-06-20

End Date: 2026-06-19

Contract Duration: 1,095 days

Daily Burn Rate: $2.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FHEO IT SUPPORT SYSTEMS AND HUD ENFORCEMENT MANAGEMENT SYSTEM (HEMS)

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $3.0 million to NELSON ENTERPRISE TECHNOLOGY SERVICES LLC for work described as: FHEO IT SUPPORT SYSTEMS AND HUD ENFORCEMENT MANAGEMENT SYSTEM (HEMS) Key points: 1. Contract focuses on IT support for FHEO systems and HEMS. 2. Awarded as a definitive contract with a firm fixed price. 3. Duration of the contract is 1095 days. 4. The contract was not available for competition. 5. The base award amount is $2,966,400. 6. The contract is managed by the Department of Housing and Urban Development.

Value Assessment

Rating: fair

The base award of $2.96 million for IT support services appears to be within a reasonable range for a 3-year definitive contract of this nature. However, without specific details on the scope of services, deliverables, and performance metrics, a precise value-for-money assessment is challenging. Benchmarking against similar custom computer programming services contracts awarded by HUD or other agencies would provide a clearer picture of pricing competitiveness. The lack of competition, as noted below, also limits the ability to definitively assess if the best possible price was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, meaning it was not competed among multiple vendors. The specific reasons for this sole-source award are not detailed in the provided data. A sole-source procurement typically occurs when only one vendor possesses the necessary capabilities, proprietary technology, or when urgent needs preclude a competitive process. This limits the opportunity for market-driven price discovery and potentially reduces the number of innovative solutions considered.

Taxpayer Impact: For taxpayers, sole-source awards can sometimes lead to higher costs compared to competitively bid contracts, as the government may not benefit from the price reductions that competition can drive. It also means less transparency in the procurement process.

Public Impact

The primary beneficiaries are the Department of Housing and Urban Development (HUD) staff who will receive enhanced IT support. Services delivered include IT support for the Federal Housing Enterprise Oversight (FHEO) systems and the HUD Enforcement Management System (HEMS). The geographic impact is primarily within HUD's operational areas, likely supporting federal employees and systems. Workforce implications are centered around the IT professionals employed by Nelson Enterprise Technology Services LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Limited transparency into the justification for sole-source award.
Potential for vendor lock-in if services are highly specialized.

Positive Signals

Contract awarded to a single, presumably capable, vendor.
Definitive contract structure provides a clear framework for service delivery.
Firm fixed price contract offers cost certainty for the government.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under custom computer programming services. The IT services market is vast and highly competitive, with numerous firms offering specialized support. HUD's reliance on IT systems for its core functions, such as housing oversight and enforcement, highlights the critical nature of these services. Comparable spending benchmarks for IT support contracts of similar duration and scope within federal agencies can vary significantly based on the complexity of the systems supported and the level of service required.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal unless Nelson Enterprise Technology Services LLC voluntarily includes small businesses in its subcontracting efforts. Further analysis would be needed to determine if subcontracting opportunities exist.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Department of Housing and Urban Development. Accountability measures are established through the terms and conditions of the definitive contract, including performance standards and reporting requirements. Transparency is somewhat limited due to the sole-source nature of the award, but contract award details are generally made public. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

HUD IT Modernization Efforts
Federal IT Support Services
Custom Computer Programming Services
Enforcement Management Systems

Risk Flags

Sole-source award limits price competition.
Lack of detailed scope of work in summary data.
No information on contractor past performance provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $3.0 million to NELSON ENTERPRISE TECHNOLOGY SERVICES LLC. FHEO IT SUPPORT SYSTEMS AND HUD ENFORCEMENT MANAGEMENT SYSTEM (HEMS)

Who is the contractor on this award?

The obligated recipient is NELSON ENTERPRISE TECHNOLOGY SERVICES 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 $3.0 million.

What is the period of performance?

Start: 2023-06-20. End: 2026-06-19.

What is the specific scope of work for IT support for FHEO systems and HEMS?

The provided data does not detail the specific scope of work. However, 'IT Support Systems' generally implies maintenance, troubleshooting, help desk services, system updates, and potentially minor enhancements for the Federal Housing Enterprise Oversight (FHEO) systems. The 'HUD Enforcement Management System (HEMS)' likely involves support for a database or platform used to track and manage enforcement activities within HUD. This could include user support, data integrity checks, system performance monitoring, and ensuring the availability and reliability of these critical IT infrastructures. A comprehensive understanding of the scope would require reviewing the contract's Statement of Work (SOW).

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

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' which typically signifies a sole-source award. Common justifications for sole-source procurements include that only one responsible source is available or capable of providing the required service, or that there is a compelling urgency that will not permit a competitive solicitation. Without further documentation (e.g., a Justification and Approval document), the specific reason HUD determined this contract could not be competed remains unknown. This lack of transparency can be a concern for ensuring fair and open competition.

How does the $2.96 million award compare to similar IT support contracts at HUD?

Benchmarking this $2.96 million award requires comparing it to similar IT support contracts awarded by HUD or other federal agencies for comparable services and durations. Given this is a 3-year definitive contract (1095 days), the average annual value is approximately $988,800. This figure needs to be evaluated against the complexity of the FHEO and HEMS systems, the number of users supported, and the specific service level agreements. Without access to a database of comparable contracts, it's difficult to definitively state if this represents excellent, fair, or questionable value. However, for custom computer programming and IT support, this annual figure is not unusually high for a federal contract.

What are the potential risks associated with a sole-source IT support contract?

Sole-source IT support contracts carry several potential risks. Firstly, the lack of competition can lead to higher prices than might be achieved through a competitive bidding process, as the vendor faces less pressure to offer the most cost-effective solution. Secondly, there's a risk of vendor lock-in, where the government becomes dependent on a single provider's specific technologies or expertise, making it difficult and costly to switch vendors in the future. Thirdly, without competitive pressure, there might be less incentive for the vendor to innovate or proactively improve service quality beyond the minimum contractual requirements. Finally, the justification for a sole-source award itself can sometimes be opaque, raising concerns about fairness and the efficient use of taxpayer funds.

What is Nelson Enterprise Technology Services LLC's track record with HUD or similar agencies?

The provided data identifies Nelson Enterprise Technology Services LLC as the contractor but does not offer details on their past performance, track record, or specific experience with HUD or similar agencies. To assess their reliability and capability for this contract, one would need to consult federal procurement databases (like SAM.gov or FPDS) for past performance reviews, other contracts awarded to the company, and any reported issues or successes. A strong track record with relevant agencies and successful completion of similar IT support contracts would be positive indicators for this award.

What are the performance metrics and deliverables outlined in the contract?

The provided summary data does not include specific performance metrics or deliverables for this contract. These critical details would typically be found within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Key performance indicators (KPIs) might include response times for help desk tickets, system uptime percentages, successful completion rates for maintenance tasks, and adherence to security protocols. Deliverables could range from regular status reports and system performance logs to completed software updates or documentation. Without these specifics, assessing the contractor's performance and the overall effectiveness of the service is not possible.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 86615623Q00002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 45921 MARIES RD, STERLING, VA, 20166

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,495,800

Exercised Options: $2,966,400

Current Obligation: $2,966,400

Actual Outlays: $2,621,680

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline