HUD's homeowner support contract awarded to Walker & Company, L.L.P. for $10.56M

Contract Overview

Contract Amount: $10,560,415 ($10.6M)

Contractor: Walker & Company, L.L.P.

Awarding Agency: Department of Housing and Urban Development

Start Date: 2005-09-06

End Date: 2008-12-19

Contract Duration: 1,200 days

Daily Burn Rate: $8.8K/day

Competition Type: FOLLOW ON TO COMPETED ACTION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HOMEOWNERS REFUND/CLAIMS INQUIRES SUPPORT SERVICE - CORRECTED TO REFLECT REDUCED EST. OBLIGATION AMT. AND EST. CONTRACT VALUE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20016

State: District of Columbia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $10.6 million to WALKER & COMPANY, L.L.P. for work described as: HOMEOWNERS REFUND/CLAIMS INQUIRES SUPPORT SERVICE - CORRECTED TO REFLECT REDUCED EST. OBLIGATION AMT. AND EST. CONTRACT VALUE Key points: 1. Contract value appears reasonable given the scope of homeowner refund and claims inquiries support. 2. Follow-on to a competed action suggests potential for established performance and pricing. 3. Limited public information on specific performance metrics makes a full value assessment challenging. 4. The contract's duration of 1200 days indicates a long-term need for these services. 5. Sector positioning within 'Other Accounting Services' is broad, requiring deeper analysis of specific deliverables. 6. The contract's focus on homeowner support aligns with HUD's mission to address housing needs.

Value Assessment

Rating: fair

The estimated contract value of $10.56 million for homeowner refund and claims inquiries support appears within a reasonable range for a multi-year federal contract of this nature. However, without specific details on the volume of inquiries handled, the complexity of claims, or the specific services provided beyond 'support,' a precise value-for-money assessment is difficult. Benchmarking against similar contracts for customer service or claims processing at HUD or other agencies would provide a clearer picture of whether this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract is noted as a 'FOLLOW ON TO COMPETED ACTION,' indicating that the initial award was subject to full and open competition. This suggests that multiple bidders likely participated in the original solicitation, leading to a competitive pricing environment. The follow-on nature implies that the incumbent contractor, Walker & Company, L.L.P., was selected based on performance and potentially competitive pricing from the initial award.

Taxpayer Impact: A fully competed contract generally benefits taxpayers by driving down costs through competitive bidding, ensuring the government receives the best possible value for its investment.

Public Impact

Homeowners facing issues with refunds or claims will benefit from dedicated support services. The contract facilitates the processing and resolution of inquiries related to housing programs. Services are likely delivered within the District of Columbia, impacting local residents and homeowners. The contract supports administrative functions within HUD, indirectly benefiting the housing sector workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the quality and efficiency of the support provided.
The broad categorization of 'Other Accounting Services' may obscure the specific nature and complexity of the work performed.
Limited information on the number of inquiries handled or resolution rates hinders a comprehensive understanding of the contract's impact.

Positive Signals

The contract is a follow-on to a competed action, suggesting a degree of proven performance and established processes.
The firm-fixed-price contract type provides cost certainty for the government.
The contract duration indicates a sustained commitment to supporting homeowners, suggesting a recognized need for these services.

Sector Analysis

This contract falls under the 'Other Accounting Services' category (NAICS 541219), which is a broad classification. Within the federal sector, accounting and financial support services are crucial for program management and oversight. This specific contract addresses homeowner inquiries, a critical function for an agency like HUD. Comparable spending in this area would involve contracts for customer service, claims processing, and administrative support across various federal agencies, often falling under professional services categories.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Walker & Company, L.L.P., is likely a larger entity, and its role in the small business ecosystem would depend on its own subcontracting practices, which are not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Housing and Urban Development (HUD). As a firm-fixed-price contract, the focus of oversight would be on ensuring the contractor meets the defined scope of work and service level agreements. Transparency is facilitated by the contract award data being publicly available. Specific accountability measures would be detailed in the contract's statement of work and performance requirements, with potential for Inspector General review if performance issues or fraud are suspected.

Related Government Programs

HUD Homeowner Assistance Fund
Federal Housing Administration (FHA) Programs
Consumer Financial Protection Bureau (CFPB) Services
Department of the Treasury - Taxpayer Inquiries

Risk Flags

Potential for vendor lock-in due to long contract duration.
Lack of detailed performance metrics hinders objective assessment.
Broad service category may obscure specific risks or complexities.
Reliance on a single contractor poses continuity risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $10.6 million to WALKER & COMPANY, L.L.P.. HOMEOWNERS REFUND/CLAIMS INQUIRES SUPPORT SERVICE - CORRECTED TO REFLECT REDUCED EST. OBLIGATION AMT. AND EST. CONTRACT VALUE

Who is the contractor on this award?

The obligated recipient is WALKER & COMPANY, L.L.P..

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 $10.6 million.

What is the period of performance?

Start: 2005-09-06. End: 2008-12-19.

What specific types of homeowner inquiries and claims does this contract cover, and what are the expected resolution times?

The provided data abbreviates the contract's purpose as 'HOMEOWNERS REFUND/CLAIMS INQUIRES SUPPORT SERVICE.' However, it does not specify the exact nature of these inquiries or claims. This could range from questions about mortgage assistance programs, property tax refunds, or specific claims related to housing policies. Similarly, expected resolution times are not detailed in the abstract. A comprehensive understanding would require reviewing the contract's Statement of Work (SOW), which would outline the scope, deliverables, and performance standards, including any Service Level Agreements (SLAs) for inquiry response and claim resolution.

How does the performance of Walker & Company, L.L.P. on this contract compare to industry benchmarks for similar support services?

Assessing the performance of Walker & Company, L.L.P. against industry benchmarks is challenging with the provided data. The data indicates the contract is a 'FOLLOW ON TO COMPETED ACTION,' suggesting some level of prior performance evaluation. However, without specific performance metrics (e.g., inquiry volume handled, customer satisfaction ratings, claim resolution rates, average handling time), a direct comparison is not feasible. To conduct such an analysis, one would need access to performance reports, quality assurance reviews, or customer feedback data associated with this contract. Benchmarking would then involve comparing these metrics to industry standards for call centers, claims processing, or customer support services in the housing or financial sectors.

What is the historical spending trend for homeowner refund and claims inquiry support services at HUD over the past five years?

The provided data focuses on a single contract awarded in 2005 with an estimated obligation of $10.56 million. It does not offer historical spending trends for similar services at HUD. To determine historical spending patterns, a broader search of federal procurement databases (like FPDS or USASpending) would be necessary, filtering for HUD contracts with keywords related to 'homeowner support,' 'claims inquiries,' 'refund services,' and relevant NAICS codes (like 541219 or customer service-related codes) over the specified five-year period. This would reveal the total investment in such services, identify key contractors, and show any fluctuations in spending.

What are the potential risks associated with relying on a single contractor for such a critical homeowner support function?

Relying on a single contractor, even if competitively selected, presents several potential risks. Firstly, there's a risk of vendor lock-in, where the government may have limited options to switch providers if performance degrades or costs increase significantly, especially if the contract is structured for long-term reliance. Secondly, a single point of failure exists; if the contractor experiences financial difficulties, operational disruptions, or data breaches, the continuity of essential homeowner support services could be jeopardized. Thirdly, reduced competitive pressure over time might lead to complacency and less incentive for the contractor to innovate or optimize service delivery. Finally, a lack of alternative providers could hinder the government's ability to scale services up or down rapidly in response to changing demands or emergencies.

How does the firm-fixed-price contract type influence the risk allocation between the government and Walker & Company, L.L.P. for this service?

A firm-fixed-price (FFP) contract type generally shifts the majority of the cost risk to the contractor, Walker & Company, L.L.P. This means the contractor is obligated to perform the specified work for the agreed-upon price, regardless of their actual costs. If their costs exceed the fixed price, they absorb the loss. Conversely, if their costs are lower than anticipated, they retain the profit. For the government (HUD), this provides significant cost certainty, as the total price is known upfront. The primary risk for the government under an FFP contract is ensuring the contractor delivers the required quality and scope of services. If the contractor fails to meet these requirements, the government's recourse is typically through contract remedies like termination or claims, rather than adjusting the price based on actual costs incurred.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services

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

Competition & Pricing

Extent Competed: FOLLOW ON TO COMPETED ACTION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4200 WISCONSIN AVE NW # 300, WASHINGTON, DC, 98

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,560,415

Exercised Options: $10,560,415

Current Obligation: $10,560,415

Timeline