HUD Awards $5.19M for HECM/BSP Support Services to OptumServe
Contract Overview
Contract Amount: $5,192,245 ($5.2M)
Contractor: Optumserve Technology Services, Inc.
Awarding Agency: Department of Housing and Urban Development
Start Date: 2015-06-30
End Date: 2016-03-31
Contract Duration: 275 days
Daily Burn Rate: $18.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THE CONTRACTOR SHALL PROVIDE HECM/BSP SUPPORT SERVICES FROM 6/30/2015 - 6/29/2015 PER THE APPLICABLE PWS. IGF::OT::IGF
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20410
Plain-Language Summary
Department of Housing and Urban Development obligated $5.2 million to OPTUMSERVE TECHNOLOGY SERVICES, INC. for work described as: THE CONTRACTOR SHALL PROVIDE HECM/BSP SUPPORT SERVICES FROM 6/30/2015 - 6/29/2015 PER THE APPLICABLE PWS. IGF::OT::IGF Key points: 1. Contract awarded for HECM/BSP support services. 2. OptumServe Technology Services, Inc. is the contractor. 3. Contract duration is 275 days. 4. The contract is a definitive contract with a firm fixed price. 5. No small business participation noted.
Value Assessment
Rating: fair
The contract value of $5.19M for approximately 9 months of service appears reasonable for specialized support. Benchmarking against similar IT support contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive process.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these services.
Public Impact
Ensures continued support for HECM/BSP programs. Potential for increased costs due to sole-source award. Limited transparency on contractor performance metrics. Impact on housing counseling services is indirect but crucial.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Limited duration may indicate a stop-gap measure
Positive Signals
- Specific support services provided
- Clear contract type and pricing structure
Sector Analysis
This contract falls under 'Other Computer Related Services' (NAICS 541519). Spending in this sector is broad, covering IT support, consulting, and custom software development. Benchmarks vary widely based on service complexity and duration.
Small Business Impact
The contract was not awarded to a small business, and there is no indication of small business subcontracting. This represents a missed opportunity for small business participation in federal contracting.
Oversight & Accountability
Oversight of this contract would focus on ensuring the contractor meets the Performance Work Statement (PWS) requirements and that the firm fixed price remains justified throughout the contract term.
Related Government Programs
- Other Computer Related Services
- Department of Housing and Urban Development Contracting
- Department of Housing and Urban Development Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Potential for inflated costs due to lack of competition.
- No small business participation.
- Short contract duration (less than one year) may indicate a temporary solution or potential for follow-on contracts.
- Lack of detailed service description in provided data.
Tags
other-computer-related-services, department-of-housing-and-urban-developm, dc, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $5.2 million to OPTUMSERVE TECHNOLOGY SERVICES, INC.. THE CONTRACTOR SHALL PROVIDE HECM/BSP SUPPORT SERVICES FROM 6/30/2015 - 6/29/2015 PER THE APPLICABLE PWS. IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is OPTUMSERVE TECHNOLOGY SERVICES, INC..
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 $5.2 million.
What is the period of performance?
Start: 2015-06-30. End: 2016-03-31.
What specific HECM/BSP support services are being provided, and how critical are they to HUD's mission?
The contract specifies 'HECM/BSP Support Services.' HECM (Home Equity Conversion Mortgage) and BSP (likely related to housing counseling or program administration) are critical to HUD's mission of supporting homeowners and housing stability. Understanding the exact nature of the support (e.g., IT maintenance, data analysis, customer service) is key to assessing its value and necessity.
What is the justification for the sole-source award, and what steps were taken to ensure fair pricing?
The justification for a sole-source award is crucial. Without competition, it's difficult to ascertain fair pricing. HUD should have conducted a thorough market analysis and price reasonableness check, potentially using historical data or independent cost estimates, to ensure the $5.19M award was justified and not inflated due to the lack of competitive bidding.
How will the effectiveness of OptumServe's support be measured, and what are the key performance indicators?
Effectiveness will be measured against the deliverables outlined in the Performance Work Statement (PWS). Key performance indicators (KPIs) should be established to track service quality, timeliness, and impact on HECM/BSP program operations. Regular performance reviews and reporting are essential to ensure the contractor is meeting expectations and delivering value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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
Parent Company: Unitedhealth Group Incorporated
Address: 10025 GOVERNOR WARFIELD PKWY STE 401, COLUMBIA, MD, 21044
Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $5,365,702
Exercised Options: $5,192,245
Current Obligation: $5,192,245
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-06-30
Current End Date: 2016-03-31
Potential End Date: 2016-03-31 00:00:00
Last Modified: 2026-01-28
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