HUD's $39.4M Loan Servicing Contract Awarded to Novad Management Consulting LLC
Contract Overview
Contract Amount: $39,431,023 ($39.4M)
Contractor: Novad Management Consulting LLC
Awarding Agency: Department of Housing and Urban Development
Start Date: 2014-04-18
End Date: 2017-10-17
Contract Duration: 1,278 days
Daily Burn Rate: $30.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 9
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: NATIONAL LOAN SERVICING SUPPORT SERVICES IGF::OT::IGF
Place of Performance
Location: HYATTSVILLE, PRINCE GEORGES County, MARYLAND, 20785
State: Maryland Government Spending
Plain-Language Summary
Department of Housing and Urban Development obligated $39.4 million to NOVAD MANAGEMENT CONSULTING LLC for work described as: NATIONAL LOAN SERVICING SUPPORT SERVICES IGF::OT::IGF Key points: 1. Contract value of $39.4 million over its period of performance. 2. Awarded through full and open competition after exclusion of sources. 3. Potential risks include contract performance and vendor dependency. 4. Spending falls within the 'Other Activities Related to Credit Intermediation' sector.
Value Assessment
Rating: good
The contract value of $39.4 million appears reasonable for comprehensive loan servicing support over a multi-year period. Benchmarking against similar contracts for federal loan servicing would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price for the services rendered.
Public Impact
Ensures continued operation of federal loan programs. Supports borrowers through loan servicing functions. Maintains stability in credit intermediation activities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration and potential for follow-on needs.
- Vendor performance history and impact on loan programs.
Positive Signals
- Competitive award process.
- Clear contract type (Firm Fixed Price).
Sector Analysis
This contract falls under 'Other Activities Related to Credit Intermediation,' a sector crucial for financial stability and government lending programs. Spending benchmarks for this sector are highly variable based on program scope.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors in this award. Further analysis would be needed to assess small business participation.
Oversight & Accountability
Oversight by the Department of Housing and Urban Development is expected to ensure contract compliance and performance. The firm fixed price contract type provides a degree of cost certainty.
Related Government Programs
- Other Activities Related to Credit Intermediation
- Department of Housing and Urban Development Contracting
- Department of Housing and Urban Development Programs
Risk Flags
- Contract performance risk
- Vendor lock-in potential
- Dependency on specific expertise
- Data security and privacy concerns
Tags
other-activities-related-to-credit-inter, department-of-housing-and-urban-developm, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $39.4 million to NOVAD MANAGEMENT CONSULTING LLC. NATIONAL LOAN SERVICING SUPPORT SERVICES IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is NOVAD MANAGEMENT CONSULTING 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 $39.4 million.
What is the period of performance?
Start: 2014-04-18. End: 2017-10-17.
What specific loan servicing functions are covered under this contract, and how do they align with HUD's mission?
This contract likely encompasses a range of loan servicing activities such as payment processing, borrower communication, default management, and reporting for HUD-managed loan portfolios. These functions are critical for the effective administration of federal housing and credit programs, ensuring compliance, supporting borrowers, and maintaining the integrity of the loan portfolio.
What are the key performance indicators (KPIs) for Novad Management Consulting LLC under this contract, and how is performance measured?
Key performance indicators would typically include metrics like timely payment processing, accuracy of borrower statements, response times to inquiries, and successful delinquency management. HUD's contracting officers would monitor these KPIs against established targets to ensure Novad meets its contractual obligations and provides effective loan servicing.
How does the firm fixed price (FFP) contract type mitigate risks for the government in this service contract?
The Firm Fixed Price (FFP) contract type shifts the risk of cost overruns to the contractor, Novad Management Consulting LLC. This means the government pays a set price regardless of the contractor's actual costs, providing budget certainty and encouraging the contractor to manage costs efficiently to maximize profit.
Industry Classification
NAICS: Finance and Insurance › Activities Related to Credit Intermediation › Other Activities Related to Credit Intermediation
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DU208WR-13-R-0005
Offers Received: 9
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8181 PROFESSIONAL PL STE 208, LANDOVER, MD, 20785
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, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $60,251,641
Exercised Options: $39,431,023
Current Obligation: $39,431,023
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2014-04-18
Current End Date: 2017-10-17
Potential End Date: 2019-04-17 00:00:00
Last Modified: 2025-09-24
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