HUD awards $39.4M to Ernst & Young for Financial Advisory Services
Contract Overview
Contract Amount: $39,395,623 ($39.4M)
Contractor: Ernst & Young LLP
Awarding Agency: Department of Housing and Urban Development
Start Date: 2006-04-01
End Date: 2011-09-30
Contract Duration: 2,008 days
Daily Burn Rate: $19.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COMBINATION (TWO OR MORE)
Sector: Other
Official Description: SECURTIZED TRANSACTION FINANCIAL ADVISOR
Place of Performance
Location: NEW YORK, NEW YORK County, NEW YORK, 10036
State: New York Government Spending
Plain-Language Summary
Department of Housing and Urban Development obligated $39.4 million to ERNST & YOUNG LLP for work described as: SECURTIZED TRANSACTION FINANCIAL ADVISOR Key points: 1. Significant contract value of $39.4 million over 5 years. 2. Ernst & Young LLP is a major player in financial consulting. 3. Potential for high impact on housing finance and investment strategies. 4. Contract falls under Miscellaneous Financial Investment Activities sector.
Value Assessment
Rating: fair
The contract value of $39.4 million over 5 years averages to approximately $7.88 million annually. Benchmarking against similar large-scale financial advisory contracts is difficult without more specific service details, but this appears to be a substantial award.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially more favorable pricing for the government.
Taxpayer Impact: The taxpayer impact is tied to the effectiveness of the financial advisory services in managing housing investments and ensuring fiscal responsibility.
Public Impact
Impacts the management of federal housing finance and investment portfolios. Ensures professional financial guidance for the Department of Housing and Urban Development. Potential influence on the stability and efficiency of housing markets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is long (5 years).
- Specific deliverables and performance metrics not detailed.
- Potential for scope creep in complex financial advisory roles.
Positive Signals
- Awarded via full and open competition.
- Experienced and reputable contractor (Ernst & Young).
- Addresses critical financial advisory needs for HUD.
Sector Analysis
This contract falls under Miscellaneous Financial Investment Activities (NAICS 523999). Spending in this sector often involves complex financial instruments and advisory services, with benchmarks varying widely based on the specific nature of the services provided.
Small Business Impact
The data indicates the awardee is Ernst & Young LLP, a large, established firm. There is no indication of small business participation in this specific award based on the provided data.
Oversight & Accountability
Oversight would typically involve regular performance reviews by the Department of Housing and Urban Development to ensure the contractor meets contractual obligations and provides value for taxpayer money. Accountability rests with HUD's contracting officers.
Related Government Programs
- Miscellaneous Financial Investment Activities
- Department of Housing and Urban Development Contracting
- Department of Housing and Urban Development Programs
Risk Flags
- Long contract duration may reduce flexibility.
- Potential for contractor lock-in.
- Complexity of financial advisory services makes performance measurement challenging.
- Lack of specific performance metrics in provided data.
Tags
miscellaneous-financial-investment-activ, department-of-housing-and-urban-developm, ny, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $39.4 million to ERNST & YOUNG LLP. SECURTIZED TRANSACTION FINANCIAL ADVISOR
Who is the contractor on this award?
The obligated recipient is ERNST & YOUNG 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 $39.4 million.
What is the period of performance?
Start: 2006-04-01. End: 2011-09-30.
How effectively did Ernst & Young's advisory services contribute to HUD's financial goals and risk management?
Assessing the effectiveness requires examining specific performance metrics outlined in the contract, such as the successful management of investment portfolios, identification of cost-saving opportunities, and adherence to financial regulations. Without detailed performance reports or post-contract analysis, it's challenging to quantify the direct impact on HUD's financial health and risk mitigation strategies.
What was the competitive landscape for this full and open solicitation, and did it result in optimal pricing?
While awarded under full and open competition, the specific number of bidders and the range of proposals received are not detailed. This method generally promotes competitive pricing. However, the true measure of optimal pricing would involve comparing the awarded rates against industry benchmarks for similar complex financial advisory services, considering the contractor's expertise and the scope of work.
What is the long-term impact of this contract on HUD's capacity for financial management and decision-making?
This contract likely enhanced HUD's capacity by providing specialized expertise that may not be available in-house. The long-term impact depends on knowledge transfer and the integration of the advisory services' recommendations into HUD's ongoing operations. If the services led to improved financial strategies or more efficient resource allocation, the impact would be positive.
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
Solicitation ID: R-OPC-22733
Offers Received: 4
Pricing Type: COMBINATION (TWO OR MORE) (2)
Evaluated Preference: NONE
Contractor Details
Address: 1101 NEW YORK AVENUE, NW, WASHINGTON, DC, 98
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $39,395,623
Exercised Options: $39,395,623
Current Obligation: $39,395,623
Timeline
Start Date: 2006-04-01
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2013-10-21
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