HUD's FHA Operations Spent $12.3M on LEDGR Phase III Integration by BearingPoint, LLC
Contract Overview
Contract Amount: $12,264,550 ($12.3M)
Contractor: Bearingpoint, LLC
Awarding Agency: Department of Housing and Urban Development
Start Date: 2005-07-01
End Date: 2006-09-30
Contract Duration: 456 days
Daily Burn Rate: $26.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FHA SUBSIDIARY LEDGR PHASE III INTEGRATION - FHA OPERATIONS
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20410
Plain-Language Summary
Department of Housing and Urban Development obligated $12.3 million to BEARINGPOINT, LLC for work described as: FHA SUBSIDIARY LEDGR PHASE III INTEGRATION - FHA OPERATIONS Key points: 1. Contract awarded to BearingPoint, LLC for custom computer programming. 2. Significant spending of $12.3 million on a single contract. 3. Contract was not competed, raising potential value concerns. 4. Spending falls within the IT sector, specifically custom computer programming services.
Value Assessment
Rating: questionable
The contract value of $12.3 million for custom computer programming services over 15 months appears high without competitive bidding to establish a benchmark. The lack of competition makes it difficult to assess if the pricing was optimal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for a $12.3 million contract means taxpayers may have paid a premium for these services.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The FHA's operational efficiency could be impacted by the chosen integration solution. Lack of transparency in the procurement process raises accountability questions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value for a single vendor
- Potential for cost overruns without oversight
Positive Signals
- Contract supports FHA operations integration
- Firm Fixed Price contract limits cost uncertainty
Sector Analysis
This contract falls under the Information Technology sector, specifically custom computer programming services. Spending benchmarks for similar custom programming projects vary widely based on complexity and duration, but $12.3 million for a 15-month project without competition warrants scrutiny.
Small Business Impact
The contract was awarded to BearingPoint, LLC, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific contract.
Oversight & Accountability
The contract was not competed, suggesting potential weaknesses in the procurement oversight process. Further review is needed to understand the justification for the sole-source award and ensure accountability.
Related Government Programs
- Custom Computer Programming Services
- Department of Housing and Urban Development Contracting
- Department of Housing and Urban Development Programs
Risk Flags
- Lack of competition
- High contract value
- Potential for vendor lock-in
- Limited transparency in procurement
Tags
custom-computer-programming-services, department-of-housing-and-urban-developm, dc, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $12.3 million to BEARINGPOINT, LLC. FHA SUBSIDIARY LEDGR PHASE III INTEGRATION - FHA OPERATIONS
Who is the contractor on this award?
The obligated recipient is BEARINGPOINT, 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 $12.3 million.
What is the period of performance?
Start: 2005-07-01. End: 2006-09-30.
What was the justification for not competing this $12.3 million contract?
The provided data indicates the contract was 'NOT COMPETED'. A full analysis would require examining the contract file for justifications such as urgency, unique capabilities of the awardee, or prior successful performance that precluded competition. Without this documentation, the rationale remains unclear, raising concerns about potential missed opportunities for better pricing and innovation.
How does the $12.3 million cost compare to similar custom programming projects?
Benchmarking this $12.3 million contract against similar custom computer programming services is challenging without knowing the specific scope, deliverables, and complexity of the LEDGR Phase III integration. However, for a 15-month duration, this represents a significant investment. A lack of competition prevents a direct comparison to determine if the price was fair and reasonable compared to market rates.
What is the long-term impact of this sole-source integration on FHA operations?
The long-term impact depends on the success of the LEDGR Phase III integration and BearingPoint's solution. A sole-source award can lead to vendor lock-in, potentially limiting future flexibility and increasing costs for subsequent modifications or support. Evaluating the system's performance, user satisfaction, and any follow-on contract needs will be crucial for assessing its true effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Bearingpoint, Inc. (UEI: 014097146)
Address: 1676 INTERNATIONAL DR., MCLEAN, VA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $16,657,100
Exercised Options: $16,657,100
Current Obligation: $12,264,550
Timeline
Start Date: 2005-07-01
Current End Date: 2006-09-30
Potential End Date: 2006-09-30 00:00:00
Last Modified: 2009-02-04
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