HUD awards $76.5M for GNMA licensing support, with MicroTechnologies LLC as prime

Contract Overview

Contract Amount: $76,499,975 ($76.5M)

Contractor: Microtechnologies LLC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2020-09-21

End Date: 2026-03-19

Contract Duration: 2,005 days

Daily Burn Rate: $38.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GENERAL LICENSING SUPPORT FOR GNMA

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $76.5 million to MICROTECHNOLOGIES LLC for work described as: GENERAL LICENSING SUPPORT FOR GNMA Key points: 1. Contract value represents a significant investment in essential licensing infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Performance period extends over several years, indicating a long-term need. 4. The contract falls within IT services, a critical area for government operations. 5. This award is part of broader efforts to support mortgage-backed securities markets.

Value Assessment

Rating: good

The contract value of $76.5 million over its period of performance appears reasonable for comprehensive licensing support. Benchmarking against similar IT service contracts for large federal agencies suggests this is within expected ranges. The firm fixed-price structure helps control costs, but detailed analysis of the specific services rendered would be needed for a more precise value-for-money assessment. Without direct cost breakdowns or comparisons to industry-standard rates for equivalent services, a definitive value judgment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, potentially leading to better pricing and service quality. The number of bidders is not specified, but the full and open nature suggests multiple entities likely vied for the award. This level of competition is favorable for ensuring the government receives competitive offers.

Taxpayer Impact: Taxpayers benefit from the potential for cost savings and improved service delivery due to a robust competitive process.

Public Impact

The Government National Mortgage Association (GNMA) is the primary beneficiary, receiving essential licensing support. Services delivered are crucial for the functioning and integrity of the mortgage-backed securities market. The geographic impact is national, supporting a key component of the U.S. housing finance system. Workforce implications may include specialized IT and administrative roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is not adequately transferred.
Reliance on a single contractor for critical licensing functions carries inherent risk.
Scope creep could increase costs if not managed tightly through contract modifications.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a potentially strong pool of qualified bidders.
Long performance period allows for stable service delivery and knowledge retention.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on IT support for financial services operations. The market for IT support services to government agencies is substantial, with numerous firms capable of providing such expertise. This contract supports the critical functions of the Government National Mortgage Association (GNMA), a key entity within the housing finance ecosystem. Comparable spending benchmarks for IT support services to federal agencies of similar size and scope would provide further context.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business, and opportunities for small business participation may be limited unless MicroTechnologies LLC voluntarily includes them in its subcontracting plan. Further investigation into subcontracting reports would be necessary to determine the actual impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Housing and Urban Development (HUD), specifically the contracting officer and program managers responsible for GNMA operations. The firm fixed-price nature of the contract provides a degree of accountability by defining the scope of work and payment terms upfront. Transparency is facilitated through contract databases like FPDS, which publish award details. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Government National Mortgage Association (GNMA) Operations
Federal IT Support Services
Housing Finance Administration
Mortgage-Backed Securities Support

Risk Flags

Long contract duration may increase risk of scope creep or evolving requirements.
Reliance on a single awardee for critical functions requires diligent oversight.
Potential for vendor lock-in if knowledge transfer is not managed effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $76.5 million to MICROTECHNOLOGIES LLC. GENERAL LICENSING SUPPORT FOR GNMA

Who is the contractor on this award?

The obligated recipient is MICROTECHNOLOGIES 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 $76.5 million.

What is the period of performance?

Start: 2020-09-21. End: 2026-03-19.

What is the track record of MicroTechnologies LLC in performing similar federal IT support contracts?

MicroTechnologies LLC has a history of performing federal IT support contracts. A review of their contract history reveals awards across various agencies, including HUD. While specific performance details for each contract are not publicly detailed in summary data, their continued awards suggest a generally satisfactory performance record. Further analysis would involve examining past performance evaluations and any documented issues or commendations on previous government contracts to fully assess their capabilities and reliability for this specific GNMA licensing support requirement.

How does the awarded amount compare to historical spending on GNMA licensing support?

The awarded amount of approximately $76.5 million over a period of roughly 5.5 years (September 2020 to March 2026) represents a significant investment. To compare this to historical spending, one would need to access historical contract data specifically for GNMA licensing support services. This would involve querying databases like FPDS for previous contracts with similar scopes of work awarded to GNMA or its supporting entities. Without that specific historical data, it's difficult to definitively state if this award is higher, lower, or consistent with past expenditures. However, the duration and value suggest a sustained need for these services.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential performance issues, cost overruns (though mitigated by firm fixed-price), and vendor lock-in. Performance risks are typically managed through contract oversight, performance metrics, and the potential for corrective action. The firm fixed-price structure inherently mitigates cost overrun risks, as the contractor is obligated to perform the defined scope for the agreed price. Vendor lock-in is a longer-term risk that can be addressed through knowledge transfer clauses, clear exit strategies, and ensuring adequate documentation is maintained by the government. The full and open competition also serves as a mitigation factor by ensuring a competitive market exists for future contract renewals or replacements.

How effective is the firm fixed-price contract type in ensuring value for money for this service?

The firm fixed-price (FFP) contract type is generally effective in ensuring value for money when the scope of work is well-defined and unlikely to change significantly. For IT support services like licensing, where requirements can sometimes evolve, FFP provides cost certainty to the government. The contractor assumes the risk of cost overruns, incentivizing efficiency. However, if the scope is not precisely defined, it can lead to disputes or the contractor performing only the minimum required. The effectiveness hinges on the clarity of the SOW and the government's ability to manage scope. For this contract, the long duration suggests a need for robust change management processes to maintain value.

What is the potential impact of this contract on the broader IT services market for federal agencies?

This contract, valued at $76.5 million and awarded through full and open competition, signals a significant demand for specialized IT support within the federal government, particularly in the housing finance sector. It reinforces the market position of companies like MicroTechnologies LLC and highlights the importance of IT services for agencies like HUD and entities such as GNMA. The competitive award process suggests that multiple IT service providers are capable of meeting stringent government requirements, potentially encouraging other firms to develop similar capabilities. This can lead to increased competition and innovation in the federal IT services space, ultimately benefiting taxpayers through potentially better services and pricing in the long run.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 86615620Q00006

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8330 BOONE BLVD STE 600, VIENNA, VA, 22182

Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $76,499,975

Exercised Options: $76,499,975

Current Obligation: $76,499,975

Actual Outlays: $38,486,848

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSN316201500019W

IDV Type: GWAC

Timeline