HUD's $27.8M Loan Servicing Contract with DEVAL, LLC Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $27,842,962 ($27.8M)
Contractor: Deval , LLC
Awarding Agency: Department of Housing and Urban Development
Start Date: 2011-12-01
End Date: 2018-09-05
Contract Duration: 2,470 days
Daily Burn Rate: $11.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: NATIONAL LOAN SERVICING SUPPORT SERVICES
Place of Performance
Location: DALLAS, DALLAS County, TEXAS, 75240
State: Texas Government Spending
Plain-Language Summary
Department of Housing and Urban Development obligated $27.8 million to DEVAL , LLC for work described as: NATIONAL LOAN SERVICING SUPPORT SERVICES Key points: 1. The contract awarded to DEVAL, LLC for loan servicing support services totaled $27.8 million. 2. Competition was described as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', raising questions about the extent of market engagement. 3. The contract duration was 2470 days, indicating a long-term commitment. 4. The sector is 'Other Activities Related to Credit Intermediation', a niche area. 5. The 'Other Activities Related to Credit Intermediation' sector has a benchmark of $1.1B for similar contracts, suggesting this is a moderate-sized award.
Value Assessment
Rating: questionable
The contract's total award value of $27.8 million for loan servicing support services needs further benchmarking against similar contracts. Without specific per-unit cost data or comparison to market rates for comparable services, assessing its value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests some limitations on the pool of potential bidders. This approach may have impacted the price discovery process, potentially leading to less competitive pricing than a truly unrestricted full and open competition.
Taxpayer Impact: The total taxpayer impact is $27.8 million over the contract's life. The effectiveness of the competition method in securing the best possible price for taxpayers is a key consideration.
Public Impact
Citizens rely on efficient and cost-effective loan servicing for federal programs. Transparency in contracting ensures public trust and accountability in government spending. The specific nature of loan servicing impacts borrowers and the financial health of federal programs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition details
- Lack of per-unit cost benchmark
- Long contract duration
Positive Signals
- Contract awarded
- Specific NAICS code identified
Sector Analysis
The 'Other Activities Related to Credit Intermediation' sector involves specialized financial services. The benchmark spending for this sector is approximately $1.1 billion, indicating that this $27.8 million contract is a significant, but not exceptionally large, award within its domain.
Small Business Impact
The data indicates that small business participation was not a stated factor in this contract, as the 'ss' field is false. Further analysis would be needed to determine if small businesses were excluded or if the nature of the services did not lend itself to small business prime contracting.
Oversight & Accountability
Oversight of this contract would involve monitoring DEVAL, LLC's performance against contract requirements and ensuring compliance with federal acquisition regulations. The Department of Housing and Urban Development is responsible for this oversight.
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
- Potential for non-optimal pricing due to limited competition.
- Lack of clear per-unit cost analysis.
- Long contract duration may reduce flexibility.
- No explicit mention of small business utilization.
Tags
other-activities-related-to-credit-inter, department-of-housing-and-urban-developm, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $27.8 million to DEVAL , LLC. NATIONAL LOAN SERVICING SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is DEVAL , 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 $27.8 million.
What is the period of performance?
Start: 2011-12-01. End: 2018-09-05.
What specific services were provided under this contract, and how did they contribute to HUD's mission?
The contract was for 'NATIONAL LOAN SERVICING SUPPORT SERVICES'. These services likely involved managing loan portfolios, processing payments, handling delinquencies, and potentially customer service for borrowers. Effective loan servicing is crucial for the financial health of federal housing programs and ensuring that taxpayer funds are managed responsibly.
How did the 'exclusion of sources' in the competition impact the final price and service quality?
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause suggests that while the competition was open, certain potential bidders were pre-selected or excluded. This could limit the range of innovative solutions and potentially lead to higher prices than if all qualified vendors had been allowed to compete without restriction. Assessing the impact requires comparing the awarded price to what might have been achieved in a broader competition.
What is the benchmark for per-unit costs for loan servicing support services in this sector?
Specific per-unit cost benchmarks for 'NATIONAL LOAN SERVICING SUPPORT SERVICES' within the 'Other Activities Related to Credit Intermediation' sector are not readily available in the provided data. Establishing such benchmarks would require detailed analysis of similar contracts, including the volume of loans serviced, types of services rendered, and associated costs to determine a fair and reasonable price.
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: R-DEN-02528
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8081 WOLFTRAP RD STE 100, VIENNA, VA, 22182
Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $32,207,580
Exercised Options: $27,842,962
Current Obligation: $27,842,962
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-12-01
Current End Date: 2018-09-05
Potential End Date: 2018-09-05 00:00:00
Last Modified: 2018-10-01
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