HUD Awards $45M Loan Servicing Contract to C & L Service Corporation via Full and Open Competition
Contract Overview
Contract Amount: $45,177,769 ($45.2M)
Contractor: C & L Service Corporation
Awarding Agency: Department of Housing and Urban Development
Start Date: 2007-09-30
End Date: 2017-09-11
Contract Duration: 3,634 days
Daily Burn Rate: $12.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: NEW CONTRACT FOR NAT'L LOAN SERVICING FOR INSURED AND SECRETARY HELD LOANS
Place of Performance
Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23704
State: Virginia Government Spending
Plain-Language Summary
Department of Housing and Urban Development obligated $45.2 million to C & L SERVICE CORPORATION for work described as: NEW CONTRACT FOR NAT'L LOAN SERVICING FOR INSURED AND SECRETARY HELD LOANS Key points: 1. Contract value of $45.18M over 10 years for national loan servicing. 2. C & L Service Corporation secured the award through full and open competition. 3. Potential risk associated with long-term contracts and service provider performance. 4. Spending falls under 'Other Activities Related to Credit Intermediation' sector.
Value Assessment
Rating: good
The contract value of $45.18M over approximately 10 years suggests a competitive pricing strategy. Benchmarking against similar loan servicing contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition after exclusion of sources, indicating a robust price discovery process. This method generally leads to more competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the loan servicing provided.
Public Impact
Ensures continued servicing of insured and secretary-held loans for millions of borrowers. Supports the Department of Housing and Urban Development's mission in managing its loan portfolio. Provides stability for borrowers through a consistent loan servicing provider.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (approx. 10 years) increases performance risk.
- Lack of small business participation noted.
Positive Signals
- Awarded via full and open competition.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls under 'Other Activities Related to Credit Intermediation,' a sector that supports financial operations and government-backed lending programs. Spending benchmarks for similar loan servicing contracts are typically tied to portfolio size and complexity.
Small Business Impact
The contract was not awarded to a small business. Further analysis would be needed to determine if small business set-asides were considered or if opportunities were missed.
Oversight & Accountability
The use of full and open competition suggests a degree of oversight in the procurement process. However, ongoing performance monitoring by HUD is crucial for accountability throughout the contract's duration.
Related Government Programs
- Other Activities Related to Credit Intermediation
- Department of Housing and Urban Development Contracting
- Department of Housing and Urban Development Programs
Risk Flags
- Long contract duration
- No small business participation
- Potential for vendor performance degradation over time
- Limited flexibility due to long-term commitment
Tags
other-activities-related-to-credit-inter, department-of-housing-and-urban-developm, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $45.2 million to C & L SERVICE CORPORATION. NEW CONTRACT FOR NAT'L LOAN SERVICING FOR INSURED AND SECRETARY HELD LOANS
Who is the contractor on this award?
The obligated recipient is C & L SERVICE CORPORATION.
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 $45.2 million.
What is the period of performance?
Start: 2007-09-30. End: 2017-09-11.
What is the specific performance metric used to evaluate C & L Service Corporation's effectiveness in loan servicing?
The provided data does not specify the performance metrics. Effective oversight would involve clearly defined Key Performance Indicators (KPIs) related to borrower communication, payment processing accuracy, default management, and compliance with federal regulations. Regular performance reviews against these KPIs are essential for ensuring value and accountability.
What are the potential risks associated with the long duration of this contract (approx. 10 years)?
The long duration presents risks such as potential vendor underperformance over time, changes in technology or servicing best practices that the vendor may not adapt to, and the possibility of market rates for servicing decreasing, making the fixed price less competitive. It also reduces flexibility for the government to switch providers if a better option emerges.
How does the firm fixed price contract impact the government's ability to manage costs and ensure value?
A firm fixed price contract provides cost certainty for the government, as the contractor assumes the risk of cost overruns. This structure incentivizes the contractor to be efficient. However, it can also lead to higher initial pricing to account for contractor risk, and the government may miss out on potential savings if costs decrease significantly during the contract period.
Industry Classification
NAICS: Finance and Insurance › Activities Related to Credit Intermediation › Other Activities Related to Credit Intermediation
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: R-DEN-02188
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2216 COUNTY ST, PORTSMOUTH, VA, 23704
Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business
Financial Breakdown
Contract Ceiling: $45,177,769
Exercised Options: $45,177,769
Current Obligation: $45,177,769
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2007-09-30
Current End Date: 2017-09-11
Potential End Date: 2017-09-11 00:00:00
Last Modified: 2017-09-11
Other Department of Housing and Urban Development Contracts
- Single Family Master Subservicer Services in Support of Ginnie Mae's Mortgage-Backed Securities (MBS) Programs — $982.0M (Carrington Mortgage Services LLC)
- TAS::86 4585::TAS Award of Portion of Hits Solicitation Under RFP R-Opc-21970 Pursuant to Settlement Agreement. the Contractor Shall Provide Data Center, Help Desk, and Disaster Recovery Services — $620.3M (Peraton Enterprise Solutions LLC)
- TAS::86 4585::TAS Award of Portion of Hits RFP to LMC. the Contractor IS Responsible for Lotus Notes, Desktops, Laptops, Field Office Servers, Lans, Printers, and Kiosks — $498.6M (Lockheed Martin Services, LLC)
- Single Family Master Subservicer Igf::ot::igf — $343.6M (Carrington Mortgage Services LLC)
- Single Family Master Subservicer Igf::ot::igf — $314.2M (Selene Finance LP)
View all Department of Housing and Urban Development contracts →