HUD awards $2.3M for ESG policy intelligence to Recursion Co., focusing on Ginnie Mae impacts

Contract Overview

Contract Amount: $2,343,123 ($2.3M)

Contractor: Recursion CO

Awarding Agency: Department of Housing and Urban Development

Start Date: 2024-11-27

End Date: 2026-05-26

Contract Duration: 545 days

Daily Burn Rate: $4.3K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GLOBAL ESG INVESTMENT POLICY AND INVESTOR INTELLIGENCE: MONITOR GLOBAL ESG POLICY AND REGULATION CHANGES, IDENTIFY THOSE THAT HAVE POTENTIAL IMPACT ON GINNIE MAE, ANALYZE SUCH IMPACTS.

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10001

State: New York Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $2.3 million to RECURSION CO for work described as: GLOBAL ESG INVESTMENT POLICY AND INVESTOR INTELLIGENCE: MONITOR GLOBAL ESG POLICY AND REGULATION CHANGES, IDENTIFY THOSE THAT HAVE POTENTIAL IMPACT ON GINNIE MAE, ANALYZE SUCH IMPACTS. Key points: 1. Contract focuses on monitoring and analyzing global ESG policy changes relevant to Ginnie Mae. 2. The firm fixed-price contract spans 545 days, indicating a defined scope of work. 3. Limited competition suggests potential for higher costs or less innovative solutions. 4. The award is for portfolio management and investment advice, a specialized service area. 5. Geographic focus on New York for the contractor. 6. The contract's value is modest within the broader federal IT and consulting landscape.

Value Assessment

Rating: fair

The contract value of $2.34 million for 545 days appears reasonable for specialized policy analysis. Benchmarking against similar contracts for regulatory intelligence and investment advice is challenging due to the niche focus on ESG and Ginnie Mae. However, the absence of competition raises concerns about whether the government secured the best possible value. Without competitive bids, it's difficult to definitively assess if the pricing is optimal compared to market rates for equivalent expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under Simplified Acquisition Procedures (SAP) and is listed as 'NOT COMPETED UNDER SAP'. The data indicates a sole-source award, meaning only one vendor was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The lack of competition means that the government did not explore alternative solutions or pricing from other qualified firms.

Taxpayer Impact: Sole-source awards can limit opportunities for taxpayers to benefit from competitive pricing and potentially innovative approaches that might emerge from a broader bidding process.

Public Impact

Ginnie Mae and the Department of Housing and Urban Development (HUD) will benefit from enhanced understanding of ESG policy impacts. Services delivered include monitoring, identification, and analysis of global ESG policy and regulation changes. The geographic impact is primarily national, focusing on federal policy and its implications for a federal entity. Workforce implications are minimal, likely involving a small team of specialized analysts from Recursion Co.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing and reduced innovation.
The specific expertise required might limit the pool of potential contractors, justifying a sole-source approach, but this needs verification.
Transparency regarding the justification for the sole-source award could be improved.

Positive Signals

Focus on a critical and evolving area (ESG) relevant to financial markets and housing.
The contract aims to provide actionable intelligence to inform strategic decision-making.
The contractor, Recursion Co., is tasked with a specific, high-value analytical function.

Sector Analysis

The contract falls within the professional services sector, specifically focusing on investment advice and portfolio management with a regulatory intelligence component. The market for ESG policy analysis is growing rapidly as investors and regulators increasingly focus on environmental, social, and governance factors. While specific benchmarks for this niche are scarce, comparable contracts often involve market research, regulatory consulting, and strategic advisory services, typically priced based on the expertise and scope of analysis required.

Small Business Impact

This contract does not appear to involve small business set-asides, as indicated by the 'sb': false parameter. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. Given the specialized nature of the services, it is unlikely that significant subcontracting opportunities for small businesses would be a primary focus of this particular award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Housing and Urban Development (HUD), specifically the office responsible for Ginnie Mae's operations and portfolio management. Accountability measures are inherent in the firm fixed-price structure, requiring the contractor to deliver the specified services within the agreed-upon budget and timeline. Transparency is limited due to the sole-source nature of the award; further details on the justification and performance metrics would enhance public understanding.

Related Government Programs

Ginnie Mae Operations
HUD Financial Management
ESG Investment Analysis
Regulatory Compliance Services
Federal Portfolio Management

Risk Flags

Sole-source award lacks competitive pricing validation.
Potential for limited innovation due to absence of competition.
Transparency concerns regarding the justification for sole-source procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $2.3 million to RECURSION CO. GLOBAL ESG INVESTMENT POLICY AND INVESTOR INTELLIGENCE: MONITOR GLOBAL ESG POLICY AND REGULATION CHANGES, IDENTIFY THOSE THAT HAVE POTENTIAL IMPACT ON GINNIE MAE, ANALYZE SUCH IMPACTS.

Who is the contractor on this award?

The obligated recipient is RECURSION CO.

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 $2.3 million.

What is the period of performance?

Start: 2024-11-27. End: 2026-05-26.

What is Recursion Co.'s track record in providing ESG policy intelligence to federal agencies?

Information regarding Recursion Co.'s specific track record in providing ESG policy intelligence to federal agencies is not detailed in the provided data. The contract focuses on their role in analyzing global ESG policy and its potential impact on Ginnie Mae. To assess their track record, further investigation into their past performance, client testimonials, and previous government contracts would be necessary. This would include examining the scope and success of prior engagements, particularly those involving similar analytical requirements or regulatory environments. Without this additional context, it is difficult to gauge their established expertise and reliability in this specialized domain.

How does the $2.34 million contract value compare to similar federal contracts for policy analysis and investment intelligence?

The $2.34 million contract value for 545 days of service is for a highly specialized niche: global ESG policy analysis impacting Ginnie Mae. Direct comparisons to broad federal contracts for policy analysis or general investment intelligence are difficult due to this specificity. However, contracts for regulatory consulting, market intelligence, and strategic advisory services can range widely. For specialized, in-depth analysis requiring expert knowledge in finance, regulation, and emerging trends like ESG, this value appears within a plausible range, especially if Recursion Co. possesses unique qualifications. The absence of competition, however, prevents a definitive value-for-money assessment against potential market alternatives.

What are the primary risks associated with this sole-source contract for HUD?

The primary risks associated with this sole-source contract for HUD stem from the lack of competition. This includes the risk of paying a premium price compared to what might be achieved through a competitive bidding process. There's also a risk of receiving less innovative solutions or a lower quality of service, as there is no external pressure from competing vendors to excel. Furthermore, a sole-source award can raise concerns about transparency and fairness in the procurement process. Without competitive proposals, HUD may not have fully explored the range of available expertise or the most cost-effective methods for achieving the contract's objectives.

How effective is the current approach to monitoring global ESG policy for Ginnie Mae?

The effectiveness of the current approach to monitoring global ESG policy for Ginnie Mae cannot be determined solely from the contract data. This contract represents an investment in establishing or enhancing such a monitoring capability. Its effectiveness will depend on the quality of Recursion Co.'s analysis, the actionable insights provided, and how well HUD and Ginnie Mae integrate this intelligence into their strategic planning and risk management. Key performance indicators (KPIs) related to the identification of impactful policies, the accuracy of impact assessments, and the timeliness of reporting would be crucial metrics to evaluate the program's success over its duration.

What are historical spending patterns for similar policy intelligence or ESG-related services at HUD?

Historical spending patterns for similar policy intelligence or ESG-related services at HUD are not provided in the current data. This contract appears to be a specific initiative focused on the evolving landscape of ESG regulations and their impact on Ginnie Mae. To understand historical spending, one would need access to broader federal procurement databases and HUD's historical contract awards. It's possible that dedicated spending on ESG policy intelligence is a relatively recent development, reflecting the growing importance of these factors in financial markets and housing policy. Without historical data, it's difficult to contextualize this $2.34 million award within a longer-term spending trend.

Industry Classification

NAICS: Finance and Insurance › Other Financial Investment Activities › Portfolio Management and Investment Advice

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 86615525R00002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 224 W 30TH STREET, SUITE 303, NEW YORK, NY, 10001

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $2,717,457

Exercised Options: $2,717,457

Current Obligation: $2,343,123

Actual Outlays: $733,779

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline