HUD awards $37.7M for Mortgage Brokerage Services to PEMCO, Limited under M&M III

Contract Overview

Contract Amount: $37,687,764 ($37.7M)

Contractor: Pemco, Limited

Awarding Agency: Department of Housing and Urban Development

Start Date: 2010-06-01

End Date: 2015-12-31

Contract Duration: 2,039 days

Daily Burn Rate: $18.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 27

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ASSET MANAGER (AM) M&M III - AREA 2D

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96826

State: Hawaii Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $37.7 million to PEMCO, LIMITED for work described as: ASSET MANAGER (AM) M&M III - AREA 2D Key points: 1. The contract value of $37.7 million over approximately 5.5 years indicates a significant investment in mortgage brokerage. 2. PEMCO, Limited secured this contract through full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs, but potential risks include scope creep or unforeseen market changes. 4. This spending falls under financial services, specifically mortgage and loan brokerage, supporting housing initiatives.

Value Assessment

Rating: fair

The total award of $37.7 million for 5.5 years averages around $6.85 million annually. Without specific benchmarks for similar mortgage brokerage contracts, it's difficult to definitively assess pricing, but the duration and scope suggest a substantial commitment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, which typically fosters competitive pricing and allows the government to select the best value. The fixed-price nature further supports cost control.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at a reasonable price, though the overall scale of the award warrants ongoing monitoring.

Public Impact

Supports the Department of Housing and Urban Development's mission to create strong, sustainable communities. Facilitates access to mortgage and non-mortgage loans, potentially impacting housing affordability and availability. The contract's duration suggests a long-term need for these brokerage services. Geographic focus on Hawaii (HI) indicates specific regional housing market support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or quality indicators in the provided data.
Potential for market fluctuations impacting the value of brokerage services over the contract term.
Limited insight into the specific types of loans being brokered and their impact.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Fixed-price contract type helps manage cost certainty.
Supports a key government agency (HUD) with a clear mission.

Sector Analysis

This contract falls within the financial services sector, specifically mortgage and non-mortgage loan brokerage. Spending benchmarks in this area can vary widely based on market conditions, loan volumes, and the complexity of the services required.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the contract was awarded to a larger entity or that small business set-aside provisions were not applied.

Oversight & Accountability

The Department of Housing and Urban Development is responsible for oversight. The fixed-price nature of the contract provides some cost control, but ongoing monitoring of performance and adherence to contract terms is crucial for accountability.

Related Government Programs

Mortgage and Nonmortgage Loan Brokers
Department of Housing and Urban Development Contracting
Department of Housing and Urban Development Programs

Risk Flags

Contract duration is substantial (over 5 years), increasing exposure to market changes.
Lack of specific performance metrics in the provided data.
Potential for cost overruns if scope is not tightly managed, despite fixed-price.
Limited visibility into the specific impact on small businesses.
Geographic concentration in Hawaii might limit broader applicability or scalability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $37.7 million to PEMCO, LIMITED. ASSET MANAGER (AM) M&M III - AREA 2D

Who is the contractor on this award?

The obligated recipient is PEMCO, LIMITED.

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 $37.7 million.

What is the period of performance?

Start: 2010-06-01. End: 2015-12-31.

What specific types of mortgage and non-mortgage loans are being brokered under this contract, and how do they align with HUD's strategic housing goals?

The provided data does not specify the exact types of loans. However, given HUD's mission, it's likely focused on government-insured loans (like FHA) or programs aimed at increasing access to homeownership, particularly for underserved populations or in specific geographic areas like Hawaii. Understanding the loan portfolio is key to assessing the contract's alignment with strategic housing objectives.

How does PEMCO, Limited's pricing compare to industry benchmarks for similar mortgage brokerage services, considering the contract's duration and scope?

Without access to detailed pricing structures or comparable contract data, a precise benchmark is difficult. The $37.7 million award over 5.5 years suggests a significant volume of business. A thorough review would involve analyzing PEMCO's fee structure against typical brokerage rates for government-backed loans and the specific market conditions in Hawaii.

What mechanisms are in place to ensure the effectiveness and efficiency of PEMCO, Limited's brokerage services throughout the contract period?

The contract is firm fixed-price, which incentivizes efficiency. However, effectiveness relies on specific performance standards, service level agreements, and oversight from HUD. Regular performance reviews, quality assurance checks, and clear communication channels are essential to ensure PEMCO meets its obligations and delivers value.

Industry Classification

NAICS: Finance and Insurance › Activities Related to Credit Intermediation › Mortgage and Nonmortgage Loan Brokers

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 27

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1632 S KING ST STE 100, HONOLULU, HI, 96826

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,235,875

Exercised Options: $41,235,875

Current Obligation: $37,687,764

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS23F0033V

IDV Type: FSS

Timeline