Ginnie Mae MBS Issuance & Bond Admin Contract Awarded to Bank of New York Mellon for $244M
Contract Overview
Contract Amount: $244,471,425 ($244.5M)
Contractor: Bank of NEW York Mellon (THE)
Awarding Agency: General Services Administration
Start Date: 2021-01-01
End Date: 2026-06-30
Contract Duration: 2,006 days
Daily Burn Rate: $121.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: GINNIE MAE MORTGAGE BACKED SECURITIES ISSUANCE AND BOND ADMINISTRATION
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024
Plain-Language Summary
General Services Administration obligated $244.5 million to BANK OF NEW YORK MELLON (THE) for work described as: GINNIE MAE MORTGAGE BACKED SECURITIES ISSUANCE AND BOND ADMINISTRATION Key points: 1. The contract supports Ginnie Mae's mortgage-backed securities program, a critical function for housing finance. 2. Bank of New York Mellon is a major financial institution with extensive experience in bond administration. 3. The contract's duration and fixed-price nature suggest a predictable cost structure. 4. Potential risks include reliance on a single large financial institution for a critical function.
Value Assessment
Rating: good
The contract value of $244.5M over approximately 5.5 years appears reasonable given the scope of managing mortgage-backed securities issuance and bond administration for a government agency. Benchmarking against similar large-scale financial services contracts would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method is expected to yield fair pricing and ensure the government receives competitive offers for the services.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential financial services supporting the housing market.
Public Impact
Ensures stability and liquidity in the mortgage market by facilitating the issuance of Ginnie Mae securities. Supports the government's role in making homeownership more accessible. Provides essential financial infrastructure for a significant segment of the U.S. economy. The contract's performance directly impacts the reliability of mortgage-backed securities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Concentration risk with a single large financial institution.
- Potential for vendor lock-in if transition is complex.
Positive Signals
- Experienced and reputable contractor.
- Competitive award process.
- Long-term contract provides stability.
Sector Analysis
This contract falls within the financial services sector, specifically related to banking and capital markets. Spending benchmarks for similar government contracts involving bond administration and financial services management are typically high due to the complexity and criticality of the functions.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the contractor is a large financial institution. There is no direct small business participation evident in this specific award.
Oversight & Accountability
The General Services Administration (GSA) manages this contract, leveraging its expertise in federal procurement. Oversight would focus on performance metrics, financial reporting, and adherence to terms and conditions to ensure effective service delivery.
Related Government Programs
- Commercial Banking
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Reliance on a single large financial institution.
- Potential for complex transition if contract is re-competed.
- Cybersecurity risks associated with financial data.
- Market volatility impacting MBS issuance volume.
Tags
commercial-banking, general-services-administration, dc, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $244.5 million to BANK OF NEW YORK MELLON (THE). GINNIE MAE MORTGAGE BACKED SECURITIES ISSUANCE AND BOND ADMINISTRATION
Who is the contractor on this award?
The obligated recipient is BANK OF NEW YORK MELLON (THE).
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $244.5 million.
What is the period of performance?
Start: 2021-01-01. End: 2026-06-30.
What are the key performance indicators (KPIs) used to measure the success of this bond administration contract, and how are they monitored?
Key performance indicators likely include timeliness of security issuance, accuracy of bond administration, compliance with regulatory requirements, and responsiveness to Ginnie Mae's needs. The GSA and Ginnie Mae would jointly monitor these KPIs through regular reporting, performance reviews, and potentially audits to ensure the contractor meets contractual obligations and maintains the integrity of the MBS program.
What is the potential risk associated with the concentration of this critical function with one large financial institution, and what mitigation strategies are in place?
Concentration risk arises if the Bank of New York Mellon faces operational disruptions or financial instability, which could impact Ginnie Mae's MBS program. Mitigation strategies may include robust business continuity and disaster recovery plans mandated in the contract, regular financial health assessments of the contractor, and contingency planning for potential service disruptions or transitions.
How does the firm fixed-price contract structure ensure cost-effectiveness and prevent cost overruns for the government?
A firm fixed-price contract shifts the risk of cost overruns to the contractor, incentivizing efficient operations and cost management. This structure provides budget certainty for the government. However, it requires careful initial scope definition to avoid change orders that could increase costs. The contractor is responsible for managing its costs to deliver the agreed-upon services within the fixed price.
Industry Classification
NAICS: Finance and Insurance › Depository Credit Intermediation › Commercial Banking
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 47QFDA20K0027
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 101 BARCLAY ST, NEW YORK, NY, 10286
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $871,413,391
Exercised Options: $270,023,790
Current Obligation: $244,471,425
Actual Outlays: $168,786,204
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $27,803,571
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2021-01-01
Current End Date: 2026-06-30
Potential End Date: 2030-12-31 00:00:00
Last Modified: 2025-11-03
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