Ginnie Mae contract for business solutions awarded to Falcon Capital Advisors for over $10.5 million

Contract Overview

Contract Amount: $10,578,965 ($10.6M)

Contractor: Falcon Capital Advisors LLC

Awarding Agency: General Services Administration

Start Date: 2023-12-18

End Date: 2025-12-17

Contract Duration: 730 days

Daily Burn Rate: $14.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GINNIE MAE BUSINESS SOLUTIONS AND NEXT GENERATION SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $10.6 million to FALCON CAPITAL ADVISORS LLC for work described as: GINNIE MAE BUSINESS SOLUTIONS AND NEXT GENERATION SUPPORT Key points: 1. The contract value of $10.5 million for a two-year period suggests a significant investment in administrative and management consulting. 2. Full and open competition was utilized, indicating a potentially robust bidding process. 3. The contract is a delivery order under a larger contract vehicle, implying it's part of an established procurement strategy. 4. The fixed-price contract type aims to control costs by setting a predetermined price for services. 5. The primary agency is GSA, supporting the Ginnie Mae program, a key entity in the mortgage market. 6. The North American Industry Classification System (NAICS) code 541611 points to general management consulting services.

Value Assessment

Rating: fair

Benchmarking the value of this $10.5 million contract for two years of administrative and management consulting is challenging without specific deliverables. However, the firm fixed-price structure suggests an attempt to manage costs effectively. Comparing this to similar GSA-awarded consulting contracts would provide better insight into whether the pricing is competitive for the scope of services, which are broadly defined as administrative management and general management consulting.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with five bidders participating. This level of competition is generally positive, suggesting that multiple firms had the opportunity to bid, which can lead to better price discovery and potentially more favorable terms for the government. The presence of five bidders indicates a reasonably competitive market for these types of consulting services.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging high-quality service offerings.

Public Impact

The primary beneficiary is Ginnie Mae, which will receive business solutions and next-generation support to enhance its operations. The services delivered are expected to improve administrative management and general management consulting capabilities within Ginnie Mae. The contract is geographically focused on the District of Columbia, where Ginnie Mae is headquartered. The contract may have implications for the workforce by potentially requiring specialized skills or leading to process improvements that affect personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The broad definition of 'business solutions and next generation support' could lead to scope creep if not clearly defined and managed.
Reliance on a single delivery order under a larger contract vehicle might limit flexibility if Ginnie Mae's needs evolve significantly beyond the initial scope.
The effectiveness of the consulting services will depend heavily on the contractor's ability to understand and address Ginnie Mae's specific challenges.

Positive Signals

The use of full and open competition with five bidders suggests a healthy market and potential for competitive pricing.
The firm fixed-price contract type provides cost certainty for the government.
The contract is managed by the General Services Administration (GSA), which has established procurement processes and oversight capabilities.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This is a large and dynamic sector supporting various government functions. The market for such services is competitive, with numerous firms offering expertise in process improvement, strategic planning, and operational efficiency. Ginnie Mae's need for these services aligns with the broader trend of government agencies seeking external expertise to modernize operations and enhance service delivery.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Falcon Capital Advisors LLC is the prime contractor. Further analysis would be needed to determine if small businesses are involved in subcontracting opportunities under this award.

Oversight & Accountability

The contract is managed by the General Services Administration (GSA), which typically has robust oversight mechanisms for its contract vehicles. As a delivery order under a larger contract, it likely benefits from the oversight built into that master contract. Transparency is generally maintained through GSA's contract award databases. Specific accountability measures would be detailed in the contract's statement of work and performance standards.

Related Government Programs

Ginnie Mae Mortgage-Backed Securities Program
Federal Consulting Services Contracts
GSA Schedule Contracts
Administrative Management Services
General Management Consulting Services

Risk Flags

Potential for scope creep due to broad service definition.
Contract performance risk if contractor expertise doesn't fully align with Ginnie Mae's needs.
Knowledge transfer risk if not managed proactively.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $10.6 million to FALCON CAPITAL ADVISORS LLC. GINNIE MAE BUSINESS SOLUTIONS AND NEXT GENERATION SUPPORT

Who is the contractor on this award?

The obligated recipient is FALCON CAPITAL ADVISORS LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $10.6 million.

What is the period of performance?

Start: 2023-12-18. End: 2025-12-17.

What is the track record of Falcon Capital Advisors LLC in performing similar government contracts?

Falcon Capital Advisors LLC has a history of performing government contracts, primarily within the administrative and management consulting space. Their contract portfolio often includes services related to program management, financial advisory, and strategic planning. While specific performance metrics for past contracts are not detailed here, their ability to win this $10.5 million Ginnie Mae contract suggests a level of demonstrated capability and past performance that met the government's requirements. A deeper dive into their contract history on platforms like SAM.gov or FPDS would reveal specific agencies served, contract values, and performance ratings, offering a more comprehensive view of their track record.

How does the value of this contract compare to similar consulting engagements for federal agencies?

The $10.5 million value for a two-year engagement is substantial for administrative and general management consulting services. This figure suggests a significant scope of work or a high level of expertise required. When compared to similar contracts awarded by agencies like GSA or other large federal entities for comparable services, this contract appears to be within a reasonable range, particularly given the firm fixed-price nature which often reflects a well-defined scope. However, without a detailed statement of work, direct comparisons are difficult. Benchmarking against contracts with similar NAICS codes (541611) and durations would provide a clearer picture of its relative value.

What are the primary risks associated with this contract for Ginnie Mae?

Key risks for Ginnie Mae include potential scope creep if the 'business solutions and next generation support' are not precisely defined and managed, leading to cost overruns or delays. There's also a risk that the contractor may not deliver the expected level of innovation or efficiency improvements, impacting Ginnie Mae's operational goals. Furthermore, reliance on external consultants can sometimes lead to knowledge transfer gaps if not managed proactively. The firm fixed-price nature, while good for cost control, can also incentivize the contractor to minimize effort if not properly monitored, potentially affecting quality.

How effective are GSA's oversight mechanisms for contracts awarded through its Federal Acquisition Service?

GSA's oversight mechanisms for contracts awarded through its Federal Acquisition Service are generally considered robust, designed to ensure compliance, fairness, and value for taxpayer money. GSA utilizes contract officers, program managers, and various reporting requirements to monitor contractor performance. For delivery orders like this one, oversight is often shared between the contracting activity (GSA) and the requiring agency (Ginnie Mae). GSA's established processes, including performance evaluations and audits, aim to mitigate risks. However, the effectiveness can vary based on the specific contract, the diligence of the oversight personnel, and the transparency of the contractor's operations.

What are the historical spending patterns for administrative and management consulting services at Ginnie Mae or similar agencies?

Historical spending on administrative and management consulting services by agencies like Ginnie Mae typically fluctuates based on strategic initiatives, modernization efforts, and specific program needs. Agencies often engage consultants for tasks such as process re-engineering, IT system implementation support, strategic planning, and organizational restructuring. Spending can increase during periods of significant change or when agencies face complex challenges requiring specialized external expertise. Analyzing Ginnie Mae's specific historical spending on consulting, or comparing it to peer agencies within the housing finance sector or other financial services arms of the government, would reveal trends and provide context for the current $10.5 million award.

What is the potential impact of this contract on Ginnie Mae's 'next generation' capabilities?

The 'next generation support' aspect of this contract suggests an aim to modernize Ginnie Mae's systems, processes, or strategic approaches. The consulting services are expected to identify and implement improvements that will enhance Ginnie Mae's future operational efficiency, technological capabilities, and overall effectiveness in its mission. This could involve recommendations for new technologies, updated workflows, or strategic shifts to better serve the mortgage market. The success of this impact hinges on the quality of the consulting advice and Ginnie Mae's ability to implement the recommended changes effectively.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFDA23Q0024

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 427 N LEE ST, ALEXANDRIA, VA, 22314

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,666,792

Exercised Options: $14,181,409

Current Obligation: $10,578,965

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS10F074CA

IDV Type: FSS

Timeline