HUD awards $1.98M for Housing Automated Processing System Services to Peniel Solutions, LLC
Contract Overview
Contract Amount: $1,976,736 ($2.0M)
Contractor: Peniel Solutions, LLC
Awarding Agency: Department of Housing and Urban Development
Start Date: 2025-05-01
End Date: 2026-04-30
Contract Duration: 364 days
Daily Burn Rate: $5.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: OFFICE OF HEALTHCARE PROGRAMS (OHP) HOUSING AUTOMATIVE PROCESSING SYSTEM (HAPS) SERVICES
Place of Performance
Location: DULUTH, GWINNETT County, GEORGIA, 30096
State: Georgia Government Spending
Plain-Language Summary
Department of Housing and Urban Development obligated $2.0 million to PENIEL SOLUTIONS, LLC for work described as: OFFICE OF HEALTHCARE PROGRAMS (OHP) HOUSING AUTOMATIVE PROCESSING SYSTEM (HAPS) SERVICES Key points: 1. The contract is for Custom Computer Programming Services, a common area for federal IT spending. 2. Peniel Solutions, LLC is the sole awardee, raising questions about competition. 3. The contract value is relatively small, suggesting a focused scope. 4. The fixed-price contract type aims to control costs. 5. The award is categorized under IT services.
Value Assessment
Rating: fair
The contract value of $1.98 million for a 12-month period appears reasonable for custom programming services. However, without specific details on the scope of work and comparable contract data for HAPS, a precise pricing assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning there was no open competition. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the lack of competitive bidding.
Public Impact
Citizens rely on efficient housing program processing for timely assistance. The IT system supports critical healthcare programs within HUD. Lack of competition could impact the quality and cost-effectiveness of services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Potential for overpayment due to lack of competitive pricing.
- Limited transparency on specific service deliverables.
Positive Signals
- Firm fixed-price contract helps control costs.
- Specific NAICS code indicates a defined service category.
Sector Analysis
This contract falls under IT services, specifically custom computer programming. Federal IT spending is a significant portion of the budget, and ensuring competitive pricing and effective service delivery is crucial.
Small Business Impact
The awardee, Peniel Solutions, LLC, is not identified as a small business in the provided data. The lack of small business participation in this sole-source award is noted.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the contracting agency adequately justified the lack of competition and that the price is fair and reasonable.
Related Government Programs
- Custom Computer Programming Services
- Department of Housing and Urban Development Contracting
- Department of Housing and Urban Development Programs
Risk Flags
- Sole-source award
- Potential lack of competitive pricing
- Limited transparency on specific system capabilities
- No small business participation noted
Tags
custom-computer-programming-services, department-of-housing-and-urban-developm, ga, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $2.0 million to PENIEL SOLUTIONS, LLC. OFFICE OF HEALTHCARE PROGRAMS (OHP) HOUSING AUTOMATIVE PROCESSING SYSTEM (HAPS) SERVICES
Who is the contractor on this award?
The obligated recipient is PENIEL SOLUTIONS, 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 $2.0 million.
What is the period of performance?
Start: 2025-05-01. End: 2026-04-30.
What specific functionalities does the Housing Automated Processing System (HAPS) provide, and how critical are these to OHP's mission?
The HAPS system likely automates and streamlines the processing of applications and data related to housing programs managed by the Office of Healthcare Programs. Its criticality stems from ensuring efficient delivery of services, accurate record-keeping, and timely support for beneficiaries. Understanding these functions is key to assessing the value of the contract.
What is the justification for awarding this contract sole-source, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other responsible sources. Agencies must provide detailed documentation for such awards. Without this justification, it's difficult to assess if the government received the best value or if competition was unnecessarily restricted, potentially leading to higher costs.
How will the effectiveness and efficiency of the HAPS services be measured and ensured under this contract?
Effectiveness is typically measured through performance metrics outlined in the contract, such as system uptime, processing speed, error rates, and user satisfaction. The firm fixed-price structure incentivizes the contractor to meet these metrics efficiently. Regular oversight and performance reviews by HUD will be crucial to ensure the services meet the agency's needs and taxpayer expectations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3885 CRESTWOOD PKWY NW, DULUTH, GA, 30096
Business Categories: Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $4,462,774
Exercised Options: $1,976,736
Current Obligation: $1,976,736
Actual Outlays: $1,435,148
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-05-01
Current End Date: 2026-04-30
Potential End Date: 2027-04-30 00:00:00
Last Modified: 2026-03-24
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