HUD's $314M Single Family Master Subservicer Contract Awarded to Selene Finance LP
Contract Overview
Contract Amount: $314,162,445 ($314.2M)
Contractor: Selene Finance LP
Awarding Agency: Department of Housing and Urban Development
Start Date: 2014-02-12
End Date: 2019-08-11
Contract Duration: 2,006 days
Daily Burn Rate: $156.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SINGLE FAMILY MASTER SUBSERVICER IGF::OT::IGF
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77042
State: Texas Government Spending
Plain-Language Summary
Department of Housing and Urban Development obligated $314.2 million to SELENE FINANCE LP for work described as: SINGLE FAMILY MASTER SUBSERVICER IGF::OT::IGF Key points: 1. Contract value of $314.16 million over its period of performance. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Potential risk associated with the long contract duration (2014-2019). 4. Sector is related to financial services within government administration.
Value Assessment
Rating: fair
The contract value of $314.16 million for investment banking and securities dealing services appears substantial. Benchmarking against similar government contracts for master subservicing would be necessary to definitively assess its pricing fairness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically fosters competitive pricing. The existence of multiple bids (7 bids received) indicates a healthy price discovery process.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value services at competitive prices.
Public Impact
Ensures continued servicing of single-family mortgages for HUD programs. Supports the financial operations and stability of HUD's mortgage portfolio. Impacts homeowners by ensuring consistent mortgage payment processing and support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may warrant review for performance and cost efficiency.
- Specific performance metrics and outcomes are not detailed in the provided data.
Positive Signals
- Awarded via full and open competition.
- Multiple bids received, indicating market interest and competition.
Sector Analysis
This contract falls within the financial services sector, specifically investment banking and securities dealing, supporting government housing programs. Benchmarks for similar large-scale financial servicing contracts within government are often complex due to unique program requirements.
Small Business Impact
The provided data does not indicate any specific set-asides or participation goals for small businesses in this contract. Further investigation would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract was awarded by the Department of Housing and Urban Development (HUD), implying internal oversight. The presence of an Inspector General (IGF::OT::IGF) suggests an oversight mechanism is in place to monitor performance and prevent fraud.
Related Government Programs
- Investment Banking and Securities Dealing
- Department of Housing and Urban Development Contracting
- Department of Housing and Urban Development Programs
Risk Flags
- Long contract duration.
- Potential for performance drift over time.
- Lack of specific performance outcome data.
- Dependence on a single prime contractor for critical financial operations.
Tags
investment-banking-and-securities-dealin, department-of-housing-and-urban-developm, tx, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $314.2 million to SELENE FINANCE LP. SINGLE FAMILY MASTER SUBSERVICER IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is SELENE FINANCE LP.
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 $314.2 million.
What is the period of performance?
Start: 2014-02-12. End: 2019-08-11.
What were the key performance indicators (KPIs) for Selene Finance LP under this contract, and how were they measured?
Key performance indicators would likely include metrics such as timely mortgage payment processing, delinquency management rates, foreclosure prevention success, customer service satisfaction scores, and compliance with HUD regulations. These would be measured through regular reporting by the contractor and potentially audited by HUD to ensure adherence to contract terms and service standards.
What was the total cost of the contract, and how does it compare to the initial estimated value or budget?
The total awarded value of the contract was $314,162,444.95. Without knowing the initial estimated value or budget set by HUD, it's difficult to assess if the final cost represented a significant deviation. However, the fact that it was awarded under full and open competition with 7 bids suggests the pricing was considered competitive at the time of award.
Were there any significant challenges or disputes encountered during the contract's performance period (2014-2019)?
The provided data does not detail specific challenges or disputes. However, large, long-term financial servicing contracts can face issues related to market fluctuations, regulatory changes, system integration problems, or performance deficiencies. A review of HUD's contract performance records or IG reports would be necessary to identify any such issues.
Industry Classification
NAICS: Finance and Insurance › Securities and Commodity Contracts Intermediation and Brokerage › Investment Banking and Securities Dealing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 9990 RICHMOND AVE SUITE 400 SOUTH, HOUSTON, TX, 77042
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $915,861,334
Exercised Options: $915,861,334
Current Obligation: $314,162,445
Actual Outlays: $1,450,030
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-02-12
Current End Date: 2019-08-11
Potential End Date: 2019-08-11 00:00:00
Last Modified: 2025-03-18
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