HUD Awards $136M Contract for MBS Administration to Deloitte & Touche LLP
Contract Overview
Contract Amount: $136,036,905 ($136.0M)
Contractor: Deloitte & Touche LLP
Awarding Agency: Department of Housing and Urban Development
Start Date: 2006-10-01
End Date: 2013-01-31
Contract Duration: 2,314 days
Daily Burn Rate: $58.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)
Sector: Other
Official Description: NEW CONTRACT FOR MBS ADMINISTRATION.
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Housing and Urban Development obligated $136.0 million to DELOITTE & TOUCHE LLP for work described as: NEW CONTRACT FOR MBS ADMINISTRATION. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration is substantial at 2314 days, indicating a long-term need. 3. The award amount of $136M signifies significant federal investment in mortgage-backed securities administration. 4. The NAICS code 523999 points to miscellaneous financial investment activities, a specialized sector.
Value Assessment
Rating: fair
The contract value of $136M over approximately 6.3 years suggests an average annual value of around $21.5M. Benchmarking this against similar large-scale financial administration contracts is difficult without more specific service details, but it appears to be a substantial commitment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and allows for a wide range of potential bidders. This method aims to ensure the government receives the best value through market forces.
Taxpayer Impact: The use of full and open competition is intended to maximize taxpayer value by ensuring fair pricing and access to the most capable providers for essential services like MBS administration.
Public Impact
Impacts the mortgage-backed securities market and potentially homeowners whose loans are securitized. Ensures continued administration and servicing of mortgage-backed securities, crucial for financial market stability. Supports the Department of Housing and Urban Development's mission in housing finance and market oversight.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics or outcomes in the provided data.
- Potential for cost overruns in long-term contracts if not closely managed.
- Dependence on a single contractor for a critical financial function.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- Long contract duration suggests a stable and predictable service provision.
- Significant investment in a key area of housing finance.
Sector Analysis
The contract falls under miscellaneous financial investment activities, a sector critical to the functioning of financial markets. Federal spending in this area often relates to managing government-backed financial instruments and ensuring market stability.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to Deloitte & Touche LLP, a large firm. There is no indication of small business participation in this specific award.
Oversight & Accountability
The contract's long duration necessitates robust oversight from HUD to ensure performance, adherence to terms, and cost control. Accountability mechanisms would typically involve regular reporting and performance reviews.
Related Government Programs
- Miscellaneous Financial Investment Activities
- Department of Housing and Urban Development Contracting
- Department of Housing and Urban Development Programs
Risk Flags
- Contract duration is lengthy, increasing risk of scope creep or evolving needs.
- Potential for vendor lock-in due to the specialized nature of MBS administration.
- Lack of transparency on specific performance metrics and oversight mechanisms.
- Dependence on a single large contractor for a critical financial function.
Tags
miscellaneous-financial-investment-activ, department-of-housing-and-urban-developm, va, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $136.0 million to DELOITTE & TOUCHE LLP. NEW CONTRACT FOR MBS ADMINISTRATION.
Who is the contractor on this award?
The obligated recipient is DELOITTE & TOUCHE LLP.
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 $136.0 million.
What is the period of performance?
Start: 2006-10-01. End: 2013-01-31.
What specific services are included under 'MBS Administration' for this contract, and how do they align with HUD's strategic goals?
MBS Administration likely encompasses a range of services such as loan servicing, payment processing, default management, and reporting related to mortgage-backed securities. These services are crucial for HUD's role in supporting the housing market, ensuring the stability of securitized mortgages, and fulfilling its mission to create strong communities.
What are the key performance indicators (KPIs) for this contract, and how is Deloitte & Touche LLP's performance being measured?
Key performance indicators for MBS administration typically include metrics like timely payment processing, accurate reporting, effective default resolution rates, and compliance with regulatory requirements. HUD would likely have established specific KPIs and service level agreements (SLAs) within the contract to monitor Deloitte & Touche LLP's performance and ensure the efficient and effective management of the MBS portfolio.
How does the $136M contract value compare to historical spending on similar MBS administration services by HUD or other agencies?
Without specific historical data for comparable MBS administration contracts, it's challenging to definitively benchmark the $136M value. However, considering the contract spans over six years and covers a critical financial function, the investment appears substantial. A detailed comparison would require analyzing contract scope, duration, and market rates for similar services.
Industry Classification
NAICS: Finance and Insurance › Other Financial Investment Activities › Miscellaneous Financial Investment Activities
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)
Evaluated Preference: NONE
Contractor Details
Parent Company: Deloitte LLP (UEI: 014127109)
Address: 1750 TYSONS BLVD STE 800, MC LEAN, VA, 22102
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $144,243,841
Exercised Options: $144,243,841
Current Obligation: $136,036,905
Timeline
Start Date: 2006-10-01
Current End Date: 2013-01-31
Potential End Date: 2015-09-23 00:00:00
Last Modified: 2015-09-23
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