HUD awards $5.8M contract for actuarial review services to IT Data Consulting LLC

Contract Overview

Contract Amount: $5,797,369 ($5.8M)

Contractor: IT Data Consulting LLC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2023-02-08

End Date: 2027-02-07

Contract Duration: 1,460 days

Daily Burn Rate: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ACTUARIAL REVIEW SERVICES

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $5.8 million to IT DATA CONSULTING LLC for work described as: ACTUARIAL REVIEW SERVICES Key points: 1. Contract value appears reasonable given the duration and scope of actuarial services. 2. Full and open competition suggests a competitive market for these specialized services. 3. Potential risks include contractor performance and the accuracy of actuarial models. 4. This contract supports HUD's ongoing need for actuarial expertise in insurance-related activities. 5. The contract falls within the 'Other Insurance Related Activities' sector.

Value Assessment

Rating: good

The contract value of approximately $5.8 million over four years for actuarial review services appears to be within a reasonable range for specialized consulting. Benchmarking against similar contracts for actuarial analysis within federal agencies would provide a more precise value-for-money assessment. However, given the duration and the specialized nature of the work, the pricing does not immediately raise significant concerns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that multiple vendors were likely solicited and allowed to bid. The presence of two bidders suggests a degree of competition, though a higher number of bidders would typically indicate a more robust market and potentially better price discovery for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down the price compared to a sole-source or limited competition scenario.

Public Impact

The Department of Housing and Urban Development (HUD) benefits from this contract by receiving essential actuarial review services. These services are crucial for assessing financial risks and ensuring the solvency of insurance-related programs managed by HUD. The contract supports the agency's mission to provide housing and community development opportunities. The primary beneficiaries are HUD's programs and, indirectly, the public who rely on the stability of these programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Ensuring the accuracy and reliability of actuarial models used by the contractor.
Monitoring contractor performance to ensure adherence to timelines and quality standards.
Potential for scope creep if the actuarial needs evolve beyond the initial contract parameters.

Positive Signals

Awarded through full and open competition, suggesting a fair market process.
Fixed-price contract type can help control costs if the scope is well-defined.
Contract duration allows for consistent support and development of institutional knowledge.

Sector Analysis

This contract falls under the 'Other Insurance Related Activities' sector, which encompasses a range of services related to the assessment and management of insurance risks. The market for actuarial services is specialized, often involving firms with deep expertise in financial modeling and risk analysis. Comparable spending in this niche sector within federal agencies would likely focus on actuarial consulting for various insurance programs, pension funds, or financial risk assessments.

Small Business Impact

There is no indication that this contract included a small business set-aside. The contract was awarded to 'IT DATA CONSULTING LLC'. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this actuarial review work.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program officials within the Department of Housing and Urban Development. Accountability measures are usually embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS. The Inspector General's office may conduct audits or investigations if specific concerns regarding waste, fraud, or abuse arise.

Related Government Programs

Federal Actuarial Services
Insurance Program Support
Financial Risk Assessment Contracts
HUD Program Management Support

Risk Flags

Contractor Performance Risk
Accuracy of Actuarial Models
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $5.8 million to IT DATA CONSULTING LLC. ACTUARIAL REVIEW SERVICES

Who is the contractor on this award?

The obligated recipient is IT DATA CONSULTING 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 $5.8 million.

What is the period of performance?

Start: 2023-02-08. End: 2027-02-07.

What is the track record of IT Data Consulting LLC in performing similar actuarial review services for federal agencies?

A review of publicly available contract data indicates that IT Data Consulting LLC has received federal contracts, but specific details regarding their performance on actuarial review services are not immediately apparent from the provided data. Further investigation into past performance evaluations, client references, and the nature of previous contracts would be necessary to fully assess their track record. Understanding their experience with the specific types of insurance programs managed by HUD would be particularly relevant. Without more granular performance data, it is difficult to definitively gauge their expertise and reliability in this specialized area.

How does the awarded amount compare to similar actuarial services contracts awarded by other federal agencies?

Benchmarking this $5.8 million contract against similar actuarial services contracts requires access to a broader dataset of federal procurements. However, for a four-year definitive contract involving specialized actuarial review, this amount appears to be within a plausible range. Factors influencing cost include the complexity of the actuarial models required, the volume of data to be analyzed, the specific expertise needed, and the duration of the engagement. A comprehensive comparison would involve identifying contracts with similar scopes of work, durations, and agencies to establish a clearer picture of value for money.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential inaccuracies in the actuarial models provided by the contractor, which could lead to flawed financial assessments for HUD's insurance programs. Another risk is contractor underperformance, such as missed deadlines or failure to meet quality standards. Scope creep, where the project's requirements expand beyond the initial agreement, could also lead to cost overruns. Mitigation strategies likely involve rigorous review of the contractor's methodologies, performance monitoring by HUD officials, clear contract deliverables, and defined penalties for non-compliance. The fixed-price nature of the contract also helps to mitigate cost escalation risks, provided the scope is well-defined.

What is the historical spending pattern for actuarial review services at HUD or similar agencies?

Analyzing historical spending patterns for actuarial review services at HUD and comparable agencies would provide context for the current $5.8 million award. This would involve examining past contracts for similar services, noting the number of awards, contract values, durations, and the contractors involved. Understanding trends in spending, such as increases or decreases in demand for these services, or shifts in the types of actuarial expertise sought, can inform future budgeting and procurement strategies. Without specific historical data for HUD's actuarial services, it's difficult to ascertain if this award represents an increase, decrease, or stable level of investment in this area.

What specific insurance-related activities does this contract support within HUD?

The contract is categorized under 'All Other Insurance Related Activities,' suggesting it supports a broad range of functions within HUD that involve insurance risk assessment and management. This could include actuarial reviews for mortgage insurance programs, flood insurance initiatives, or other financial products where actuarial analysis is critical for solvency, pricing, and risk mitigation. The specific activities would depend on the detailed statement of work within the contract, which would outline the precise actuarial models, data sets, and reporting requirements.

Industry Classification

NAICS: Finance and Insurance › Agencies, Brokerages, and Other Insurance Related Activities › All Other Insurance Related Activities

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 86615722R00002

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: IT Data Consulting L.L.C.

Address: 12020 SUNRISE VALLEY DR, RESTON, VA, 20191

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

Financial Breakdown

Contract Ceiling: $8,561,972

Exercised Options: $5,797,369

Current Obligation: $5,797,369

Actual Outlays: $3,656,450

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline