HUD awards FHA CATALYST DME Support Services contract to Phoenix Oversight Group for $28.9M

Contract Overview

Contract Amount: $28,928,235 ($28.9M)

Contractor: Phoenix Oversight Group LLC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2023-05-22

End Date: 2026-05-21

Contract Duration: 1,095 days

Daily Burn Rate: $26.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: LABOR HOURS

Sector: IT

Official Description: FHA CATALYST - DEVELOPMENT, MODERNIZATION AND ENHANCEMENT (DME) SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $28.9 million to PHOENIX OVERSIGHT GROUP LLC for work described as: FHA CATALYST - DEVELOPMENT, MODERNIZATION AND ENHANCEMENT (DME) SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for development, modernization, and enhancement support services, indicating a need for IT expertise. 3. Phoenix Oversight Group LLC is the sole awardee, raising questions about broader market participation. 4. The contract duration is 1095 days, with a significant value, requiring careful monitoring.

Value Assessment

Rating: fair

The contract value of $28.9M over three years for IT support services appears within a reasonable range for complex development and modernization projects. However, without specific task breakdowns and labor rates, a precise benchmark is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing and allows for a wide range of potential contractors to bid. This method aims to ensure the government receives the best value.

Taxpayer Impact: The use of full and open competition is intended to maximize taxpayer value by fostering a competitive environment that drives down costs and improves service quality.

Public Impact

Enhances FHA's IT systems, potentially improving services for homebuyers and homeowners. Supports critical modernization efforts within a key federal housing agency. The contract's success could lead to more efficient and secure housing finance operations. Transparency in contract performance will be key for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation noted.
Potential for cost overruns if scope creep occurs.
Reliance on a single vendor for critical IT functions.

Positive Signals

Awarded through full and open competition.
Clear contract duration and defined scope.
Focus on modernization and enhancement.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. Spending in this area is substantial across government, with benchmarks varying widely based on complexity and required expertise. HUD's investment reflects a commitment to upgrading its technological infrastructure.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests that either no small businesses bid, or the prime contractor is not a small business and did not subcontract to any. Further investigation may be needed to ensure opportunities for small businesses are not being overlooked.

Oversight & Accountability

The Department of Housing and Urban Development is the contracting agency. Oversight will be crucial to ensure the contractor meets performance expectations, stays within budget, and delivers the modernization and enhancement services as defined in the contract. Regular performance reviews and milestone tracking are essential.

Related Government Programs

Custom Computer Programming Services
Department of Housing and Urban Development Contracting
Department of Housing and Urban Development Programs

Risk Flags

No small business participation.
Potential for vendor lock-in.
Complexity of IT modernization projects.
Reliance on labor hours pricing model.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $28.9 million to PHOENIX OVERSIGHT GROUP LLC. FHA CATALYST - DEVELOPMENT, MODERNIZATION AND ENHANCEMENT (DME) SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is PHOENIX OVERSIGHT GROUP 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 $28.9 million.

What is the period of performance?

Start: 2023-05-22. End: 2026-05-21.

What specific modernization and enhancement goals does this contract aim to achieve for FHA systems, and how will success be measured?

The contract aims to modernize and enhance FHA's IT systems, likely focusing on improving efficiency, security, and user experience for internal operations and external stakeholders. Success will be measured through defined performance metrics, such as system uptime, reduction in processing times, successful implementation of new features, and user satisfaction surveys. Specific goals and metrics should be detailed in the contract's statement of work and performance work statement.

Given the $28.9M value and 3-year duration, what are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential scope creep leading to cost overruns, vendor lock-in, and challenges in adapting to evolving technological landscapes. Mitigation strategies likely involve robust contract management, clearly defined deliverables and change control processes, regular performance reviews, and contingency planning for unforeseen technical issues. The full and open competition aims to mitigate risks associated with vendor capability and pricing.

How does this investment in IT modernization align with HUD's broader strategic objectives for improving housing affordability and access?

This investment aligns by aiming to create more efficient, secure, and user-friendly IT systems that can better support HUD's mission. Modernized systems can streamline application processes, improve data analysis for policy development, enhance communication with housing providers and beneficiaries, and ultimately contribute to more effective program delivery and better access to affordable housing resources.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 86615322Q00011

Offers Received: 6

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1010 N GLEBE RD STE 610, ARLINGTON, VA, 22201

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $54,288,766

Exercised Options: $40,350,101

Current Obligation: $28,928,235

Actual Outlays: $24,777,475

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA21D007X

IDV Type: FSS

Timeline