GSA awards $28.8M for COTS products to support HUD/FHA's financial platform and fraud initiative

Contract Overview

Contract Amount: $28,778,298 ($28.8M)

Contractor: Immixtechnology Inc

Awarding Agency: General Services Administration

Start Date: 2011-05-31

End Date: 2014-05-30

Contract Duration: 1,095 days

Daily Burn Rate: $26.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO PROCURE COMMERCIAL OFF THE SHELF (COTS) PRODUCTS FOR HUD/FHA S FINANCIAL INDUSTRY STANDARD PLATFORM. THIS IS IN SUPPORT OF A FINANCIAL SERVICES PLATFORM FOR THE MORTGAGE RISK FRAUD INITIATIVE (MFRI) WHICH WILL OFFER NEW CAPABILITIES WITH THE CURRENT SIEBEL CRM BASE SYSTEM CURRENTLY IN PLACE

Place of Performance

Location: CHARLESTON, KANAWHA County, WEST VIRGINIA, 25303

State: West Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $28.8 million to IMMIXTECHNOLOGY INC for work described as: THE PURPOSE OF THIS TASK ORDER IS TO PROCURE COMMERCIAL OFF THE SHELF (COTS) PRODUCTS FOR HUD/FHA S FINANCIAL INDUSTRY STANDARD PLATFORM. THIS IS IN SUPPORT OF A FINANCIAL SERVICES PLATFORM FOR THE MORTGAGE RISK FRAUD INITIATIVE (MFRI) WHICH WILL OFFER NEW CAPABILITIES WITH THE C… Key points: 1. Contract supports a critical financial services platform for mortgage risk and fraud prevention. 2. Procurement focuses on Commercial Off-The-Shelf (COTS) products, suggesting readily available solutions. 3. The contract duration of 1095 days indicates a medium-term need for these products. 4. The award was made under Firm Fixed Price terms, providing cost certainty. 5. The contract value represents a significant investment in modernizing financial systems. 6. The use of COTS products may reduce development time and costs compared to custom solutions.

Value Assessment

Rating: good

The contract value of approximately $28.8 million over three years for COTS products appears reasonable for supporting a financial industry standard platform. Benchmarking against similar procurements for financial system modernization or COTS software acquisition would provide further context. Without specific per-unit cost data or detailed service breakdowns, a precise value-for-money assessment is challenging, but the fixed-price nature offers some cost control.

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 while competition was sought, certain sources were excluded. This suggests a potentially competitive process, but the exclusion criteria warrant further investigation to understand the full scope of competition. The presence of two bids (no: 2) indicates some level of competition, but it's not extensive.

Taxpayer Impact: A competitive process, even with exclusions, generally benefits taxpayers by encouraging better pricing and quality. However, understanding the reasons for source exclusion is key to ensuring maximum value.

Public Impact

Benefits HUD/FHA by enhancing their financial industry standard platform. Supports the Mortgage Risk Fraud Initiative (MFRI) with new capabilities. Aims to improve fraud detection and risk management in financial services. Indirectly benefits mortgage borrowers and the broader financial ecosystem by promoting stability and integrity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may have reduced price negotiation leverage.
The specific reasons for excluding certain sources in the 'full and open' competition are not detailed.
Potential for vendor lock-in if COTS products are highly integrated and difficult to replace.

Positive Signals

Firm Fixed Price contract provides budget certainty.
Use of COTS products can lead to faster deployment and integration.
Supports a critical government function related to financial stability and fraud prevention.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software and related services for financial applications. The market for financial software and IT support services is substantial, driven by regulatory compliance, efficiency demands, and the need for robust fraud detection. This procurement aligns with government-wide efforts to modernize legacy systems and leverage technology for improved service delivery and risk management.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false). As a procurement of COTS products, it's possible that larger vendors dominate this specific market segment. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity for broader economic impact.

Oversight & Accountability

Oversight would typically be managed by the General Services Administration (GSA) Federal Acquisition Service, which awarded the contract. Accountability is established through the Firm Fixed Price contract terms. Transparency is facilitated by the contract award notice, but further details on performance metrics and specific COTS products chosen would enhance oversight assessment.

Related Government Programs

HUD/FHA Financial Systems Modernization
Mortgage Risk Management IT Solutions
Commercial Off-The-Shelf Software Procurement
Financial Fraud Detection Systems
GSA IT Schedule Contracts

Risk Flags

Limited competition (2 bidders)
Unclear justification for source exclusion
Potential for vendor lock-in with COTS products

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $28.8 million to IMMIXTECHNOLOGY INC. THE PURPOSE OF THIS TASK ORDER IS TO PROCURE COMMERCIAL OFF THE SHELF (COTS) PRODUCTS FOR HUD/FHA S FINANCIAL INDUSTRY STANDARD PLATFORM. THIS IS IN SUPPORT OF A FINANCIAL SERVICES PLATFORM FOR THE MORTGAGE RISK FRAUD INITIATIVE (MFRI) WHICH WILL OFFER NEW CAPABILITIES WITH THE CURRENT SIEBEL CRM BASE SYSTEM CURRENTLY IN PLACE

Who is the contractor on this award?

The obligated recipient is IMMIXTECHNOLOGY INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $28.8 million.

What is the period of performance?

Start: 2011-05-31. End: 2014-05-30.

What specific COTS products were procured under this task order, and how do they integrate with the existing Siebel CRM system?

The provided data does not specify the exact Commercial Off-The-Shelf (COTS) products procured. It only states the general purpose: 'to procure commercial off the shelf (COTS) products for HUD/FHA S FINANCIAL INDUSTRY STANDARD PLATFORM.' The integration details with the current Siebel CRM base system are also not elaborated upon, beyond stating that the new capabilities will be offered in conjunction with it. Further analysis would require access to the detailed task order documentation, including product lists, statements of work, and integration plans, to understand the specific technologies chosen and their technical architecture.

How does the $28.8 million contract value compare to similar procurements for financial platform modernization or COTS software acquisition by federal agencies?

The $28.8 million contract value over three years for COTS products supporting a financial platform is a significant but not extraordinary sum for federal IT procurements. Comparable contracts can vary widely based on scope, complexity, and the specific COTS solutions involved. For instance, large-scale enterprise resource planning (ERP) system implementations or core banking system upgrades can run into hundreds of millions of dollars. Procurements focused solely on COTS software licenses and initial integration for a specific initiative, like this one for HUD/FHA's fraud initiative, might typically range from a few million to tens of millions. Without knowing the specific COTS products and the depth of integration required, a precise benchmark is difficult, but the value appears aligned with supporting a specialized financial platform enhancement.

What are the key performance indicators (KPIs) or metrics used to measure the success of this contract and the effectiveness of the MFRI initiative?

The provided data does not include specific Key Performance Indicators (KPIs) or metrics for this contract or the Mortgage Risk Fraud Initiative (MFRI). Typically, such contracts would have performance standards tied to system availability, response times, successful integration, and user satisfaction. For the MFRI itself, success metrics might include the reduction in fraudulent mortgage applications, improved accuracy in risk assessment, faster processing times for legitimate applications, and the number of fraud cases identified or prevented. A thorough review of the contract's Statement of Work (SOW) and any associated performance work statements (PWS) would be necessary to identify the defined KPIs and measurement methodologies.

What is the track record of IMMIXTECHNOLOGY INC in delivering similar IT solutions to federal agencies, particularly in the financial services sector?

The provided data identifies IMMIXTECHNOLOGY INC as the contractor but offers no details on their track record. To assess their performance, one would need to examine their past federal contract history, including past performance evaluations, any awards or penalties received, and their experience with similar COTS procurements or financial system implementations. Databases like the Federal Procurement Data System (FPDS) or CPARS (Contractor Performance Assessment Reporting System) would be valuable resources for evaluating IMMIXTECHNOLOGY INC's relevant experience and past performance.

Given the 'Full and Open Competition After Exclusion of Sources' and only two bidders, what are the potential risks related to market concentration or limited innovation?

The competition structure, described as 'Full and Open Competition After Exclusion of Sources' with only two bidders, presents potential risks. The exclusion of sources, if not well-justified and transparent, could artificially limit the competitive pool, potentially leading to higher prices or less optimal solutions than might be achieved with broader competition. Having only two bidders further concentrates the market for this specific requirement. This limited competition could reduce pressure on the awarded contractor to innovate or maintain competitive pricing throughout the contract life. It also increases the risk associated with the failure or performance issues of either bidder, as alternatives are scarce.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Immixgroup, Inc (UEI: 159803972)

Address: 8444 WESTPARK DR STE 200, MC LEAN, VA, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $64,603,772

Exercised Options: $28,778,298

Current Obligation: $28,778,298

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG07DA20B

IDV Type: GWAC

Timeline