HUD awards $1.9M contract to IT Data Consulting LLC for financial model validation

Contract Overview

Contract Amount: $1,911,781 ($1.9M)

Contractor: IT Data Consulting LLC

Awarding Agency: Department of Housing and Urban Development

Start Date: 2025-04-08

End Date: 2027-04-07

Contract Duration: 729 days

Daily Burn Rate: $2.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MODEL VALIDATION FOR RMCAP AND CCAP ANNUAL VALIDALIONS OF FINANCIAL/ACTUARIAL MODELS

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $1.9 million to IT DATA CONSULTING LLC for work described as: MODEL VALIDATION FOR RMCAP AND CCAP ANNUAL VALIDALIONS OF FINANCIAL/ACTUARIAL MODELS Key points: 1. Contract awarded for critical financial model validation services. 2. Limited competition due to contract type. 3. Potential for cost overruns if scope expands. 4. IT consulting sector sees significant government spending.

Value Assessment

Rating: fair

The contract value of $1.9M for a 2-year period appears reasonable for specialized financial model validation. However, without specific details on the scope of work and deliverables, a precise benchmark is difficult. Pricing should be compared against similar model validation contracts for actuarial and financial risk models.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, suggesting a limited source selection process. This lack of full and open competition may impact price discovery and potentially lead to higher costs than if multiple vendors had competed.

Taxpayer Impact: Taxpayer funds are being used for specialized IT consulting services. The impact is moderate, as the value is relatively small in the context of overall federal IT spending, but efficiency in procurement is key.

Public Impact

Ensures accuracy of financial models used by HUD. Supports sound financial decision-making within the agency. Potential impact on housing programs if models are flawed. IT consulting services are essential for modern government operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potential for scope creep
Reliance on a single vendor

Positive Signals

Essential service for financial integrity
Clear contract duration
Firm fixed price contract type

Sector Analysis

The IT consulting sector is a major area of federal spending, with agencies increasingly relying on specialized firms for complex tasks like financial model validation. Benchmarks for similar contracts vary widely based on complexity and duration.

Small Business Impact

This contract was not awarded to a small business. There is an opportunity to ensure future solicitations in this area are structured to encourage small business participation where appropriate.

Oversight & Accountability

Oversight will be crucial to ensure IT Data Consulting LLC meets all contractual obligations and delivers high-quality validation services. HUD's contracting office and program managers should monitor performance closely.

Related Government Programs

Miscellaneous Financial Investment Activities
Department of Housing and Urban Development Contracting
Department of Housing and Urban Development Programs

Risk Flags

Lack of full and open competition
Potential for vendor lock-in
Dependency on a single contractor for critical function
Absence of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $1.9 million to IT DATA CONSULTING LLC. MODEL VALIDATION FOR RMCAP AND CCAP ANNUAL VALIDALIONS OF FINANCIAL/ACTUARIAL MODELS

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 $1.9 million.

What is the period of performance?

Start: 2025-04-08. End: 2027-04-07.

What specific models are being validated and what is the criticality of these models to HUD's mission?

The specific models being validated are RMCAP and CCAP, which are used for annual validations of financial/actuarial models. The criticality lies in ensuring the accuracy and reliability of these models, which directly inform HUD's financial risk assessments and decision-making processes. Flawed models could lead to misallocation of resources or inaccurate financial projections, impacting housing programs.

What are the risks associated with a limited competition award for this type of service?

Limited competition increases the risk of paying a premium for services due to a lack of price pressure from competing vendors. It also raises concerns about whether the chosen vendor is truly the best value or if other capable firms were overlooked. This can also limit innovation if only one approach is considered.

How will the effectiveness of the model validation be measured and ensured?

Effectiveness will be measured by the accuracy and thoroughness of the validation reports produced by IT Data Consulting LLC. HUD's program managers should establish clear performance metrics and review deliverables against these standards. Independent verification of key findings or subsequent audits could also assess the quality of the validation work.

Industry Classification

NAICS: Finance and Insurance › Other Financial Investment Activities › Miscellaneous Financial Investment Activities

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 86615725R00001

Offers Received: 1

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: $4,498,062

Exercised Options: $1,911,781

Current Obligation: $1,911,781

Actual Outlays: $922,118

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline